TL;DR: While direct grants for standalone battery storage are limited, you may benefit from 0% VAT and schemes like ECO4 if you meet specific eligibility criteria. Installing a battery without solar can still lower your bills by using off-peak electricity tariffs, though your property may be at risk if you use certain types of financing to fund the installation.

Can I get a grant for a battery storage system without solar panels?

As energy prices remain a concern for many households across the UK, the demand for home energy storage has increased. Many homeowners want to know: can I get a grant for a battery storage system without solar panels? The short answer is that while standalone battery grants are less common than those for solar-plus-storage systems, there are still several ways to reduce the cost or receive financial assistance.

In the past, battery storage was almost always bundled with solar panel installations. However, with the rise of “smart” electricity tariffs, a battery on its own can now be a viable way to save money. By charging the battery with cheap electricity overnight and using it during the day, you may significantly lower your monthly outgoings. This guide explores the current grants, tax incentives, and financing options available in the UK.

The 0% VAT Incentive for Standalone Batteries

Perhaps the most significant financial boost for those looking at standalone batteries came into effect in early 2024. The UK government expanded the 0% VAT relief for energy-saving materials to include standalone battery storage. Previously, you could only get the 0% VAT rate if the battery was installed at the same time as solar panels. If you bought a battery on its own, you would usually have to pay the standard 20% VAT.

This change means that any battery storage system installed in a residential property now qualifies for 0% VAT until March 2027. While this is not a “grant” in the traditional sense where someone gives you cash, it represents a direct 20% saving on the total cost of your installation. For a system costing £5,000, this saves you £1,000 immediately. This incentive is available to most homeowners and does not require you to be on specific benefits.

The ECO4 Scheme and Battery Storage

The Energy Company Obligation (ECO4) is a government-led scheme that requires energy suppliers to help low-income and vulnerable households improve their energy efficiency. You may be wondering if you can use ECO4 to get a battery without solar.

Typically, ECO4 focuses on “whole-house” solutions. This means the installers look at the property and decide which combination of measures will most effectively improve its energy rating. While battery storage is an eligible measure under ECO4, it is rarely installed as a standalone item. It is usually included alongside a heat pump or solar panels. However, if your property already has a renewable energy source, or if the installer determines that a battery is the most effective way to hit energy efficiency targets, it may be covered.

To qualify for ECO4, you generally need to receive certain means-tested benefits, such as Universal Credit, Pension Credit, or Child Tax Credits. You can find more information about the Energy Company Obligation on the GOV.UK website.

The Home Upgrade Grant (HUG)

The Home Upgrade Grant (HUG) is another potential source of funding. This is specifically for homes that are not connected to the main gas grid. Local authorities manage these grants and use them to install energy-saving measures in low-income households.

Like ECO4, HUG tends to prioritises insulation and low-carbon heating. However, solar PV and battery storage can be part of the package. If you live in a property without gas central heating and your household income is below a certain threshold (typically £31,000 or less), you may be eligible. It is worth contacting your local council to see if they are currently running a HUG scheme and whether standalone batteries are included in their local remit.

Can You Save Money Without a Grant?

Even if you do not qualify for a government grant, a standalone battery storage system can still be a sound financial decision. This is due to “time-of-use” tariffs. Some energy providers offer tariffs where electricity is much cheaper during off-peak hours (usually between midnight and 5:00 AM).

With a battery storage system, you can:

• Program the battery to charge during the cheapest hours.
• Use that stored energy during the evening “peak” hours when electricity is most expensive.
• Avoid drawing power from the grid when prices are high.

For many households, the savings generated by this “load shifting” can pay for the battery over several years. While the initial investment is higher without a grant, the 0% VAT relief makes the “payback period” shorter than it used to be.

Financing Your Battery Storage System

If you cannot find a grant and do not have the savings to pay for the system upfront, you might consider financing. Some homeowners choose to use a personal loan, while others may consider a further advance on their mortgage or a bridging loan if they are performing wider property renovations.

When looking at finance, it is vital to check your credit position to understand what rates you might be offered. Get your free credit search here. It’s free for 30 days and costs £14.99 per month thereafter if you don’t cancel it. You can cancel at anytime. (Ad)

Before taking out any loan secured against your home, you must consider the risks. Your property may be at risk if repayments are not made. If you default on a secured loan, the lender may take legal action, which could lead to the repossession of your property. Additionally, defaulting can lead to increased interest rates and additional charges, making the debt harder to manage.

Is a Standalone Battery Right for You?

Before applying for grants or looking at financing, you should assess your home’s energy usage. A battery is most effective if you have a significant difference between your daytime and nighttime electricity usage, or if you can access a smart tariff.

If you have high electricity demand during the day and can only charge the battery at night, you could save hundreds of pounds per year. However, if your energy use is already very low, the cost of the battery might outweigh the potential savings. It is often helpful to consult with an MCS-certified (Microgeneration Certification Scheme) installer who can provide a detailed projection of your potential savings based on your actual energy bills.

People also asked

Can I get ECO4 funding for just a battery?

It is very rare to get ECO4 funding for a standalone battery. The scheme usually requires a “whole-house” approach, meaning the battery is typically installed alongside other measures like solar panels or a heat pump to ensure maximum energy efficiency gains.

Do I have to pay VAT on a home battery?

As of February 2024, you do not have to pay VAT on residential battery storage systems in the UK. The government introduced a 0% VAT rate for standalone batteries, which is currently scheduled to last until March 2027.

How much does a 5kWh battery cost to install in the UK?

The cost of a 5kWh battery system, including installation and the 0% VAT rate, typically ranges between £2,500 and £4,500. Prices vary depending on the brand, the complexity of your home’s wiring, and whether you need an additional inverter.

Can I add a battery to my existing solar panels later?

Yes, you can add a battery to an existing solar panel system at any time. This is known as “retrofitting” and also qualifies for the 0% VAT rate, making it more affordable to upgrade your current renewable energy setup.

Is it worth getting a battery without solar panels?

It can be worth it if you use a “time-of-use” tariff that offers cheap off-peak electricity. By charging the battery at night and using it during the day, you can lower your average cost per unit of electricity, though the savings are generally higher when combined with solar.

Final Thoughts

While the search for a direct “cash grant” for standalone battery storage may be difficult for the average homeowner, the financial landscape is improving. The 0% VAT relief is a significant benefit that applies to almost everyone, effectively acting as a 20% discount on the entire project. For those on lower incomes or in energy-inefficient homes, schemes like ECO4 and the Home Upgrade Grant remain the best route, even if the battery must be part of a larger energy-saving package.

Always ensure you do your research and speak to professional installers. By combining the right technology with the right electricity tariff, you could take a significant step towards energy independence and lower utility bills.