Home batteries: 7 myths from the media busted
Myths and misconceptions of home batteries have surged with the rising interest in the technology among homeowners. These have come from all sorts of sources around the internet and within the media.
The goal of this article is to provide you with accurate information about home batteries. We'll dispel common myths and present clear, factual insights to help you understand the true potential and benefits of batteries.
The topic in a nutshell
Get a personalised assessment for the best home battery and tariff combination in a consultation.
Myth #1: You lose your Feed-in-Tariff (FiT) when adding a home battery
The Truth #1 - It is possible to keep the FIT when adding a battery as long as you follow Ofgem's guidance on retrofitting a battery. Either the existing inverter stays in place for an AC coupled retrofit system or you replace the existing inverter with a hybrid inverter for a DC-coupled retrofit, which requires you to install a bi-directional meter for accurate measurement of electricity flows. In both cases, the FiT's export component will be cancelled and replaced by more competitive smart export guarantee (SEG) rates.
The good news is, however, that your generation component will stay intact. FITs are comprised of two components: (a) generation payments and (b) export payments. Typically, the generation payment accounts for the majority of a FIT’s economic benefit. Generation payments range between 40 and 50 p/kWh, compared to just 3 p/kWh for export payments. As both components are contractually independent, FIT recipient can cancel the export payment while keeping the generation payment.
Myth #2: Home batteries are too expensive
The Truth #2: Battery prices have come down by up to 50% in recent years. Driven largely by the increased supply (and oversupply) of batteries for EVs, the recent drop in precious metal prices and better manufacturing processes. Causing the initial investment in a residential battery system to start at just £3,700.
Don’t forget the government has introduced a VAT reduction, saving you 20% on your stand-alone battery and retrofit battery projects. The tax cut came into existence in February 2024.
Myth #3: Home batteries are unsustainable and unrecyclable
The Truth #3: Battery technology has improved dramatically - The paradox is nearly resolved with Lithium Iron Phosphate (LFP) (the chosen technology for Instagen and Tesla) batteries proving to be more environmentally friendly than traditional NMC lithium-ion batteries. This advantage arises primarily because LFP batteries lack cobalt and nickel, metals notorious for their environmentally harmful extraction methods.
Research indicates that widespread nickel battery usage could elevate emissions to 8.1 GtCO2eq, while a shift to LFP batteries could lower emissions by about 1.5 GtCO2eq. Additionally, LFP batteries have a lower greenhouse gas emission intensity, at 55 kgCO2eq per kWh, compared to nickel-based batteries.
Furthermore, the components of LFP batteries—iron, phosphate, and lithium—are not only plentiful but also readily available worldwide. This highlights the feasibility of LFP batteries and alleviates the environmental and societal pressures associated with extracting rare materials, particularly those required for nickel-based batteries.
Batteries also enable the energy transition at a reduced cost, minimising the need for major grid investment and huge quantities of copper extraction. Some of the cheapest and greenest electricity today comes from solar and wind. However, as the adoption of such technologies increases so too does the pressure on the grid. Batteries help alleviate that pressure by charging and discharging at times when there is excess electricity.
LFP batteries can be recycled and will be recycled due to the inherent value left in them at the end of their life. The recycling process for LFP batteries begins with their collection and transportation to a specialised recycling facility. During this stage, proper handling and packaging are crucial to prevent accidents and ensure safe transit. Once at the facility, the batteries are sorted according to their chemistry and size, followed by disassembly to separate valuable components from other materials.
“All of those materials we put into a battery and into an EV don’t go anywhere. They don’t get degraded…—99% of those metals…can be reused again and again and again. Literally hundreds, perhaps thousands of times.”
Recycling these batteries involves a blend of physical and chemical processes. The batteries are often crushed, shredded, and sieved to isolate the cathode materials. This is followed by hydrometallurgical or pyrometallurgical techniques to extract valuable metals and elements. The recovered materials are then refined and can be reused in the production of new batteries or other applications, conserving resources and mitigating the environmental impacts associated with mining and extraction.
Myth #4: Home batteries cause a significant fire risk to their surroundings
The Truth #4: Fire risk in residential batteries remains very low. In September 2020, the UK government released a review addressing the safety risks associated with domestic battery energy storage systems. A UK government's research paper notes that there have been 'few incidents with domestic battery energy storage systems known in the public domain'. Nonetheless, the report emphasises the necessity of implementing appropriate safety measures.
Batteries are becoming safer and more regulated. Investment in battery technology is increasing and with-it testing protocols and understanding. There are also very high standards in place for installers (Battery Storage Standard MIS 3012) which outline the installation requirements for batteries in residential properties. The Microgeneration Certification Scheme (MCS) is a certification that ensures the highest quality installation possible.
Myth #5: Home batteries only make sense in combination with Solar PV
The Truth. #5: Residential storage batteries make economic sense both with and without PV. With stand-alone battery projects creating the same, if not better, value than PV projects. Through utilising the difference between peak and off-peak electricity prices, consumers can charge up their batteries at night and discharge during the day. This lets them save up to 70% on their bills, without taking into the account the ability of battery owners to enter other electricity markets such as local flexibility.
Myth #6: Home batteries are too big, taking up lots of space in the house
.jpg)
The Truth #6: Home storage batteries are getting smaller and smaller. With continued research and development, the physical size of batteries is decreasing. With a typical 5 kWh InstaGen battery 66x50x20cm which is much smaller than your washing machine at 70x80x65cm, they both weigh roughly the same amount.
An IP65 rating means batteries can be installed outside. They take up no space inside unlike a washing machine and only need a small cover to pass the rating. Do ensure your battery has the correct IP rating, with IP65 being the minimum for outdoor installations.
Myth #7: Home batteries degrade very quickly, resulting in much worse performance over time
The Truth #7: Batteries do degrade but not at a rate to make it not worth investing in. With LiFePO4 batteries (InstaGen) lasting for 8000 cycles before dropping to 80% of their original capacity. If a battery charges and discharges every day it will last for nearly 22 years. The average payback period for someone who invests in a home storage battery is between 5 and 10 years, after that they are making profit from their investment.
The science of why batteries degrade over time is simple. Batteries consist of several key components: the anode (negative), the cathode (positive), a separator between them, and an electrolyte, usually a liquid, that conducts ions. Charging a battery involves packing a large number of lithium ions into the anode, similar to soaking up water with a sponge. When the battery is in use, these ions move to the cathode, creating an electric current. Over time, repeatedly moving ions in and out of the anode and cathode damages this "sponge," reducing its ability to hold as many ions and decreasing the battery's efficiency.
If you would like support in choosing the right battery system or have any other questions, please get in touch via the form below:
.webp)
