A dynamic electricity tariff is an electricity contract where the price per kWh changes throughout the day – typically every 15 minutes or hourly. The price is based on the current market price.
How Does a Dynamic Tariff Work?
Unlike a fixed-price tariff where you always pay the same rate, the electricity price in a dynamic tariff fluctuates based on supply and demand:
- Night (0-6 AM): Often very cheap (3-8 ct/kWh), low demand
- Midday (11 AM-2 PM): Cheap with lots of solar power (5-15 ct/kWh)
- Morning (7-9 AM): More expensive, high demand (25-35 ct/kWh)
- Evening (6-9 PM): Most expensive, peak demand (30-45 ct/kWh)
Who Benefits from a Dynamic Tariff?
- EV owners: Charging at night saves up to 70%
- Heat pump users: Flexible heating times
- Smart home owners: Automatic device control
- Solar panel owners: Optimize self-consumption
How Much Can I Save?
An average household can save €100-300 per year. With battery storage and solar panels, €500-1000 is possible.
Learn more about dynamic electricity prices in the free Stromfee Academy.
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