Dynamic electricity rate
Ready for the future of energy management?
We are constantly focusing our efforts on the topic of dynamic electricity rates in energy management. Our goal is clear: to provide SMARTFOX customers and installers with a smart solution designed to effectively reduce electricity costs. We simply want to give our customers the opportunity to easily and effectively take advantage of fluctuating electricity prices on the market through the My SMARTFOX portal.
With the latest software update, we have integrated the "Dynamic Electricity Rate" feature into the My SMARTFOX portal. This allows SMARTFOX users to flexibly use electricity during the cheapest times of the day.
A dynamic electricity rate literally means “at the time of consumption.” This means you pay the exact price for the hour in which you use electricity.
What are dynamic electricity rates?
Dynamic electricity rates are based on the fluctuating prices on the electricity exchange, which vary depending on the time of day, the share of renewable energy, and demand. With a dynamic rate, homeowners can benefit directly from these price fluctuations. Customers can adjust their consumption patterns to price trends on the electricity exchange and operate devices such as charging stations, heat pumps, or space heaters specifically when electricity prices are particularly low.
Maximize savings with dynamic electricity rates and SMARTFOX Pro 3
Dynamic electricity rates aren't necessarily cheap. If electricity is consumed without restraint during peak hours, costs can quickly skyrocket. That's where our SMARTFOX Pro 3 smart energy management system comes in:
SMARTFOX Pro 3 specifically shifts electricity consumption to times when electricity prices are particularly low. These are often times when the electricity mix consists of a high proportion of renewable energy and electricity consumption is low. For electric car owners, for example, it is advantageous to charge their vehicles during these off-peak hours. These times—such as early in the morning, late at night, or around noon, as well as on holidays—are particularly affordable because demand for electricity is lower. On holidays, electricity prices drop even further because industry isn’t consuming energy. These shifts in consumption can be easily and automatically controlled with our energy manager.
Here's how SMARTFOX works!
Through our My SMARTFOX web portal and mobile app, we offer all SMARTFOX customers a simple and effective way to benefit from fluctuating electricity prices on the market. Our innovative system detects and updates electricity rates directly from the electricity exchange. This information is updated daily at 1:00 p.m. for the following 24-hour period, allowing our customers to always keep track of the latest and most cost-effective rates.
As a user, you can specify exactly when certain actions, such as charging your electric car, should take place. All you have to do is set the desired time period during which the car should be charged—for example, from 1:00 a.m. to 5:00 a.m. During the selected time period, SMARTFOX only draws power from the grid during the hours with the lowest rates. This ensures that the electric car is automatically charged during the specified time period at the lowest available rate.
Function & Structure of Dynamic Electricity Rates
With dynamic electricity rates, there are no fixed costs per kilowatt-hour. Providers purchase energy based on current prices on the electricity exchange. Dynamic electricity rates consist of three main components, which are determined by current market conditions and electricity consumption:
Electricity
The first component is the energy supplied, which is measured in kilowatt-hours based on consumption. This represents the direct energy consumption required by households and businesses. SMARTFOX has an influence on this component.
Grid fees
These charges cover the costs of using and maintaining the electricity grid infrastructure. This includes everything that enables the transmission of electricity from the generator to the end consumer.
Taxes
The third component of the electricity price consists of all government-imposed charges, such as value-added tax, electricity tax, and levies intended to promote renewable energy or finance energy efficiency measures.
Together, these three components contribute to the overall structure of the electricity price. Dynamic rate changes allow end customers to use electricity cost-effectively by shifting their consumption to times when prices are low. This promotes more efficient use of the power grid and can contribute to the integration of renewable energy.
Free electricity through dynamic rates
When a high proportion of renewable energy is fed into the grid—such as during periods of intense sunlight or strong winds—the price on the electricity exchange drops. During these times, electricity is resold at a lower price than it was produced. With dynamic electricity rates, end customers benefit from these falling prices, or so-called “negative electricity prices.” Negative prices occur when the supply of electricity exceeds demand.
It’s easy to explain what negative electricity prices mean for consumers: the consumer is paid by the electricity provider for using the electricity. If electricity is used at times when prices are negative, the end customer receives money instead of spending it. However, surcharges, fees, and taxes are still added to the electricity price.
The dynamic electricity rate offers a wide range of benefits:
Cost-effective energy supply
Contribution to sustainability and environmental protection
Transparent billing and administration
Flexibility and control over energy consumption
Product independence & flexibility
One of the biggest advantages is its compatibility with a wide range of electricity providers. This product independence means that end customers don’t have to worry about whether SMARTFOX works with their electricity provider. Even if an end customer decides to switch providers, this will not affect their use of the dynamic electricity rate, as the SMARTFOX Pro Energy Manager is compatible with a wide variety of electricity providers.
A solar power system is not required
Another key advantage is that users do not need their own PV system to use the service. The system is designed so that all SMARTFOX users—regardless of their individual electricity source—have access to dynamic electricity rates. In other words, every household has the opportunity to benefit from dynamic electricity rates, which can lead to significant cost savings.
Cost savings
By flexibly adjusting electricity consumption to coincide with off-peak rates, end customers can achieve significant savings on energy costs. SMARTFOX now makes it possible to manage consumption patterns so that end users can take advantage of the most affordable hourly electricity rates.
Who benefits from dynamic rates?
Whether a dynamic electricity rate is worth it depends primarily on individual consumption patterns. In principle, anyone can use a dynamic rate. Those who consume a lot of electricity tend to benefit the most. For example, this includes homeowners with controllable appliances such as charging stations, air conditioners, heat pumps, pool heaters, electric heating elements, and battery storage systems—especially when these are combined with a smart energy management system, with or without a PV system.