Energy companies live to rip you off. Find out how to get slightly less ripped off.
For years, the standard approach to energy tariffs has been straightforward: utilities provide a fixed rate per unit of energy plus a daily standard charge.
Consumers typically selected their providers based on slightly lower rates or somewhat better customer service experiences.
However, a significant shift occurred with the introduction of the Economy 7 tariff in the 1970s. This plan offered seven hours of reduced-rate electricity overnight, primarily to charge electric storage heaters at roughly a third of the standard price.
Economy 7 marked the beginning of what would evolve into dynamic tariff pricing.
This innovation became particularly advantageous with the advent of solar photovoltaic (PV) systems and home battery storage technologies.
As the home battery market has surged, energy companies have begun to introduce a range of smart tariffs, tailored to leverage these technologies for cost savings and efficiency.
In this article, we will examine some of the best smart tariffs currently available and determine which ones offer the most benefits for homes equipped with battery storage systems.
PS We offer MCS-certified battery installation nationwide. Simply answer these questions, get your fixed price and arrange your free design.
Best Electricity Tariffs For Battery Storage
Charging your home battery storage unit operates under a similar principle to the Economy 7 tariff, a system introduced in the 1970s.
Economy 7 offered a unique pricing structure where electricity was significantly cheaper during a seven-hour window at night, typically used to charge electric storage heaters.
This allowed consumers to take advantage of lower rates for energy used during off-peak hours and store it for use throughout the following day.
In a modern context, this approach is applied to home battery storage systems. You can charge your battery at night when electricity prices are lower, thanks to similar off-peak tariffs.
During the day, you can then power your home using the energy stored in your battery, bypassing higher daytime electricity rates.
Additionally, some tariffs now offer the ability to export energy back to the grid.
This feature enables you to sell surplus stored energy during peak demand hours at a premium rate, optimising your household energy costs and contributing to a more balanced energy grid.
Let's take a look at the top three most popular tariffs available...
Supplier | Tariff Name | Day Rate | Off Peak Rate | Peak Rate | Export Rate | Note |
Octopus | Go | 27p-31p | 8p-10p | n/a | 8p | You’ll also need an EV |
Octopus | Flux | 25p-28p | 12p-15p | 35-38p | 15p-26p | Peak rates can be expensive *if you need them |
British Gas | Electric Driver V6 | 29-31p | 7p-9p | n/a | 4p-6p | You’ll also need an EV |
Table last updated: May 2024.
How to make the most of your smart tariff
To maximise the benefits from your tariff, it's crucial to have the right home storage battery installed. Higher capacity batteries, such as the Tesla Powerwall 2, are highly recommended.
This model offers 13.5 kWh of storage capacity along with high charge and discharge rates, which can efficiently manage the energy demands of most households. If you’re interested, we provide sales and installation services for these batteries—feel free to request a quote.
Additionally, selecting tariffs that provide high export rates can significantly enhance your savings. With a robust battery like the Tesla Powerwall 2, you have the potential to store and subsequently export surplus energy to the grid during peak demand periods.
For instance, the Octopus Flux tariff offers up to 26p per kWh for exported energy, which could significantly increase your earnings.
This strategy not only reduces your energy costs but also contributes to a more sustainable energy system by supplying the grid with green energy during high demand.
Explore a Battery Storage Case Study: Check out an insightful Q&A session featured in one of our detailed case studies on battery storage. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
The image above features a Tesla Powerwall 3 installation performed by our team of Tesla-certified installers at Heatable.
What do I need to sign up for a smart tariff?
If you're considering exporting electricity back to the grid from your home battery in the UK, it's essential to ensure that your system is installed by an MCS (Microgeneration Certification Scheme) approved installer, such as Heatable.
This certification not only guarantees that the installation adheres to the highest standards of quality and compliance but also qualifies you for various smart energy programs and potential government incentives.
Additionally, you will need a smart meter installed at your property. Standard meters are not capable of accurately tracking energy flows in both directions—essential for managing both your consumption and any electricity you send back to the grid.
Smart meters enable dynamic energy management and are crucial for participating in smart tariff programs, which can significantly enhance the financial returns of exporting surplus energy.
These meters also provide real-time data about your energy usage and generation, helping you make more informed decisions about your energy consumption.
If you don't already have a smart meter, you can request one from your energy supplier, often at no additional cost.
This upgrade is part of the UK's broader initiative to enhance energy efficiency and integration of renewable energy systems into the national grid.
Related battery guides:
What If I have an EV or a Heat Pump?
Owning an electric vehicle (EV) or hybrid can significantly streamline the process of securing the best rates for your home battery storage system.
Charging your home battery concurrently with your EV during off-peak hours is the most cost-effective strategy, as it allows you to take full advantage of lower electricity rates.
All home battery systems installed by Heatable are equipped with smart technology, which includes user-friendly time control settings.
These settings help you optimise when your battery charges, ensuring you maximise your savings. If you're interested in upgrading your system, feel free to get a quote here.
On the other hand, integrating a heat pump requires a slightly different approach. Specific tariffs designed for heat pumps offer variable rates throughout the day, which can complicate managing your charging schedule.
These tariffs are structured to accommodate the operational needs of heat pumps, which typically have a constant draw on power.
It's important to consider these differences when setting up your system to ensure you maintain control over your energy costs effectively.
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Types of Tariffs Compatible with Battery Storage
There are several energy tariffs you can utilise with battery storage, including:
Time-of-Use Tariffs: These tariffs offer lower electricity prices during off-peak hours, such as night-time, to encourage usage during these periods.
Dynamic Tariffs: These tariffs provide real-time pricing based on wholesale market rates, allowing you to benefit from lower prices that can sometimes even turn negative.
Export Tariffs: These tariffs enable you to export excess energy to the grid during peak times in exchange for payment.
Next Steps For Your Battery Journey:
When planning to install battery storage for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos, or read a customer case study to see how others have benefited from their battery installation.
Get a Quote for Battery Storage Today
Without boasting you should get your battery storage installed with us, here's why:
Thousands of Happy Customers: We boast an average score of 4.9 on Trustpilot, outperforming the market leader.
Which? Trusted Trader: Heatable is proudly recognised as a Which? Trusted Trader.
Tesla Certified Installer: Heatable is proudly certified and approved by Tesla to install the Powerwall.
MCS Accredited: Our accreditation by the Microgeneration Certification Scheme (MCS) ensures high-quality standards.
Consumer Protection: As members of the HIES consumer code, we provide 2-year deposit protection.
Flexible Payment Options: Choose from multiple payment methods, including finance options.
Fixed Price Guarantee: Enjoy transparency with no hidden costs.
Save Your Quote: You can save your quote and decide later.
Bespoke Battery Quote Tool: Find out which battery is ideal for your home, here.
