Energy prices remain a major concern for UK households, particularly across the South East where electricity demand is high. One option growing rapidly in popularity is time of use tariffs, especially when combined with solar PV systems and battery storage. Together, these technologies can significantly reduce the reliance on expensive grid electricity and help homeowners take advantage of cheap electricity and even periods of near free electricity.
But how do time of use tariffs actually work and are they worth it if you already have solar panels? Here is what South East homeowners need to know.
What Are Time of Use Tariffs?
Time of use tariffs charge different electricity rates depending on the time of day. Instead of paying one flat rate, you pay less during off peak periods and more during peak demand times.
Typical features include:
- Off peak rates overnight or during low demand hours
- Higher prices during early evening peak periods
- Variable import and export rates depending on your energy supplier
Examples include tariffs such as Economy 7, Octopus Flux and E-On Next Smart Saver, designed specifically for households with solar PV, battery storage or electric vehicles.
How Solar Panels Work with Time of Use Tariffs
Solar panels generate electricity during daylight hours, usually when household demand is moderate. Without a battery, solar energy is either used instantly or sent back to the grid through export arrangements such as the Smart Export Guarantee (SEG).
With a time of use tariff, you used solar power during the day instead of paying peak import rates and you can export unused solar energy to get paid for it. Solar helps you reduce exposure to expensive evening electricity prices, especially when paired with a battery storage.
For many South East homes, solar PV already offsets the most expensive daytime electricity, making time of use tariffs even more attractive.
The Role of Battery Storage
Adding battery storage transforms how effective time of use tariffs can be. A solar battery allows you to:
- Store surplus solar generation during the day
- Use stored energy during peak rate evening hours
- Charge cheaply from the grid during off peak periods (especially helpful in winter)
- Reduce reliance on high cost imported electricity
In some cases, homeowners can charge their battery overnight using cheap electricity and use it the following evening, effectively avoiding peak tariffs altogether.
Can You Really Get “Free Electricity”?
While electricity is rarely truly free, time of use tariffs combined with solar PV and battery storage can come very close.
You may experience extremely low overnight charging costs (sometimes as low as 6p per kWh). Solar generated electricity costs nothing once your solar PV system is installed, reducing bills during peak periods. Storing your solar energy and combining it with additional off peak electricity can reduce your bills even further, add to that the income from exporting surplus solar energy and your return on investment can increase significantly.
Import vs Export: Why Tariff Choice Matters
Not all time of use tariffs are the same. Some prioritise low import costs, while others offer higher export payments. When choosing your tariff, you need to consider how much electricity you will need to import from the grid and how much surplus solar you could potentially be exporting. If you have battery storage and high evening usage, you will find it more beneficial to choose a tariff that offers low cost overnight charging rates.
SolarTherm UK can help homeowners assess whether a tariff with higher export rates or cheaper import rates will deliver the greatest savings.
Are Time of Use Tariffs Right for South East Homeowners?
Time of use tariffs are particularly effective in the South East due to:
- Strong solar generation potential
- High electricity prices
- Growing adoption of smart meters
- Increased demand for battery storage and smart energy systems
Homes with solar PV and batteries see the biggest benefits, but even solar only systems can gain from improved export earning and reduced daytime imports.
Final Thoughts
Time of use tariffs are no longer just for niche users. When paired with solar PV and battery storage, they offer a practical way for UK homeowners to access cheap electricity, reducing reliance on the grid and maximising the value of their solar investment.
If you are considering solar, battery storage or reviewing your current tariff, SolarTherm UK can provide expert advice tailored to your home and energy usage in the South East. Contact SolarTherm UK today for a free, no obligation quote and design, tailored to your property, usage and future energy needs. No hard sell, just honest, expert advice.
Your home. Your energy. Your future.
