OctopusPeaker Battery Plan: A Game-Changer for Solar Battery Owners?

Please note: The views and opinions expressed in this guest post are those of the author and do not necessarily reflect the official policy or position of Octopus Energy NZ. We believe these insights offer valuable perspectives and align with our commitment to do energy better.

If you’re an Octopus Energy customer with a solar battery or are considering installing one, there's exciting news for you. Octopus Energy has introduced a groundbreaking new plan offering an unheard-of rate of 20 cents for every kWh of energy you feed into the grid (Note: since Jarrod wrote his blog we’ve raised the Peak export buyback rate to 23c).

But should you switch to this new plan?

And more importantly, does it make sense to invest in a new battery for this purpose?

Understanding the OctopusPeaker Battery Plan

The OctopusPeaker plan is designed to leverage home batteries to balance energy distribution during peak consumption hours. By encouraging customers to send stored energy back to the grid during these times, Octopus aims to reduce the load on its generation systems, ensuring a more even power distribution. This innovative approach not only benefits the grid but also offers financial incentives to customers who participate.

This plan is New Zealand’s first time-of-export (TOE) plan, meaning the buyback rates vary based on when the energy is exported. At Steel Solar & Electrical, we believe this could be the start of a trend, with other retailers such as Meridian and Genesis potentially adopting similar models. This shift signifies a major change in how energy management is approached, moving towards a more dynamic and responsive system.

Current Models vs. OctopusPeaker Plan

Currently most New Zealand energy companies use either a flat-rate or a time-of-use (TOU) pricing system. In a flat-rate system, customers are paid a set rate for the energy they export to the grid, regardless of the time of day. This rate typically remains constant, which doesn't incentivise customers to consider the timing of their energy exports. The TOU system, on the other hand, offers different rates based on the time energy is consumed, but it usually focuses on consumption rather than export. Customers pay higher rates during peak consumption hours and lower rates during off-peak times, but the buyback rate for exported energy often remains the same.

Advantages of the OctopusPeaker Plan

Strategic Energy Usage

The OctopusPeaker plan offers a unique opportunity for homeowners to make more strategic decisions about their energy usage and exports. By aligning your energy consumption and exports with peak and off-peak hours, you can maximize the financial benefits. Exporting stored energy during peak times when the buyback rate is highest can significantly increase your earnings compared to a flat-rate system. This strategic approach not only optimises your savings but also contributes to a more balanced and efficient energy grid.

Investment in Solar and Batteries

For those already equipped with solar panels and batteries, this plan could enhance the return on your investment. However, if you’re contemplating the installation of a new battery solely for this plan, it’s essential to weigh the costs against potential savings. Home batteries represent a substantial investment, and the financial benefits of the OctopusPeaker plan should be considered in this context. It’s crucial to conduct a thorough cost-benefit analysis to determine if the long-term savings justify the upfront expense of installing a new battery.

Flexibility and Savings

One of the plan's strengths is its flexibility. If you switch to the OctopusPeaker plan and later find it doesn’t yield the expected savings, Octopus allows you to revert to your previous plan once per calendar year. This flexibility provides a risk-free opportunity to test the new plan and see if it fits your energy needs. It’s a reassuring feature that allows customers to experiment with the new system without committing permanently, ensuring that they can always fall back on their original plan if necessary.

Future Trends in Solar Power Buy-Back Schemes

The introduction of the OctopusPeaker plan might create a shift in the energy market towards more dynamic and responsive pricing models. This innovative approach reflects real-time supply and demand, providing numerous potential benefits for both consumers and the energy grid. At Steel Solar and Electrical, we are all about innovation and helping our clients to get the best return on investment, so when we see other companies aligning with this view, we get pretty excited. Here are some future trends we anticipate in solar buyback space within the next 5 years:

Dynamic Pricing Models

The success of the OctopusPeaker plan could inspire other energy retailers to adopt similar time-of-export (TOE) pricing models. This shift would encourage consumers to be more mindful of when they use and export energy, optimising their savings and reducing strain on the grid during peak times. Dynamic pricing models, we hope, could become the norm, offering varying rates throughout the day based on energy demand and availability.

Increased Adoption of Home Batteries

As more consumers recognise the financial benefits of exporting stored energy during peak hours, we can expect an increase in the adoption of home batteries. Batteries enable you to store excess solar energy and use or export it when it’s most advantageous. Here at Steel Solar & Electrical, we are committed to helping you find the perfect battery solution for your home. Our team of experts will work with you to understand your energy usage patterns, goals, and budget, providing personalised recommendations to ensure you choose the best battery system for your needs. We offer a range of high-quality batteries from reputable manufacturers, ensuring durability and performance

Enhanced Grid Stability and Efficiency

With more households contributing stored energy during peak demand periods, the overall stability and efficiency of the energy grid will improve. This decentralized approach to energy distribution helps balance supply and demand more effectively, reducing the need for costly infrastructure investments and lowering the risk of blackouts.

Growth of Vehicle-to-Grid (V2G) Systems

The rise of electric vehicles (EVs) presents a unique opportunity for vehicle-to-grid (V2G) systems. With bidirectional chargers, EVs can store energy and send it back to the grid during peak times, functioning as mobile batteries. This capability will become more common as EV adoption increases, further enhancing grid stability and providing additional income streams for EV owners.

Conclusion

The OctopusPeaker plan represents an innovative step forward in energy management, providing significant potential benefits for homeowners with solar batteries. At Steel Solar & Electrical, we’re excited about these developments and are here to help you navigate the options. Whether you’re considering switching to the new plan or exploring solar and battery installations, our team is ready to assist you in making informed decisions that align with your energy goals.

A big thank you to Jarrod for taking the time to share his analysis on OctopusPeaker. 

If you’re based in Auckland and are in the market for solar or battery systems, contact Jarrod & the team today.

If you already have a battery and are ready to take advantage of OctopusPeaker, sign up today!