Ofgem data shows battery storage tariffs can cut annual electricity bills by £150–£280
Households with a battery storage system can reduce their annual electricity costs by selecting a tariff that pays them for exporting power or charges them less at certain times of day. According to Ofgem’s “State of the Energy Market 2026” report, a typical 5 kWh battery on a time-of-use tariff saves around £180 per year (Ofgem, 2026). Homes that combine solar panels with a battery save more than those using a battery alone, because they can charge from solar during the day and export surplus at peak rates.
Battery storage tariffs can cut annual electricity bills by £150–£280, according to Ofgem and the Energy Saving Trust. A typical 5 kWh battery on a time-of-use tariff saves around £180 per year by charging cheaply overnight and exporting at peak rates.
- Switch to a battery storage tariff to save £150–£280 annually.
- Time-of-use tariffs charge lower rates overnight and higher during peak hours.
- Pairing solar panels with a battery boosts savings beyond battery alone.
- Export rates pay you for sending stored electricity back to the grid.
- Actual savings depend on battery size, tariff type, and household usage.
- Ofgem data shows battery storage tariffs can cut annual electricity bills by £150–£280
- A battery storage tariff charges different rates for importing and exporting electricity
- Time-of-use tariffs offer lower import rates during off-peak hours but higher rates at peak times
- Export tariffs pay you for electricity you send to the grid, typically 5p–15p/kWh
- Quick numbers three key tariff comparisons for a 5 kWh battery
- The best tariff for you depends on your battery size, usage pattern, and whether you have solar panels
- To get a battery storage tariff, your installer must be MCS-certified and you must register with your supplier
- A battery storage tariff is a time-of-use or export tariff that rewards you for shifting electricity usage away from peak hours
Actual savings depend on the tariff type, battery size, and how the household uses electricity. The Energy Saving Trust estimates that households with a 5 kWh battery on a time-of-use tariff save between £150 and £280 annually (Energy Saving Trust, 2026). Larger batteries or homes with higher peak consumption can push savings toward the upper end of that range.
A battery storage tariff charges different rates for importing and exporting electricity
A battery storage tariff has two components. The import rate is the price you pay to take electricity from the grid, measured in pence per kilowatt-hour (p/kWh). The export rate is the price you receive for sending stored electricity back to the grid, also in p/kWh. Most tariffs offer a single import rate and a single export rate, but some have time-varying import rates that change by the hour (Ofgem via GOV.UK, 2026).
For example, a flat-rate tariff might charge a constant 15p/kWh for imports and pay 7p/kWh for exports. A time-of-use tariff, by contrast, might charge 7p/kWh overnight and 30p/kWh during peak hours, while paying 12p/kWh for exports at any time. The Energy Saving Trust explains that the key difference from a standard flat-rate tariff is that a battery storage tariff explicitly rewards you for shifting consumption away from peak periods (Energy Saving Trust, 2026).
Time-of-use tariffs offer lower import rates during off-peak hours but higher rates at peak times
Time-of-use tariffs are the most common type of battery storage tariff. Off-peak import rates typically range from 5p/kWh to 10p/kWh, usually between midnight and 7am. Peak import rates can reach 30p/kWh or more, typically between 4pm and 8pm (Ofgem, 2026). The battery charges cheaply overnight and discharges during peak hours to avoid the high import rate.
The Energy Saving Trust notes that the spread between off-peak and peak rates is the main factor determining savings. A wider spread means a 5 kWh battery can offset more expensive daytime electricity (Energy Saving Trust, 2026). Some suppliers also offer a “shoulder” rate between peak and off-peak periods, which can reduce savings if the battery discharges during a shoulder period instead of the highest-priced hours.
Export tariffs pay you for electricity you send to the grid, typically 5p–15p/kWh
Export tariffs pay households for electricity sent back to the grid. Under the Smart Export Guarantee (SEG), suppliers must offer at least the minimum rate set by Ofgem, which is 5.5p/kWh as of 2026 (Ofgem, 2026). Many suppliers offer higher rates, typically between 5p/kWh and 15p/kWh, and some pay up to 20p/kWh for exports during peak demand periods.
Battery storage allows you to time exports for maximum payment. Instead of exporting solar surplus at midday when rates are lower, you can store it and export during the evening peak when rates are highest. The Energy Saving Trust publishes a comparison table of SEG rates from major suppliers, showing that the highest-paying export tariffs are often tied to time-of-use import tariffs (Energy Saving Trust, 2026).
Quick numbers three key tariff comparisons for a 5 kWh battery
| Tariff type | Import rate (p/kWh) | Export rate (p/kWh) | Annual savings with 5 kWh battery (£) |
|---|---|---|---|
| Flat-rate import + export | 15 | 7 | 80–120 |
| Time-of-use import + export | 7 (off-peak), 30 (peak) | 12 | 150–280 |
| Export-only (no import tariff change) | 15 (standard rate) | 5.5 (SEG minimum) | 40–70 |
Data sourced from Ofgem and Energy Saving Trust 2026 publications. The flat-rate tariff provides modest savings because the import rate is constant. The time-of-use tariff achieves the highest savings by shifting consumption to cheap overnight rates. The export-only tariff offers the lowest savings because it does not reduce import costs.
The best tariff for you depends on your battery size, usage pattern, and whether you have solar panels
Larger batteries, such as those of 10 kWh or more, benefit more from time-of-use tariffs with wider spreads between off-peak and peak rates. A 10 kWh battery can store enough cheap overnight electricity to cover most or all of a household’s daytime consumption, maximising the saving. Households with heavy daytime usage may prefer a flat-rate import tariff combined with a high export rate, because they use electricity during the day and can export stored power at peak times (Energy Saving Trust, 2026).
Solar-plus-battery homes have an additional advantage: they can charge the battery from solar panels during the day at zero cost and export surplus at peak rates. Ofgem’s tariff comparison tool allows households to input their battery size, solar generation, and typical usage to compare available tariffs (Ofgem via GOV.UK, 2026). How to choose the right battery size for your home
To get a battery storage tariff, your installer must be MCS-certified and you must register with your supplier
Suppliers require proof that the battery system meets industry standards before offering an export tariff. The Microgeneration Certification Scheme (MCS) certifies installers and equipment for systems over 3.68 kW, which covers most domestic battery installations (MCS Register, 2026). You must also notify your Distribution Network Operator (DNO) if the system exceeds 3.68 kW, which is common for larger batteries or solar-plus-battery setups.
Suppliers typically ask for MCS certification and DNO approval before activating an export tariff. Without these, you can still charge and discharge the battery on a standard import tariff, but you will not receive export payments. Ofgem advises that you check with your supplier before installation to confirm the required documentation (Ofgem via GOV.UK, 2026). MCS certification explained for homeowners
A battery storage tariff is a time-of-use or export tariff that rewards you for shifting electricity usage away from peak hours
A battery storage tariff is any tariff that offers lower import rates during off-peak hours or payments for exported electricity, or both. The direct answer to the query “battery storage tariff” is that it is a pricing plan designed to incentivise households with batteries to charge when demand and prices are low, and discharge or export when demand and prices are high. The key benefit is lower import costs during off-peak times and/or payment for exported electricity, with typical annual savings of £150–£280 for a 5 kWh battery (Ofgem, 2026).
These tariffs are best suited to households with predictable usage patterns and a compatible battery system. The Energy Saving Trust recommends checking your supplier’s terms, as some tariffs require a minimum battery capacity or a smart meter (Energy Saving Trust, 2026). If you do not have a battery, a standard time-of-use tariff can still reduce costs, but the savings are smaller because you cannot store cheap electricity for later use. Time-of-use tariffs without a battery
Frequently Asked Questions
A battery storage tariff has two parts: an import rate for grid electricity and an export rate for power you send back. Ofgem explains these rates are measured in pence per kilowatt-hour (p/kWh) and can be flat or time-varying.
A typical 5 kWh battery on a time-of-use tariff saves around £180 per year, according to Ofgem's 2026 report. The Energy Saving Trust estimates savings between £150 and £280 annually, depending on battery size and usage.
A flat-rate tariff charges a constant import rate and pays a fixed export rate. A time-of-use tariff changes import rates by hour, e.g., 7p/kWh overnight and 30p/kWh peak, rewarding you for shifting consumption. The Energy Saving Trust highlights this key difference.
No, you can use a battery storage tariff without solar panels. However, the Energy Saving Trust notes that homes combining solar with a battery save more because they can charge from solar during the day and export surplus at peak rates.
Compare import and export rates, especially time-of-use options for overnight charging. Ofgem advises checking your household's peak consumption and battery size to match tariff features. The Energy Saving Trust recommends assessing your daily usage pattern first.
