First of its kind energy buyback scheme could earn households up to $200 extra per year

• Buy back rate of 20 cents per kWh during peak times, double the off peak rate
• Average household with a battery could earn up to an additional $200 a year
• If 40,000 homes exported battery power back to grid during peak hours demand would be flattened, avoiding blackouts and reducing the cost of electricity at those times

In a first of its kind plan in New Zealand, Octopus Energy will reduce kiwi’s power bills this winter by paying twice as much to customers who export power back to the grid during peak times when energy demand is at it’s highest.

By putting your battery to work during peak periods of demand the average household could earn up to an extra $200 over the course of the year, helping to cut the cost of their power bills.

Those who take part in the plan will earn 20 cents per kWh of electricity exported between the peak periods of 7am-11am and 5pm-9pm, Monday to Friday. For electricity exported at off-peak times customers will earn 10 cents per kWh.

“Rewarding New Zealanders with batteries or vehicle to grid capable EVs who can export into the peak and shift their energy use to off-peak times both saves them money and reduces the likelihood of blackouts this winter for all of us - it’s win-win,” Octopus Energy Chief Operating Officer Margaret Cooney said.

“This power pricing plan is unlike any other in the market because it incentivises consumers with battery systems to export power back into the peak when it’s needed most, and earns them double the off peak rate.

“In February Transpower warned this winter will be a real challenge from a peak perspective and called for greater use of plans like this that reduce demand when the power system is tight, and we’ve stepped up with this offering.

“We estimate that if just 2 percent, or around 40,000 New Zealand households, had a home battery that was exporting power back during peak hours we could flatten the spike in demand, significantly reducing the risk of blackouts and the need to use expensive and polluting fossil fuels to plug the gap.

“While the one hour morning and evening peaks make up around 10 percent of New Zealand’s energy consumption, those two hours account for 33 percent of the cost of energy. Those households that can feed their spare energy back into the grid at those times will play a part in reducing the cost of power for all New Zealanders.

“With more New Zealanders installing home batteries and buying smart EVs we have the ability to shift power use and move away from our reliance on the big generators who actually profit off the spike in the cost of power during winter peaks through burning coal and gas.

“Similar programmes run by Octopus Energy in the UK have resulted in customers shifting close to 200 megawatts at tight peak moments, the equivalent of a major power station, delivering critical grid security and cheaper power for everyone.

“Octopus’s experience overseas demonstrates how technologies like batteries, smart heat pumps and EV’s can play an important role in reducing power bills, keeping the lights on and reducing carbon emissions. It’s the future of our energy system.”

About Octopus Energy

• Octopus Energy is a global clean energy tech business, driving the affordable, green energy system of the future. Under its own retail brand, Octopus delivers world-class customer service and cutting edge energy products to 7.7 million households globally.
• Its operations span 18 countries and the entire energy value chain. The group invests in, builds and flexibly manages renewable energy, operating a £7 billion portfolio of projects – one of Europe’s largest.
• Octopus has been operating in New Zealand since 2022 with the aim of making it easy for customers to access affordable power through market-leading innovation and technology.