Combining low-carbon technologies could cut household energy bills by more than 80%

Households could reduce their energy bills by more than 80% by combining low-carbon technologies with suitable time-of-use tariffs, according to new research from National Energy Action (NEA).

The study examined more than one million scenarios involving heat pumps, solar panels, battery storage and different tariff options. It found that the biggest savings are achieved when multiple technologies are installed together and operated on tariffs designed to reward flexible electricity use.

Researchers found tariff choice plays a major role in determining whether households save money. Homes switching from a gas boiler to a heat pump were far more likely to reduce bills when moving to a dedicated heat pump or time-of-use tariff.

The report also highlighted the benefits of combining technologies. Households with heat pumps, solar panels and battery storage were able to maximise the use of lower-cost electricity and increase self-consumption of power generated on site.

Solar panels delivered consistent savings across all scenarios modelled. The research found returns were strongly influenced by export tariffs, with higher Smart Export Guarantee rates significantly improving financial outcomes.

Battery storage increased flexibility and bill savings but was not always financially attractive due to current installation costs. However, batteries were found to offer better value in homes with higher electricity demand, particularly those using heat pumps.

The analysis suggests households can achieve substantial reductions in running costs without changing heating patterns or actively shifting electricity use throughout the day.

NEA said households will need access to impartial advice to navigate increasingly complex technology and tariff choices. The organisation also called for continued support through grants, low-interest finance and smart meter deployment to help more consumers access the benefits of low-carbon technologies.

The report notes that actual savings vary depending on household energy use, occupancy patterns, technology performance and future energy prices.