Guide
How much does commercial battery storage cost in the UK?
Battery quotes are hard to compare because they rarely cover the same scope. This page breaks a UK commercial battery project down into the parts that actually drive the price, and shows which of them can normally be funded.
The short version
- Fully installed behind the meter systems commonly land between £400 and £800 per kWh, falling as size increases.
- Hardware is typically half to two thirds of the total cost. Electrical works and civils make up most of the rest.
- DNO connection charges sit outside the installer quote and are treated differently by funders.
- The cheapest quote is often the narrowest scope, not the better deal.
Cost per kWh, and why the range is so wide
Cost per kilowatt hour is the number most people ask for first. It is useful for a sanity check and misleading for anything else, because it moves sharply with system size, the power to energy ratio, the site conditions and whether the figure quoted includes installation.
Figures on this page are indicative ranges drawn from UK market pricing we see across quotes and funder appetite. They are illustrations, not quotations, and every project prices on its own scope, site and credit profile.
| System size | Typical £/kWh installed | Notes |
|---|---|---|
| 30 to 100 kWh | £600 to £800 | Fixed costs spread across a small system |
| 100 to 500 kWh | £450 to £650 | The most common commercial band |
| 500 kWh to 2 MWh | £350 to £500 | Containerised solutions, better hardware pricing |
| Above 2 MWh | Project priced | Civils, protection and connection dominate |
What sits inside the price
A comparable quote should identify each of these lines. If a quote is materially cheaper than the others, the difference is usually one of these items being excluded rather than better buying.
- Battery modules or container, including the battery management system.
- Power conversion system or hybrid inverter, sized to the power rating rather than the energy rating.
- Switchgear, protection relays, metering and any required G99 works.
- Cabling, containment, trenching and the base, plinth or foundation.
- Fire detection and suppression, ventilation or cooling, and any enclosure requirement.
- Control and monitoring software, plus any ongoing platform or optimisation fee.
- Commissioning, witness testing, handover documentation and warranty registration.
Grid connection and DNO costs
Where a project needs new or increased capacity, the distribution network operator quotes separately. These charges vary enormously by site and can dwarf the equipment cost on a constrained network. They are also treated differently by funders, because the spend does not create an asset the funder can take security over.
Behind the meter systems that operate inside existing capacity avoid most of this, which is one reason so many commercial projects are designed that way.
How much of the cost can be funded
As a general rule, anything that forms part of the installed system is fundable. Costs that leave nothing tangible behind are harder to place inside the facility and may need to be met from cash or a separate arrangement.
- Normally fundable: the battery, inverters, switchgear, protection, cabling, foundations, enclosure and commissioning.
- Sometimes fundable: extensive civils, roadways and site preparation, depending on the proportion of the total.
- Rarely fundable inside the equipment facility: DNO connection charges, planning fees and ongoing software subscriptions.
From capital cost to a monthly figure
Once the scope is settled, the number that matters to most businesses is the monthly repayment set against the monthly saving. Our repayment calculator gives an indicative figure across common terms and deposits, which is usually enough to see whether a project is worth taking further before anyone spends time on an application.
Where this applies
FAQs
Common questions
The questions that come up most often on this subject.
How much does a 100 kWh battery system cost in the UK?
As an indicative range, a fully installed 100 kWh commercial system commonly lands between £45,000 and £70,000 depending on the inverter rating, the site electrical works and the enclosure requirement. Sites with straightforward switchgear and an easy cable route sit at the lower end.
Why are battery quotes for the same size so different?
Almost always scope. One quote includes protection works, civils and commissioning while another prices the hardware and assumes the site is ready. Compare the line items rather than the headline figure, and check the warranty and cycle guarantee alongside the price.
Are DNO connection costs included in battery finance?
Usually not inside the equipment facility, because the payment does not create an asset the funder can identify. It is normally met from cash or arranged separately, and it is worth establishing the figure before committing to a project.
Does a bigger battery cost less per kWh?
Generally yes. Design, protection, commissioning and mobilisation costs are largely fixed, so they spread across more capacity as the system grows. That is one reason projects sized to genuine load rather than to a budget often price better per unit.