The tariff – Intelligent Octopus Flux (IOF) – is set to unlock more than £450 of savings per year for consumers as well as improving grid sustainability by balancing demand.
Optimising energy import and export
Available for customers with solar panels and eligible battery storage, this next generation tariff is powered by Kraken, Octopus’ proprietary tech platform, and optimises a home’s batteries and solar panels to allow customers to capitalise on cheap, off-peak energy rates.
Until now, solar and battery owners had to manually programme their tech to charge and discharge. IOF is a game changer as it removes this hassle – allowing customers to automatically receive the best rates for both the power they use (import) and the power they sell back (export) to the grid.
Customers with a GivEnergy battery system, currently the only home storage batteries that work with the new tariff, can store the excess energy generated from their solar panels for later use in the evenings, when energy is typically at its costliest. With the new IOF smart tariff, the battery will charge and discharge intelligently, automatically taking advantage of the best rates using a direct API link to Octopus and energy prices.
“We’re incredibly proud to work with Octopus on such a practical, cost-saving, carbon-reducing energy initiative,” says Jason Howlett, GivEnergy CEO. “This level of collaboration between energy providers and energy technology companies is something we urgently need more of if we are to end fuel poverty and tackle the climate crisis.”
Saving everyone money
Octopus has been a pioneer of smart tariffs for several years. It offers a range of different smart tariffs to suit customers’ homes and engagement with their energy use, all of which help to unlock the benefits of a renewable grid.
In 2022, the UK spent £215 million on turning wind farms off, and over £715 million on turning on gas power plants**.
Improving grid flexibility through tariffs like IOF reduces the need for National Grid to pay renewable energy generators to switch off and fossil fuel power plants to switch on when the grid is under stress resulting in overall bill energy reductions.
Alex Schoch, head of flexibility at Octopus Energy Group, says: “Octopus Energy continues to unlock a grid system that is green, cheap and easy for customers. Next generation smart tariffs like Intelligent Octopus Flux optimise energy tech in people’s homes – passing on savings to customers while stopping the need for dirty fossil fuel plants at peak times.”
Intelligent Octopus Flux is a beta tariff and has been launched to optimise with GivEnergy batteries, with plans to integrate more battery brands through the year.