Battery storage

Solar Battery Cost & ROI in the UK: Is It Worth the Investment?

With electricity prices in the UK still high and homeowners looking for more control over their bills, solar battery storage is emerging as a popular upgrade to solar panel systems. It promises greater energy independence, less reliance on the grid, and the ability to make the most of the electricity your panels generate. But how...

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Last updates on 16th of April 2025

With electricity prices in the UK still high and homeowners looking for more control over their bills, solar battery storage is emerging as a popular upgrade to solar panel systems. It promises greater energy independence, less reliance on the grid, and the ability to make the most of the electricity your panels generate.

But how much does a solar battery actually cost in the UK? And more importantly, how long will it take to pay for itself?

This guide explores the real-world numbers behind solar battery costs, the typical solar battery payback period, and the long-term solar battery ROI — drawing on trusted UK sources and industry data to help you decide whether it’s worth it for your home.


How Much Does a Solar Battery Cost in the UK?

Average Cost Breakdown

The cost of a solar battery in the UK depends on factors like storage capacity, brand, and installation fees. As of 2025, the cost of installing a home battery system in the UK generally ranges between £3,000 and £10,000, depending on size, brand, and installation complexity. According to MCS data, the average cost of a battery storage installation in 2024 was approximately £8,035.

Battery SizeAverage Cost (Incl. Installation)
5 kWh£2,500 - £4,000
10 kWh£4,500 - £7,000
15+ kWh£7,000 - £10,000

Actual costs can vary depending on the brand, installer, and system complexity.

Key cost drivers include:

  • Battery Type: Lithium-ion batteries (e.g., Growatt) offer longer lifespans and higher efficiency, but cost more upfront.
  • Installation Fees: Typically range from £800 to £1,500, depending on whether the battery is installed with or retrofitted to an existing solar PV system.
  • Additional hardware: Inverters or control systems may add a few hundred pounds to the total.
  • Brand & Technology: The price and performance of battery systems can vary depending on the brand and technology used. Some brands may offer longer warranties, higher efficiency, or advanced features, which can influence overall cost and value.
  • Grants & Incentives: As of 2024, home batteries benefit from 0% VAT if installed with or added to solar PV, under the UK government’s energy efficiency scheme. This can save up to several hundred pounds. Some UK regions offer financial support for battery installations, and innitiatives like Solar Together can cut down on up front costs.


Group Buying Can Help Reduce Costs

For many, the biggest barrier to installing a solar battery is the upfront cost. One way to lower that cost is through group-buying schemes like Solar Together.

Solar Together is a council-backed initiative that helps homeowners access vetted installers and competitive pricing through group buying. While each household receives an individual quote, the scheme enables economies of scale — and for many, this reduces the barrier to entry for both solar panels and battery storage.


What is the Payback Period of a Solar Battery in the UK?

The solar battery ROI UK is determined by comparing the savings you make on your energy bill each year to the total cost of the battery system.

How to Calculate the Solar Battery ROI

The return on investment (ROI) of a solar battery storage system depends on:

  • Selling excess electricity back to the grid through the Smart Export Guarantee (SEG)—note that SEG only pays for exported energy and does not allow you to import energy at discounted rates.
  • Energy savings from increasing your self-consumption instead of buying electricity from the grid.
  • Smart import tariffs, such as time-of-use or dynamic tariffs, which allow you to charge your battery when electricity prices are low—especially useful during times when your solar panels aren’t generating energy.

Example ROI Calculation

  • Annual Savings on Energy Bills: ~£600 - £1,000 (depending on usage).
  • Total Battery Investment: ~£5,000 - £8,000.
  • Estimated Payback Period: 5 - 12 years.

If energy prices rise, the payback period shortens, making battery storage even more valuable.

Solar Battery Payback Period: How Long Until You Break Even?

In a 2025 analysis by energy tech firm Loop, the average payback period for a combined solar and battery installation was around 7 years, based on current energy prices and 0% VAT.

Your payback period depends on several factors, including electricity rates, battery size, overall usage, and the type of tariff you’re on. It’s also influenced by how much time you spend at the property making use of the energy you generate and store.

Below is an estimated breakdown:

ScenarioAnnual SavingsPayback Period
Small Household (5 kWh)£600~8 years
Medium Household (10 kWh)£800~7 years
Large Household (15+ kWh)£1,000+~6 years

Note: Payback periods are estimates based on average energy prices and 0% VAT as of 2025. Energy usage assumptions are informed by occupancy profiles outlined in MCS MGD 003.

What is the return on investment (ROI) for a solar battery in the UK?

The ROI depends on energy usage, tariff rates, and battery capacity. Most UK homeowners see an ROI of 8-12% per year.


How to Reduce Your Payback Period

Solar battery savings aren’t just about storing energy — they’re about using it smarter. Here are ways to cut down the payback period and make the most of your system:

  • Use Specific Tariffs: Charge your battery when electricity is cheapest (e.g., Octopus Energy Agile). By switching to tariffs like Economy 7 or Octopus Go, you can charge your battery at off-peak rates (often less than 10p/kWh) overnight, then use that energy during expensive peak hours — or even avoid grid use entirely during the day.This tactic means your battery doesn’t just store solar — it saves you money daily, even in winter when solar generation is lower.
  • Increase Self-Consumption: The more solar energy you use directly, the greater your savings. Although the Smart Export Guarantee (SEG) allows you to sell excess solar back to the grid, export rates are often far lower than the cost of buying electricity (typically around 5p/kWh vs. 25–35p/kWh to buy).Stored solar energy is 5 to 7 times more valuable when used in your own home than when exported — so prioritising self-consumption is key to maximising savings. (based on typical 2025 tariff comparisons.)
  • Shift Energy Usage to Battery-Powered Times: Running dishwashers, washing machines, and other large appliances during battery-powered periods boosts your self-consumption — which means more of your energy bill is being offset by low-cost or free energy.
  • Optimise with Smart Home Energy Management: Battery systems with smart controls can automatically decide the best time to charge, discharge, or export based on live tariff data, weather forecasts, and household consumption patterns.
  • Get a Government Grant: Some regions offer battery storage incentives.

Read our guide on Smart Export Guarantee (SEG).


Final Verdict: Is Solar Battery Storage Worth It?

So, should you invest in a solar battery system?

There’s no one-size-fits-all answer — but for many UK households, especially those with higher electricity use in the evenings or who want to maximise their solar investment, the numbers increasingly stack up.

If your annual bill savings can reach £700–£1,000, you could recoup the cost of a battery within 7–10 years — well within the typical 10-year warranty period. With energy prices remaining high, and smart tariffs becoming more widespread, battery ROI is stronger now than it was even two years ago.

And while not every home needs storage, many homeowners value the peace of mind and future-proofing that battery systems bring.

What Do the Experts Say?

  • The Energy Saving Trust advises that solar batteries are most financially beneficial for homes with higher evening energy usage, where solar panels alone can’t cover demand.
  • The Microgeneration Certification Scheme (MCS) reports that batteries can raise self-consumption to 80% or more, increasing the value of each kWh generated.
  • Our experts at Solar Together add: "Much like solar panels, the financial benefit of a battery system is incredibly varied per customer. It really depends on the energy tariffs they're on, how and when they use electricity, and how well they can align that usage with solar generation or low-rate times. That’s why personalisation is key."

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