Break down your electricity bill and discover how solar panels and battery storage can dramatically reduce your energy costs.
What Makes Up Your Electricity Bill?
Your electricity bill consists of two main charges: the standing charge (a daily fixed fee of around 50-60p per day regardless of usage) and the unit rate (the cost per kilowatt-hour of electricity you use, typically 24-28p/kWh on a standard tariff). The unit rate is where solar panels make the biggest impact — every kWh you generate and use yourself is a kWh you do not buy from the grid. The average UK household uses around 2,700-3,500 kWh per year, costing £650-£980 in unit charges alone.
How Solar Panels Reduce Your Bill
Solar panels generate free electricity during daylight hours. A typical 4kW system in Lancashire generates around 3,200-3,500 kWh per year. Without battery storage, you will typically use 30-50% of this directly (called self-consumption), saving £230-£420 per year. The surplus is exported to the grid, earning you 3-15p per kWh under the Smart Export Guarantee. With battery storage, self-consumption rises to 70-90%, as you store daytime surplus for evening use, potentially saving £540-£780 per year on a standard tariff.
Time-of-Use Tariffs and Battery Storage
Time-of-use tariffs like Octopus Go, Intelligent Go, and Economy 7 offer dramatically cheaper electricity at night (as low as 7p/kWh between midnight and 5am). With a battery storage system, you can charge your battery at these off-peak rates and use the stored electricity during peak hours when rates are 24p+ per kWh. Even without solar panels, a battery on an off-peak tariff can save you £400-£600 per year, depending on your usage. Combined with solar, the savings are even greater.
Example Savings with Solar & Battery Storage
To put the numbers into perspective, a typical 4kW solar system with 10kWh battery storage on an off-peak tariff could reduce an annual electricity bill from around £1,200 to under £300 — a potential saving of over £900 per year. A 6kW solar system without battery storage could still reduce your bill by around £550 per year through solar self-consumption alone. Your actual savings will depend on your energy usage, roof orientation, and tariff, but these figures are representative of what homeowners across Lancashire and the North West can realistically achieve.
Take Control of Your Energy Costs
Rising energy prices mean the payback period for solar and battery systems continues to shorten. The sooner you invest, the sooner you start saving. Contact GM Electrical Services for a free assessment of your home, including an estimate of your potential savings based on your actual energy usage.
Interested in this service?
Get a free, no-obligation quote from our expert team.