Understanding Dynamic Tariffs: A Complete Guide for Smarter Energy Savings
A smarter way to save: Understanding dynamic electricity tariffs
Unlike traditional fixed-rate plans, dynamic electricity tariffs adjust prices in real time based on market conditions. This flexible pricing model varies hourly on the wholesale energy market, allowing consumers to benefit from lower costs when demand is low or renewable generation is high.
Electricity prices shift throughout the day depending on supply and demand. When renewable energy like wind or solar is abundant, prices drop. But during peak usage times or when supply is tight, prices can rise. Dynamic tariffs give consumers direct access to these market-driven fluctuations, unlocking opportunities for strategic energy use and cost savings.
Starting January 1, 2025, all energy suppliers in Germany must provide dynamic electricity tariffs, enabling consumers to align their energy use with real-time market prices—such as spot, day-ahead, and intraday rates. This rollout complements §14a EnWG, which allows grid operators to temporarily curtail the output of controllable energy-consuming devices—like heat pumps and EV chargers—when needed to prevent grid overloads.
Why can I save money with dynamic tariffs?
Dynamic electricity tariffs let you take advantage of lower prices by shifting your energy use to times when electricity is cheaper—like charging your EV overnight or running appliances during off-peak hours. This can lead to noticeable savings, especially for households with high or flexible energy usage.
But it’s not just about saving money. By reducing consumption during peak periods—when electricity often comes from fossil-fuel-based sources—you help reduce reliance on gas and coal. In contrast, periods of lower prices often coincide with high availability of wind and solar energy. That means you’re not only lowering your bills, but also supporting a cleaner, more sustainable energy system.
Who are dynamic electricity tariffs suitable for?
Dynamic electricity tariffs are ideal for households with flexible energy habits and controllable appliances. If you have an electric vehicle, shifting your charging to low-cost hours can result in major savings. Homes with heat pumps, batteries, pv systems, and other smart home appliances can also take advantage of fluctuating electricity prices by running these devices when rates are lowest.
The key to benefiting from dynamic tariffs lies in your ability to adjust when you consume electricity. By using energy when it’s cheaper, you reduce costs and lower your carbon footprint. Households that are open to smart energy management and automation stand to gain the most from this pricing model.
Why You Might Need a Smart Meter for Dynamic Tariffs
To benefit from a dynamic electricity tariff, your energy consumption needs to be recorded in much finer detail than traditional meters can provide. The key advantage of dynamic tariffs lies in shifting energy usage to hours when electricity prices are low. But to make that work, your meter must be capable of tracking usage precisely and frequently.
Standard electricity meters used by most grid operators only measure total consumption over long periods—typically read once a year. That’s not enough to support dynamic pricing models that change hourly or even more frequently.
This is where intelligent metering systems (iMSys), commonly known as smart meters, come in. These devices record electricity usage in 15-minute intervals, allowing your Home Energy Management System (HEMS) or other smart technologies to optimize when to consume or store energy based on real-time prices.
Starting January 1, 2025, every electricity user in Germany will have the right to request a smart meter from their metering point operator. If you make the request, your operator is legally required to install the smart meter within four months. Many households with PV systems, heat pumps, or EV chargers will be required to install one regardless.
How enjoyelec help you Maximizes Savings with Dynamic Tariffs
With the Home Energy Management System (HEMS) from enjoyelec, you can take full advantage of dynamic electricity tariffs. Through our intuitive app, enjoyelec’s HEMS allows you to monitor these price changes in real-time, helping you make informed decisions and reduce your electricity bills.
Dynamic tariffs can fluctuate hourly, depending on factors such as supply and demand, renewable energy availability, and market conditions. enjoyelec’s Home Energy Management System (HEMS) allows users to track these price changes in real-time through our intuitive app. By continuously analyzing the market’s price trends, our system can automatically adjust energy consumption to ensure that electricity is used when it’s most affordable.
Our HEMS doesn’t just monitor energy consumption, it actively manages it. For instance, electric vehicles (EVs), batteries, and other controllable devices can be charged during off-peak hours when prices are lower. Similarly, during peak times when electricity prices are high, the system can discharge stored energy from batteries or EVs to reduce reliance on expensive grid power. This smart scheduling reduces electricity costs without requiring manual intervention.
Check out our step-by-step guide on how to access dynamic tariffs on enjoyelec App.
Maximizing Savings with Dynamic Tariffs: An Example from Ulm
On a day when wholesale electricity prices in Germany soared to nearly €1/KWh—more than 10 times the average rate. Between 5:00 PM and 5:30 PM, the price displayed on the enjoyelec app reached €1.3/KWh. At enjoyelec, we are dedicated to helping our customers optimize energy consumption and reduce costs through smart technology and real-time data. A recent case in Ulm shows how our HEMS controller helped a customer save 36% on their energy costs by effectively managing dramatic price fluctuations.
Use Case Highlights:
On December 12, Ulm experienced two major price spikes, peaking at 5 PM. enjoyelec’s HEMS controller helped customers optimize energy use during these fluctuations, minimizing costs. The enjoyelec app’s “Price” page provided a clear view of electricity trends, letting users track energy quantities and costs for both purchases and sales. The “Energy” module displayed power dynamics, with positive values showing power supplied and negative values representing charging. The data revealed price peaks from 8 AM to 12 PM and 4 PM to 6 PM. Our HEMS AI predicted these surges, automatically discharging batteries to sell power back to the grid during peak rates. During low-price windows (12 AM to 6 AM and 12 PM to 1 PM), the system used solar and grid power to recharge home batteries, ensuring smart scheduling for household needs. The December 12 data highlights the value of HEMS in price arbitrage, with smart charging during off-peak times and discharging during peak hours to maximize savings and earnings.
How HEMS Makes It Happen:
- Smart Charging & Discharging: The system doesn’t just track consumption, it actively manages it. By charging the battery during off-peak, low-price hours and discharging it during peak hours, it maximizes savings.
- Real-Time Price Insights: With access to up-to-the-minute price data, users can see exactly when to use or store energy for the best value, eliminating the guesswork from energy management.
- Energy Optimization: Our HEMS system continuously adapts to price fluctuations, ensuring that energy consumption is always optimized for cost savings—without any manual adjustments needed.
Experience the benefits of dynamic electricity tariffs with enjoyelec. Your energy, your savings, our smart solutions. Download our app to learn more about dynamic tariffs:
📱App Store: https://apps.apple.com/us/app/enjoyelec/id6467418530
📱Google Play:https://play.google.com/store/apps/details?id=com.enjoyelec.hems
Connect with us at http://www.linkedin.com/company/enjoyelec for the latest updates, insights, and news. We look forward to engaging with you and sharing our journey towards a smarter energy future.🎉🎊
