The Rise of Smart Tariffs: What installers need to know

June 12, 2024

As energy consumption and costs continue to rise, so does the need for innovative solutions that help manage energy use more efficiently. Smart tariffs are a forward-thinking approach designed to reduce the strain on the electricity grid while offering significant savings to consumers. 

At Mixergy, we recognise the potential of smart tariffs to help optimise energy usage. We have designed our smart hot water cylinders to seamlessly integrate with these tariffs, enabling homeowners to take full advantage of their many benefits. 

Here, we outline smart tariffs and their benefits, both for homeowners and the planet. 

What are Smart Tariffs and Why Do They Exist?

The majority of households pay for electricity at a set rate, regardless of time of day. However, the cost of energy varies all the time, from morning to night depending on supply and demand. Often, costs are higher in the mornings and evenings, falling during the day. For this reason, fixed-priced energy costs can be both inefficient and expensive. 

Smart tariffs are variable pricing plans offered by energy suppliers, where the cost of electricity changes depending on the time of day, offering greater flexibility and lower off-peak prices. These tariffs encourage consumers to use electricity during hours where, typically demand is low and energy is cheaper. The primary goal of smart tariffs is to balance the load on the electricity grid, preventing it from becoming overloaded during peak times.

Electricity grids face significant challenges when demand spikes, most commonly during morning and evening hours when households are increasingly active. By shifting energy consumption to off-peak times, smart tariffs help to stabilise the grid, reducing the need for expensive energy costs.

In addition, smart tariffs help prevent high pollution levels from energy plants by making better use of renewable energy sources that might otherwise go to waste during low-demand periods. This includes solar power, wind power and bioenergy. 

The primary goal of smart tariffs is to balance the load on the electricity grid, preventing it from becoming overloaded during peak times.

How Smart Tariffs Alleviate Grid Overload

Traditionally, our electricity grid has been designed for a one-way flow of power; from power plants to people. However, with the increasing rise of alternative, renewable energy sources and decentralisation of energy generation, this grid needs to adapt to be more flexible. 

Smart tariffs play a crucial role in this development by encouraging consumers to utilise their energy when it’s most abundant and less expensive during off-peak times. During these periods, energy suppliers can offer cheaper rates because the grid isn’t being overloaded and exhausted. 

This not only helps consumers save money, but also alleviates the stresses put on the grid by reducing demand. In turn, this helps to reduce the risk of potential issues associated with energy overloads, such as blackouts, and drives the increase in energy use from more sustainable sources. 

Mixergy and Smart Tariffs: A Seamless Integration 

At Mixergy, our smart hot water cylinders are designed to work seamlessly with smart tariffs, maximising savings and driving our mission towards sustainable energy. Our cylinders can be scheduled   to operate during off-peak hours when electricity is cheaper, ensuring your customers always have hot water available, while minimising their energy costs by up to 40%.

On top of this, Mixergy app allows users to easily set schedules that align with their smart tariff plans depending on their energy requirements at any given time of the day that suits them. For instance, individuals can use the app to choose to schedule their cylinder to heat water late at night or early in the morning when most people are sleeping, taking advantage of the lower rates. 

Smartphone line up displaying aspects of the Mixergy app.

Moreover, our machine learning algorithms can predict your hot water usage patterns and adjust your schedule accordingly. This ensures your customers have hot water when they need it without wasting energy or spending time scrutinising their energy usage patterns. 

Future-Proof Energy Use with Mixergy

One of the key benefits of Mixergy’s smart hot water cylinders is their versatility and future-proof design.

Mixergy cylinders are ready to adapt, helping lower energy bills and reduce our overall carbon footprint at every stage.

By combining our smart cylinders with a smart tariff, any home you install Mixergy into will boost its savings even further. As the energy landscape evolves, having a system that can adapt and optimise itself for new tariffs and energy sources is a significant advantage.

The Broader Impact of Smart Tariffs

Smart tariffs are more than just a cost-saving measure; they represent a shift towards a more sustainable and resilient energy system. 

By spreading out electricity usage and reducing peak demand, smart tariffs help integrate more renewable energy into the grid, decrease reliance on fossil fuels, and lower greenhouse gas emissions. 

For consumers, smart tariffs offer a practical way to engage with the energy transition. By making small, yet significant, changes to their energy use, households can contribute to a larger effort to create a more stable and sustainable energy future. This not only benefits the national grid, but also provides measurable financial rewards for those who adopt smart tariffs; a crucial factor to consider in today’s climate where energy prices are constantly fluctuating and unpredictable. 

Be Smarter and Partner With Mixergy

Smart tariffs are a vital tool in the modern energy landscape, providing a pathway to more efficient and sustainable energy use. At Mixergy, we are committed to helping our customers take full advantage of these tariffs through our innovative, smart hot water cylinders.

By integrating advanced scheduling and machine learning capabilities, we ensure your customer can maximise savings while contributing to a more resilient and greener grid.

Mixergy Extra

British Gas recently launched a Mixergy-exclusive tariff, Mixergy Extra. Mixergy customers who sign up for a British Gas fixed-rate tariff will save a further £40 a year when they opt-in to Mixergy Extra. The £40 rebate will be deducted by British Gas from the energy bill.

“We have been working with British Gas to explore how hot water tanks can support our power grid infrastructure by alleviating grid congestions as more renewables are installed on an already overloaded grid. Imagine if every hot water tank in the UK worked just like a battery and was connected to the grid so you could charge when power was cheapest and cleanest? This could free up a phenomenal amount of room to onboard more renewables. Instead of paying windfarms to switch off we could pay home-owners to switch on!”

Read more about the Mixergy Extra tariff.

How Can Installers Benefit From a Mixergy Partnership?

Through partnering with Mixergy and becoming an approved installer, you’re taking that step to futureproofing your business. 

The Mixergy Approved Installer Network allows Installers to offer renewable hot water technologies with minimal training and a dedicated support team. Installers only need a G3 unvented qualification to receive training, marketing support, and exclusive benefits.

Mixergy cylinders are easy to install with all the support you need on hand. They able you the opportunity to reach new customers by appealing to those more eco-conscious homeowners looking for alternative energy solutions. 

With Mixergy, you’re never on your own. We provide continuous support from training, sales, marketing and technical support. We also have a dedicated team and detailed knowledge hub should you ever have any queries. 

A Mixergy X smart hot water cylinder installed within the home

Stay In the Loop

As you consider the various energy options you’re able to offer users as an installer, think about the long-term benefits of smart tariffs and how they can fit into the overall energy strategy. With Mixergy, you’re not just investing in a hot water cylinder; you’re investing in a future-proof solution that grows with you and the evolving energy landscape. 

Interested in finding out more about becoming a Mixery Approved Installer? Sign up to our Mixergy Installer Spotlight and keep up to date with the latest installer-related news. 

Updated 26 June, 2024