A
Agile Octopus
Agile Octopus is a smart electricity tariff that updates prices every 30 minutes based on real-time wholesale market rates. It rewards customers who can shift their energy use to off-peak times by offering cheaper, and sometimes negative prices when there’s excess renewable energy on the grid. Ideal for users with smart meters, EVs, or flexible usage patterns, Agile encourages greener, more cost-effective energy consumption. It includes tools for tracking prices, automation options, and has no exit fees, making it a flexible choice for tech-savvy, energy-conscious households.
Related terms: Time-Of-Use Tariff | Smart Meter
Air Source Heat Pump
A low-carbon heating system that uses heat from the outside to warm your radiators and water, just like a gas boiler . A heat pump uses electricity, so it’s better for the environment and can cost less to run than a gas boiler. Plus they’re built to last longer and keep homes at a more consistent heat. Learn more about heat pumps.
Related terms: Coefficient of Performance (COP) | Cosy Heat Pump | Outdoor Unit
B
Battery Storage
Home batteries store excess electricity, often from solar panels or energy purchased from the grid at cheaper and greener off-peak periods for later use, or to sell back to the grid at peak times. This can help to save money on energy bills and reduce reliance on pricey, non-renewable energy from the grid. See which batteries Octopus install.
Related terms: Solar PV (Photovoltaic) | Time-of-use Tariff | Smart Grid
Biomass Boiler
A low-carbon alternative to gas boilers that burns organic material (like wood pellets) for heat. Renewable, but not emission-free.
Related terms: Circular Economy | Decarbonising Heat | Renewable Heat
Boiler Upgrade Scheme (BUS)
A UK government grant that knocks £7,500 off the upfront cost of a heat pump installation, making the switch much more affordable. The BUS grant is available to most UK homes looking to replace fossil-fuel heating with greener heating like biomass or a heat pump, and if you choose Octopus, we’ll handle the application for you.
Related terms: Air Source Heat Pump | Heat Pump Servicing | Low-Carbon Heating
C
Carbon Intensity
A measure of how much carbon is produced per unit of energy. The UK grid is getting greener-so heat pumps become even lower carbon as time goes on.
Related terms: Net Zero | Greenhouse Gas (GHG) Emissions | Smart Grid
Circular Economy
A model where materials and products are reused, recycled, or repurposed instead of thrown away-minimising waste and carbon emissions.
Related terms: Biomass Boiler | Green Retrofit | Net Zero
Coefficient of Performance (COP)
Coefficient of Performance or 'COP' is a figure that's often used to measure the efficiency of a heat pump. The COP indicates the power a heat pump consumes (energy in) versus the heat it produces (energy out).Low COP indicates lower efficiency, and a high COP indicates higher efficiency and this can correlate with the cost of running a heat pump, but not necessarily if you’re on a smart tariff like Cosy Octopus. See our guidance for the best ways to run a heat pump.
Related terms: Seasonal Coefficient of Performance (SCOP) | Flow Temperature | Cosy Octopus
Cosy Heat Pump
Cosy Heat Pump is more than just a heat pump, it's a whole-home, app‑driven heating ecosystem from Octopus Energy, combining efficient hardware, smart controls, and a tariff designed to maximise savings. It’s ideal for UK homeowners seeking a low-carbon, cost-effective, and modern heating solution that's eligible for grants and backed by long warranties.
Related terms: Air Source Heat Pump | Cosy Octopus | Cosy Turbo and Cosy Eco
Cosy Octopus
Cosy Octopus is a smart heat pump tariff offered by Octopus Energy in the UK. It provides cheaper electricity during specific off-peak hours, typically designed to align with when heat pumps can most efficiently run, such as during the night or times of low grid demand. This allows customers with heat pumps to significantly lower their heating costs by automatically shifting energy use to cheaper, greener times.
Key features:
- Cheaper electricity rates during designated hours (e.g., overnight or midday).
- Smart automation via integration with Octopus smart controls or compatible thermostats.
- Tailored for homes with heat pumps, promoting energy efficiency and decarbonised heating.
Related terms: Cosy Heat Pump | Cosy Turbo and Cosy Eco | Smart Tariff | Time-Of-Use Tariff
Cosy Turbo and Cosy Eco
One of the things that makes the Octopus Cosy heat pump unique is its two installation options: Turbo (or high temperature) and Eco (low temperature). Cosy Turbo requires minimal radiator and plumbing changes, making it a quicker and cheaper installation. Whilst Cosy Eco takes a little longer with more radiator changes, but with lower running costs long-term.
Related terms: Air Source Heat Pump | Cosy Octopus
D
Decarbonising Heat
The process of switching from fossil-fuel heating (like gas or oil) to low-carbon solutions like heat pumps or heat networks to reduce emissions.
Related terms: Low-Carbon Heating | Electrification of Heat | Heat Networks | Net Zero
Decentralised Energy
Energy that's generated close to where it's used-like rooftop solar or community heat networks-reducing losses and reliance on large power stations.
Related terms: Solar PV (Photovoltaic) | District Heating | Heat Networks | Smart Grid
Defrost Cycle
When it gets cold outside, an automatic defrost cycle is essential for keeping a heat pump running efficiently. When ice or frost builds up on the outdoor coil, it reduces the heat pump's ability to absorb heat. During a defrost cycle, the system sends refrigerant to the outdoor coil to melt the ice. This will stop the fan temporarily and may produce some steam too. See more heat pump troubleshooting tips.
Related terms: Outdoor Unit | Thermal Efficiency
Demand-Side Response (DSR)
A smart grid feature where consumers shift their energy use to off-peak times (often with the help of automated tech), helping balance the grid and reduce carbon intensity. Demand side response is changing when devices use electricity in a way that is beneficial to the electricity system. For example, an electric vehicle could charge during times of low demand at night.
Related terms: Smart Grid | Time-of-use Tariff | Peak Demand
District Heating
A centralised heating system that distributes hot water or steam to multiple homes or buildings, often using renewable or low-carbon energy sources.
Related terms: Heat Networks | Low Carbon Heating
E
Earth Rod
An earth rod is a metal rod driven into the ground during or before a Tesla Powerwall installation. It safely channels electrical faults into the earth, reducing shock risk and protecting your home’s electrical system. This device is required for home backup protection, so the battery will work in a power outage.
Related terms: Decarbonising Heat | Low-Carbon Heating | Carbon Intensity
Electrification of Heat
The shift from gas or oil-based fossil-fuel heating systems to electric solutions like heat pumps, powered increasingly by clean energy sources.
Related terms: Decarbonising Heat | Low-Carbon Heating | Carbon Intensity
Energy Demand Reduction
Strategies to use less energy overall-like improving insulation, using smart controls, and switching to efficient appliances. Also known as improving energy efficiency. Check out our energy saving tips.
Related terms: Fabric First Approach | Heat Pump Controller | Thermal Efficiency
Energy Performance Certificate (EPC)
A report that shows how energy-efficient a home is. At present, it’s necessary to have a valid EPC in order to claim the BUS grant, however Octopus can arrange this for you free of charge. A better EPC rating often means your home is more suited for a heat pump.
Related terms: Thermal Efficiency | Fabric First Approach | Green Retrofit | BUS Grant
Electric Vehicle (EV)
A vehicle powered entirely or partially by electricity, using a rechargeable battery instead of (or alongside) a combustion engine. An EV can be charged at home (which is cheaper), or charged at EV charging points whilst you’re out and about.
Related terms: EV Charger | EV Battery Storage | EV Tariff
EV Battery Storage
Using an EV’s battery as a form of energy storage, either for the vehicle’s use or to supply electricity back to the home or grid. With Octopus, the UK’s first Vehicle-to-Grid tariff, Power Pack, is currently available for compatible chargers.
Related terms: Power Pack | Vehicle-to-Grid Tariff
EV Charger
A device that supplies electric power to recharge an electric vehicle’s battery. Chargers can be installed at home, in public places, or at work, and smart chargers can schedule charging during cheaper, greener times. Octopus install premium EV chargers from £899, with everything included for a full installation.
Related terms: Hypervolt Home 3 Pro | Myenergi zappi | Ohme Home Pro | Ohme Epod Ohme Home Pro
EV Charging
The process of replenishing the battery of an electric vehicle (EV) by connecting it to an electricity supply. Smart EV charging uses time-of-use tariffs and automation to charge vehicles during cheaper, greener periods, reducing costs and carbon emissions.
Related terms: Intelligent Octopus Go | Octopus Go | Smart EV Charging
EV Charging Point
The physical station or device where an electric vehicle plugs in to recharge.
Related terms: EV Charger | EV Charging Point
EV Tariff
A specialised electricity pricing plan offering cheaper rates for charging an EV, often overnight (e.g. Octopus Go). Check out Octopus EV tariffs.
Related terms: Intelligent Octopus Go | Octopus Go | Smart EV Charging
Export Tariff
An export tariff is the rate you’re paid for the electricity you generate or store at home (usually through solar panels or a battery) and export back to the grid. With Octopus, you can choose from a range of smart export options that help you earn more from your clean energy.
For hands-free optimisation, Intelligent Octopus Flux automatically charges your battery when electricity is cheapest and greenest, then exports it when prices are highest, maximising your earnings with no manual scheduling required. Prefer more control? Octopus Flux offers super-low import rates (2am–5am) and peak export rates (4pm–7pm), letting you plan your energy use for maximum benefit.
Octopus also offers Outgoing Octopus, a smart export tariff with two options: Outgoing Agile, which pays you dynamic, half-hourly rates based on wholesale prices (with no cap), and Outgoing Fixed, which pays a flat 15p per kWh. Whether you export from solar panels or a battery, you can choose to earn more when demand is high or go for steady, predictable returns.
Related terms: Export Tariff | Intelligent Octopus Flux | Octopus Flux | Outgoing Octopus
F
Fabric First Approach
A strategy where improving your home's insulation and airtightness comes before installing smart tech because the less heat you lose, the less energy you need.
Related terms: Thermal Efficiency | Energy Demand Reduction | Energy Performance Certificate (EPC) | Heat Loss
Feed-in Tariff Scheme
The Feed-in Tariff (FiT) was a UK government scheme that paid households and businesses for generating renewable electricity, typically through solar panels, wind turbines, or other small-scale low-carbon systems. It offered two payments: one for every unit of electricity generated (generation tariff), and another for any unused electricity exported to the grid (export tariff).
The FiT scheme closed to new applicants in April 2019, but those already enrolled continue to receive payments for up to 20–25 years, depending on their contract. It has since been replaced by the Smart Export Guarantee (SEG), which only pays for electricity exported to the grid and doesn’t include a generation payment. Please check-out our Feed-in-Tariff FAQ for more information.
Related terms: Export Tarrif | Smart Export Guarantee (SEG) | Smart Grid
Flexibility
In the Octopus Energy context, flexibility refers to shifting electricity use to times when it’s cheaper, greener, or more abundant on the grid. This is enabled through smart tariffs, connected devices like heat pumps or EV chargers, and automated scheduling via the Octopus app. Customers who participate in flexible energy use can benefit from lower bills, cashback incentives, and reduced carbon emissions.
Flexibility helps balance demand with renewable supply, especially during peaks and troughs in wind or solar generation. Octopus uses this approach in products like Cosy Octopus, Intelligent Octopus Go, and Saving Sessions, encouraging customers to become active participants in a cleaner, more efficient energy system.
Related terms: Cosy Octopus | Intelligent Octopus Go | Saving Sessions
Flow Temperature
The temperature of the water that flows through your heating system. For heat pumps installed by Octopus, a Cosy Eco installation will run at a lower flow temperature (e.g. 35–55°C) compared to a gas boiler, whereas a Cosy Turbo installation will run at a flow temperature similar to a gas boiler. Changing the flow temperature doesn’t impact the temperature or comfort of your home. If you have a gas boiler, we recommend turning your flow temperature down to between 55 and 60 degrees to save money on bills during the winter.
Related terms: Coefficient of Performance (COP) | Seasonal Coefficient of Performance (SCOP) | Cosy Turbo and Cosy Eco
G
Green Retrofit
Upgrading an existing home or building with insulation, heat pumps, solar panels, and other low-carbon tech to improve energy performance.
Related terms: Fabric First Approach | Energy Performance Certificate (EPC) | Low-Carbon Heating
Greenhouse Gas (GHG) Emissions
Gases like CO₂ and methane that trap heat in the atmosphere. Reducing these is central to fighting climate change. Often referred to as carbon emissions.
Related terms: Carbon Intensity | Net Zero | Decarbonising Heat | Smart Home Tech
Grid Constraints
Grid constraints occur when there is a mismatch between where electricity is generated and where it is needed, often due to limited capacity in transmission infrastructure. This can lead to curtailment of renewable energy (e.g. wind turbines being turned off) and reliance on more expensive, carbon-intensive sources elsewhere.
Related terms: Flexibility | Renewable Heat | Smart Grid | Flexibility Zonal Pricing
Grid Independence
The ability to generate, store, and use your own electricity without relying heavily—or at all—on the national grid. This is typically achieved through a combination of solar PV panels, home battery storage, and smart energy management. With Octopus Energy, customers can take steps toward grid independence by using solar + battery systems, exporting excess energy through tariffs like Outgoing Octopus, and leveraging smart tariffs to maximise savings and self-sufficiency.
Related Terms: Home Battery Storage | Smart Tariff | Solar + Battery System
Grid-Tied System
A solar panel setup that’s connected to the national electricity grid, allowing both import and export of electricity.
Related terms: Flexibility | Renewable Heat | Smart Grid | Flexibility Zonal Pricing
Ground-Mounted Solar
Solar panels installed on the ground instead of a roof, like those used on solar farms.
Related terms: Flexibility | Renewable Heat | Smart Grid | Flexibility Zonal Pricing
H
Heat Loss Calculation
An essential survey step to figure out how much heat your home loses through walls and windows etc.,and how powerful your heat pump needs to be to keep things cosy.
Related terms: Air Source Heat Pump | Fabric First Approach | Thermal Efficiency
Heat Networks
Centralised systems that deliver hot water or steam from a single energy source to multiple buildings via insulated underground pipes. They replace the need for individual boilers and support low-carbon heating
Related terms: District Heating | Low Carbon Heating
Heat Pump Controller
The brain of your heat pump system. It lets you adjust settings, set schedules, and optimise efficiency-often through a wall unit or with the Cosy heat pump, through an app.
Related terms: Smart Controls | Coefficient of Performance (COP) | Air Source Heat Pump
Heat Pump Servicing
Just like a car, heat pumps need annual check-ups to keep them running efficiently and to ensure the product warranty stays valid. According to Checkatrade, this typically costs between £150 - £300 a year, however with an Octopus service plan, you’ll pay just £108 a year (£9 a month) for all servicing and site call-outs.
Related terms: Air Source Heat Pump | Running Costs | Thermal Efficiency
Home Charging
Electric Vehicles can either be charged at home, using a wall-mounted charger, or on-the-go at an EV charging point. Typically it’s cheaper to charge your electric vehicle at home – you can save 87% compared to public charging. This is made possible with smart tariffs like Intelligent Octopus Go, which offer cheaper overnight charging. How to get an Octopus EV charger.
Related terms: Vehicle-to-home (V2H) | EV charging point
Home Battery Storage
A system that stores excess electricity generated by your solar panels or purchased from the grid, allowing you to use it later when needed. This increases your energy self-sufficiency, reduces reliance on the grid, and can lower electricity bills by shifting usage to cheaper or greener times. Octopus Energy supports battery storage integration, helping customers maximise savings through smart tariffs and export options like Outgoing Octopus.
Related Terms: Grid Independence | Smart Tariff | Solar + Battery System
Hot Water Cylinder
All Octopus heat pumps are installed with a hot water cylinder, sized to suit your household. This is where the water heated by your heat pump is stored before it’s available for use in your taps and showers.
Related terms: Air Source Heat Pump | Outdoor Unit
I
Import Tariff
Import tariff refers to a pricing plan that determines the rate a customer pays for electricity imported from the grid - i.e., when energy demand exceeds home generation (like from solar panels or battery storage). For Octopus Energy customers, this is a key part of how they’re billed when using more energy than they produce or store.
Related terms: Agile Octopus | Smart Meter | Time-Of-Use Tariff
Intelligent Drive Pack
An add-on subscription that gives unlimited smart EV charging for £30/month, layered on top of your home’s main import tariff.
Related terms: Import Tariff | Smart EV Charging
Intelligent Charging
Automatically charging your electric vehicle when electricity is cheapest, greenest, and demand is low - saving you money and reducing strain on the grid without needing manual scheduling. For example, the Intelligent Octopus Go tariff.
Related terms: EV Charging | Intelligent Octopus Go
Intelligent Octopus Flux
An Octopus smart tariff, designed specifically for customers with solar panels and battery storage at home. This intelligent version of Octopus Flux automatically pairs with your battery to optimise charge and discharge times, maximising savings and export earnings whilst helping to balance the grid. Find out more.
Related terms: Flexibility | Octopus Flux
Intelligent Octopus Go
A smart EV charging tariff offering super-cheap electricity for six hours overnight, with charging automatically scheduled by Octopus based on grid conditions and your driving needs.
Related terms: EV Charging | Smart Tariff | Time-Of-Use Tariff
Inverter Compressor
A smart part inside many heat pumps that adjusts power output depending on demand-helping the system run more efficiently and quietly.
Related terms: Air Source Heat Pump | Coefficient of Performance (COP) | Thermal Efficiency
L
Low Carbon Heating
Heating solutions like heat pumps or biomass boilers that reduce carbon emissions compared to fossil fuel systems like gas or oil boilers. A key part of the UK's net zero goals.
Related terms: Air Source Heat Pump | Carbon Emissions | Decarbonising Heat | Net Zero
N
Net Zero
Net zero is a target often given as the ultimate goal for reducing carbon emissions. It will require the UK to cut greenhouse gas emissions as much as possible, and then remove or offset the remaining emissions—so that the amount added to the atmosphere equals the amount taken out. The goal is to stop contributing to climate change.
Related terms: Carbon Intensity Greenhouse Gas (GHG) Emissions | Decarbonising Heat
O
Octopus Go
A smart electricity time-of-use tariff offering ultra-cheap overnight rates for electric vehicle charging, helping customers save money and use greener energy. Unlike Intelligent Octopus Go, you will need to schedule charging (instead of your EV automatically charging at the cheapest times), but more vehicles and chargers are compatible. Find out more
Related terms: Smart Tariff | Time-of-Use Tariff
Octopus Flux
A smart electricity time-of-use tariff for solar and battery owners that offers varying import and export rates. It allows you to manually control when you charge your battery at lower import rates and sell excess energy back to the grid at higher export rates.
Related terms: Time-Of-Use Tariff | Intelligent Octopus Flux | Flexibility
Outgoing Octopus
A smart export tariff from Octopus Energy that pays you for the electricity you export to the grid, usually from solar panels or battery storage. You can choose between a fixed flat rate or dynamic Agile rates, allowing you to earn more when energy demand and wholesale prices are high. It’s the UK’s only smart export tariff compatible with a wide range of setups, including solar, batteries, and heat pumps.
Related terms: Agile Octopus | Export Tariff | Smart Meter
Octopus Power Pack (Beta)
A vehicle-to-grid (V2G) export tariff for compatible EVs, allowing your car to export energy back to the grid and earn rewards, as part of a UK-first beta program.
Related terms: Export Tariff | Vehicle-to-Grid (V2G)
Octopus Tracker
A variable import tariff that reflects daily wholesale energy prices. Prices change each day based on actual market costs, offering transparency and potential savings for engaged users.
Related terms: Import Tariff | Smart Meter | Wholesale Electricity Prices
Outdoor Unit
The main unit of the heat pump that sits outside your home, drawing in the air and extracting heat from it when it's cold.This then connects to the heat pump components inside the home like the hot water cylinder. How does a heat pump work?
Related terms: Air Source Heat Pump | Defrost Cycle
P
Peak Demand
The time of day or season when energy use is at its highest (such as 4pm - 7pm, when most people are having dinner). During this time, it’s more likely that fossil fuel power stations will be turned on to supplement demand. Smart tariffs work by encouraging users to shift usage away from these peaks by providing cheaper electricity during off-peak periods. This helps users to save money, and makes the grid greener.
Related terms: Flexibility | Smart Tariff
R
Renewable Energy
Electricity that’s generated from sources which can be replenished like the wind or the sun, often referred to as green energy. Traditionally most energy has been generated by burning fossil fuels - a finite resource that produces toxic pollutants. Whereas renewable electricity is far better for the planet and cheaper to produce. With solar panels you can generate your own renewable energy at home.
Related terms: Biomass Boiler | Green Energy | Solar
Rooftop Solar
The most common form of domestic solar panel installation, mounted on the roof of a home or building. Octopus Energy only instals rooftop solar in domestic homes.
Related terms: Feed-In Tariff | Solar Inverter | Solar PV
Running Costs
The ongoing energy costs of heating your home. Heat pumps can be cheaper to run than gas boilers on the Cosy Octopus tariff.
Related terms: Coefficient of Performance (COP) | Seasonal Coefficient of Performance (SCOP) | Time-Of-Use Tariff | Cosy Octopus
S
Saving Sessions
Octopus Saving Sessions is a rewards program where customers get paid to use less electricity during peak demand periods. These sessions are called during times of extra high electricity demand, allowing customers to play a valuable role in reducing electricity costs and fossil fuel generation by shifting their usage away from peak times.
The program is part of Octopus Energy's Octoplus rewards system, where customers are paid to use less power during busy times of the day. Octopus typically notifies customers about standard saving sessions the day before, though they also run surprise sessions with shorter notice periods. Customers are rewarded with Octopoints (worth £2.25 per kilowatt saved) for any power they save compared to their normal usage, helping both reduce grid strain and lower energy bills.
Related Terms: Demand Response | Flexibility | Peak Demand Periods
Seasonal Coefficient of Performance (SCOP)
Whilst COP is the efficiency of a heat pump measured over a short period of time, Seasonal Coefficient of Performance, or 'SCOP', is measured and averaged over a full 12 months, making it a preferred average efficiency measurement. Octopus Energy designs heat pump installations to achieve an average SCOP of 3.3 over a 12-month period, using a design flow temp of 50°C at the coldest times of the year.
Related Terms: Coefficient of Performance (COP) | Flow Temperature | Running Costs
Shape Shifters
A suite of smart business electricity tariff from Octopus Energy designed to help commercial users cut costs by shifting electricity use to cheaper times. Options like Shape Shifters Trio offer up to 21 hours of lower-cost energy daily, while Shape Shifters Agile uses half-hourly dynamic pricing based on wholesale rates for maximum flexibility and savings.
Related Terms: Dynamic Pricing | Smart Business Electricity Tariff
Smart Business Electricity Tariff
Energy pricing plans for businesses that use real-time data and smart technology to offer lower rates for electricity used outside of peak times. These tariff often feature dynamic pricing, time-of-use rates, or automation to help businesses reduce costs, optimise energy use, and support a greener grid. Octopus Energy’s Shape Shifters is a key example.
Related Terms: Time-Of-Use Tariff | Shape Shifters
Smart Controls / Smart Thermostat
Tech that learns your heating habits and adjusts automatically for comfort and efficiency-some models even link with weather forecasts or electricity prices.
Related Terms: Heat Pump Controller | Time-Of-Use Tariff | Energy Demand Reduction
Smart EV Charging
Smart charging with Octopus refers to using intelligent software and tariffs to automatically charge your electric vehicle (EV) when electricity is cheapest and greenest (typically overnight). It's designed to save you money, reduce strain on the grid, and help the environment.
Smart charging uses data from your EV and home energy use to automatically schedule charging at the optimal time. With Octopus Energy, it’s linked to smart tariffs like Octopus Go or Intelligent Octopus, which offer much cheaper electricity rates during off-peak hours (e.g., 7.5p/kWh at night).
Related Terms: Intelligent Octopus | Octopus Go | Smart Tariff
Smart Export Guaranteed (SEG)
A UK government-backed initiative that requires energy suppliers to pay households for excess renewable electricity they export to the grid.
The Smart Export Guarantee (SEG) at Octopusis a fixed export tariff that pays you 4.1p per kWh for any excess renewable electricity you export to the grid. It's available to households and businesses in Great Britain that generate electricity through technologies like solar PV, wind, hydro, micro-CHP, or anaerobic digestion. Unlike Octopus's more generous export tariffs (like Outgoing Octopus), SEG is ideal for those who want to stay with a different supplier for their import electricity but still get paid for exporting renewable energy.
To sign up, you’ll need an MCS-certified generation system, a smart meter capable of half-hourly readings, and a DNO-approved export MPAN. The setup process includes an application, DNO MPAN creation (which can take 1–4 weeks), and meter validation before payments begin. SEG offers a simple route to earn money from your green energy without switching your import tariff, though Octopus customers on dual import/export tariffs can access higher export rates.
Related Terms: Export Tariff | Import Tariff | MCS-certified | Smart Meter
Smart Grid
A smart grid is a modern electricity network that uses digital technology to manage energy more efficiently, reliably, and sustainably.
Unlike the traditional grid, which simply delivers electricity one way from power stations to homes, the smart grid is interactive and intelligent. It can monitor energy use in real-time, respond to changes in supply and demand, and even allow homes and businesses to both use and supply power back to the grid. Octopus Energy is actively promoting the smart grid by giving customers the tools and incentives to use energy more intelligently, helping to balance demand and maximise green electricity. Here's how:
🔄 Smart Tariffs that Reflect Real-Time Conditions
Octopus offers dynamic tariffs like Agile Octopus and Intelligent Octopus, which encourage customers to shift energy use to times when electricity is cheaper and greener. This helps flatten peak demand and reduces strain on the grid, making it smarter and more efficient.
⚡ Integrating Home Tech with the Grid
With products like Intelligent Octopus Flux, Octopus remotely controls compatible home batteries to charge when energy is cheap and export when prices are high. This turns homes into mini power stations that actively support the grid during peak times.
☀️ Enabling Smart Solar and Battery Exports
Octopus export tariffs reward customers for exporting energy when the grid needs it most. This creates a two-way relationship between homes and the grid, helping to balance supply and demand in real-time.
🧠 Kraken Technology Platform
Behind the scenes, Octopus’s proprietary tech platform, Kraken, automates smart grid interactions for millions of customers. It manages energy flow, predicts demand, and enables real-time pricing and optimisation at scale.
🌍 Supporting a Flexible, Renewable Future
By combining smart meters, real-time pricing, automation, and customer-friendly tech, Octopus is transforming homes into active participants in the energy system, powering the UK's transition to a fully flexible, low-carbon grid.
Related Terms: Zonal Pricing | Grid Constraints | Demand-Side Response (DSR)
Smart Meter
A gas or electricity meter that automatically records your energy usage and sends the data to your supplier in near real-time. This enables accurate billing, eliminates manual meter readings, and allows access to smart tariffs like Agile or Outgoing Octopus, where energy prices can vary based on the time of day or market conditions.
Related Terms: Smart Tariff | Time-Of-Use Tariff
Smart Tariff
Smart tariffs are flexible energy pricing plans that adjust rates based on factors like time of use, wholesale energy prices, or your home’s energy technology (such as EVs, heat pumps, or solar panels). Offered by Octopus Energy, these tariffs help customers save money, reduce carbon emissions, and make better use of renewable energy by encouraging energy use at times when electricity is greener and cheaper. Also known as a time-of-use tariff.
Related Terms: Import Tariff | Export Tariff | Time-Of-Use Tariff
Solar and Battery System
An integrated setup that combines solar panels and battery storage, allowing users to generate, store, and use renewable electricity on their own terms, and take advantage of solar smart tariffs.
Related Terms: Home Battery Storage | Solar PV Panels (Photovoltaic)
Solar Inverter
A solar inverter is a key component of a solar power system that converts the direct current (DC) electricity generated by solar panels into alternating current (AC) electricity - the type used by your home appliances and the national grid.
There are different types of solar inverters, including string inverters, microinverters, and hybrid inverters (which can also manage battery storage). Without an inverter, the electricity from your solar panels can't be used in your home or exported to the grid.
Related Terms: Battery Storage | Solar Power System | Solar PV Panels (Photovoltaic)
Solar PV Panels (Photovoltaic)
Solar PV Panels are devices that convert sunlight directly into electricity using semiconductor materials. Commonly installed on rooftops, they generate clean, renewable energy for homes and businesses. With Octopus Energy, solar PV users can export excess electricity back to the grid and earn money through export tariffs like the Smart Export Guarantee (SEG) or Outgoing Octopus, with rates up to 15p/kWh for Octopus customers. When combined with a smart meter and eligible certification (e.g. MCS), solar panel owners can optimise their savings and support a greener grid.
Related Terms: Solar Inverter | Solar + Battery System | Smart Export Guarantee (SEG)
T
Thermal Efficiency
How well your home retains heat. Higher thermal efficiency = lower energy use and smaller carbon footprint. Also known as heat loss.
Related Terms: Fabric First Approach | Energy Performance Certificate (EPC) | Heat Loss Calculation
Thermal Storage
The ability to store heat (usually in hot water cylinders or buffer tanks) for use later, which helps reduce demand on your system and tap into off-peak electricity.
Related Terms: Heat Networks | Time-Of-Use Tariff
Time-of-use tariff
An electricity pricing plan, also known as a smart tariff, where costs vary depending on the time of day-encouraging you to use power when it's greener and cheaper (e.g. overnight).
Related Terms: Smart Tariff
Type 2 Connector
The standard EV charging plug type in the UK and Europe, compatible with most modern electric vehicles. It supports both slow and fast AC charging and is widely used for home and public charging stations. All of the EV chargers installed by Octopus are compatible with a type 2 charging cable and vehicle.
Related Terms: EV Charger | Smart EV Charging
V
Vehicle-to-Grid (V2G)
Technology that allows electric vehicles to not only charge from the grid but also export electricity back to it. This helps balance supply and demand and enables EV owners to earn money or reduce bills by supporting the grid during peak times.
Related Terms: Flexibility | Intelligent Octopus Go | Vehicle-to-Grid Tariff
Vehicle-to-Grid Tariff
A setup where an EV supplies electricity to your home, acting like a mobile battery. V2H can reduce peak-time energy use or provide backup power during outages, enhancing energy resilience and lowering bills.
Related Terms: Home Charging | Intelligent Octopus Go | Smart Tariff | Solar Battery
Vehicle-to-Home (V2H)
An EV supplies electricity to your home during peak hours or outages, like a mobile battery.
Related Terms: Home charging
Vehicle-to-Load (V2L)
Using an electric car’s battery to power standalone appliances, tools, or electronics via a plug or adaptor. Ideal for off-grid scenarios, road trips, or emergency use without needing a grid connection.
Related Terms: EV Charging | Portable Battery | Vehicle-to-Home (V2H)
W
Wholesale Electricity Prices
Wholesale energy prices are the prices energy suppliers pay to buy electricity (or gas) from the energy market before selling it to customers.
Think of it like buying in bulk: Octopus Energy (and other suppliers) buy electricity on the wholesale market, usually in half-hour slots, and then supply it to homes and businesses.
⏱️ Why do wholesale prices change?
Wholesale electricity prices change every 30 minutes based on supply and demand. A few key factors influence these changes:
- Time of day - Power is cheaper when demand is low (e.g. at night) and more expensive during peaks (like early evening).
- Weather - Windy or sunny weather = more renewable generation = lower prices.
- Fuel costs - If gas or coal prices rise, electricity from those sources gets pricier.
- Grid demand - If demand spikes unexpectedly, prices can surge as the grid pays more to secure enough supply.
📈 How does this affect you?
Most energy tariffs use fixed unit rates, meaning your price per kWh doesn’t change hour-to-hour.
But with Agile Octopus, you can take advantage of those wholesale price swings. You get access to real-time pricing, updated every 30 minutes, often with:
- Cheaper prices during off-peak times
- Occasionally negative prices (you get paid to use power!)
- More control over your energy bill by shifting usage to cheaper periods
⚡ Example:
- 2am on a windy night: demand is low, wind farms are producing lots of energy → prices drop
- 6pm on a cold winter day: everyone’s cooking, heating, and watching TV → prices spike
In short: wholesale prices are like the stock market for electricity - they rise and fall constantly. Agile Octopus lets you tap into those changes to save money and use energy when it’s greenest.
Related Terms: Grid Constraints | Smart Grid | Zonal Pricing
Z
Zonal Pricing
Right now, the UK uses a single national electricity price, even though it costs more to supply energy to some areas than others (for example, remote regions or areas with grid constraints). This "one-size-fits-all" approach doesn’t reflect the true cost of energy in different locations.
Zonal Pricing would change that by introducing different prices for different regions, based on:
- How much energy is being generated locally
- How easily energy can be moved around the grid
- Local demand and grid constraints
⚡ Why does Octopus support it?
Octopus Energy supports Zonal Pricing because it:
- Encourages smarter energy use – If electricity is cheaper in your region when it’s sunny or windy, you'll be incentivised to use it then.
- Reflects real-world conditions – Some areas have loads of renewable energy, but not enough infrastructure to move it where it's needed. Zonal Pricing rewards people for using local, green energy.
- Supports a greener grid – It helps balance supply and demand more efficiently, reducing waste and curtailment (when renewable power has to be turned off because there’s nowhere to send it).
🏡 What would it mean for you?
With Zonal Pricing, your electricity prices might change depending on where you live and when you use power. If you live in a region with lots of clean energy and flexible usage, you could benefit from cheaper rates during certain times.
It’s all part of Octopus’s mission to create a fairer, more dynamic energy system that works for people and the planet.
Related Terms: Grid Constraints | Flexibility | Wholesale Electricity Prices | Smart Grid
Knowledge is Power
Hey I'm Constantine, welcome to Octopus Energy!
×Close window