As the UK enters its peak solar season, homeowners are witnessing a significant advantage with the integration of Photovoltaic (PV) panels and battery storage systems. This period, characterised by high solar generation, presents an ideal time for households to optimise their energy consumption and explore lucrative energy trading opportunities. National Grid reported that the highest solar generation to date in the UK was on April 20, 2023, reaching 10.971GW, with expectations set for new peaks following last year’s addition of 1.3GW in solar PV capacity.
The expansion of solar capacity to 15.8GW across nearly 1.5 million installations as of March, primarily household systems, aligns with a surge in domestic installations. In 2023 alone, 191,524 new PV systems were installed, with 172,000 of those being domestic.
This boom is further bolstered by the rapid increase in domestic battery storage installations, which rose by 700% year-over-year as of March, according to the Microgeneration Certification Scheme. A significant factor in this spike is the implementation of zero VAT on storage systems from February 2024, making energy storage more affordable and encouraging more homeowners to retrofit batteries alongside their solar systems.
Emerging financial opportunities for homeowners with battery storage
The potential for financial gains is substantial for those who can sell excess energy back to the grid and engage in energy markets that reward flexibility. These markets, managed by entities such as the National Grid and local grid operators, offer services like the Balancing Mechanism and frequency response, with National Grid projecting balancing costs for the summer to reach £1.32 billion.
Despite the complexity and the high entry barriers to these markets for small-scale assets, Levelise has successfully tapped into this potential. Over the past five years, Levelise has built a virtual power plant comprising over 5,000 residential batteries, generating over £1.5 million in revenue for its customers by effectively leveraging their energy storage systems through its AI-powered Levelise Hub.
The levelise hub: Maximising household energy efficiency and financial returns
The Levelise Hub uses sophisticated algorithms to continuously analyse and optimise the energy consumption and production of each household, ensuring maximum financial returns and energy efficiency. With the ability to interact with all major battery manufacturers and no requirement for specific energy supplier contracts, the Hub offers unparalleled flexibility and compatibility.
As energy markets evolve, Levelise is also preparing to enable its customers to trade their flexibility in wholesale power markets and benefit from negative pricing scenarios, further enhancing the economic benefits of solar and battery systems.
Ivan Castro, Operations Director at Levelise comments: “Given the VAT cut, domestic solar and storage makes greater economic sense than ever. Which is why we are witnessing a significant surge in both rooftop PV and household storage installations. The key is now to make those assets work smarter and harder – and over the next two years major changes to the energy market will present even greater opportunity. Which is why more and more smart households are choosing Levelise to manage their flexibility, earning greater rewards for making a positive contribution to decarbonising the GB energy system.”
Looking forward
With all household electricity set to be settled on a half-hourly basis by 2026, the demand for smart energy solutions like the Levelise Hub is expected to rise sharply. This transition will likely catalyse further advancements in smart home technology, integrating smart appliances, hot water tanks, heat pumps, and smart EV charging into a more efficient and responsive home energy management system.
