Are Home Batteries About to Get Cheaper? Octopus, CATL and Whether to Wait (Essex 2026)

Home batteries were back in the news this week. On 3 November 2026, Octopus Energy announced it is teaming up with battery maker CATL and its storage business Ampace to develop what it calls the next generation of smart home batteries, aiming to make them "far more affordable". If you have been thinking about a battery for your Essex home, you may now be wondering whether to wait. This guide explains what was actually announced and what it means for you. It is accurate as of 4 November 2026.

What did Octopus, CATL and Ampace announce?

Octopus Energy and Xiamen Ampace Technology signed a Memorandum of Understanding (MoU) to explore working together on smart home energy storage. According to Octopus, the collaboration will draw on CATL and Ampace's research into newer battery chemistries, including sodium-ion technology, high-density cell designs and very long-life systems, and pair the hardware with Octopus's software and smart tariffs.

The stated aim is batteries that are "safer, greener, and far more affordable", that charge automatically when energy is cheapest and cleanest, and that share power back to the grid at peak times. The collaboration will initially explore opportunities across European markets where Octopus has retail energy offices. Octopus already sells its own Nook home battery range, which The Independent reports comes in options storing between 2 and 10 kWh.

Is there a new battery I can buy yet?

No. An MoU is an agreement to explore working together. As of today, no new product, price, specification or launch date has been announced.

What is a sodium-ion battery?

Most home batteries sold today use lithium-ion cells. Sodium-ion is a different chemistry that manufacturers are developing as an alternative. Until products are launched and tested, it is too early to say how sodium-ion home batteries will compare on price, capacity or lifespan.

Should I wait for cheaper home batteries?

There is no right answer for everyone, but a few verified facts may help you decide:

• VAT is due to change. Solar panels and battery storage installed in homes currently carry 0% VAT. From 1 April 2027, this is due to rise to 5% as the temporary zero rate ends as planned, according to Solar Energy UK.

• Electricity prices are due to be reset. Ofgem's price cap for 1 October to 31 December 2026 has an average electricity unit rate of 26.32p per kWh. The cap for January to March 2027 is due to be announced by 25 November 2026, and supplier forecasts currently point to a rise. Those are forecasts, not confirmed figures.

• Finance is available. Solar Energy UK says the government-backed Warm Homes Loan offers zero- and low-interest loans of up to £15,000 for solar panels and a separate £15,000 for battery storage, subject to eligibility and affordability checks, and installers must be MCS certified.

Waiting for a product that has not been announced yet means paying today's electricity rates in the meantime, and possibly 5% VAT if you install after 1 April 2027. We covered the VAT change in our guide to what the 2026 Budget means for solar, batteries and heat pumps.

How does a home battery cut my bills?

A battery stores electricity so you can use it later. Paired with solar panels, it stores daytime generation you would otherwise export, so you can use it in the evening. On its own or with solar, it can also charge from the grid on a cheaper off-peak tariff and power your home at peak times. How much you save depends on your usage, tariff and system size, so be wary of anyone promising a fixed figure without looking at your bills.

Can a battery keep my lights on in a power cut?

Only if it is designed and installed to do so. Many systems shut down during a power cut for safety unless they include a backup or gateway function. If backup matters to you, say so at the start. Our guide to NESO's winter outlook and battery backup explains more.

What should I check before buying a battery?

• Is the installer MCS certified and registered with a scheme such as NICEIC?

• Will they check your consumer unit, earthing and supply capacity first?

• Will they handle any network operator (DNO) notification?

• Does the system offer backup in a power cut, and is that included?

FAQ

Has Octopus launched a new battery?

No. On 3 November 2026 it signed an MoU to explore next-generation batteries with Ampace and CATL. No product, price or launch date has been announced.

Is VAT on batteries going up?

It is due to rise from 0% to 5% from 1 April 2027 for home installations.

Can I add a battery to my existing solar panels?

In many cases, yes, but it depends on your inverter and electrics. A survey will confirm what is possible.

Thinking about a home battery in Essex?

CPW Electrical Solutions LTD is an electrical contractor based in Thurrock, covering Thurrock, Stanford-le-Hope, Corringham, Upminster and the wider Essex area. We are NICEIC Approved Contractors (607863000), MCS certified (NIC602214) and certified Tesla Powerwall and Wall Connector installers, with £2m public liability and £300k professional indemnity insurance. See our solar and battery installation page and our electrical testing and compliance page. Call 07545 571230 (phone answered 7am to 7pm, with 24-hour emergency call-outs available) or request a quote.