What are the benefits of flexible tariffs for the energy transition?

In addition to price, other factors also play a role in the choice of tariff. For consumers who promote the energy transition with their electricity purchases want, is the Green electricity quality is an important selection criterion. If you want to purchase an electricity tariff that ensures that it actually has added value for the energy transition, you should, as with classic green electricity tariffs make sure that the tariff includes the Grüner Strom-Label carries. This guarantees that with a fixed amount per kilowatt hour consumed Energy transition projects be promoted and renewable energies expanded. Green electricity tariffs with Grüner Strom-Label can be found in the tariff portal of the environmental associations compare-yourself-green to find.

Compared to conventional certified green electricity tariffs, a certified flexible green electricity tariff offers the advantage that your own electricity consumption can be better adapted to the availability of renewable energy. Consumers therefore benefit from lower prices when renewable energy is available in abundance. In addition, this can increase the role of consumers and the acceptance of green energy. Flexible tariffs can therefore not only have a positive impact on electricity costs, but also on broad acceptance and participation in the energy transition.

Flexible tariff options at a glance

There are various tariffs that pass on the fluctuations in electricity prices to consumers. The term "flexible tariffs" covers different tariff models. The most important of these are

• Load-variable tariffs: With these tariffs, the electricity price depends on how heavily the electricity grid is currently being used. Consumers can save money if they use electricity at times when the grid is less busy.

• Time-variable tariffs: With these tariffs, the electricity price changes depending on the time of day. There are often two price levels, e.g. a lower price at night and a higher price during the day. However, there are also tariffs where the price is adjusted monthly.
• Dynamic tariffs: Dynamic tariffs are most closely aligned with price fluctuations on the electricity exchange and are therefore the most flexible type of electricity contract. The electricity price for consumers changes at regular intervals of 15 minutes, for example, in line with the current exchange price. This means that prices can go down as well as up, which can sometimes pose a risk and may be less advisable for households with low electricity requirements. 

What are smart meters and are they a must?

Dynamic and some time/load-variable electricity tariffs in particular make it necessary to record your own electricity consumption more accurately than is possible by reading an analog meter. This is especially the case when the price per kilowatt hour for the consumer changes particularly frequently (for example, several times a day). In these cases, the installation of an intelligent electricity meter, also known as a smart meter, is necessary - a technical requirement that electricity providers usually provide information about before a contract is signed. The advantages of smart meters are:

Advantage 1: Accurate consumption data

Smart meters transmit electricity consumption directly to the energy provider. The precise data also makes it easier for consumers to keep track of their electricity consumption.

Advantage 2: Optimization of consumption

Precise metering allows consumers to adjust their electricity consumption to specific times and prices, which is particularly advantageous with flexible tariffs. Energy-intensive processes such as charging an electric car, for example, can be scheduled for times when the electricity price is low.

Benefit 3: Promotion of the energy transition

It is becoming increasingly relevant to align electricity consumption more closely with electricity production from renewable energies. Smart meters support the integration of renewable energies by making it possible to analyze consumption. This helps to better adapt electricity consumption to the availability of green energy.

From 2025 the installation of a smart meter for all Households with an electricity consumption of over 6,000 kilowatt hours mandatory. From next year, all other households can voluntarily have a smart meter installed for a maximum fee of 20 euros per year. However, a smart meter is not mandatory for every flexible electricity tariff. Especially with time-variable tariffs, where the price only changes monthly, for example, regular reading of the analog meter is sufficient.

Outlook: Flexible tariffs in the future

It remains to be seen what creative solutions there will be to deal with the demands of the energy transition. Flexible tariffs suggest that digitalization could offer a potential solution for adapting our consumption habits more closely to the production of electricity from renewable sources. In addition, new technological developments could further increase the attractiveness and user-friendliness of flexible tariffs in the future. Those who are brave enough can therefore be among the pioneers who are already trying out these new tariff options today. For those who prefer to play it safe, however, the good news is that conventional contracts can also make a positive contribution to the energy transition!