Why Solar and Battery Storage Are Key to Unlocking Lower-Cost Energy for Homes and Businesses Across the UK
As renewable energy generation increases across the UK, periods of low-cost or even free electricity are expected to become more common, with those using solar and battery storage best placed to take advantage.
The National Energy System Operator (NESO) has confirmed that its Demand Flexibility Service (DFS) will be extended beyond winter and into the summer months. This reflects a growing reality across the UK energy system: at times of high renewable generation, particularly during sunny or windy conditions, electricity supply can exceed demand.
Turning Excess Renewable Energy into Opportunity
Historically, excess solar electricity has led to constraint payments, where renewable generators are paid to reduce output when the grid cannot accommodate the volume of power being produced.
The expansion of the DFS model changes this approach. Instead of reducing generation, consumers are now encouraged to use electricity when it is most abundant, helping to balance the grid while reducing overall system costs. In some cases, consumers may also receive financial incentives for shifting electricity use to these periods.
For homes and businesses, this creates a clear opportunity to access lower-cost or even free electricity during peak generation periods. With hundreds of thousands of homes and businesses already using battery storage systems across the UK, those with the ability to store and shift energy use are expected to benefit most.
Industry bodies have welcomed the move. As Chris Hewett, Chief Executive of Solar Energy UK, noted, extending the Demand Flexibility Service will “create even more of an incentive to invest in a solar and battery installation”.
The Role of Battery Storage
Battery storage systems are central to unlocking the full value of this shift. Modern battery storage systems allow users to store electricity when it is cheapest or most readily available, and use it when prices are higher or demand increases.
For homeowners, this is increasingly delivered through integrated solar panels and battery storage systems for homes, enabling greater control over energy use and long-term cost savings. Typical residential systems can store more than 10kWh of electricity, providing enough capacity to significantly reduce reliance on the grid and maximise self-consumption of solar energy. More advanced systems can also respond automatically to grid signals, charging and discharging at optimal times to maximise financial benefit.
What This Means for Homeowners
For households, the extension of the Demand Flexibility Service offers a more flexible and cost-effective way to manage energy use. As time-of-use tariffs become more common, battery storage enables a largely automated approach to energy management. By shifting electricity consumption to periods of high renewable generation, homeowners can:
- Reduce electricity bills
- Take advantage of low-cost or free energy periods
- Improve the value of their solar and battery system
- Lower reliance on grid electricity during peak pricing
A Larger Opportunity for Businesses
For organisations with higher energy demand, the extension of the Demand Flexibility Service represents a fundamental shift in how energy is managed. As pricing becomes more dynamic, commercial battery storage systems enable a more strategic and controlled approach to electricity use, particularly in sectors such as manufacturing, education, logistics and food production where energy demand is high and continuous. This allows businesses to:
- Shift large energy loads away from peak pricing periods
- Store low-cost or free electricity for later use
- Reduce exposure to volatile energy prices
- Improve operational cost control and forecasting
A Smarter Approach to Energy Management
Battery storage is no longer just about storing solar power. As electricity pricing becomes more dynamic, it enables a more intelligent and responsive approach to energy use, allowing consumption to be optimised based on cost, demand and availability. This allows homeowners and businesses to:
- Charge from the grid when electricity is cheapest
- Store excess solar generation during the day
- Discharge during peak demand when prices are highest
Take Control of Your Energy Costs
As electricity pricing becomes more dynamic, the way energy is used is changing. The ability to generate, store and manage your own renewable energy is becoming increasingly important for reducing costs and improving resilience.
Solar and battery storage systems enable you to take advantage of low-cost and free electricity, storing energy when it is most abundant and using it when prices are highest.
Speak to SolarSense to find out how an integrated solar and battery system could work for your home or business and help reduce your energy costs.