Plans like that started gaining popularity in the recent years as in general they were cheaper than ones with fixed prices. Then because of the Russian invasion the prices skyrocketed with daily averages of even 30 and 40 cents and people were in deep trouble with their electric bills and many of them scrambled to get 20 - 30c/kWh, 1 to 2 year long plans to save their asses. However the spot prices then dropped back to 3 to 4 cents for the spring and summer and now those people were stuck with their fixed price plans and are paying 10x the spot prices. Personally I just decided to gamble with the spot priced plan as my 6c/kWh plan had just ended and the 8 to 12 cent plans are all 1 to 2 years long. Despite freak days like this, on average, I’m still probably paying less than I would have with a fixed price plan.
Fixed rates on renewal went crazy after the war started. Now it’s possible to choose low-load times for running dishwasher etc. On average the spot price is lower than available fixed rates, although some lucky people locked in long cheap contracts before February 2022. Most of those will expire this or next month at latest. It’s certainly easier to have a fixed price contract.
I think the opposite. Price is usually high when demand is high because of cold temperature. Because of the high price, you’re motivated to consume less, and that’s a good thing for the grid. It’s also a good thing for the carbon footprint because usually this is when the most polluting plants are activated, gas first, then fuel and coal. This is where protecting the consumer too much from the wholesale market volatility can be a problem, a fix price doesn’t motivate the end consumer to adapt consumption base on supply/demand which is important to reduce carbon footprint, instead the country pollutes more than it would if people were more aware. The problem is rather the risk for personal finance. That’s why I thought mostly ecological activists would be motivated enough to take this risk. But I forgot the possibility of very low prices on average.
I’m in the UK on an agile tariff and I’m not quite so sure - it depends on a number of things. Sure my batteries were bought primarily to support my solar panels. but I’ve been making quite a lot of money this winter.
There are times when it is windy and there is low demand, when prices actually go negative - fill your batteries and make money
The differential between lowest and highest price per kWh is often 30p so filling up when it is 10p and using when it is 45p makes sense.
The grid will sometimes pay you large amounts of money with a few hours notice that they will pay you a premium to discharge your batteries when demand is predicted to be extremely high - to avoid them cranking up coal power stations. In November and December I made £90 just from this - and I only have 5Kwh batteries.
I haven’t run the figures on payback times if the batteries were just for shifting and not solar - but they might just pay themselves back.
Sure. But the math depends on electricity tariffs. And those change and therefore, so does the maths. it sounds like tariffs are pretty extreme currently
Is that actually a widespread practice anywhere? I’m in Switzerland and I don’t think I’ve seen that anywhere (other than in one farm near me which is entirely covered in solar panels)
In the UK domestic solar panels are quite common and new installations usually come with batteries. Agile 30-minute pricing tariffs are still new and fairly experimental, but people are rapidly realising that their batteries can be really useful when used to force charge/discharge based on grid demand. Octopus is probably the leader: https://octopus.energy/blog/agile-pricing-explained/
I live in the northeast US and we looked into batteries. Unless you’re rolling your own and have a very specific home/garage layout installing them is really difficult. They have to be outside the living space, away from flamingo wall coatings and windows. And they need to be relatively climate controlled (not great in direct sunlight or frigid temps).
Until we start designing battery systems that can mount outside (away from the house, like propane tanks) within their own heat pumps to manage temps built in, it’s not going to be popular in climates like ours (which are very similar to Swiss and lower scandawegian climates).
They should probably be bigger metal boxes with sodium flow batteries and heat pumps, like we have now for utility boxes in some places. They could incorporate the smart/net meters required to pump back into the grid too.
About 30% do
It’s the first time I hear about final consumers paying spot prices. What’s the reason for it? Ecological activism?
Plans like that started gaining popularity in the recent years as in general they were cheaper than ones with fixed prices. Then because of the Russian invasion the prices skyrocketed with daily averages of even 30 and 40 cents and people were in deep trouble with their electric bills and many of them scrambled to get 20 - 30c/kWh, 1 to 2 year long plans to save their asses. However the spot prices then dropped back to 3 to 4 cents for the spring and summer and now those people were stuck with their fixed price plans and are paying 10x the spot prices. Personally I just decided to gamble with the spot priced plan as my 6c/kWh plan had just ended and the 8 to 12 cent plans are all 1 to 2 years long. Despite freak days like this, on average, I’m still probably paying less than I would have with a fixed price plan.
So not mildly infuriating, but fuckaroundandfindout?
Fixed rates on renewal went crazy after the war started. Now it’s possible to choose low-load times for running dishwasher etc. On average the spot price is lower than available fixed rates, although some lucky people locked in long cheap contracts before February 2022. Most of those will expire this or next month at latest. It’s certainly easier to have a fixed price contract.
Anti-ecological maybe.
Consumers have chosen the spot deals because of the lowest possible prices with disregard to the high points and consumption.
I think the opposite. Price is usually high when demand is high because of cold temperature. Because of the high price, you’re motivated to consume less, and that’s a good thing for the grid. It’s also a good thing for the carbon footprint because usually this is when the most polluting plants are activated, gas first, then fuel and coal. This is where protecting the consumer too much from the wholesale market volatility can be a problem, a fix price doesn’t motivate the end consumer to adapt consumption base on supply/demand which is important to reduce carbon footprint, instead the country pollutes more than it would if people were more aware. The problem is rather the risk for personal finance. That’s why I thought mostly ecological activists would be motivated enough to take this risk. But I forgot the possibility of very low prices on average.
I’d see you as an exception to the spot consumers here. Very admirable perspective!
Time to install a wood stove.
I’m surprised that those 30% don’t have batteries to shift load times
Those batteries would never pay themselves back.
I’m in the UK on an agile tariff and I’m not quite so sure - it depends on a number of things. Sure my batteries were bought primarily to support my solar panels. but I’ve been making quite a lot of money this winter.
I haven’t run the figures on payback times if the batteries were just for shifting and not solar - but they might just pay themselves back.
The math has been done multiple times. The batteries don’t pay themselves back, and also need to be replaced from time to time.
Sure. But the math depends on electricity tariffs. And those change and therefore, so does the maths. it sounds like tariffs are pretty extreme currently
Batteries on a plan like that, where they’re part of a large virtual battery, do pay for themselves within warranty
Solar batteries never do. To rationally buy a battery one needs to put high value on backup power
Is that actually a widespread practice anywhere? I’m in Switzerland and I don’t think I’ve seen that anywhere (other than in one farm near me which is entirely covered in solar panels)
In the UK domestic solar panels are quite common and new installations usually come with batteries. Agile 30-minute pricing tariffs are still new and fairly experimental, but people are rapidly realising that their batteries can be really useful when used to force charge/discharge based on grid demand. Octopus is probably the leader: https://octopus.energy/blog/agile-pricing-explained/
I live in the northeast US and we looked into batteries. Unless you’re rolling your own and have a very specific home/garage layout installing them is really difficult. They have to be outside the living space, away from flamingo wall coatings and windows. And they need to be relatively climate controlled (not great in direct sunlight or frigid temps).
Until we start designing battery systems that can mount outside (away from the house, like propane tanks) within their own heat pumps to manage temps built in, it’s not going to be popular in climates like ours (which are very similar to Swiss and lower scandawegian climates).
They should probably be bigger metal boxes with sodium flow batteries and heat pumps, like we have now for utility boxes in some places. They could incorporate the smart/net meters required to pump back into the grid too.