Smart vs. dumb battery: How [Capture AI] boosts battery savings
Home batteries are gaining popularity among UK homeowners looking to reduce electricity costs. But not all batteries deliver the same value. Many models, even premium ones, fall short of their true potential without the right software to guide them. We call these “dumb batteries”, and in this article, we explain how to make them smart.
The topic in a nutshell
The UK market is full of different battery models, with a wide range in price tags. Many batteries claim they are “smart” but in reality they are not – regardless of the price tag.
This is based on three key features: (a) Smart charge, (b) smart discharge, and (c) grid rewards.
It works with common entry-level models, which means you can get maximum benefits at low costs. Sign up below to get started free of charge.
What distinguishes smart from dumb?
There are three key features which set a “smart” battery apart from a “dumb” one:
- Smart charging
- Smart discharging
- Grid rewards
Smart charge
One of the most important drivers of value for any home battery is the ability to charge at off-peak rates. However, it’s not as simple as it initially sounds. Most batteries on the market have two key limitations:
First, they can’t accurately determine how much to charge at off-peak rates while preserving space for tomorrow’s solar input. This only applies if you have solar panels connected – but if you do, it makes a big difference. If your battery is used to both charge from the grid and store excess solar, it’s crucial to leave the right amount of room overnight. For instance, you don’t want to overcharge on a sunny day. Yet, this is what frequently happens with dumb batteries, where you need to set charge levels manually. In contrast, a smart battery automatically adjusts charge level each day, based on AI-powered solar predictions tailored to your home.
Second, they don’t sync time-of-use tariffs, such as Octopus Agile. These tariffs are exciting as they can produce negative rates, as shown in Figure 1 which plots Octopus Agile Import rates on May 25th, 2025. This is the 'holy grail of home battery optimisation', so to speak. Unfortunately, there is only one single battery model (Sigenergy) on the market which syncs directly with Agile and even premium products such as Tesla’s Powerwall 3 require additional pieces of software, such as the ‘Net Zero” app, which comes at an extra cost. Alternatively, one could manually create a new charging schedule every day based on day-ahead prices – but that would be highly impractical.
Smart discharge
Buying low and selling high is a key way home batteries create value. The best export rates typically occur in the late afternoon, such as 4–7pm on Octopus Flux. A smart schedule will export to the grid during these peaks to capture the price difference from off-peak charging.
But the question is how much to discharge. In most cases, you shouldn’t discharge the battery entirely. This is because you would also want to power your home on cheap off-peak rates or own solar for the rest of the day rather until the next off-peak or sunny period hits. But most batteries are unable to determine that level of discharge.
Grid rewards
Grid rewards – that is getting paid for helping stabilise the grid – are a huge opportunity for UK battery owners. A typical battery integrated with “flexibility markets” can earn several hundreds of pounds extra from grid rewards per year through the UK’s grid operators.
A smart battery can access these markets – effectively and transparently. This is a technically challenging feature. The battery needs to be able to connect directly to electricity network providers and various energy markets and be able to make a decision on whether to respond to market opportunities or use the battery for other purposes.
Yet, this value is inaccessible for most batteries. Only very few battery manufacturers connect to a range of flexibility markets. Those who do are often not transparent about the benefits. For instance, Powerwall 3 and GivEnergy owners can sign up to Intelligent Flux, where Octopus acts on flexibility markets on their customers’ behalf. But benefits are not shared transparently and mostly kept by the suppliers.
How much more does a smart battery earn?
A smart battery can earn 50-100% more than a dumb battery. In order to explain what drives this massive difference, let’s explain step-by-step by looking at the chart below.
A. The first bar shows the annual benefit of a “dumb” battery, the kind most UK homeowners currently use. In this setup, charge and discharge levels are set manually, typically once per season. Flexibility markets aren’t accessed at all. Based on our simulations across 17,520 half-hour intervals, using a 4 kWp PV system, Octopus Flux, and a 5 kW / 10 kWh battery, this setup yields around £310 per year.
B. The second bar shows the added value of smart charging and discharging. While the “dumb” battery charges to 40–80% depending on the season, a smart battery adjusts daily based on AI forecasts for weather and household demand. This alone makes a significant impact. Predictions are tricky, so a “smart” battery also won’t get charge levels 100% right. But even assuming the predictions are 60-80% correct, this yields an extra benefit of £150-200 p.a.
C. The third bar shows grid rewards. A typical homeowner with a 5kW / 10kWh battery can earn up to £150 extra from grid rewards – without lifting a finger.
This means that, taking all streams together, a smart battery can earn you between £510 and £710 per year, so about 50-100% more than a dumb battery!
Which batteries are smart by default?
Many batteries claim to be smart – yet few truly are. Naturally, many premium batteries, such as Tesla or Sigenergy, bring added smartness, even outside the box. However, one doesn’t need to pay a premium price for smart features: We have partnered with FOX, Alpha and InstaGen to make their batteries even smarter!
Can I make my dumb battery smarter?
[Capture AI] is the way to make dumb batteries smart. It is free of charge for you and without strings attached. Get started with the form below if you are interested in unlocking the full benefits of your battery! We are currently onboarding beta testers.
.png)
