Dynamic tariffs are currently a hot topic. Here, we answer the most important questions and have a few special offers for you!
Key takeaways
- Users with controllable devices can particularly benefit from a dynamic tariff and save money compared to other electricity offers.
- Dynamic tariffs also support the energy transition by promoting a greater use of renewable energy.
- Automatic control allows you to make the most of the advantages offered by dynamic tariffs.
- A smart meter is required to record the shifting of consumption, but there are alternatives.
Dynamic tariffs: The clever way to reduce electricity costs
Dynamic tariffs are an innovative form of electricity pricing that differs from traditional fixed-price tariffs. With dynamic tariffs, the electricity price fluctuates hourly based on the price at the power exchange. This means that you can purchase electricity at significantly lower prices at certain times than at others.
Electricity prices on the exchange change hourly, depending on how much electricity is produced and how high the demand is. Dynamic tariffs pass these price fluctuations directly on to the consumer. When plenty of electricity from renewable sources like wind and solar is available, the price drops. In times of high demand or low production, however, it rises.
Why can I save money with dynamic tariffs?
With dynamic tariffs, you can shift your electricity consumption to times when electricity is cheapest. This means your electric vehicle can be charged when the price is low. In this way, you can significantly reduce your electricity costs, especially if you have high electricity consumption and controllable consumer devices.
You also contribute to the energy transition and a greater use of renewable energy. If you avoid electricity consumption during expensive hours, it is highly likely that electricity would have been sourced from conventional power plants using gas or coal. Conversely, there is a high correlation between low electricity prices and high generation from renewable energy sources.
In the first quarter of 2024, our users would have paid an average (volume-weighted) of 25 cents per kWh of electricity from the grid if they had been on a dynamic tariff.
That is on average 4 cents less than the cheapest tariffs on comparison portals. With an average grid import of 747 kWh per user during this period, that would be a saving of almost 30 euros. In reality, however, most people have a significantly more expensive tariff...
Who are dynamic tariffs suitable for?
Dynamic tariffs are particularly suitable for households with flexible electricity consumption and controllable devices. EV drivers, in particular, can benefit from a dynamic tariff because charging sessions can be easily shifted. However, heat pumps, pool pumps, circulation pumps, heating elements, and even smart home devices such as dishwashers, etc., can also effectively shift electricity consumption to cheaper times.
If you are willing to adjust your electricity consumption and take advantage of price fluctuations, you can save significantly with dynamic tariffs.
Automation for maximum savings
With a HEMS (Home Energy Management System), you can fully exploit the advantages of dynamic electricity tariffs. Our price signal control uses current electricity prices to automatically manage your compatible devices. This way, your consumption is automatically shifted to the cheapest times without you having to intervene manually.
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We support a wide range of devices, including heat pumps, wallboxes for electric cars, battery storage, and many other smart home devices. By integrating these devices into our HEMS, you can optimize your energy consumption and reduce your electricity costs without sacrificing comfort.
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Why might I need a different meter for a dynamic tariff?
The great advantage of a dynamic tariff lies in shifting electricity consumption to hours with a low electricity price. To achieve this, electricity consumption must be recorded with corresponding precision. Conventional electricity meters from grid operators only measure total consumption—for example, it is requested in the form of a reading once a year for the entire year.
Intelligent metering systems (iMSys)—colloquially called smart meters—measure electricity consumption in 15-minute intervals. The rollout of iMSys in Germany begins in 2025; upon the request of the electricity customer, the grid operator must provide an iMSys within four months starting in 2025. Many electricity customers with PV systems, heat pumps, or wallboxes are required to have an iMSys anyway.
However, it is unclear when grid operators or their metering point operators will manage the rollout of iMSys. Many users have already reported that their grid operator has announced that they will not be able to facilitate the installation of the iMSys in the near future.
How do I get an intelligent metering system / smart meter?
Starting January 1, 2025, every grid user can demand the installation of an intelligent metering system from their metering point operator. This is usually a sister company of the responsible grid operator. If the installation is carried out at the customer's request, the metering point operator may charge a maximum of 30 euros for it. The annual fee for operating the iMSys may only be between 20 and 50 euros.
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However, if the metering point operator is unable to facilitate the installation in time, another metering point operator can be chosen as a so-called "competitive metering point operator." However, this operator is not bound by the statutory price caps and may therefore charge much higher fees for installation and operation. You should therefore carefully check the costs/benefits of an early installation before proceeding.
More information on the website of the Bundesnetzagentur
Can I use a dynamic tariff without a smart meter?
Yes, a dynamic tariff can still be beneficial even without an iMSys. In this case, consumption is distributed throughout the day based on a standard load profile. Typically, higher consumption is assumed in the morning, at noon, and especially in the evening (between 5 p.m. and 10 p.m.).
Even in this case, a dynamic tariff can still be cheaper than a fixed tariff. However, if you have large controllable consumer devices, such as a wallbox or heat pump, the benefit may be smaller.
This is because the times when higher consumption is assumed in the standard load profile are very often also the times when the electricity price is significantly higher. If you shift the charging session of your electric car to the night during a period with a low electricity price, for example, this will not be recorded without an intelligent metering system, and the amount of the charging session will be distributed over the day.
Is there an alternative to the smart meter?
Yes! Customers whose metering point operator cannot provide an iMSys in a timely manner and for whom the offers from competitive metering point operators are too expensive can still receive billing based on their actual electricity consumption. Some dynamic tariff providers allow billing of electricity consumption using an unofficial meter. Currently, this is primarily EnviaM (with the iONA sensor). With their optical readout sensors, consumption is also recorded every quarter of an hour, just like with a smart meter.
What is the disadvantage of providers with optical readout sensors?
As a customer, you usually have no disadvantage. On the contrary: due to the lower costs for optical readout sensors compared to an intelligent metering system, you may be able to save even more.
A disadvantage of this solution, however, is that the shifting of electricity consumption is not recorded in the electricity system as a whole. The measurement from the optical sensor is only used for billing between the electricity supplier and the end customer. For the energy-economic settlement of the electricity supplier with the grid operators, the standard load profile is assumed. As a result, the electricity supplier must procure electricity on the power markets as dictated by the standard load profile for the user. Consequently, from an energy-economic perspective, electricity is still being procured primarily during evening hours, which may require the use of additional conventional power plants.