3 Free hours of Energy

[HLF]

The idea of free three hours of energy to use the abundance of mid day energy. But to many variables. How about this idea 💡 

When the Retailer is experiencing an abundance of energy which is creating negative prices, develop something similar to Peak Energy Rewards but in reverse. So you are incentivised to use more energy with zero usage charges within 1 to 4 hours. With the communication similar to peak energy rewards.

[Lester]

That's  good idea @HLF and I'm pretty sure AGL is making inroads to have such things in their plan packages in future.

The Solar Grid Savers trial is one where they are trialling curtailment of solar to the grid when such grid power excesses occur, but that only stops perfectly good energy going to the grid, a waste.

Such a shame to just see that power dumped to nowhere, when it could be used at times it's needed in the grid . . . all it would take is that little extra demand a reverse Peak Energy Rewards type setup could bring.

Hopefully a seed planted with the AGL execs and techies.

[HLF]

Looks like the seed has died. Not even recognition that they have reviewed the idea.

[Lester]

@HLF it could certainly work, Peak Energy Rewards for using less power when the grid is under high demand.

Off Peak Energy Rewards for when the grid needs to offload as much of the excess power generation as they can . . . instead of retailers / DNSPs curtailing production from solar farm, wind farm, rooftop solar, encourage consumers to use it.

A win win (for common sense), but is it a win for retailers ?

If they make less during high demand and less during low demand, there isn't a lot of space left to make the needed profit.

It could just be that the grid balance is already complex to deal with, those sorts of shifting back and forth of a real dynamic grid might just be too hard to implement for now.

Three for Free and other such offers* is a start to this concept though, isn't it ?

  *One retailer offers 4hrs, others 8c power for up to 6hrs.

Just cutting peak demand was a good start, now encouraging usage in 3hrs free power (or 4hrs free or cheaper tariffs) in the peak of the solar soak daily is another step.

[HLF]

Another Retailer is now offering 3 different plans for owners with batteries, with higher fit in the peak time, and still have great competitive usage rates. Unlike the unfavourable rates that are currently available. Currently a plan that gives a higher fit then an even higher usage rate.

[matt_AGL]

Hey @HLF, 

Sorry for the slow response! As Lester mentions in his later post, we did launch "Three for Free' in SA in July and are looking at this concept in other states too.

In short the plan provides just what you suggest, three free hours of electricity usage (excluding controlled load and supply) from 10am-1pm everyday. The ambition was to share the benefits of renewables with those who were traditionally locked out of solar (ie renters, low income homes, apartments etc). Almost like having solar without the panels! 

Three for Free is currently the same discount to the reference price as SmartSaver (our highest discount on generally available offers). Like solar however, customers will really only benefit if they shift consumption from peak times to the free window. So it suits customers who are home during the day to turn on energy intensive appliances, or those who have the ability to automate appliances remotely.

Interestingly the federal government has jumped on the idea of free daytime electricity usage with their recently announced "Solar Sharer Offer" or SSO, whereby they are looking to mandate that all retailers offer three free hours of electricity each day in NSW, QLD and SA. We will know more about this in the next few months. 

We also definitely see the benefit of having higher feed-in tariffs during the evening peak (say 5pm-9pm) to encourage customers with batteries to export to the grid when their excess electricity is actually needed. We have our Battery Rewards Plan that provides gift cards for exports in the evening, and we have more plans in the pipeline. Watch this space! 

Thanks again for your suggestion!

[matt_AGL]

We also definitely see the benefit of having higher feed-in tariffs during the evening peak (say 5pm-9pm) to encourage customers with batteries to export to the grid when their excess electricity is actually needed. We have our Battery Rewards Plan that provides gift cards for exports in the evening, and we have more plans in the pipeline. Watch this space! 

[matt_AGL]

You are absolutely right @Lester!

Offering free electricity usage during the middle of the day to encourage consumption is one of the rare initiatives that benefits customers, retailers AND networks for the reasons you mentioned. No wonder the federal government is floating the SSO!