Using Electricity Thoughtfully
Cutting your environmental impact isn’t always about doing without or using less. Changing when you use electricity means that more of it comes from renewable sources and less strain is placed on the Grid. Castlefield’s Rupert Lovesy explains how moving to a dynamic energy tariff helps him to save money and use cleaner energy.
A nice problem to have?
As a population, we’re generating more renewable energy than ever before. A new record [1] for solar power generation in England, Wales and Scotland was set earlier this year over two consecutive days. This is a tremendous achievement. Subsequently, news of incentivising the use of more power [2] over the summer to deal with excess energy generation from renewables has caused a lot of confusion.
We’ve always known that with renewable energy, we are at the mercy of when the sun shines and the wind blows, but this has brought the matter into sharp focus, with some arguing that if we have “too much” renewable energy, we should be looking more to fossil fuels and blocking further renewable infrastructure.
It’s all a question of supply and demand, and maybe it is the way we consume electricity that needs to change.
Electricity used during peak demand is more likely to be supported by fossil-fuel generation, whereas using power when renewable generation levels are high has far less carbon impact.
Much has been done over the last few decades to reduce energy usage. Load shifting is about using the same amount of energy but moving usage to cheaper, cleaner times.
My switch to dynamic priced energy
5 years ago, when I started using electricity for car charging, I moved to a dynamic energy tariff – one where electricity prices change throughout the day - this enables me to pay less for off-peak electricity and encourages me not to charge the car during periods of excessive demand.
How does that work?
I’m on a tariff where the price per kilowatt-hour changes every 30 minutes to reflect the real-time wholesale energy market price. This is in contrast to traditional flat-rate billing, which charges the same rate regardless of when the energy is used.
I receive a notification from an app at 4pm everyday which lets me know the prices for the next 24 hours. Typically, the prices are higher than a standard tariff between 4pm and 7pm when demand is highest, and lower than standard overnight and in the early afternoon.
It fluctuates seasonally, as there’s more wind in the spring and autumn, more sun in the summer and more national demand for electricity when it’s needed for heating in winter and air conditioning in the summer.
There are even occasions every so often when the energy is free, or sometimes a negative price (they pay you to use it).
What’s in it for me?
The main benefits are lower, bills, lower carbon impact and better support for a cleaner Grid.
As I’m able to be flexible with a lot of my electricity use, I can then take advantage of the cheapest times. I can program the car and other appliances to come on at the most appropriate times and make decisions on when best to undertake other tasks with heavier power use.
Each year, I use an app to compare how much I have paid per unit on average with what I might have paid on another tariff and each year it has shown a significant saving in my case.
I haven’t yet, but if you have solar panels and/or home battery storage (BESS), there is even more scope for making the most of the dynamic pricing. You could also use smart thermostats to preheat or precool your house during off-peak hours to reduce your need during the peak hours.
What’s in it for the Grid?
By using energy thoughtfully and shifting high energy tasks to avoid peak times where possible, the Grid can make use of a higher share of renewable energy, when these are more prevalent, as opposed to relying on gas-fired power generation, reducing dependence on imported energy and the risk of power cuts or blackouts during periods of exceptionally high demand.
Although “green” tariffs do support investment in renewable infrastructure, the electricity that comes to your house is identical to other people’s! It’s great to support renewable energy generation, but realistically, it’s when you use electricity that actually affects the national mix of electricity generation.
What’s the catch?
Not everything works out as planned and sometimes, you will inevitably need to use energy when you would rather not be. Having to charge the car or cook a meal when prices are higher can make a significant difference to what you would have paid. It’s capped at £1 per unit but it’s frustrating when you know it could have cost much less.
There will be times of year when you wonder why you are doing this! Long murky periods over the winter where there’s no sun or wind to be had mean persistent high prices. Fortunately, these are more than offset by better times, but it can get a bit miserable!
Who wouldn’t it work for?
If you like certainty in your life, dislike tech or have routines that are not easily varied then this might not be right for you. If you have children home between 4pm and 7pm that want to switch on everything in the house and have their tea, that might also present a challenge! If full flexibility isn’t realistic, a tariff with daily pricing changes or a cheap overnight rate may still help
How to get started
Before signing up to anything, why not try a dry run to see how you would get on? You’ll still be supporting the Grid.
- Try running the washing machine or dishwasher in the cheapest periods.
- If you own an EV, charge your car overnight.
- Use timers and smart plugs to shift usage away from peak times.
- Avoid using hairdryers, vacuum cleaners, pressure washers or other high-power items during peak times.
- Avoid cooking between 4pm and 7pm where possible.
Conclusion
Lower impact living isn’t just about using less energy; it’s about using it more thoughtfully.
If you want to lower your energy bills, help stabilise the Grid and consume a higher proportion of renewable energy and you are happy to be flexible with your energy usage and to take the rough with the smooth, it’s certainly worth considering a Dynamic Energy Tariff.
Written by Rupert Lovesy
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