E.ON Next has called for energy sector support in fuel-poor households to focus on installing batteries. It wants installation of 250,000 home batteries in the country’s fuel-poor households at a cost of £600 million.
The company said economic analysis shows home batteries, combined with ToU tariffs, would save the fuel-poor households around £753 million a year on their energy bills. If all UK households took a similar approach savings would total £5.45 billion a year.
The call is based on findings from a battery pilot project in partnership with Coventry City Council, detailed in a new report (The Home Age) from E.ON Next.
The Home Age, published today by E.ON Next, analyses the results of the company’s first-of-a-kind battery pilot in partnership with Coventry City Council. Homes in the city were given upgrades including batteries, solar panels, insulation, and energy-efficient white goods, as well as being placed on a time-of-use tariff to incentivise energy usage when there is less demand on the grid. It says households in the pilot saved on average £255 a year on their energy bills due to batteries alone. For larger families, whose energy needs are typically twice those of the average household, bills reduce by around £415 a year.
It said potential savings for households with medical dependencies, such as kidney dialysis machines, are even higher, citing one family participating in the Coventry pilot that saw their energy bills fall by the equivalent of £600 a year.
On the back of these figures, E.ON Next has issued a call for government to support the installation of batteries in 250,000 homes where residents are in fuel poverty. The Home Age report highlights that government investment of £600m would support lower income families by ‘reducing their bills, helping them to heat their homes more affordably and protecting them from price volatility’.
Ramona Vlasiu, Chief Operating Officer for E.ON Next, said, “Financial support packages such as the Winter Fuel Payment have a role to play in tackling the issue, but we believe the way to solve it long-term is to put people at the heart of the energy transition. That means upgrading their homes with new technology, such as batteries, and putting them in control of the energy they use. Doing so will not only lower energy bills in the short term, but also create a national energy system with a long-lasting positive impact by reducing fuel poverty, creating jobs and boosting the economy.”
Chris Norbury, CEO of E.ON UK, said: “Our national investment in energy infrastructure will, of course, progress decarbonisation and have a positive impact on energy security. Yet the impact of renewable power generation will not happen straight away.
“In parallel, we must therefore unlock flexibility at a household level and treat it as a core national asset. Flexibility helps people to take control of their energy use, lower their bills, and reduce pressure on the network. Putting batteries in residential properties across the country – particularly for people who need the most financial support – should be the start of that journey. “