The average UK household spent £1,738 on electricity in 2024, a figure that has risen 54% since 2021. One reason is the grid’s inability to store cheap renewable power when the sun shines or the wind blows. Instead, households pay for expensive gas-fired generation during evening peaks. A new government push to unlock community energy storage could change that arithmetic.
As reported by Review Energy, the government plans to reform planning rules so community groups can install shared battery storage without the regulatory hurdles that currently favour large commercial developers. The change, expected in late 2025, would let neighbourhoods store electricity from local solar arrays or buy cheap off-peak grid power and use it when prices spike.
How community storage cuts your bill
Electricity prices in the UK are set by the most expensive generator running at any given moment, typically a gas plant. When demand peaks between 4pm and 8pm, that price can hit 35p per kWh or more. A community battery, charged with midday solar at 5p per kWh, can discharge that same power at 15p per kWh, saving every connected household roughly 20p per kWh used during peak hours.
Energy Saving Trust estimates that a typical 50-household scheme with a 100 kWh battery could save each home between £80 and £120 a year, depending on local solar generation and tariff structures. The savings come from two sources: cheaper stored power and avoided grid charges, which can account for 25% of a household bill.
Who qualifies, and who doesn’t
The new rules will apply to any community group, parish council, or housing association that wants to own and operate a shared battery. You do not need to own solar panels to benefit, the battery can charge from the grid at cheap overnight rates (Octopus Agile or similar tariffs) and discharge during peak hours.
But the catch is upfront cost. A 50 kWh commercial battery costs around £25,000 installed, plus £5,000 for grid connection and metering. Community groups can apply for grants through the Community Energy Fund (up to £100,000 per project) or the Social Housing Decarbonisation Fund, which covers 80% of capital costs for eligible projects. Without grant support, the payback period stretches to 8–10 years.
What it means for your EPC
Community storage does not directly improve your home’s Energy Performance Certificate rating, that depends on your own heating, insulation, and lighting. However, if you join a scheme that includes shared solar generation, the renewable electricity you draw can offset your home’s grid consumption. Some local authorities now count this as a ‘green tariff’ benefit, which can push an EPC from D to C if combined with other measures.
Ofgem is consulting on a new ‘community energy tariff’ that would recognise shared storage in the same way as individual battery systems. If approved, households connected to a community battery could see a 5–10 point improvement in their EPC environmental score.
The government’s own impact assessment, published in March 2025, projects that 2,000 community schemes could be operational by 2030, covering 100,000 households. That is a fraction of the 28 million homes in Britain, but it is a start. The real test is whether planning reform arrives fast enough to meet the 2025 target, and whether local groups can navigate the grant system before the next price cap rise.
Households interested in joining or starting a community storage project should contact their local authority’s energy team or the Energy Saving Trust’s community energy helpline. The first wave of planning changes takes effect on 1 November 2025. Applications for the Community Energy Fund open on 1 December 2025 and close on 31 March 2027.
Frequently Asked Questions
Start with the Energy Saving Trust's community energy map at energysavingtrust.org.uk, or contact your local council's climate officer. Many schemes are still in development, so you may need to join a waiting list or help form a new group with neighbours.
Yes, individual home batteries cost £4,000–£8,000 installed and save roughly £200–£400 a year on a typical 3-bed semi. Community schemes are more cost-effective per kWh stored but require collective agreement and a longer planning process. For most households, a personal battery is faster and simpler.
