Guide to Solar Panels & Octopus Tariffs

Founded less than a decade ago, Octopus Energy are changing the landscape of energy in the UK. They’re already one of the biggest energy providers in the country with over 6.5 million customers and are looking to use their new standing to help push forward positive change. 

As well as providing homes with cleaner, greener energy, Octopus have a number of tariffs to suit all sorts of household scenarios. From those with electric vehicles and heat pumps to those with solar panels and battery storage. Their aim is to help you access the best rates on the electricity market. 

This guide will take a look at Octopus Energy’s solar panel tariffs, the details behind them and how you can benefit.   

Recognising the growing demand for sustainable home energy solutions, Octopus Energy have gone beyond just providing energy. Alongside a number of other strings on their bow, Octopus have developed a good-looking solar panel offering. 

At the heart of their solar systems are 440W DeepBlue 4.0 Pro PV panels from JA Solar. These all-black modules have a 22% efficiency, which makes them one of the most efficient panels on the market [LINK TO SOLAR PANEL EFFICIENCY BLOG]. Octopus backs these panels with a 25-year product warranty and a 30-year linear power output guarantee, providing you with long-term peace of mind.

For most solar setups, Octopus now install Enphase IQ8 microinverters, which are installed beneath each panel rather than inside the home. This innovative approach not only saves space but also enhances system efficiency, particularly in low-light conditions. These weatherproof microinverters come with their own 25-year warranty and can be monitored via a smartphone app, allowing homeowners to track their energy generation, usage and export in real-time.

Costs of Octopus solar panels

Octopus Energy’s solar panel installations start from £3,880 for a basic two-panel system. Their most popular package, which includes 10 panels and a 5kWh battery, is priced at £9,199. For 10 panels and a 10kWh battery, Octopus give an estimated price starting from £10,400. Learn more about sizing battery storage for your solar panels.

These costs cover all necessary components, including scaffolding, delivery and labour. You also get Octopus’s renowned customer support throughout the process, which is very good.

Octopus also offers flexible payment options with their solar panels, allowing customers to spread the cost over 3, 5 or 7 years.

What are smart tariffs?

Once you’ve got your solar panels installed, you’ll be looking at the best tariffs to go with them. 

Octopus have a number of smart tariffs to pair up with different household scenarios when it comes to technology installed. We’ll take a look at the different scenarios shortly, but first it’s important to understand what smart tariffs are.

In simple terms they are innovative pricing structures designed to cater for the ebb and flow of energy demand. Smart tariffs work by encouraging energy consumption when demand is low and renewable sources are more likely to be feeding into the grid. On the other side, they incentivise selling excess energy back to the grid when demand (and prices) are high. 

For solar panel owners, smart tariffs mean you can maximise savings, reduce payback time and even profit from their energy generation. You’ll also be helping to balance the national grid and promote the use of green energy.

For homes equipped with battery storage, smart tariffs become even more powerful. They allow homeowners to charge their batteries when electricity is cheap and abundant, then use this stored energy or sell it back to the grid during peak hours.  

Octopus Energy’s solar tariff options

Octopus Energy has developed a suite of tariffs designed to maximise the benefits of solar panel ownership. Each tariff is tailored to different solar setups and homeowner preferences. 

When you have solar panels, it’s best to have export and import elements with your tariff as it’s likely you’ll be doing both. As there are different combinations of low carbon technology in homes, there are a number of options. 

Here’s a quick overview before we head into the details: 

What are the financial benefits of solar tariffs?  

The financial benefits of adopting solar panels with Octopus Energy can be substantial. Whilst the initial costs of a solar panel system might seem significant, the long-term savings justify the cost. Octopus estimates that their solar and battery systems can reduce electricity bills by up to 90% when paired with their Flux tariff.

The payback period for a solar panel system ranges from 8 to 12 years, depending on factors such as system size, energy usage patterns and chosen tariff. However, with energy prices on the rise, this payback period could potentially shorten.

For homes with solar panels only

For homes with solar panels only, the Outgoing Fixed tariff is your best option.

This straightforward tariff guarantees a fixed rate of 15p per kWh (at the time of writing) for all energy exported to the grid. It’s ideal for those who prefer predictability in their energy costs and returns. The Outgoing Fixed tariff can be paired with Octopus’s Intelligent Go tariff for importing energy. This combination is particularly suitable for homeowners who have regular energy usage patterns and want to avoid the complexity of variable rates.

For the more engaged energy user, you might want to look at the Outgoing Agile tariff. This dynamic tariff matches export prices to half-hourly wholesale rates. Prices can vary significantly throughout the day, offering the potential for higher returns during peak demand periods. This tariff has ‘Price Cap Protect’, which gives customers peace of mind that they’ll never pay more than 100p/kWh for their electricity. 

However, it requires more active management and a willingness to adapt energy usage patterns to maximise benefits. The Outgoing Agile tariff can be paired with Octopus’s Intelligent Go import tariff, allowing for a fully flexible approach to both energy consumption and export.

If you only want to sign up for an export tariff, you can go with the standard Smart Export Guarantee, which offers a flat 4.1p kWh rate for each exported unit of energy. This isn’t the most economical, but it can be combined with an import tariff by any other supplier. 

For homes with solar panels and battery storage

Adding battery storage into a solar panel system can significantly enhance its benefits. This is because battery storage allows homeowners to capture excess solar energy generated during the day for use during evening hours or cloudy periods. Learn how solar battery storage works in more detail. 

For those homes with solar panels and battery storage, Octopus Flux is the tariff for you. This is a combined import-export tariff, which offers lower rates overnight (02:00 – 05:00) and higher rates in early evenings (16:00 – 19:00). 

For example, you might see rates of 14.8p/kWh import and 5.26p/kWh export at night, with peak rates of 34.53p/kWh import and 24.99p/kWh export. This structure is particularly beneficial for homes with battery storage, as it allows customers to charge batteries cheaply overnight and export energy when it’s most valuable in the evening. 

When you discharge energy from your battery, it will first cover any energy needs for your house, then go out to the grid. This will help you maximise savings. 

For the more adventurous, you can go with the Outgoing Agile or Fixed tariff as described above. 

An advanced version of the Flux tariff is the Intelligent Octopus Flux. This option automatically optimises battery charging and discharging to maximise savings, making the decision for you on when to use, store or export energy. It’s currently only available for those with GivEnergy batteries, but that’s not to say it won’t change in the future. 

Intelligent Octopus Flux offers even more attractive rates, with potential off-peak rates of 22.2p/kWh for both import and export, and peak rates of 29.6p/kWh for both. 

You can learn more about Octopus and battery storage systems here. 

For homes with solar panels and electric vehicles

The Intelligent Octopus Go tariff is specifically designed for homes with solar panels and an electric vehicle. The main bonus is that this tariff offers incredibly cheap overnight rates for EV charging – as low as 7p per kWh for 6 hours each night between 11:30pm and 5:30am.

Intelligent Octopus Go is an import tariff that can be paired with the Outgoing Fixed, Outgoing Agile or the standard SEG tariff. 

This tariff is ideal for households that can schedule their EV charging during the night and want to maximise the value of their solar exports during the day. The low overnight rate not only makes EV charging more affordable but can also be used to charge home storage batteries, if present, for use during peak hours. As you can imagine, fully charging your battery (if you’re not expecting solar to do the job) for 7p/kWh is very cost-effective. 

If you don’t have an intelligent-charger or car, then you can sign up to the standard Octopus Go tariff. This is a smart tariff with cheap electricity available for five hours between 12:30am and 5:30am every night. These night rates are around the 8.5p/kWh mark. 

For homes with solar panels and heat pumps

Homes with solar panels and heat pumps can benefit from the Cosy Octopus import tariff combined with Outgoing Fixed or Agile. 

The Cosy Octopus tariff offers lower rates during the day when heat pumps are most likely to be in use, especially in winter. When paired with Outgoing Fixed, this combination ensures efficient operation of the heat pump whilst maximising returns from solar generation.

Cosy Octopus is a three rate tariff. What this means is that they give you three periods a day (totalling 8 hours) of cheap electricity that’s 51% less than the day rate in your region. The hours are between 4-7am, 1-4pm and 10pm-12am every day. However, you have to pay a peak rate between 4-7pm that’s 45% above the regional day rate. This is to discourage homeowners from using electricity at peak times. 

For example, in my region I’d get a cosy rate of 11.21p/kWh for those 8 hours a day, but have to pay 33.17p/kWh between the peak hours of 4-7pm. Octopus estimate that you can save 20% over the course of 12 months.

This setup is particularly beneficial in the UK climate, where heat pump usage and solar generation may have inverse relationships depending on the season i.e. you’ll be using the heat pump more often when your solar panels are less productive during winter. 

Octopus Energy’s green credentials

Underpinning all of Octopus Energy’s solar offerings and tariffs is a commitment to renewable energy. The company provides 100% renewable electricity to its customers, sourced through a combination of self-generated power, direct purchases from renewable projects and renewable energy certificates (REGOs).

Octopus Energy Generation manages over 300 renewable projects across 10 countries, with a particular focus on solar and onshore wind farms. This makes them Europe’s largest investor in solar energy. The company has set an ambitious target of achieving 20GW of green generation projects by 2030, enough to power 15 million homes.

This commitment to renewables supports the company’s green tariffs as well as contributing to the broader transition towards sustainable energy in the UK. 

Thanks to their dedication, Octopus offer a wide range of renewable energy tariff options for homeowners, from those just starting out on their solar journey to the more advanced setups with batteries, EVs and heat pumps.