Smart meter payouts for households to use less energy at peak times will be made permanent to help the UK hit its net zero goals.
The National Grid is offering to pay households with smart meters if they reduce use during peak hours on days when wind is low to avert blackouts this winter.
But the schemes will be extended beyond this energy crisis period as a permanent option for energy suppliers to pay people to help balance the grid as homes switch to electric cars and heating.
It will only apply to homes that have a smart meter that allows their energy supplier to track their usage in real time. Currently around half of households have a smart meter, but suppliers have been told to install them in all homes by 2025.
Octopus Energy, which supplies three million homes, said on Friday that it expected to pay households around £4 a day between November and March for cutting their energy usage during peak hours, expected to be between 4-7pm, on days when demand is high.
‘This is a historc moment’
“Let’s be very clear: this is a historic moment – we’re entering a new era of energy in which households are moving from passive offtakers to active enablers of a smarter, greener and cheaper grid,” said Greg Jackson, the chief executive of Octopus.
Read More: Smart meter payouts to be made permanent to help meet net zero goals