Financial

Tariff Arbitrage Calculator

Calculate savings from charging your battery on cheap off-peak rates

Tariff arbitrage calculator

Charge your battery at off-peak rates, use it during expensive peak hours. Pick a tariff to auto-fill the rates.

4.5 hour overnight window, standard daytime rate

10 kWh

10 kWh/day

24-hour rate — off-peak window 00:00 to 05:00 (5h)

7.5p
7.5p
7.5p
7.5p
7.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
24.5p
0006121823

Daily saving

£1.34

Annual saving

£489

Usable capacity

9 kWh

Actually displaced

7.9 kWh

limited by peak-hour usage

Your 10 kWh/day usage is spread across 24 hours. Roughly 7.9 kWh of it falls in the 19-hour peak window (everything outside the 5-hour off-peak window). The battery can only save you money on the peak-hour portion — the rest is already being imported during the cheap window, so there is nothing to arbitrage. This is why a 32 kWh battery with 30 kWh of daily usage shows 7.9 kWh displaced: you are only using 7.9 kWh during expensive hours in the first place. 90% usable capacity accounts for battery health reserve.

How this works

Smart tariffs like Octopus Go, Flux, and Agile offer cheap overnight rates — often 7-10p/kWh compared to the 24.5p daytime standard rate. A battery lets you charge up during those cheap hours and use that electricity during expensive peak times.

The savings per cycle equals your battery usable capacity (90% of nameplate) multiplied by the difference between peak and off-peak rates. A 10 kWh battery moving 9 kWh per day from 7.5p to 24.5p saves roughly £1.53/day or £559/year — before any solar involvement.

The calculator caps savings by your actual daily usage, because you only benefit on kWh you would otherwise have imported at peak rate.

Things to consider

  • Requires a smart meter and a compatible tariff — your installer will need to confirm your inverter supports scheduled charging.
  • Some tariffs require a hybrid inverter that can charge the battery from the grid. String inverters cannot do this.
  • Octopus Flux has export bonuses on top of the cheap import rate, which stack with tariff arbitrage.
  • Winter savings are higher because solar self-consumption drops — the battery picks up the slack.

Dig deeper

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