With energy prices fluctuating more than ever, many homeowners are considering wholesale energy pricing as an alternative to fixed-rate electricity plans. Unlike traditional energy contracts, wholesale plans allow you to buy electricity at real-time market rates, which can be significantly cheaper at certain times of the day.
But is wholesale pricing the right choice for your home? Let’s explore whether your home is a good fit for wholesale pricing and how to get the most out of it.
What Is Wholesale Energy Pricing?
How Does Wholesale Pricing Work?
Wholesale energy pricing means you pay for electricity at the same fluctuating rates that retailers pay. Prices change based on demand and supply, which means they can be deficient during off-peak hours but spike during high-demand periods.
Benefits of Wholesale Energy Pricing
✅ Lower Prices During Off-Peak Hours – Wholesale plans often offer very cheap electricity when demand is low.
✅ More Control Over Your Energy Usage – You can reduce costs by shifting energy use to off-peak times.
✅ Potential for Significant Savings – Wholesale pricing can lead to cheaper energy bills than traditional fixed-rate plans if managed correctly.
However, to fully take advantage of wholesale energy pricing, your home needs the proper energy setup—and that’s where solar batteries come in.
Is Your Home a Good Fit for Wholesale Pricing?
Not every home is ideal for a wholesale energy plan. Here’s what you need to consider before switching:
Do You Have a Solar Battery?
- Best scenario: If you have solar panels and a battery, you can store excess solar energy or charge your battery when electricity prices are low. Then, when prices rise during peak hours, you can use stored energy instead of paying high rates.
- Without a battery: If you only have solar panels without a battery, you may still save money by using solar energy during the day. However, when the sun isn’t shining at night, you may end up paying high peak rates for grid electricity.
Can You Shift Your Energy Usage to Off-Peak Hours?
Homes that can run significant appliances at night or during off-peak periods will benefit most from wholesale pricing. If your schedule requires heavy energy during peak hours (e.g., 4 PM – 9 PM), a battery is the best way to avoid high costs.
Are You Comfortable with Price Fluctuations?
Wholesale prices change constantly. A fixed-rate plan may be a better choice if you prefer predictable bills. With a solar battery, you can avoid high prices by using stored energy instead of relying on the grid.
How a Solar Battery Maximizes Savings with Wholesale Pricing
Scenario | With a Battery | Without a Battery |
---|---|---|
Buying energy when prices are low | ✅ Charges the battery at low prices | ❌ Must use grid power immediately |
Using energy during peak pricing | ✅ Uses stored energy instead of expensive grid power | ❌ Pays high peak rates |
Selling back excess solar power | ✅ Can sell stored energy at peak prices | ✅ Can sell, but only during the day |
Energy independence | ✅ Less dependent on the grid | ❌ Still reliant on the grid |
Tips to Get the Most Out of Wholesale Pricing
1. Install a Solar Battery
A battery storage system like RX-7000plus helps you store cheap electricity and use it when grid prices surge.
2. Automate Energy Usage
Use smart home devices or energy management tools like Redx AI to optimise when you use and store energy.
3. Monitor Price Fluctuations
Check real-time pricing through your energy retailer’s app to decide when to use or store energy.
4. Sell Energy Back to the Grid at Peak Prices
If your retailer allows it, export stored energy when prices are high to earn credits on your bill.