What is an electric home and how does it work?

Last updated: July 15, 2024

You might have heard people talking about switching to heat pumps and installing solar panels, as a way of making their homes greener.

Around a fifth of UK carbon emissions come from our homes, because most homes still use gas boilers. But it’s hoped that in the future, ‘clean’ carbon-free technology will be the norm when it comes to heating our homes.

Right now, the ‘greenest’ home you can have is one that has a combination of solar panels, a battery and a heat pump. Lots of newly built homes are fitted with these features as standard, but it’s also possible to retrofit many older homes to make them all-electric.

As well as improving energy efficiency, one of the main draws of investing in this trio of features is that it allows you to generate your own power, rather than buying it from an energy supplier. The solar panels do that part, while the battery lets you store the power you make to use later, to power things like your heat pump, and any other electrical appliances in your home.

An all-electric home relies solely on electricity, and they’re considered the ‘gold standard’ available at the moment. You may also hear them being talked about as zero carbon homes, or cleantech homes.

But how does this technology work? How much could it cost to install? And how much money could you save on your energy bills?

What’s in an all-electric home?

• Solar panels convert sunlight into electricity. But it’s worth noting that you don’t need a sunny day to generate power – you can do so as long as it’s a bright day
• Battery storage systems allow excess energy generated by solar panels to be used later (particularly when the demand for electricity is at its peak, so it’s more expensive to get from your energy supplier). It’s important to remember that if you want to store power, and not use it right away, you’ll need to install a battery
• Heat pump systems are powered by electric and move heat between the indoors and outdoors. You can read more about heat pumps here, how they work and how much they cost

What are the benefits of an all-electric home?

1. Cost savings

One big benefit of having an all-electric home is the money you could save in the long run. If you’ve got solar panels generating electricity and a battery storing it for later, you’re not so reliant on drawing power from the grid.

Pair that with a super-efficient heat pump that can typically produce three times more energy than they take in (that’s 300% efficiency, way better than an A-rated gas boiler’s 85% efficiency), and you’ll cut down on grid energy use there too.

To get the most benefit from your new tech, you’ll probably want to switch to a Time of Use tariff – that’s where you pay a different rate for electricity at different times of day.

2. Reduced impact on the environment

This efficiency doesn’t just translate into cost savings. It also helps to reduce your household’s carbon footprint.

By swapping traditional fossil fuel-based energy sources with clean electric power for heating, cooling, hot water, laundry and cooking, households can effectively eliminate carbon emissions from the day-to-day running of their homes.

3. Smart tech

There are apps available to help you clearly see how much power you’re generating, how much is stored in your battery, and the rate you can sell power back the grid (this may change throughout the day depending on what tariff you are on). Helping you make informed decisions about how you use energy in your home, and hopefully save money.

4. Better performance

Electric appliances are also known for their precision, providing more accurate, steady control over things like temperature. You’ll often hear people with heat pumps talk about the stable ambient temperature a heat pump provides being more comfortable than the short, sharp blast of heat you get from a gas boiler.

Will I be able to generate all of my own electricity?

There will be plenty of times when you won’t be able to generate all of your electricity from your solar panels, particularly in winter. But you’ll still be connected to the grid, so you can still get power from your energy supplier as and when you need it.

Read more about installing solar panels

How could I make my home all electric?

Making a home all-electric involves combining multiple technologies. But remember, you don’t have to do everything at once. You could complete the process over a few years even, to help spread the cost. This gradual approach helps you move away from using oil and gas altogether, and working towards that gold-standard home.

First, you might want to think about installing solar panels to keep your home powered with clean energy, and reduce reliance on the grid – particularly when energy bills are high.

You might want to consider fitting a battery at the same time as the solar panels – it’s usually cheaper than fitting the two separately.

READ MORE: Your guide to installing solar panels

Next, you could start switching your gas appliances to electric ones. This means replacing old gas boilers with electric alternatives like heat pumps, and considering whether you’re ready to ditch your gas hob for a new induction one.

READ MORE: Heat pump guide

How much does an all-electric home cost?

Solar panels:

The average cost of installing solar panels will depend on where you live, the type of panels you want, and the size of the system you’d like to install. As a guide, Energy Saving Trust says that an average domestic solar PV system for a three-bedroom house is 3.5 kilowatts peak (kWp), and costs around £7,000. 

Heat pumps:

The cost of a heat pump depends on factors such as the brand, size and model you choose, as well as the size of your home, and any other upgrades you need (such as new radiators). As a guide, Energy Saving Trust says that the typical cost of installing an air source heat pump is around £14,000, while ground source heat pumps may cost between £28,000 and £34,000. There are government grants available of up to £7,500 to help with the cost through the Boiler Upgrade Scheme.

Battery storage:

The average cost of battery storage systems depends on where you live, the type of system you want, and the size of the system you’d like to install. As a guide, Energy Saving Trust says that battery storage tends to cost around £5,000 to £8,000.

How much could I save on my bills?

How much money you save will depend on a great many things, including where you live, how often you are at home, which technologies you fit, how much room you have for them and how much you are able to invest. Here are some examples of different options, and the savings that Energy Saving Trust say you could make:

• A family in London, with no-one at home on weekdays until 4pm, could save £150 a year from fitting a 3.5 kilowatt solar PV system, but this goes up to £460 a year if they add a 4 kilowatt hour battery.
• A family in southern Scotland, with someone at home all day, could save £335 a year just from the solar system, increasing to £500 a year if they add a battery.

Generally speaking, a battery will save you more money if there’s no-one at home during the day to benefit from the free solar power when it’s available.

Saving from fitting a heat pump also vary considerably, depending on the house size and insulation levels, how well designed the heat pump system is, and how quickly the householders adapt to using the heat pump in an efficient way. If you fit a really good system in a typical semi-detached house in place of an average gas, and get to grips with how to use your new heating controls properly, you could save £175 a year. But if you fit a poor system and don’t follow the guidance on how to run it you’re unlikely to save any money at all, and your bills could actually go up.

One way to make sure you save money is to fit all three. You’ll then save extra money, sometimes by using your solar generation to run the heat pump directly, sometimes by using the battery to store daytime solar to run your heat pump at night, and sometimes by charging the battery when electricity is cheap and using it to run the heat pump when prices are high. How much more you save will depend on all sorts of factors, but you will definitely save more.

Can I sell any unused power I’ve generated back to the grid?

If you generate renewable electricity and live in England, Scotland, or Wales, you can sell any electricity you don’t use back to the grid through the Smart Export Guarantee (SEG). This is particularly important if you don’t have a battery, and if you’re not at home all day to use the solar when it’s being generated.

According to Energy Saving Trust the London family we mentioned earlier, with no-one at home on weekdays until 4pm and no battery, could earn an extra £355 a year by selling their surplus generation back to the grid. At the other end of the scale, the family in southern Scotland, with someone at home all day, only earn an extra £190 a year from export, or just £55 extra if they fit a battery.

If you do go for a system that includes a battery then you really need to consider something smarter than a straight SEG tariff. You need a Time of Use tariff that charges you different rates at different times of day, and pays you different rates for export at different times of day too.

Remember, it’s up to you to look into what tariff suits you best and then switch to it when you have the equipment installed – it won’t happen for you automatically. Your installer may be able to advise you on good options to consider, but they can’t make the switch for you.

Is it difficult to make a home all-electric?

There are a few things to consider when making the switch to all electric, such as finding installers, choosing the spec of your panels, heat pump and battery, and also which order to carry out the work in. Plus, any disruption caused by installing the new systems will likely be outweighed by the longer term gains.

Importantly, this transformation doesn’t have to happen all in one go. You can spread out getting each appliance over a longer period, to spread the cost, and any disruptions.

Factors like home size, existing infrastructure, and personal preferences will impact how easy it is to make the switch, but a qualified local installer will be able to help advise you.

According to Energy Saving Trust, around 7% of households across England, 5% households in Wales, 11% of households in Scotland are heated by electricity. So there’s a long way to go before this is the most common type of heating system.

Can all homes be made fully electric?

For the most part, yes. Converting a gas-powered home to run completely on electricity can happen for most homes, but not all homes can take advantage of all the options we’ve discussed here. For instance, you can’t put solar panels on a thatched roof.

Speak to an MSC registered installer to find out whether your home could make the switch.

You’ll also find that many new-build homes are already fitted with this type of technology. Sales and Marketing Director of Newland Homes, Marcus Evans, says: “Homebuyers are demanding a green housing revolution. Increasingly, people are seeking out zero carbon homes because the renewable technologies are pre-installed”.

“Each zero carbon home by Newland Homes has between 12 and 20 405kW photovoltaic panels which convert sunlight into energy, and highly efficient air source heat pumps, which can extract thermal energy at as low as -25 degrees. The homes emit no net carbon in use, a marked reduction from the 3.6 tonnes of CO2 emitted per annum by the average UK home”, he adds.