If you are considering solar panels, you may already be aware that they can reduce your electricity bills by generating your own power. However, combining solar panels with battery storage can take these savings even further. By storing unused electricity for later use, a solar battery allows you to make better use of the energy you generate, reducing your reliance on the grid and increasing your overall financial return.
How do solar panels generate savings?
During daylight hours, your solar panels produce electricity that you can use directly, instead of buying it from your energy supplier. This leads to immediate savings, as every unit of electricity you generate and use yourself is one you do not need to purchase.
However, without a battery, any electricity you do not use at the time that it is generated will either be wasted, or exported back to the grid through the Smart Export Guarantee (SEG), where you will be paid for this excess electricity, contributing further to energy saving costs.
The limitation of solar panels alone
While exporting excess electricity can provide some income through schemes such as the Smart Export Guarantee (SEG), export rates are usually lower than the cost of buying electricity from the grid. This means that, from a financial perspective, it is often more beneficial to use your own electricity rather than export it. The challenge is that solar panels generate most of their electricity during the day, while energy demand is often higher in the morning and evening.
How does battery storage work?
A solar battery stores surplus electricity generated by your solar panels during the day. This means that instead of sending this energy back to the grid, it is kept for use later. You can then draw on this stored electricity:
- In the evening when solar panels are no longer generating
- During periods of high energy use
- When electricity prices are higher
This allows you to use more of your own renewable energy, rather than relying on the grid.
Increasing self-consumption
One of the key ways battery storage increases savings is by improving your self-consumption rate. This refers to the proportion of solar energy you use yourself. Without a battery, many systems use around 40% to 60% of the electricity they generate, with the remainder exported.
With a battery, self-consumption can often increase to 70% to 90% or more, depending on the size of the battery and your energy usage patterns. The higher your self-consumption, the greater your savings, because you are replacing more grid electricity with your own generation.
Supporting energy independence
Combining solar panels with battery storage allows you to move closer to energy independence. While most systems remain connected to the grid, the ability to generate and store your own electricity reduces your reliance on external energy sources. This can provide both financial and practical benefits, particularly during periods of high demand.
Long-term financial benefits
Although adding a battery increases the initial cost of a solar installation, it can improve the long-term value of the system. By increasing self-consumption and reducing electricity purchases, battery storage helps maximise the return on your investment. Over the lifetime of the system, this can result in greater overall savings compared with solar panels alone. As battery technology continues to improve, systems are becoming more efficient and accessible, making them an increasingly popular addition to solar installations.
So how can solar panels and battery storage increase your energy savings?
Solar panels help you save money by generating your own electricity, but pairing them with battery storage allows you to use more of that energy when you need it most.
By increasing self-consumption, reducing reliance on the grid, and protecting against rising energy prices, solar panels and battery storage work together to deliver stronger and more consistent energy savings. For both homes and businesses, this combination offers a more efficient and flexible way to manage energy, helping you get the most value from your solar investment over the long term.
For more information or advice, why not contact the experts today, here at the Eco Renewables Group? We work across the UK, from Oxford to Leicester, to deliver high quality solar power solutions.
