Understanding Energy Tariffs

Understanding Energy Tariffs – And Choosing the Right One for Solar Owners

At TJS Solar, we know that finding the right energy tariff can make a big difference to your energy bills—especially if you own solar panels, an electric vehicle, or home battery storage. With the right setup, you can maximise savings and even earn money from your energy system!

In this guide, we’ll break down the main types of energy tariffs available in the UK and highlight which ones work best for solar PV system owners. Whether you’ve already gone solar or are just starting your journey, this will help you choose the most cost-effective and future-friendly tariff for your home.

What is an Energy Tariff?

An energy tariff is the pricing plan your energy provider uses to charge you for your electricity (and gas, if applicable). Tariffs determine how much you pay per kilowatt-hour (kWh) of energy you use. While tariffs come in various forms, most fall under two main categories—fixed or variable—with other types offering extra benefits depending on how and when you use your energy.

Fixed Rate Tariffs

A fixed rate tariff offers a locked-in price per unit of energy for a set period—usually 12 to 18 months. This protects you from market fluctuations and can give you peace of mind about your monthly bills.

At the end of your fixed rate deal, you’ll automatically move onto your supplier’s standard variable rate—unless you switch again.

Best for: Budgeting stability. Not always the cheapest long-term, but great if you want predictable bills.

Variable Tariffs

A variable tariff means your unit price can rise or fall depending on the energy market. It’s more flexible—you can switch tariffs anytime without exit fees—but prices may spike.

Ofgem’s energy price cap limits how much you can be charged, offering some protection.

Best for: Those comfortable with some risk in exchange for potential savings when market prices drop.

Dual Fuel Tariffs

A dual fuel tariff combines your electricity and gas bills under one supplier. It’s often more convenient, and some providers offer discounts for bundling both services.

Best for: Simplicity and potential cost savings, especially if you’re still using gas for heating or cooking.

Time of Use Tariffs (Economy 7 & Economy 10)

Economy 7 and Economy 10 tariffs offer cheaper energy rates during off-peak hours. With Economy 7, you get seven off-peak hours (usually overnight). Economy 10 spreads cheaper rates over 10 hours split between night and day.

These tariffs are ideal if you can shift your energy use—such as charging a battery system or electric car—to off-peak times.

📌 Important: These tariffs require a compatible meter to track usage during different time bands.

Best for: Solar battery owners, EV drivers, or anyone who can use appliances at night. If your system stores solar energy, you can further reduce grid usage during peak times.

Pre-Payment Tariffs

Prepayment tariffs work like a pay-as-you-go plan. You top up your meter in advance and pay only for what you use. These tariffs tend to be slightly more expensive but can help with budgeting and avoiding unexpected bills.

Note: Limited options are available, and you can't switch while in debt on your meter.

Best for: People who prefer total control of their energy spend or have difficulty with monthly billing.

Online-Only Tariffs

Online tariffs are often the cheapest deals available. By managing everything digitally (meter readings, bills, and support), providers save on admin costs and pass those savings on to you.

These tariffs usually require customers to be comfortable using online accounts and apps—so if you're tech-savvy, it's a win-win.

Best for: Digital-first customers who are happy to manage everything online and want the lowest rates possible.

Green Energy Tariffs

Green tariffs supply your home with 100% renewable electricity—or offset your usage by investing in renewable generation. Some may include a portion of Green Gas as well.

Thanks to the falling costs of renewables, these tariffs are now competitively priced—and they support the same clean energy technologies used in your solar setup.

Best for: Eco-conscious homeowners who want to support sustainability, even if they can't install solar or battery tech just yet.

Export Tariffs (Smart Export Guarantee)

If you generate electricity through your solar PV system, you can sell surplus energy back to the grid through an export tariff—now offered under the Smart Export Guarantee (SEG).

This is a separate agreement from your incoming electricity tariff, and you can choose different suppliers for import and export. The amount you earn depends on how much energy you export and the rate offered by your provider.

Best for: Anyone with a solar PV system, battery storage, or other forms of renewable generation looking to maximise return on investment.

Final Thoughts from TJS Solar

Choosing the right tariff is about more than just price—it’s about how you use energy, when you use it, and what tech you have at home. For solar panel owners, EV drivers, or anyone with battery storage, Time of Use and Export Tariffs can unlock big savings and even help you earn money from your clean energy setup.

Need help finding the right tariff for your solar system? TJS Solar is here to guide you every step of the way—whether you're just starting or ready to switch.

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Tony Sinclair
04/01/2025
5 min read