It would be far cheaper to install electricity storage capacity at grid level rather than in homes. This could then be tied into tariffs (such as OVO Heat Pump Plus) which tie low price just to heat pump use. This makes it less complicated for the hone owner plus does not incentivize use of non-heat pump electricity.
Installing in homes alongside heat pumps would require further expensive subsidy and put people off with “sticker shock” when they see the cost before subsidy.
My system does not include a battery (we have some pre-existing solar). The investment in a battery would not give a good return. Battery costs will come down but they will even more at regional/national size level.
My system works on OVO HP+ and is giving savings of 30% compared to gas.
A valid point. It would be more cost effective for the grid operator to install battery storage across the network and this would then reduce peak demand pricing for all consumers.
To maintain an incentive for heat pumps the providers would then have to be mandated to gift heat pump users with a guaranteed reduced flat rate tariff like OVO+. (I cannot get OVO+ because I do not have a qualifying installation).
It raises the whole issue of how tariffs can dominate the cost effectiveness of heat pumps as highlighted in the podcast.
We as consumers have very little control over the tariffs that will be offered to us in the future but we will always be able install our own equipment to avoid peak pricing.
I think it may be of interest to the community here. The UK government is seeking views from owners and installers on the BUS scheme with possible future amendments. The end date is set for the 11th June 2025 for consultation with a set of questions. It may be an opportunity to offer individual or collective views that can improve the (rather poor) uptake of heat pumps in the UK for the average household.
Any move that reduces the UK over dependence on expensive gas power stations will certainly help the uptake of all electricity driven renewables. The UK electricity pricing is set 98% of the time by the wholesale gas price, which is predominately imported from Norway. These gas power stations typically convert only ~35% of the gas to useful electricity. Hence, the electricity price is always going to be x3 the cost of the wholesale gas price before adding profit, levies, VAT, etc
I do not know if the UK can reduce electricity costs using electrical battery storage at scale ( hydropower being a natural battery) , or reducing demand (via insulation), but it would be a positive step provided it is a lower cost solution. I tend to think insulation is a positive investment to reduce demand, regardless of energy supply.
A small positive step would involve the rebalancing of the government levy on electric and gas bills.