Volatility of energy prices and what homeowners can do about it?

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What Can Homeowners Do About The Volatility Of Energy Prices?

If you are a homeowner who is looking to save money on energy costs and live more sustainably, then understanding the volatile nature of energy prices is important. With the volatility of energy prices, it has become increasingly popular for homeowners to invest in solar panel arrays as an alternative source of renewable energy. But just having a solar array isn’t enough. In order to optimise your savings, pairing a system with batteries to store solar power makes smart economic sense. In this blog post, we will explore how solar energy batteries will help you pay less energy bills and help you get the most out of your investment

The Volatility Of Energy Prices In The UK

Households in England, Scotland and Wales can benefit from the combination of Ofgem’s energy price cap which adjusts every three months and the Government-backed Energy Price Guarantee.  This guarantee delivers a discount on capped rates.  It ensures households get access to cheaper prices if said tariff is lower than what their supplier offers them. This helps homeowners deal with the current volatile energy prices.

The volatility of energy prices

Government Help With Volatility Of Energy Prices

For households paying by direct debit, the Government provides a £1,779 annual discount off standard energy prices. This equates to a saving of up to 40% on current bills. However, from April this year, The Energy Price Guarantee will increase from £2,500 to £3,000 a year until the end of June, when it will be updated again.

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This ensures that customers who sign up for a direct debit tariff will be protected from price rises. It is estimated that this could save households up to £280 per year on their energy bills. So, if you’re looking for an easy way to manage your energy costs, switching to solar gain and taking advantage of the Energy Price Guarantee could.

Explosive Wholesale Energy Prices

We are due another increase in energy price in January 2024. Therefore it’s vital to understand that since wholesale energy prices are highly volatile right now, unexpected changes may occur and typical bills will continue to vary from what we were used to in the past.

Investing In Solar Batteries Can Help With Sudden Increases In Energy Costs.

Investing in solar batteries as part of a solar panel system, can help save you money on your energy bills. It can also help households cope with the volatility of energy prices. Solar batteries absorb and store solar power generated during daylight hours. Solar power is then available when electricity is needed at night or on overcast days.

Not only do solar batteries provide considerable cost savings on your energy bill, they also help reduce pollution from traditional sources of electricity generation. By making the switch to solar-powered energy storage, you will be less affected by any sudden rises in energy costs.

What Are Solar Batteries?

Solar energy batteries are an increasingly advantageous energy storage technology due to their long-term energy savings and environmental friendliness. These energy storage batteries use DC power generated by solar PV (photovoltaic) cells to charge, which is then used when energy needs exceed the direct current (DC) output of the solar panel — in other words, when the sun isn’t shining.  The stored energy allows the consumer to access energy through a switch, making it easy to adjust power consumption levels according to energy demand.

Solar energy batteries are a great solution for both residential and commercial applications as they provide reliable energy even during overnight or cloudy days. Ultimately, these energy storage batteries help reduce energy bills and carbon footprint alike.

How Does A Solar Battery Work And How Will It Help With Energy Price Volatility?

What Are Solar Batteries Made Of?

The commonly used batteries for solar energy storage are Lithium-ion batteries. They have superior power and are versatile. The technology is similar to what powers high performance smartphones, tablets and other gadgets. It combines chemical components in order to convert stored energy into electrical current through a reaction of lithium ions releasing electrons that flow between anode & cathode points with opposite charges.

How Do Solar Batteries Work?

Lithium-salt electrolyte is essential for creating a safe and efficient electricity flow in home solar power storage batteries. This vital liquid contributes to the reaction balance, allowing lithium ions to travel back across it when people draw on the system’s energy supply while electrons move from negative electrodes to positive via an outer circuit – thus providing electrical power with which we can use our devices. Moreover, sophisticated electronics regulate both performance and safety of these battery systems so as to maximize their potential usage.

Solar Batteries Are Key To Negating The Sudden Energy Price Rises

Harnessing the natural energy of sun, solar batteries utilise renewable power as a catalyst for an electrical current. This green way of charging devices offers both practicality and sustainability and the most important part of the solar system as they are the key to pushing back against sudden energy price rises.

The Benefits Of Solar Battery Energy Storage In The Fight Against Volatility Of Energy Prices.

If you have a solar panel system, chances are it’s producing more energy than what your home needs. This is particularly true on clear days when no one is at home. Participation in net metering can result in credits for excess generation. However, battery storage offers the opportunity to store extra electricity. For example the stored power is used whenever there are times of lower production. This reduces reliance upon traditional grid sources and the impact of volatile energy prices while also allowing you to make the most out of renewable resources like solar.

Cheaper Night Tariffs And Saving Money On Energy

Some energy companies offer a night-time / off-peak tariff of 10pkwh as opposed to a 35pkwh daytime tariff. This benefits those customers whose roofs only support a small number of panels but who are heavier energy users. Ordinarily those with high energy usage fall foul of volatile energy prices. However homeowners can take advantage of the lower tariff and charge their batteries overnight on the cheaper tariff to support their energy usage during the day.

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Improved Carbon Footprint

Going green starts with solar panel battery storage. Make the most of your clean energy production avoid relying on grid electricity produced through fossil fuels and therefore keep dirty energy use to a minimum.

Solar Energy Batteries And Nighttime Energy

When the sun goes down solar panels no longer produce energy. Consequently the options are grid power coupled with volatile energy prices or, alternatively, a more independent solution in other words solar panels and solar batteries. With a solar batteries, you’ll use more of the electricity generated during daylight hours after dark. Consequently resulting in greater autonomy and keeping monthly costs down. The more battery storage you have, the better your savings will be.

Help With Cost In Times Of Sudden Rises In Energy Costs

The only way you can be sure to save money in a time of volatile energy prices is to take back control of your energy supply. With a solar panel system and energy storage you will be in the position to control where your energy supply is coming from. Without doubt you will make the very best of the energy produced by your panels by storing it until you need it later.

At SolarGain we have the experience, the expertise and the people to design you a solar system with optimum energy storage. This will help you to make the move to greener, cleaner and renewable energy. This is undoubtedly one of the best ways to avoid the impact of volatility of price in the energy market.

If you have any questions, don’t hesitate to contact us at 0800 001 6258 or complete our form for a free, no-obligation survey.

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We are happy to answer any Solar questions you may have and also offer a free, no-obligation, solar quotation service.

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