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Your home could be a power station – so why are we wasting its potential?
In 2025, we are still treating our homes like passive, energy-hungry boxes that drain the grid, when in fact every home has the potential to be a contributor in a smarter energy system, writes Laura Sandys, chair of Sero
Laura Sandys is chair of Sero
We are still treating our homes like passive, energy-hungry boxes, when in fact every home can contribute to a smarter energy system, writes Laura Sandys, chair of Sero #UKHousingIf we’re serious about reaching net zero, cutting energy bills and building a secure energy future, we must stop acting like it’s 1985.
Our homes don’t just use energy. They can also produce it, store it and help balance supply and demand. With the right technology, homes can generate solar power, store energy in batteries and even sell extra energy back to the grid. However, the energy system still treats homes like passive users and doesn’t reward them adequately for what they can contribute.
Reframing the energy debate
We need a bold, systems-level rethink. Energy is no longer just a commodity we burn through. It’s a service, a system and a critical part of national resilience.
The current model, where traditional suppliers push a vanilla product to customers who are expected to juggle smart meters, tariffs and DIY energy decisions, is broken. Consumers are asked to be project managers and engineers in their own homes. This is unreasonable and inefficient.
Instead, we should be moving toward treating energy as a service. A system that works for people, not the other way around. One where energy flows are managed, optimised and balanced behind the scenes, while residents experience lower bills, better comfort and a smaller carbon footprint.
Homes as grid assets
The era of “just pay your bill” is over. Every home in the UK, particularly in the social housing sector, has the potential to provide value back to the grid and the economy. Here’s how:
- Store and shift demand: Homes equipped with thermal storage, smart heating systems, or home batteries can help reduce peak demand, easing pressure on the grid.
- Generate and share power: Solar panels can turn homes into micro-power stations. When linked to local networks, this energy can be shared and stored for later use or better still, distributed across the community, ensuring everyone benefits, not just those with ideally positioned rooftops.
- Reduce system costs: Flexible, low-demand homes reduce the need for expensive grid reinforcements and emergency generation. That saves everyone money.
But here’s the problem, none of this value is recognised or rewarded under the current system. Social housing landlords who invest in energy technologies often see no return, while system operators overlook the contributions that smarter homes can offer.
The energy fridge analogy
Let’s use a simple analogy. Before the invention of the fridge, up to 60% of food was wasted. The fridge didn’t just cool things, it revolutionised how we value, store and use food.
Today, your home battery or thermal storage system is your energy fridge. It keeps energy usable, flexible and valuable, shifting when and how you use power to maximise benefits for yourself and for the grid.
And yet, much like food before refrigeration, we’re letting energy go to waste because we haven’t built the infrastructure to make it usable.
Government blind spots and missed opportunities
Government policy still underestimates the value of energy efficiency. Investing in insulation, efficient heating and smart controls is one of the cheapest ways to cut emissions and bills. But the incentives are patchy, short-term and often bureaucratic.
This oversight particularly affects the social housing sector, where systemic underinvestment in energy performance locks residents into high bills and vulnerable grid behaviour. Rather than being seen as part of the problem, social homes should be treated as part of the solution, offering system-wide benefits if upgraded and integrated into energy management systems.
Housing providers as energy system partners
Housing providers are uniquely positioned to lead the energy transition. They manage thousands of homes, have long-term investment horizons, and care deeply about resident outcomes. By retrofitting properties with smart energy systems and partnering with local energy networks, they can deliver tangible benefits, such as lower energy bills for residents, reduced carbon footprints, income from grid services and enhanced asset value and future-proofing.
But they need support, clear policy, stable incentives and recognition from energy system operators that their homes are no longer just passive endpoints, but active participants.
Money matters
The economic logic is stacking up. Technologies like heat pumps, home batteries and solar PV are falling in cost. Software platforms can automate energy optimisation. Regulatory frameworks are beginning to shift toward flexibility and local balancing. But uptake remains slow, especially in the social housing sector, because the benefits aren’t flowing to those making the investments.
To unlock the full value of our social housing stock, we must build an energy system that reflects today’s technological reality, not one based on yesterday’s assumptions.
The future of energy is local, smart and distributed. Your home is not just a cost, it’s an energy asset. Let’s stop wasting its potential. Let’s build a system that recognises, rewards and relies on the contribution our homes can make to a cheaper, greener, more resilient energy future.
Laura Sandys CBE, chair, Sero
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