Battery Storage from Amelio Solar Energy
The UK Government has announced that from 1st February 2024 it is reducing the current 20% VAT charged on retrofitting battery storage to 0%.
This is effectively a 20% price drop for customers that see the benefits in investing in battery storage to fit alongside existing Solar PV systems.
Many people had Solar Panels installed in the days of the Feed in Tariff, i.e. prior to early 2016. They can now have battery storage without affecting the financial rewards of the Feed in Tariff. Previously VAT was charged at 20% from 1 February 2024 this will be reduced to 0%. This will increase the Return on Investment for batteries. As a result this reduction in VAT is anticipated to incentivise many more people install batteries.
Battery installations can start from as little as around £3,000. However, its vital to get professional advice on the right size installation for each home and family situation.
:
Mr and Mrs W had a 4kWp Solar PV system installed in 2014 and typically receive annual payments totalling £1,800 per year.
We installed an Alpha 3 battery storage system for them as they were keen to increase their bill savings. They enjoy being out and about during the day and thought that they could make better use of the electricity that is being exported during the day.
This battery can be positioned inside or outside the home.
When we installed their 11.47kWh battery system in late 2022 it cost £7,908 including VAT. Now the total cost would be below £6,500 for what is a very good size system for their home.
Results:
In 2023, this system has performed as follows alongside the existing PV system:
Total electricity used (from grid, PV and battery) 3,423KWH
Total Solar PV generation 3,693kWh
Solar PV electricity stored and used from battery: 1,104kWh
Grid electricity used: 931kWh
Reliance on the grid in 2023: 27%
That means that 73% of their electricity now comes from the solar PV system or battery. This is saving them around £80 per year (they pay 32p per kwh of electricity).
Mr and Mrs W benefit from being able to visually monitor their electricity usage. They can see how their battery system is performing alongside their Solar Panels. They also use it to monitor their own electricity usage to try to minimise this and further increase their bill savings. ‘So much easier to have everything together in one place and easier to see on the App than on the Smart Meter display’.
A Typical Late Summer Day’s Electricity Consumption
Once this couple are out of their current fixed tariff they are planning on switching to a more flexible tariff. Tariffs such as Octopus Flux can provide further savings. This is from being able to store cheap off peak electricity in winter, then using it during the more expensive daytime hours.