Dynamic Electricity Tariff
Electricity tariff with variable pricing that changes hourly based on the wholesale electricity price -- ideal with PV and storage.
Also known as: Variable Electricity Tariff, Spot Tariff, Wholesale Price Tariff
What Is a Dynamic Electricity Tariff?
A dynamic electricity tariff links the electricity price directly to the current wholesale electricity price (EPEX Spot). The price changes hourly and can fluctuate significantly depending on supply and demand — from negative prices during wind surpluses to peaks on overcast winter days.
How It Works
| Component | Description |
|---|---|
| Wholesale electricity price | Hourly variable (EPEX Day-Ahead) |
| Grid fees | Fixed, location-dependent |
| Taxes and levies | Fixed |
| Supplier margin | Fixed or percentage-based |
Requirements
- Smart meter (intelligent metering system) required
- Since 2025, all energy suppliers must offer a dynamic tariff
- Smart home system or energy management system recommended
Benefits with a PV System
- Charge cheaply: Charge battery storage and EV at low prices
- Feed in at high prices: Feed electricity into the grid when wholesale prices are high (direct marketing)
- Optimise self-consumption: Use own solar electricity during expensive hours
Savings Potential
Studies show savings potential of 10—30% compared to fixed-price tariffs — provided consumption is managed intelligently. Without load shifting, a dynamic tariff can also be more expensive.
Practical Tip
A dynamic tariff is especially worthwhile with a PV system, storage, and controllable loads (heat pump, EV). Providers such as Tibber, Awattar, or Ostrom offer such tariffs.
Related Terms
Smart Meter
Intelligent metering system that digitally records electricity consumption and transmits data to the grid operator and consumer.
Self-Consumption
Share of self-generated solar electricity consumed directly in the household rather than fed into the grid.
Battery Storage
Energy storage for PV systems that stores surplus solar electricity and releases it on demand.
Levelised Cost of Electricity (LCOE)
Total cost of electricity generation per kWh over the lifetime of a system -- for PV currently 5--10 cents/kWh.