- Ovo and Nissan launch a battery storage system to boost solar panel savings
- It lets households save more of the electricity generated through solar panels
- It’s available to Ovo customers and it claims to save households £590 a year
- The battery pack costs £4,800 and has a guarantee for five years
Energy firm Ovo is launching a battery storage system in conjunction with Nissan which it says can save households an average of £590 a year on energy bills.
The system allows consumers to store more of the electricity created from their solar panels which would otherwise be wasted.
With energy bills rising and all of the Big Six providers hiking prices already this year, we’ve taken a look at just how much difference having a battery system could make.
Ovo and Nissan launch a battery storage system to boost solar panel savings and cut bills
The energy firm claims the battery system, called OVO SolarStore (Beta), could shave hundreds off energy bills.
This saving is made up of two parts: The first is £240 which would be a saving on the amount of energy used per year – as more will be self-generated and stored via the battery pack.
While the second of £350 is the average amount Ovo estimates households can make by selling excess energy back to the national grid.
But in order to make these savings, you’ll need to have both the battery pack from Ovo and a set of solar panels installed.
The price of the battery is £4,800 upfront with a £500 installation cost and £50 initial survey price.
If you don’t have solar panels already the cost of these (without installation) could be up to £6,000 for a 21 square meter roof.
But with such a significant amount to pay out, is it ever worth investing in a system such as this?
Ovo claims households could save £590 a year off their energy costs with the battery pack
Solar panels are a way to generate your own electricity by harnessing power from the sun and converting it into energy you can use to power your house, while the battery storage units allow households to use more of the energy they generate and sell back any you don’t use to the grid.
But while neither of these are new products to the market, the deal from Ovo is the first we’ve seen from an energy firm of its size.
Here we run through how it works and what it costs to help you decide if the investment is worthwhile.
How does the Ovo system compare to others on the market?
There are a number of battery systems on the market and earlier this year Ikea launched one priced at £3,000 to be fitted into homes with solar panels.
It marketed the product as being the most competitive on the market, and compared to the other big player in this field – Tesla – which has a similar system priced at £5,400, the Powerwall, it is significantly less.
The battery pack lets households save more of the electricity generated through solar panels
We asked Tesla what the average yearly savings were for the Powerwall and it said a three-bedroom house using 15kWh of energy per day, with a 5kW solar installation and the Powerwall could see a saving of 87 per cent on their annual energy bills.
However, it’s worth remembering that the estimated savings quoted by the providers are also average amounts they expect people to make and these can be far higher (or lower) depending on energy usage, the size of the property and the number of solar panels.
How much can you save with solar panels and a storage pack?
The initial cost of the Ovo battery pack, if you’ve already got solar panels installed, is £4,800.
If you don’t have solar panels you’ll need to factor in the cost which will depend on the size of your property and the number fitted.
The installation is £500 and the cost of the initial survey is £50 where an Ovo engineer will visit your home to see if it’s eligible and to answer any questions about the process.
The average annual savings are expected to be £590 which over five years, the guarantee period provided with the battery pack, is £2,950.
However, the battery is expected to last far longer than this, and solar panels have a life expectancy of around 20 years on average.
Therefore over a 20-year span this could lead to savings of around £11,800 on average.
The battery pack is available to Ovo customers and it claims to save households £590 a year
Lots of homes across the country have solar panels, but since 2015, when the Government subsidies for those with the panels were reduced, they are now more costly.
Yet while the solar panels and battery storage are a big cost, the idea behind them is over time you make the money back through lower electricity bills.
The feed-in tariff is a certain amount paid by the Government to certain households for the electricity they generate through their solar panels.
It is paid quarterly by your energy provider but was cut by around 65 per cent in 2016.
Therefore when considering solar panels, or a battery pack, you’ll need to factor in all the different aspects before making a decision.
How can you get the Ovo battery pack?
Along with being an Ovo customer there are a few other things people must have in place in order to get the new battery pack.
This includes, having solar panels on your home (it doesn’t matter how many), being eligible for a smart meter, having an estimated annual energy consumption of more than 1,500kwh and being a member of the feed-in tariff register.
A battery storage pack lets households save more of the solar electricity they generate
At the moment it will also only accept households in certain regions of southern England, the Midlands and Wales.
The battery pack will be available in the next two weeks and Ovo has a new website for those interested in finding out more information.
While the battery is available to buy, the system is currently still in the ‘beta’ stage and the provider says it wants to develop it further before fully launching it at a later date and will be asking for feedback from all those who buy it during this stage.
Stephen Fitzpatrick, Ovo chief executive, said: ‘This is the first consumer battery proposition of its kind in the UK.
‘Our Solarstore offer helps customers make the most of their own solar generation as well as substantially lowering their energy bills.’
What happens if you move home?
The battery pack is yours once you buy it and Ovo says it can uninstall and reinstall it if you move home, although you’ll need to make sure the property you’re moving to meets the criteria for the pack such as being on the feed-in tariff register.
How does it work with an electric car?
The battery pack is being produced by both Ovo and Nissan and from January 2018 it will be possible to have a charging unit installed for electric cars.
This will allow owners of the Nissan EV to connect to the grid and charge their car from home and use the stored energy from the Ovo battery pack.
Mr Fitzpatrick added: ‘Electric vehicles are fast becoming a mainstream option for drivers and solve many of the challenges facing our cities.
‘We believe that they have an integral part to play in the twenty-first century power grid and accelerating decarbonisation and mobility.
‘We’re delighted that we can now offer such a compelling incentive to customers who are generating their own clean power, providing a truly sustainable alternative to the traditional energy model.’
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Courtesy: Daily Mail Online