What Is a Time-of-Use Tariff?

A time-of-use tariff charges different electricity unit rates at different times of day. Why that price gap is what makes a home battery pay for itself.

By Habo Updated 28 October 2026 1 min read

A time-of-use tariff (sometimes called a multi-rate tariff) charges different unit rates at different times of day. Suppliers usually split the day into a higher peak rate and a cheaper off-peak or night rate, and some tariffs add more bands. Citizens Advice explains the static versus dynamic split: static keeps fixed prices and hours; dynamic moves with the wholesale market.

What it means for a home battery

A home battery makes money on the price gap, not on a flat average rate. It buys overnight or off-peak units, then covers daytime or peak use so you buy fewer expensive units from the grid. Habo's best-case homepage maths for a 5 kWh EcoFlow STREAM use Octopus Go 12M Fixed GO-FIX-12M-26-10-14 (night 9.4p; day 35.293p to 39.3081p by region; re-checked via the Octopus API on 28 October 2026), with an assumed 90% round-trip efficiency and one full cycle a day. That is about £453 to £527 a year best case (£453.49 to £526.76 before rounding). Octopus Go is for customers who own or long-term lease a battery-electric or plug-in hybrid vehicle they charge at the home Octopus supplies (Smart Tariffs terms 2.1.3). See the homepage maths and how much a home battery can save.

On a flat standard variable tariff under the Ofgem price cap there is no overnight discount to store, so tariff shifting does not create that saving. Compare options in best tariffs for battery storage and run your own rates on the calculator. Habo's offer is an electrician-wired EcoFlow STREAM from £2,499. Join the waitlist.

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Frequently asked questions

Usually yes. Citizens Advice says you normally need a smart meter, though some multi-rate meters can still support older economy-style tariffs.

Static tariffs keep fixed peak and off-peak prices and hours. Dynamic tariffs change with the wholesale market, sometimes with little notice.

Yes. The battery charges in the cheap window and covers use when the unit rate is higher. Flat-rate tariffs have no gap to shift.

Simple battery, simple install

Electrician-wired EcoFlow STREAM from £2,499. Habo will try to serve anyone who registers in an area where we have an electrician. Nothing to pay today.

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