Time-of-Use Tariffs: How Do They Work With Solar & Batteries?
Time-of-use tariffs charge different electricity prices at different times of the day. When combined with a home battery, they can potentially help you buy electricity when it is cheaper and use it when prices are higher.
Not all electricity costs the same throughout the day.
Some electricity tariffs offer different prices depending on when electricity is used. These are known as time-of-use tariffs.
For homeowners with solar panels and battery storage, time-of-use tariffs can provide an opportunity to make better use of cheaper electricity periods and reduce electricity purchased during more expensive periods.
However, the potential savings depend on the tariff, battery system, household usage and how the battery is operated.
.jpg)
What Is a Time-of-Use Tariff?
A time-of-use tariff charges different electricity rates at different times.
For example, a supplier may offer:
• Cheaper electricity during certain off-peak periods.
• More expensive electricity during peak periods.
• Different rates at different times of the day.
The exact times and prices depend on the supplier and tariff.
Always check the current tariff details before making a decision.
Why Are Time-of-Use Tariffs Useful With Batteries?
- A home battery can store electricity and release it later.
This creates an opportunity to charge the battery when electricity is cheaper and use the stored electricity when electricity prices are higher.
For example:
Cheap electricity → battery charges → expensive period → battery supplies the home.
This is sometimes referred to as energy arbitrage.
The battery is effectively moving electricity from a cheaper period to a more expensive period.
.jpg)
Solar + Battery + Time-of-Use Tariff
Combining solar, battery storage and a time-of-use tariff can provide several ways of managing electricity.
During the day:
Solar panels generate electricity → the home uses some → surplus solar can potentially charge the battery.
During a cheaper grid period:
The battery may be able to charge from the grid, depending on the system and tariff.
During an expensive period:
The battery can potentially discharge to reduce electricity purchased from the grid.
The exact operation depends on the battery, inverter, energy-management system and tariff.
UK Power Tech Hub Takeaway
Time-of-use tariffs can work particularly well alongside battery storage because they allow you to manage when electricity is purchased and used.
But cheap electricity does not automatically mean cheap energy once battery losses, standing charges and other costs are considered.
Before switching tariff, look at your actual electricity usage and calculate whether the potential savings justify the change.