Homeowner Blog

Octopus Shakes up the Market with its Tesla Tariff

George Riley 21 Nov 2019

We’re entering a period of dramatic change for the energy sector. From smaller independents breaking the hold of the Big 6 and consumers generating their own solar power to dynamic pricing plans and smart homes.

The latest innovation is one that combines all of these: Octopus’s Tesla Energy Plan.

What is the Tesla Energy Plan?

The Tesla Energy Plan is a new tariff from Octopus Energy, one of the few UK suppliers of 100% renewable electricity. It’s designed to lower bills for Tesla owners through automated usage. To take part you must have:

  • a Tesla car,
  • Tesla Powerwall,
  • solar panels,
  • an EV chargepoint with any smart features disabled.

If you’re eligible, you can benefit from:

  • no daily standing charge,
  • 8p/kWh import rate (much lower than the national standard of 16p),
  • 8p/kWh export rate.

The Tesla platform coordinates vehicle charging and battery charging/discharging to optimise your energy usage costs. You’re supporting the grid with solar energy and helping to balance supply and demand.

Why is an export tariff important?

When you have solar PV, chances are you won’t use all your solar energy at the time it’s generated, and some will be sent to the grid. It’s only fair you should be paid for this, like any other generator.

In the days of the Feed-in Tariff, you would get 50% deemed export from your electricity supplier. But the scheme closed to new applicants in March and since then there’s been a void in policy to ensure any payment.

That is all set to change in January, when the Smart Export Guarantee comes into force. After that, major energy suppliers will have to offer some kind of export tariff by law. The hope is that suppliers will compete to offer solar customers the best deal, but since the SEG was announced, only Octopus has come forward. For regular customers, they offer a healthy 5.5p/kWh (or variable rate), making 8p/kWh for Tesla owners a very generous deal.

As we get closer to the deadline, we expect other suppliers to start offering an export tariff and give PV owners more choice.

tesla wall connector charging

The renewable home ecosystem

The great thing about this collaboration between Octopus and Tesla is that it embraces the idea of a connected home, automatically making the most use of renewable energy. There’s huge potential in this area as we move towards a smart grid powered by renewables, with many homes charging electric cars or partially generating their own electrictricity.

There are other products which optimise solar usage, like the zappi for EVs or the iBoost for hot water. Indeed, Powerwall on its own can do a great deal with onsite storage and off peak charging. But the key piece here is involving the energy supplier, so that the tariffs and pricing themselves integrate with the system.

While Octopus is probably the most innovative energy company around, it will be interesting to see if others follow suit with similar plans.

Taking part

If you’re keen to sign up to the Tesla Energy Plan but missing one of the key components, we may be able to help out. While we can’t supply your new electric ride, we’re experts in installing solar PV, Powerwall and EV chargers.

Give us a call on 0118 951 4490 or get in touch via the button below:

Request free advice / quote 

Topics: Battery storage, EV charging, Solar PV, Tesla Powerwall

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