How Smart Charging and Solar Panels Cut Electricity Bills in Europe
Iran Conflict Drives Energy Crisis, but Smart Consumers Cut Costs Through Flexible Power Use
The Iran conflict has contributed to the energy crisis—not least by sending gas prices soaring and, in turn, driving up electricity costs in some cases significantly. While wholesale power prices saw sharp fluctuations in early March—spiking both upward and downward—retail electricity rates for new customers moved in only one direction: up.
Yet the debate over these developments has so far lacked nuance, according to an analysis by Tibber obtained by pv magazine. The provider of dynamic electricity tariffs evaluated data from customers with electric vehicles, smart meters, and flexible pricing—households that, by adjusting their consumption habits (particularly when charging their cars), are especially well-positioned to capitalize on price volatility. The result? In March, these customers paid just around 3% more for electricity than in February. And the top quartile of households that adapted most effectively to price shifts through smart charging actually reduced their costs by nearly 7% compared to February.
Solar Power Makes It Even Cheaper
While the analysis did not explicitly examine the impact of rooftop solar systems and battery storage, Tibber told pv magazine that these likely further improved outcomes for affected households. Citing an ADAC statistic from 2023—according to which 68% of EV owners also have solar panels—the company estimates that roughly three-quarters of the households in its dataset fall into this category. Tibber notes that in 2025, its top 10% of customers with both solar power and an EV paid an average of 22 cents per kilowatt-hour, compared to 26 cents for the top 10% with an EV but no solar. This suggests the first group also saw significantly lower bills in February and March of this year.
Tibber concludes that its customers did not suffer from increased price volatility but instead "turned it to their advantage." By automatically shifting consumption away from peak pricing periods, they avoided high costs. The data reveals a notable shift in charging behavior: in March, activity surged between 4 and 6 a.m., while evening charging declined compared to February (see chart).
A Double-Edged Picture
The findings offer good news for those who can leverage dynamic tariffs as effectively as EV owners with home chargers can. Yet Edgeir Aksnes, Tibber's global CEO and co-founder, sees a troubling side as well: "Rising electricity prices in Germany are largely driven by soaring gas costs. This crisis proves once again that gas is not the solution for power generation. Renewable energy combined with flexible consumption is far cheaper and more resilient." From a "Scandinavian perspective," the Norway-based executive finds it "hard to understand why Germany still relies so heavily on fossil fuels."
Beyond the energy mix—which in Norway depends less on wind and solar expansion than on abundant hydropower—the widespread use of smart meters (a prerequisite for dynamic tariffs) also plays a key role. While nearly every Norwegian household has one, Tibber reports that 93% of the country's electricity customers use dynamic pricing. Aksnes urges Germany to follow suit: "It's time for the German government to decisively accelerate the smart meter rollout and make it a priority."
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