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June 22nd, 2026
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Written by: Gareth Whitehill
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Community Battery Storage UK: What the Government’s New Plans Mean for Homeowners
The UK government launched a call for evidence on 4 June 2026 to explore community battery storage — shared systems that could one day let renters and flat-dwellers cut their energy bills. It is a positive development. But if you own your home in the UK, you do not need to wait for a government programme. Battery storage is available right now — and a key financial incentive is set to disappear in March 2027.
What Are Community Batteries and What Did the Government Announce?
On 4 June 2026, the Department for Energy Security and Net Zero opened a call for evidence asking industry and the public how community battery storage could be scaled up across the UK. The consultation runs until 30 July 2026.
A community battery works by storing excess solar energy at street or neighbourhood level, which multiple households then draw on when grid prices are high. The government has described this as part of “the biggest investment in community energy in UK history.”
The initiative is modelled in part on Australia’s Community Batteries for Household Solar programme, which has distributed shared storage systems across residential areas with AUD 200 million of federal funding behind it. The UK government wants to understand whether a similar approach could work here — and what the barriers to delivery might be.
Who Would Community Battery Storage UK Schemes Actually Help?
The consultation is targeted squarely at people who cannot currently access domestic battery storage. Renters cannot install their own systems. People in flats often lack the roof space. Households on lower incomes may not have the upfront capital.
For these groups, community batteries could be a genuine route to lower bills and greater energy independence. The government wants to hear from network companies, battery manufacturers, installers, local authorities, and social landlords about what it would take to make this work.
That is worth following. But “call for evidence” is the very first step in a policy process. Between here and shared batteries on streets across the country, there are years of consultation responses, funding decisions, pilot schemes, and procurement rounds. If you are a homeowner who wants to cut bills, there is no reason to wait.
If You Own Your Home, You Already Have a Better Option
Around 94% of new solar panel installations in the UK now include a battery storage system — and the reason is straightforward. Your solar panels generate most of their electricity during daylight hours, often when you are at work and not using it. Without a battery, that surplus goes back to the grid for a relatively small export payment. With a battery, it charges up your home storage instead, and you use that power in the evening when you would otherwise be buying electricity at peak rates.
The Energy Saving Trust estimates that homeowners with a combined solar and battery storage system save an average of £765 per year on their electricity bills. That figure varies by system size, usage habits, and tariff — but with electricity costs still elevated, the return on investment is compelling.
If you already have solar panels and want to add a battery, that is straightforward too. A retrofit battery can be paired with most existing solar arrays.
Why the March 2027 VAT Deadline Matters
Here is the part that many homeowners are not aware of. Battery storage installations currently qualify for 0% VAT — a government support measure that has applied to domestic battery installations since February 2024. That zero rate is scheduled to end on 31 March 2027, after which installations will revert to 5% VAT.
On a typical home battery system, that difference represents a saving of £700–£1,500 depending on the size of the system. There is no application process — your installer simply applies the 0% rate to the invoice automatically. But the window to take advantage of it is shrinking. With installation lead times and demand typically rising towards the end of financial year incentive deadlines, homeowners who want to benefit should be looking at quotes now rather than in the new year.
Is Now the Right Time to Get Battery Storage?
The government’s community battery consultation shows that energy storage is increasingly central to the UK’s energy strategy — and the economics of home battery storage have never been stronger. Prices have fallen, 0% VAT is still in place, and the average payback period continues to shorten.
If you are a homeowner thinking about solar, a battery, or both, the combination makes sense. Grant Store is MCS-certified and installs solar panels and battery storage systems across Wigan and the wider North West. You can get a no-obligation estimate at quote.grant-store.com/battery or call us on 01942 918844.
