Home Battery Savings Calculator

Enter your tariff rates and battery size to see how much you could save with a home battery. No solar required.

Calculate your savings

What you pay during cheap hours
p/kWh
What you pay during normal hours
p/kWh
5 kWh
Smaller homes & flats
10 kWh
Larger homes
22p
Saved per kWh
£2.20
Daily savings
£803
Annual savings

Assumes one full charge/discharge cycle per day at 90% round-trip efficiency. Actual savings depend on usage patterns.

How the savings calculation works

The savings from a home battery come from the tariff spread – the difference between what you pay during cheap off-peak hours and what you'd pay during expensive peak hours. Here's the formula:

Savings formula
Annual saving = (peak rate − off-peak rate) × usable capacity × 365
Usable capacity = battery capacity × 0.9 (efficiency)

Example (10kWh on Octopus Go):
(29p − 7p) × 9kWh × 365 = 72,270p = £723/year

Savings comparison by tariff

TariffOff-peakPeakSpreadAnnual (10kWh)
Intelligent Octopus Go7p29p22p~£803
Octopus Go7.5p28p20.5p~£748
Economy 712p28p16p~£584

What about payback?

Your payback period is simply the cost of your battery system divided by your annual savings. For a 10kWh Habo bundle:

TariffAnnual savingPayback (£5,500 system)Net saving over 12 years
Intelligent Octopus Go£803~3.4 years~£4,136
Octopus Go£748~3.7 years~£3,476
Economy 7£584~4.7 years~£1,508
Remember: Battery storage in the UK currently qualifies for 0% VAT, saving you an additional £1,100 compared to the standard 20% rate. This 0% rate applies until March 2027.

Factors that affect your savings

Your tariff spread is the biggest factor. A bigger gap between off-peak and peak rates means more savings. On a flat-rate tariff with no off-peak period, a standalone battery saves nothing.

Battery size determines how much energy you can shift per day. A 10kWh battery shifts roughly twice as much as a 5kWh – and saves roughly twice as much.

Your actual usage matters too. If you use less electricity during peak hours than your battery can supply, the excess capacity goes unused. A battery matched to your peak-hour consumption delivers the best returns.

Round-trip efficiency – the energy lost during charging and discharging – is typically 88-92% for modern LiFePO4 batteries. Our calculator uses 90% as a conservative estimate.

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