How can I forecast my savings on a time-of-use tariff with storage?

To forecast your savings on a time-of-use tariff with storage, you need to understand how these tariffs work and how integrating home storage can maximize your savings.

Understanding Time-of-Use Tariffs

Time-of-use tariffs charge different prices for electricity depending on the time of day. Typically, electricity is more expensive during "peak" hours, which often occur in the early evening, and cheaper during "off-peak" hours, such as at night. This pricing strategy encourages consumers to use electricity during off-peak times.

Integrating Home Storage

Home battery storage can significantly enhance the benefits of time-of-use tariffs. Charging your batteries during off-peak hours when electricity is cheaper allows you to store energy at lower costs. Then, during peak hours when electricity prices rise, you can discharge the stored energy to power your home. This approach allows you to avoid higher peak rates without changing your daily routines.

Key Benefits

• Flexibility: You don't need to adjust your daily activities based on energy pricing.
• Cost Savings: Using cheaper off-peak energy can reduce your overall energy bills.
• Independence: Standalone battery storage can be used without solar panels, providing flexibility for any homeowner.

Forecasting Savings

To estimate your potential savings, follow these steps:

1. Assess Your Current Energy Usage: Understand your typical energy consumption patterns throughout the day.
2. Calculate Peak and Off-Peak Consumption: Identify how much energy you use during peak and off-peak hours.
3. Determine Storage Capacity: Consider the capacity of your home battery storage system and how much energy it can store.
4. Apply Tariff Rates: Calculate the cost of energy during peak and off-peak times using your tariff rates.
5. Estimate Savings: Calculate the difference in costs when using stored energy during peak hours compared to directly purchasing it at peak rates.

Practical Advice

• Choose the Right Tariff: Select a tariff that offers significant discounts for off-peak energy.
• Monitor and Adjust: Continuously monitor your energy usage and adjust your habits or storage capacity as needed to optimize savings.

Common Mistakes to Avoid

• Underestimating Peak Consumption: Not accurately predicting peak hour usage can lead to buying expensive peak-rate electricity.
• Overlooking Maintenance: Neglecting to maintain your battery storage system can reduce its efficiency.

Example from the UK

In the UK, tariffs like Octopus Energy's Intelligent Octopus Flux offer smart import/export tariffs that are well-suited for homeowners with battery storage. This tariff includes a 3-hour peak export period, allowing you to discharge your battery during these times and potentially achieve annual savings of around £450 compared to standard tariffs.

In summary, integrating home storage with time-of-use tariffs can significantly reduce your energy bills by allowing you to store cheaper energy for use during peak hours. Accurately forecasting your savings involves understanding your energy usage patterns, the capacity of your storage system, and the specifics of your tariff.