Dynamic electricity tariffs

A dynamic electricity tariff is based on real-time prices on the electricity market. Electricity becomes more expensive when demand is high, for example in the evening, and cheaper when there is plenty of supply, for example when there is strong wind or intense solar radiation. Consumers who can flexibly manage their electricity consumption benefit from considerable savings.

Since 01.01.2025, electricity providers have been obliged to offer at least one such tariff (BMWK). The aim is to better adapt consumption to fluctuating electricity production from renewable energies. The idea behind this: If consumers use favorable times, the electricity grid is relieved, expensive peak load times decrease and the expansion of renewable energies is used more efficiently.

New opportunities are opening up for households and businesses with intelligent control systems - such as smart thermostats, electric cars or energy storage systems:

• Reduce costs: If you run your washing machine at midday or charge your electric car at night, you can save money.
• Protecting the environment: Dynamic tariffs promote the use of green electricity, as consumers take advantage of favorable times with high supply.
• Rewarding flexibility: Consumers who can react flexibly are financially rewarded for their adaptability.

For example, the electricity prices on January 7 showed a maximum difference of approx. 9.5 €-ct/kWh (0.5 €-ct/kWh at 03:00 and 10.1 €-ct/kWh at 18:00). The use of smart-controlled consumers or electricity purchasing during the early hours of the morning and intermediate storage in batteries would have had a major impact on the electricity costs incurred on this day.

Due to an ever-increasing share 59% in 2024 of renewable energies in electricity generation in Germany, there are even negative prices on the electricity exchange in some cases, as the supply of electricity is much higher than demand. There were a total of 457 hours with negative electricity prices last year. During these times, consumers are paid if they draw electricity from the grid.

It becomes interesting when the battery storage system (or the e-vehicle) is charged during these times and the temporarily stored electricity is then sold again at peak price times.

Not every consumer currently has access to the necessary technologies such as a smart electricity meter (although this is set to improve by 2032 according to the BMWK). Consumer acceptance will also depend on how comprehensible and transparent the tariffs are.

The obligation to offer dynamic tariffs marks an important step towards a flexible, sustainable energy market. Consumers are gaining control over their energy costs as the energy transition progresses. Those who recognize the possibilities now and inform themselves early on will be among the winners of this new system.

Dynamic electricity tariffs are more than just a buzzword - they are the bridge between the energy transition and active, environmentally conscious consumer behavior.

If you want to know how you can benefit from dynamic electricity tariffs, which technologies and adjustments are required in your current energy system, or if you just want to get an overview of the very specific financial benefits for you, let us know.