The National Energy System Operator (NESO) has introduced an updated Demand Flexibility Service that offers households and businesses free or cheaper electricity for running appliances during periods of excess renewable energy supply, particularly on sunny weekends. This initiative aims to avoid wasting surplus green energy and ensure grid resilience over the summer.
Key Takeaways
The National Energy System Operator (NESO) has introduced an updated Demand Flexibility Service to encourage households and businesses to use more electricity during periods of excess renewable supply, particularly sunny weekends.
- NESO's scheme approved by Ofgem in March encourages increased electricity use when surplus renewables are available
- Households with smart meters can participate through suppliers like British Gas, Equiwatt, and Octopus Energy
- 2025 was the UK's sunniest year on record, with about 250,000 new rooftop solar panel installations
- Rewards include free or cheaper electricity at certain times, or points convertible into gift cards
- Initiative aims to prevent paying wind and solar farms to turn off during surplus periods
Source Claims Check
High Consensus| Claim | Status | Reason | |
|---|---|---|---|
| Renewable Energy Production Record | Broad Agreement | 2025 was UK's sunniest year with 250,000 new solar installations | |
| Scheme Participants | Broad Agreement | British Gas, Equiwatt, Octopus Energy signed up | |
| Potential Zero-carbon Electricity Periods | Broad Agreement | Potential for first zero-carbon electricity periods this summer | |
| Constraint Payments Amount | Broad Agreement | Constraint payments reached almost £1.5 billion last year |
According to multiple reports, NESO's scheme was approved by Ofgem at the end of March. It encourages customers to increase their electricity use when weather conditions result in excess supply, such as on weekends or Bank Holidays. Households with smart meters can participate through suppliers like British Gas, Equiwatt, and Octopus Energy.
The initiative comes amid a record year for renewable energy production in Great Britain. BBC reported that 2025 was the UK's sunniest year on record, with about 250,000 new rooftop solar panel installations. The updated scheme enables customers to be rewarded for running appliances such as washing machines and dishwashers when more green energy is being generated and demand is low.
Rewards will vary and could include free or cheaper electricity at certain times, or points that could be converted into gift cards. Companies that have signed up to the scheme so far include British Gas, Equiwatt, and Octopus Energy. The initiative aims to ensure grid resilience over the summer when electricity demand is typically lower.
As reported by The Guardian, Great Britain is on track for a record-breaking summer of renewable energy production. NESO expects that during some periods - particularly sunny weekend afternoons - there could be more renewable energy available than the grid needs. The solution involves encouraging homes and businesses to use more renewable energy when it's abundant by charging electric vehicles, running dishwashers, or doing laundry.
The scheme also aims to prevent NESO from having to pay wind and solar farms to turn off during periods of surplus generation. These so-called constraint payments reached almost £1.5 billion last year and are ultimately paid for through home energy bills. By shifting demand to periods with electricity surpluses, consumers can help lower peak demand when gas-fired power plants are typically used.
More than 2 million homes across Great Britain already participate in similar schemes by using smart meters and signing up for discounted tariffs during periods of abundant electricity. British Gas's 'PeakSave' scheme offers half-price electricity on Sundays, with estimates showing it has saved over 1 million customers at least £45 million since its launch in 2023.
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