As households look to make the most of their home battery systems, selecting the right energy tariff has become crucial. For those using Loop Optimise to manage their home battery, choosing the best tariff isn’t just about rates—it’s about understanding how different tariff types influence battery behaviour and energy savings. Here, we break down three popular tariff structures available, helping you pick the one that aligns best with your home battery needs and energy goals.

Understanding Loop Optimise and Battery Tariffs

Loop Optimise is designed to maximise the value of your home battery by charging and discharging it when it’s most cost-effective. The right tariff can amplify these savings, but your choice depends on factors like whether you own an electric vehicle (EV) and your comfort with variable rates. Each tariff type—EV, Flux, and Agile (Variable)—offers distinct benefits and risks for battery owners, which we’ll explore below.

The Three Types of Tariffs for Battery Owners

1. EV Tariff: Reliable Rates for EV Owners
   • Best for: EV owners who want predictable, lower rates with minimal risk.
   • Structure: EV tariffs typically offer lower rates during off-peak hours when charging a car or battery is cheaper. They’re designed for EV owners but work well for home battery systems too.
   • Advantages with Loop Optimise: EV tariffs provide a consistent structure, allowing Loop Optimise to schedule charging at the lowest rates. Since off-peak rates are predictable, you’re less likely to face unexpected price spikes.
   • Considerations: These tariffs generally don’t change much over time, so your savings are steady but may not be as high as with riskier options like Agile. For users looking for reliability without surprises, this is an ideal choice.
2. Flux Tariff: Balanced for Households without EVs
   • Best for: Non-EV owners who want a balance between cost savings and stability.
   • Structure: Flux tariffs are somewhat flexible and offer a middle ground, giving lower off-peak rates but without the added perks tailored for EV owners.
   • Advantages with Loop Optimise: The Flux tariff allows Loop Optimise to charge your battery at affordable times, though it may not be as advantageous as EV-specific off-peak rates. Still, it provides a safe balance for users without the extreme fluctuations of Agile tariffs.
   • Considerations: This tariff type may not maximise savings for high-energy consumers, but it’s a great fit if you’re looking for a dependable rate that works well for general household needs and occasional high-energy usage periods.
3. Agile (Variable) Tariff: Higher Risk, Higher Reward
   • Best for: Users willing to take on risk for potentially high rewards.
   • Structure: Agile tariffs are entirely variable, with prices fluctuating throughout the day based on demand. Rates can be incredibly low at times, but they can also surge during peak hours.
   • Advantages with Loop Optimise: For savvy users, Agile tariffs can unlock significant savings. Loop Optimise schedules battery usage to take advantage of low-rate periods, often late at night, early in the morning, or even in the middle of the day when excess solar production occurs. These low prices are often linked to periods of high green energy production.
   • Considerations: Agile’s unpredictability can lead to costly peak rates. If you aren’t optimising your battery carefully, you might end up paying much more during peak times. To make the most of Agile tariffs, you must be comfortable with the risk and ideally have an automated Home Energy Management System (HEMS) like Loop Optimise actively managing your usage.

Choosing the Right Tariff for Your Needs

Selecting the right tariff for Loop Optimise largely depends on your household’s energy patterns and comfort with fluctuating rates. Here’s a quick summary:

• Go with an EV Tariff if you have an electric vehicle and want dependable, affordable rates. You’ll avoid surprises, and Loop Optimise can make the most of the steady off-peak pricing.
• Consider a Flux Tariff if you don’t have an EV , or you have one but don’t use it very much, and you want savings without major risks. It offers stability with some flexibility, providing cost-effective energy use without extreme price shifts.
• Opt for Agile only if you’re comfortable with variable rates and have a proactive approach to managing your energy use. Agile can offer incredible savings, but it also comes with the highest risk during peak periods. Keep in mind that savings with Agile are more apparent over a full year due to seasonal variability, unlike Flux, which provides more consistent rates.

Boost Your Battery’s Potential

Your home battery is a powerful tool for reducing energy bills and managing your household’s consumption, but the right tariff can make or break the benefits of your system. At Loop, we’re working on a tariff recommender that uses your energy data to make personalised suggestions, but until then, we hope this guide gives you a solid starting point for maximising your savings.

So, if you’re looking to save consistently, opt for EV or Flux tariffs. For those comfortable with a bit of risk, Agile can offer great returns - just be aware of peak periods and seasonal effects. It’s worth having a look at the last two weeks of high Agile prices even during off-peak times. But by using it together with an automated HEMS like Loop Optimise, it will ensure your battery stays efficient.