Ofgem has advanced 16 long-duration energy storage projects to the next stage of regulatory approval, a move that could shave £10–£20 a year off a typical household electricity bill by 2030, as Reuters reports. The regulator has identified 16 projects, ranging from pumped hydro to liquid air and compressed air storage, that will enter a streamlined consenting process, aiming to unlock billions of pounds in investment.
What long-duration storage means for your bill
Long-duration energy storage (LDES) systems can discharge power for four hours or more, soaking up cheap renewable electricity when the wind blows or the sun shines and releasing it when demand peaks. TradingView notes the move is part of a wider push to reduce reliance on gas peaker plants, which currently fire up on cold, still evenings and push wholesale prices above £200/MWh. By storing cheap daytime renewables, LDES could cut those spikes. Ofgem estimates the 16 projects, if built, could save the grid £1.5bn a year in balancing costs, equivalent to about £15 per household.
Who qualifies, and who doesn’t
The 16 projects are a mix of technologies and locations. They include the 600MW Coire Glas pumped hydro scheme in Scotland, several liquid air plants in the north of England, and compressed air storage in salt caverns off the Yorkshire coast. Developers will now enter a ‘fast-track’ consenting process that Ofgem says could cut the time from application to construction by up to three years. But the regulator has not published a full list of approved projects, nor the exact capacity each will deliver. The catch is that not all 16 will reach financial close, some may fail on planning or grid connection costs.
What this misses is the direct impact on household solar and battery storage. While LDES is a grid-level solution, it complements rooftop solar and home batteries by reducing the need for expensive grid upgrades. A typical 3-bed semi with a 4kW solar array and a 5kWh battery could see payback periods shorten if grid export tariffs rise as wholesale prices stabilise. Ofgem’s move does not change the Boiler Upgrade Scheme or ECO4 grants, but it does make the case for heat pumps stronger: with cheaper off-peak electricity, running costs fall.
What it costs a typical 3-bed semi
The immediate effect on household bills is small, perhaps £10–£20 a year by 2030, according to Ofgem’s modelling cited by Reuters. But the indirect effect could be larger. If LDES reduces the need for new gas plants, it also cuts the carbon intensity of the grid. That matters for EPC ratings: the ‘grid decarbonisation’ factor in SAP 10.2 means every kWh of electricity used in 2026 has a lower carbon footprint than in 2020. A home with a heat pump and solar panels could see its EPC score rise by 5–10 points as the grid cleans up, pushing a D-rated property into C or even B.
For a household spending £1,200 a year on electricity, a £15 saving is modest. But combined with time-of-use tariffs, like Octopus Agile or Economy 7, owners of home batteries could shift consumption to cheap overnight periods and save £100–£200 a year. LDES makes those cheap periods more reliable and longer.
What you should do next
Households with solar panels should check their battery storage capacity. A 5kWh battery is enough for evening peak demand on most days, but larger systems (10kWh+) can capture more of the cheap daytime generation that LDES will help stabilise. If you are considering a heat pump, ask your installer about time-of-use tariffs and whether your home’s insulation can handle lower flow temperatures, ECO4 grants cover loft and cavity wall insulation for low-income households, while the Boiler Upgrade Scheme offers £7,500 off a heat pump regardless of income. Ofgem’s LDES push makes both investments more attractive over the long term. No new grants are announced yet, but the regulatory signal is clear: cheap, clean electricity is coming. The question is whether your home is ready to use it.
Frequently Asked Questions
No. The 16 projects are in early stages and won't operate until 2028–2030. Ofgem estimates a £10–£20 annual saving per household by 2030, but the main benefit is grid stability and lower carbon intensity.
Not necessarily. Existing home batteries can already shift consumption to cheap periods. Larger batteries (10kWh+) will capture more value as LDES makes off-peak electricity cheaper and more predictable.
No. ECO4 and the Boiler Upgrade Scheme remain unchanged. But a cleaner grid improves the carbon savings of heat pumps and solar, which can boost your EPC rating over time.
