What Is Battery Arbitrage and How Can I Benefit?
Battery arbitrage could help you reduce your electricity costs by charging a home battery when electricity is cheaper and using that stored energy when prices are higher.
And you don't necessarily need solar panels to benefit.
With the growth of smart, off-peak and time-of-use electricity tariffs in the UK, home battery storage can give you greater control over when you buy electricity, what you pay for it and when you use it.
It sounds technical. The principle is actually very simple:
Buy electricity when it's cheaper. Store it. Use it when electricity is more expensive.
Whether you install a standalone home battery or add battery storage to an existing solar PV system, battery arbitrage can help make your home's energy work harder.
What is battery arbitrage?
Battery arbitrage means charging a battery when electricity prices are lower and using that energy when electricity prices are higher.
Many UK energy tariffs offer cheaper electricity during periods of lower demand, particularly overnight, with higher rates applying at other times.
A home storage battery lets you take advantage of the difference. Instead of buying all your electricity from the grid when you need it, your battery can charge during a cheaper period and supply your home later.
Can I use battery storage without solar panels?
Yes. A home battery can work without solar panels.
A standalone home battery can charge directly from the grid when electricity is cheaper and supply that stored electricity to your home later.
That means home battery storage doesn't have to be about generating electricity. It can also be about buying electricity more intelligently.
How does battery arbitrage work with solar panels?
If you already have solar panels, a home battery gives you even more flexibility.
Instead of exporting surplus solar electricity as soon as it is generated, your battery can store it for use later in the day.
Your battery could therefore have two potential sources of energy:
- Lower-cost electricity from the grid
- Surplus electricity generated by your solar panels
A well-configured solar and battery system for your home can prioritise stored energy when grid electricity is more expensive, helping to reduce your reliance on imported electricity.
Which UK energy tariffs work with home battery storage?
The electricity tariff you choose can make a significant difference to the potential financial benefit of a home battery. Importantly, battery arbitrage isn't exclusive to one electricity supplier.
E.ON Next Optimise is an example of how sophisticated home energy management is becoming. Designed for compatible solar and battery systems, it combines dynamic import and export pricing with automated battery management.
British Gas Charge Power provides another approach, offering eligible battery customers discounted electricity during a set overnight period.
Tariffs such as E.ON Next Drive Smart, EDF GoElectric and Intelligent Octopus Go offer lower-cost electricity during specified periods, subject to their respective eligibility criteria and terms.
For homes with solar PV, Octopus Flux is an example of a tariff combining time-of-use import and export pricing.
Can I charge a home battery using Economy 7?
Yes. Economy 7 can be particularly interesting for home battery storage.
Economy 7 typically provides around seven hours of cheaper electricity, traditionally overnight, although the exact hours and rates vary by supplier, meter and location. Charge your battery during the cheaper Economy 7 off-peak period, then use that stored electricity during the higher-priced daytime period.
Charge off-peak. Store the energy. Use it when you need it.
Battery Advantage: intelligent home battery storage
At Renewable Energy Service, Battery Advantage is designed for homeowners looking for enhanced performance, intelligent monitoring and greater energy self-sufficiency. It can be installed as a standalone home battery or alongside solar panels, giving you greater control over when your electricity is bought, stored and used.
Battery Signature: premium battery performance
For homeowners who want to take energy management further, Battery Signature is our premium battery solution, designed around maximum performance. It is particularly suited to households where greater battery capacity, higher electricity consumption or a more sophisticated energy strategy makes maximising the value of stored electricity a priority.
How does home battery storage help the National Grid?
Battery arbitrage isn't only about reducing your electricity costs. By shifting some household consumption to off-peak periods, battery storage can reduce the amount of electricity a home needs from the grid during busier periods. For the wider electricity system, it means more consistent demand and better use of available energy.
How much could a home battery save me?
There's no single answer because every household is different. Your potential home battery savings will depend on:
- How much electricity you use
- When you use electricity
- Your battery capacity
- Your peak and off-peak electricity prices
- Whether you have solar panels
- How much surplus solar electricity you generate
- Your export tariff
- Battery efficiency
- How your battery is configured to charge and discharge
A properly considered battery system should bring together your home, your energy consumption, your generation and your electricity tariff.
Is home battery storage right for me?
Home battery storage could be worth considering if you:
- Have solar panels and want to use more of the electricity you generate
- Want battery storage but don't have solar panels
- Have access to cheaper overnight electricity
- Use an Economy 7 or time-of-use tariff
- Own an EV and already have an off-peak electricity tariff
- Want to reduce your reliance on peak-rate grid electricity
Make your energy work harder
Instead of simply paying the electricity price that applies when you need energy, you can start taking greater control over when you buy it, when you store it and when you use it.
Buy smarter. Store smarter. Use energy on your terms.
Ready to take control of your home energy?
Whether you're looking for standalone battery storage or want to add a battery to an existing solar system, explore Battery Advantage and Battery Signature, choose the battery capacity that suits your home and get an indicative price.
Ready to Find Out More?
Our friendly and knowledgeable team of Solar and Storage experts will support you through the full process, helping you to make an informed decision with confidence.