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<p>When it comes to measuring battery trading profits, focusing on <strong>daily fluctuations</strong>&nbsp;can be confusing and misleading. Energy markets are highly volatile, and battery trading involves buying electricity when prices are low (charging) and selling it when prices are high (discharging). While this strategy sounds simple, the day-to-day variability can make understanding the actual profits feel like chasing a moving target.</p><h3>Daily Data: A Game of Whack-a-Mole</h3><p>Imagine looking at your battery trading results every single day. Some days, prices may spike due to a heatwave, increasing profits for those days. On other days, the market may be unusually flat or your battery may not be needed for discharging, resulting in lower or no profits.</p><figure id="figure-uql7we0rflm2l3n0m4"><img id="uql7we0rflm2l3n0m4" src="https://cdn.durable.co/covers/32254F4RSWAMaMrxQPhgL0CY9Rplm5tEsrypMRMg25a4170w9JqqxLEp3vqFSQBj.png" alt="MAT showing profits per kWh traded increasing from 2021 through 2023" title="MAT showing profits per kWh traded increasing from 2021 through 2023" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 3/2; object-position: 50% 5%;" data-corners="default" data-aspect="3:2" data-caption="* source AEMO spot price difference between bottom and top 5% of trades each day" data-positionX="50%" data-positionY="5%" data-fullWidth="false"/><figcaption class="body-normal text-gray-500 mt-2">* source AEMO spot price difference between bottom and top 5% of trades each day</figcaption></figure><p>This day-by-day analysis often makes profits appear as erratic spikes and troughs on a chart. This variability can obscure the bigger picture and make it difficult to answer crucial questions like:</p><p>- <strong>Is my trading strategy working over the long term?</strong><br>- I<strong>s the market moving in a way that will sustain profits?</strong><br>- <strong>Am I seeing temporary price spikes, or are my profits gradually increasing?</strong></p><h3>Enter MAT: A Clearer Lens for Long-Term Profitability</h3><p>This is where the concept of <strong>MAT</strong> or <strong>Moving Annual Total</strong> comes into play. Originally popularized in <strong>retail analytics</strong>, MAT was created to help retailers understand long-term sales trends rather than focusing on short-term variations. In retail, MAT sums up a rolling 12 months of sales, helping businesses smooth out seasonal spikes (like holiday sales) and get a clear view of their underlying growth.</p><p>MAT is particularly valuable for energy trading and battery strategies because it helps smooth out short-term volatility and seasonal effects. Instead of zooming in on the daily ups and downs, MAT takes a rolling window of <strong>365 days</strong>&nbsp;and sums up all the daily profits. The result? A graph that shows whether your trading strategy is truly gaining momentum or just benefitting from temporary market fluctuations.</p><h3>Why MAT is a Better Measure for Battery Trading</h3><p>Let’s break down why MAT works so well for measuring battery profits:</p><p>1. <strong>Smoothing Out Volatility</strong>: Energy markets are notoriously volatile. A day-by-day view will likely give you a graph that looks like a rollercoaster. MAT smooths out those spikes and dips, showing you the average performance over an entire year.<br>&nbsp;&nbsp;<br>2. <strong>Removing Seasonality</strong>: Some months are naturally more profitable due to higher electricity demand (e.g., during summer air-conditioning loads). MAT helps you remove the "noise" of these seasonal effects and understand the underlying trend.</p><p>3. <strong>Long-Term Perspective</strong>: Trading strategies need time to prove themselves. MAT encourages patience by focusing on cumulative performance over 12 months, providing insights into whether your approach is yielding consistent results.</p><h3>Real-World Example: Retail Sales to Battery Profits</h3><p>Let’s take a quick detour to retail, where MAT has a proven track record. Imagine you’re running a clothing store, and sales peak during December due to the holiday shopping season. If you only look at December, it might seem like your store is booming. However, January could be slow, and you could panic if you’re only looking month-by-month.</p><p>Retailers use MAT to capture the entire year’s performance, balancing out the spikes in December with slower months like January. This gives them a better sense of whether their business is growing consistently. The same principle applies to battery trading.</p><h3>The Bottom Line</h3><p>Using MAT to measure battery profits gives you a <strong>clearer view of long-term profitability</strong>&nbsp;by smoothing out the noise of daily and seasonal variations. It transforms your analysis from a confusing daily rollercoaster into a stable, long-term perspective. Whether you're a battery trader or a business looking to optimize energy costs, MAT provides a more reliable measure of success.</p><p>So, the next time someone asks how profitable your battery strategy is, don’t get lost in daily numbers. Look at the big picture—<strong>the Moving Annual Total</strong>—to get a true sense of your trading success.&nbsp;</p>

Why Measuring Battery Profits Day by Day is Tricky (and How MAT Can Help)

<h3>Navigating the Changing Energy Landscape: Insights from the Front Lines</h3><p>In the ever-evolving world of energy management, this past week has been particularly eventful. As we continue to support our growing customer base, we've encountered challenges and insights that we believe are crucial for everyone to understand. Let's dive into some key points that highlight the current state of the energy market and our approach to navigating it.</p><h3>1. The Inverter Challenge: Working with What We've Got</h3><p>Our primary goal is to control inverter systems based on the information they provide us. However, it's important to recognize that this data isn't always perfect or complete. We're constantly working to interpret and act on this information as effectively as possible, but there are inherent limitations to what we can do when relying on third-party systems with limited visibility but also why we try to pick the the ones with the best support.</p><h3>2. The Human Element: Striving for Excellence in an Imperfect World</h3><p>We're a team of dedicated professionals, but we're also human. This means we're constantly learning, adapting, and occasionally making mistakes. Our commitment is to always strive for the best outcomes for our customers, even as we navigate the complexities of the energy market. We appreciate your patience and feedback as we continually refine our processes and systems.</p><h3>3. Market Volatility: When Even AEMO Hits the Pause Button</h3><p>This week, we witnessed a rare event: the Australian Energy Market Operator (AEMO) suspended trading due to a software issue. This rare occurrence underscores the volatility and unpredictability of the current energy market. It's a stark reminder that even the regulatory bodies are grappling with rapid changes and extreme conditions.</p><h3>4. The Only Constant is Change</h3><p>The energy landscape is shifting at an incredible pace. We're seeing fluctuations in market prices, evolving consumer demands, and rapid technological advancements. This constant state of flux presents both challenges and opportunities. For us, it means staying agile, continuously updating our strategies, and always looking ahead to anticipate the next shift.</p><h3>The Big Short of Energy: A Contrarian Opportunity?</h3><p>As we navigate these turbulent waters, I can't help but draw parallels to the movie "The Big Short." Just as some investors saw the impending housing market crash as an opportunity, we're witnessing a potential paradigm shift in the energy sector.</p><p>The conventional wisdom post coal and base load is that solar panels are the key to energy independence and savings. However, our data and market analysis are pointing to a counterintuitive truth: in some cases, a battery system without solar panels might be more advantageous than a traditional solar setup.</p><p>Why? Because as more and more households install solar panels, we're seeing periods of negative electricity prices during sunny days. This excess solar energy flooding the grid creates opportunities for savvy energy consumers. By using a battery to store cheap or even getting paid to take energy from the grid during these oversupply periods, and then using or selling that energy during high-price periods, consumers can potentially achieve greater savings than they would with their own solar panels.</p><p>This strategy essentially allows you to benefit from everyone else's solar investment without the upfront costs and maintenance of your own panels. It's a bit like "betting against" the traditional solar model, much like the contrarian investors in "The Big Short" bet against the housing market.</p><h3>Looking Ahead</h3><p>As we continue to navigate this rapidly changing landscape, our commitment remains unwavering: to provide the best possible energy management solutions for our customers. We're excited about the opportunities that lie ahead, even as we tackle the challenges that come with innovation and market disruption.</p><p>We invite you to stay engaged with us on this journey. Your experiences, feedback, and insights are invaluable as we work together to shape the future of energy management.</p><figure id="figure-ifbgsfg7k8m0qjzt2u"><img id="ifbgsfg7k8m0qjzt2u" src="https://cdn.durable.co/blocks/2fLHJzFvoxKn6xmrPtPOhosOfBraK3ckwny2EAlpvYnAAKcjadEZBd6gWHm25rht.png" alt="person using microsoft surface laptop on lap with two other people" title="person using microsoft surface laptop on lap with two other people" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 50% 50%;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="50%" data-positionY="50%" data-fullWidth="false"/></figure><p>Thank you for your continued trust and support. Here's to embracing change and finding opportunity in uncertainty!</p>

Batteries the big short

<figure id="figure-fwxuq9vx0om00ft72q" class=""><img id="fwxuq9vx0om00ft72q" src="https://images.unsplash.com/photo-1573164574230-db1d5e960238?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNHx8d29ya2luZ3xlbnwwfHx8fDE3MDY4MTAzOTF8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="person using smartphone and MacBook" title="person using smartphone and MacBook" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://images.unsplash.com/photo-1573164574230-db1d5e960238?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyNHx8d29ya2luZ3xlbnwwfHx8fDE3MDY4MTAzOTF8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>Energy trading with a battery is often misunderstood, leading many to miss out on a financially sound opportunity. This post aims to clear up some common misconceptions and explain why getting started doesn’t have to be costly or risky.</p><h3>Misconception 1: Energy Trading Requires a Large Initial Investment</h3><p>Many people believe that participating in energy trading requires a significant upfront investment, particularly in battery technology. While batteries were once prohibitively expensive, prices have dropped substantially, making them more accessible. Additionally, many financial products, like green loans, can help spread the cost over time. These loans are specifically designed for energy-efficient upgrades, making the initial outlay manageable for most households or businesses.</p><h3>Misconception 2: Energy Trading Is as Risky as Day Trading</h3><p>Energy trading with a battery is often compared to day trading in the stock market, with some assuming it carries the same level of risk. However, this comparison is flawed. Unlike day trading, where prices can fluctuate wildly after a trade is made, energy trading on the five-minute spot market provides a significant advantage: you know the price at the start of the trading period. This means you can make informed decisions based on real-time data, minimizing risk.</p><p>Moreover, even if the market conditions aren’t favorable for selling energy back to the grid, you can always use the stored energy yourself. This dual benefit ensures that your investment is continually working for you, either by reducing your energy costs or by generating income.</p><h3>Misconception 3: Self-Consumption Isn’t Profitable</h3><p>Another common belief is that if you’re primarily using the battery for self-consumption, it won’t pay off quickly. However, this isn’t the case. Self-consumption can still lead to significant savings. For example, if you’re currently paying high rates for electricity from the grid, using stored solar energy instead can drastically cut your energy bills. Over time, these savings add up, allowing the battery to pay for itself well before the end of its warranty period.</p><h3>Misconception 4: Energy Decisions Are Political, Not Personal</h3><p>Many people get caught up in the political debates surrounding energy sources—renewables versus coal, the role of nuclear power, and so on. While these debates are important, they shouldn’t distract you from taking control of your own energy finances. The reality is that the energy market is changing, and renewables are being integrated into the grid at an increasing pace. By investing in a battery and engaging in energy trading now, you can take advantage of these changes rather than waiting for government policies or political solutions.</p><h3>Why Now Is the Time to Act</h3><p>Taking control of your energy use and trading with a battery isn’t just about going green—it’s about making a smart financial decision. The combination of lower battery costs, accessible financing options, and the flexibility to trade energy or use it yourself makes this a low-risk, high-reward opportunity. Don’t wait for the energy market to change or for politicians to solve the problem. Take charge of your own finances and start benefiting from the energy revolution today.</p>

Understanding Energy Trading with a Battery: Common Misconceptions and Real Benefits

<p>Solar energy is often hailed as a clean, renewable source of power, and many households and businesses have wisely invested in solar panels. However, to truly maximize your earnings in today's energy market, solar panels alone no longer provide the returns they once did. A battery system is now essential for capitalizing on the spot energy market.</p><blockquote><p>some of the&nbsp;top earners aren’t even equipped with solar panels</p></blockquote><figure id="figure-zmky2c65fllzp5xqux"><img id="zmky2c65fllzp5xqux" src="https://cdn.durable.co/covers/3l7J4dLI9AGAyVZ3mY38pI0ZuWAIgdlctesl2KhRGIYStnkLdTbbviQZW4LA3MuK.png" alt="solar battery" title="solar battery" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 3/2; object-position: center center;" data-corners="default" data-aspect="3:2" data-caption="" data-positionx="null" data-positiony="null" data-fullwidth="false" data-mce-src="https://cdn.durable.co/covers/3l7J4dLI9AGAyVZ3mY38pI0ZuWAIgdlctesl2KhRGIYStnkLdTbbviQZW4LA3MuK.png" data-mce-style="aspect-ratio: 3/2; object-position: center center;"></figure><p>During the day, solar panels across the grid collectively generate more electricity than the grid can use. This surplus often leads to negative feed-in tariffs, meaning that during peak sunlight hours, the value of the electricity you produce can drop significantly, sometimes even resulting in you paying to export your excess power.</p><p>In contrast, the real opportunity for earnings comes when the sun isn’t shining. Battery storage allows you to capture your solar energy during the day and sell it back to the grid during the evening or night, when demand is higher and feed-in rates are more favorable.</p><figure id="figure-ozlwwzx3syhlzp6mtg5"><img id="ozlwwzx3syhlzp6mtg5" src="https://cdn.durable.co/blocks/1106dVSktfwW1bextJLGvBimuliGxCHBo9oXRbQeQvJL2U0VNedJPK93u3CYCgPP.png" alt="-800 bill from 10 days without solar" title="-800 bill from 10 days without solar" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 1/1; object-position: center center;" data-corners="default" data-aspect="1:1" data-caption="10 days trading with a battery and no solar" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1106dVSktfwW1bextJLGvBimuliGxCHBo9oXRbQeQvJL2U0VNedJPK93u3CYCgPP.png" data-mce-style="aspect-ratio: 1/1; object-position: center center;"><figcaption class="body-normal text-gray-500 mt-2">10 days trading with a battery and no solar</figcaption></figure><p>Interestingly, some of the top earners aren’t even equipped with solar panels. These sites often charge their batteries with free or low-cost solar energy from the grid during the day, and then discharge that stored energy at night when electricity prices are at their highest. This strategy highlights the flexibility and profitability that battery storage can offer, even without direct solar production.</p><blockquote><p>..if you sell your house, you can take your battery with you...</p></blockquote><p>Another significant advantage of investing in a battery system is its mobility. Unlike solar panels, which are typically considered fixtures attached to your property, batteries are often classified differently. This means that if you sell your house, you can take your battery with you, moving it to your next home and continuing to reap the benefits.</p><h3>August Earnings Breakdown:</h3><ul><li><strong>Daytime Exports:</strong> Only 11.4% of earnings came from exporting solar power during the day.</li><li><strong>Battery Exports:</strong> A remarkable 88.6% of earnings were generated by exporting stored energy from batteries during the night, when feed-in rates are at their peak.<br></li></ul><p>This data underscores the importance of battery storage with (or without) solar system. The best returns now come <strong>not</strong> from daytime solar exports, but from strategically timed battery exports when electricity is most valuable.</p>

Maximize Your Earnings: Why a Battery is Essential

<h2>A Smart Approach to EV Charging</h2><p>In the ever-evolving energy market, managing grid load efficiently is crucial. At Powston, we use the <a data-mce-href="https://en.wikipedia.org/wiki/Open_Charge_Point_Protocol" href="https://en.wikipedia.org/wiki/Open_Charge_Point_Protocol">Open Charge Point Protocol (OCPP)</a> to help you navigate this challenge. Our system allows you to control EV charging based on real-time spot prices in the Australian National Energy Market.</p><h3>How It Works</h3><figure id="figure-75tgydzlzalz6e94zu"><img id="75tgydzlzalz6e94zu" src="https://media.gettyimages.com/id/1372085619/photo/electric-car-power-charging-charging-technology-clean-energy-filling-technology.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=sbRIPhOZH1FYpqjsWWe1CqamUfBslyNZcCXkegVlDhQ=" alt="Electric car power charging, Charging technology, Clean energy filling technology." title="Electric car power charging, Charging technology, Clean energy filling technology." class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://media.gettyimages.com/id/1372085619/photo/electric-car-power-charging-charging-technology-clean-energy-filling-technology.jpg?b=1&amp;s=2048x2048&amp;w=0&amp;k=20&amp;c=sbRIPhOZH1FYpqjsWWe1CqamUfBslyNZcCXkegVlDhQ=" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p>Every five minutes, we check the current energy prices. When prices are high, we limit charging to avoid costly intervals. When prices drop, we maximize charging to take advantage of lower rates. This approach helps you save money and reduces strain on the grid.</p><h3>Getting Started</h3><p>To set up your smart charging system, you need a unique OCPP key from us. This key allows you to integrate your charger with our system. </p><figure id="figure-bxps4dy13klz6e6tt7"><img id="bxps4dy13klz6e6tt7" src="https://cdn.durable.co/blocks/86v7kZMQR4pyTcOv9JtY42aBLlUG6ZeiDI3KDbBbz5YRszRSxwn4NjEwPIAFRTFr.jpg" alt="woman sitting on yellow armless chair near gray laptop computer" title="woman sitting on yellow armless chair near gray laptop computer" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/86v7kZMQR4pyTcOv9JtY42aBLlUG6ZeiDI3KDbBbz5YRszRSxwn4NjEwPIAFRTFr.jpg" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><p><span style="font-family: var(--head-fontFamily); font-size: calc(32px * var(--head-fontSize, 1)); font-style: var(--head-fontStyle, normal); font-weight: var(--head-fontWeight, 500); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: var(--head-fontFamily); font-size: calc(32px * var(--head-fontSize, 1)); font-style: var(--head-fontStyle, normal); font-weight: var(--head-fontWeight, 500); background-color: rgba(249,250,251,var(--tw-bg-opacity));">Benefits</span><br></p><p>Using our system offers several benefits:</p><ul><li><strong>Cost Savings</strong>: Avoid expensive charging intervals.</li><li><strong>Grid Management</strong>: Help balance the grid load.</li><li><strong>Ease of Use</strong>: Simple setup with our unique OCPP key.</li></ul><figure id="figure-8hnq4rwpf7lz6e12vu"><img id="8hnq4rwpf7lz6e12vu" src="https://images.unsplash.com/photo-1529704193007-e8c78f0f46f9?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxlbmVyZ3klMjBtYW5hZ2VtZW50fGVufDB8fHx8MTcyMjIyMTE4OXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="energy management" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1529704193007-e8c78f0f46f9?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHw2fHxlbmVyZ3klMjBtYW5hZ2VtZW50fGVufDB8fHx8MTcyMjIyMTE4OXww&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><p><a data-mce-href="https://powston.com.au/contact" href="https://powston.com.au/contact">Contact us</a> today to get your unique OCPP key and start saving on your EV charging.</p><figure id="figure-53oiu79cyflz6e14i8"><img id="53oiu79cyflz6e14i8" src="https://images.unsplash.com/photo-1529310399831-ed472b81d589?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxOXx8c21hcnQlMjBlbmVyZ3l8ZW58MHx8fHwxNzIyMjIxMTkxfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="smart energy" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1529310399831-ed472b81d589?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxOXx8c21hcnQlMjBlbmVyZ3l8ZW58MHx8fHwxNzIyMjIxMTkxfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure>

Managing Grid Load and Costs with OCPP

<p>Choosing the right tariff after the Ausgrid test can be challenging for homeowners. The decision between EA116 and EA025 depends on various factors. This guide will help you understand both options and make an informed choice.</p><h3>Understanding EA116</h3><p>EA116 is presented as a time-of-use tariff but combines both time-of-use (ToU) rates and a demand charge. While it's marketed towards homeowners, being the default assignment suggests it may serve the network's operational interests more than individual cost savings. This tariff suits those who can meticulously manage their energy consumption without deviations, a scenario our data shows is rare among our customers. For instance, it assumes you'll never need to run appliances like dishwashers or washing machines during peak hours, even in unforeseen circumstances, and will consistently operate them only during off-peak times.</p><figure id="figure-p02h2wmtgclz0uk362"><img id="p02h2wmtgclz0uk362" src="https://images.unsplash.com/photo-1683803063663-3b1f28d97297?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxMXx8dGltZSUyMG1hbmFnZW1lbnR8ZW58MHx8fHwxNzIxODg2MTUzfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="time management" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1683803063663-3b1f28d97297?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxMXx8dGltZSUyMG1hbmFnZW1lbnR8ZW58MHx8fHwxNzIxODg2MTUzfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Time of Use EA025</h3><p>This tariff is suitable for homeowners who prefer simplicity. This costs a lot extra every kWh during peak times so still encourages less use then but without the penalty should one night be unusual. If you need to run a dishwasher or dryer at night, you pay extra for that but that will only be charged for those kWh used not as a daily fee for the whole month.</p><figure id="figure-00jbi64jzlz0uk4bv"><img id="00jbi64jzlz0uk4bv" src="https://images.unsplash.com/photo-1604176857763-71877b24864e?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbmVyZ3klMjB1c2FnZXxlbnwwfHx8fDE3MjE4ODYxNTR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="energy usage" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1604176857763-71877b24864e?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwxfHxlbmVyZ3klMjB1c2FnZXxlbnwwfHx8fDE3MjE4ODYxNTR8MA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><p>Confused? Sorry about that so lets run the numbers.</p><figure id="figure-hd1eepjhxtalz0uk601"><img id="hd1eepjhxtalz0uk601" src="https://images.unsplash.com/photo-1558449028-b53a39d100fc?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8c29sYXIlMjBwYW5lbHN8ZW58MHx8fHwxNzIxODg2MTU2fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="solar panels" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1558449028-b53a39d100fc?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyM3x8c29sYXIlMjBwYW5lbHN8ZW58MHx8fHwxNzIxODg2MTU2fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>Check your bill</h3><p>Have a look at your most recent bill, look for the peak usage (measured in kWh) and peak demand (measured in kW).</p><figure id="figure-g0e1k3gfrblz0umzfz"><img id="g0e1k3gfrblz0umzfz" src="https://cdn.durable.co/blocks/2eUPcapoZ08gBTdPHlL99lgCE4y9P4jwshsbWbZZ7u3fU5alt0ZIXAZ2FztN5qAK.jpg" alt="Bill showing 29.1kWh and 5.362kW" title="Bill showing 29.1kWh and 5.362kW" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="This probably won't be on the first page" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/2eUPcapoZ08gBTdPHlL99lgCE4y9P4jwshsbWbZZ7u3fU5alt0ZIXAZ2FztN5qAK.jpg" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"><figcaption class="body-normal text-gray-500 mt-2">This probably won't be on the first page</figcaption></figure><p>Compare the tariffs, look for the latest e.g. <a data-mce-href="https://www.ausgrid.com.au/-/media/Documents/Regulation/Pricing/PList/Ausgrid-Network-Price-List-2024-25.pdf?rev=61699dd84f6d421785a6591885745c70" href="https://www.ausgrid.com.au/-/media/Documents/Regulation/Pricing/PList/Ausgrid-Network-Price-List-2024-25.pdf?rev=61699dd84f6d421785a6591885745c70" title="Current tariff prices effective July 2024">Ausgrid 2024-2025</a>.</p><figure id="figure-t38682i64glz0w2m87"><img id="t38682i64glz0w2m87" src="https://cdn.durable.co/blocks/7LDEuvI8e99wBFX4M95t6oEdnmiRZ2rkiJj1KhUnH5Sgvcr6XrLjQDQL3Mugs7VW.jpg" alt="person catching light bulb" title="person catching light bulb" class="object-cover bg-gray-100 rounded-2xl md:rounded-3xl lg:rounded-4xl" style="aspect-ratio: 16/9; object-position: 100% 50%;" data-corners="default" data-aspect="16:9" data-caption="Look for the peak cost per kWh and demand charge per day per kW" data-positionx="100%" data-positiony="50%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/7LDEuvI8e99wBFX4M95t6oEdnmiRZ2rkiJj1KhUnH5Sgvcr6XrLjQDQL3Mugs7VW.jpg" data-mce-style="aspect-ratio: 16/9; object-position: 100% 50%;"><figcaption class="body-normal text-gray-500 mt-2">Look for the peak cost per kWh and demand charge per day per kW</figcaption></figure><p>Then calculate the cost for each:</p><table border="1" data-mce-style="border-collapse: collapse; width: 100%; margin-left: auto; margin-right: auto;" style="border-collapse: collapse; width: 100%; margin-left: auto; margin-right: auto;"><tbody><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">Tariff</td><td style="width: 32%; text-align: right;" data-mce-style="width: 32%; text-align: right;">EA025</td><td style="width: 40%; text-align: right;" data-mce-style="width: 40%; text-align: right;">EA116</td></tr><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">Peak use 29.1kWh</td><td style="width: 32%; text-align: right;" data-mce-style="width: 32%; text-align: right;">x 26.8969 = $7.83</td><td style="width: 40%; text-align: right;" data-mce-style="width: 40%; text-align: right;">x 2.337 = $0.13</td></tr><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;">Peak Demand 5.362kW</td><td style="width: 32%; text-align: right;" data-mce-style="width: 32%; text-align: right;">nil</td><td style="width: 40%; text-align: right;" data-mce-style="width: 40%; text-align: right;">x 30 x 33.2942 = $53.56</td></tr><tr><td style="width: 33.3325%;" data-mce-style="width: 33.3325%;"><strong>Cost</strong></td><td style="width: 32%; text-align: right;" data-mce-style="width: 32%; text-align: right;"><strong>$7.83</strong></td><td style="width: 40%; text-align: right;" data-mce-style="width: 40%; text-align: right;"><strong>$53.68</strong></td></tr></tbody></table><p>I think it is much better to look at your actual numbers rather than try to imagine using dishwashers at night. It avoids the trap of stated vs observed behaviour.</p><h3>Conclusion</h3><p>So if you have a battery, keep your demand in control, there still might be the odd case where the battery is empty, off or some unusual demand can spike during one night during the month. So it is best to check your actual demand for a few months and see what it will cost. In this case, it is far better to take the ToU EA025 tariff. Paying extra per kWh worked out far cheaper than per kW.<br></p>

Ausgrid EA116 or EA025? Life After the Ausgrid Test Tariff

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Powston is an Australian energy technology company transforming how households and businesses use and profit from renewable energy. Our AI-driven platform and plug-and-play controller connect batteries, solar, and smart devices directly to the 5-minute wholesale energy market. This lets customers cut their electricity bills, optimise consumption, and even earn revenue—without relying on traditional retailers or Virtual Power Plants.
With integrations across leading brands like Sungrow, SAJ, iStore, Powston empowers users with real-time energy monitoring, cost optimisation, and automation tools for appliances, EVs, and backup planning.
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Ausgrid EA116 or EA025? Life After the Ausgrid Test Tariff