Households across Britain could soon receive free or cheaper electricity by using appliances during periods of high renewable energy generation.
The updated Demand Flexibility Scheme is launching this week, allowing energy suppliers to reward customers for using electricity when supply exceeds demand.
The scheme has been approved by Ofgem and will be operated by the National Energy System Operator.
Its designed to help stabilise the electricity grid during the summer months while reducing the amount of renewable energy that would otherwise go unused.
Longer daylight hours and increased solar generation, combined with lower seasonal demand, are contributing to more frequent periods of excess electricity.
Under the scheme, the National Energy System Operator will notify suppliers of specific periods when adjustments to electricity usage are required.
Energy companies will receive payments if they successfully shift customer demand during these windows.
Suppliers can then pass on incentives to households in various forms.
Households could save with Demand Flexibility Scheme this summer
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Customers may be offered free electricity during certain hours, reduced tariffs, or rewards such as points that can be exchanged for vouchers.
Participation requires a smart meter, and customers must be with a supplier that has signed up to the scheme.
The incentives available may vary depending on location, with some regions encouraged to increase electricity usage while others may be asked to reduce it.
British Gas, Equiwatt and Octopus Energy have confirmed they will take part in the scheme.
Renewable energy generation has reached record levels with wind power remaining the largest source
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PABritish Gas already operates a separate initiative known as PeakSave, which offers electricity at half price on Sunday afternoons when demand is lower and renewable generation is high.
The company said it is working with the National Energy System Operator to determine how the updated scheme will function.
Experts say the move reflects wider efforts by energy providers to adapt to increasing levels of renewable generation across the UK.
More suppliers are expected to join the scheme, potentially expanding the range of offers available to households.
The scheme is designed to help stabilise the electricity grid during the summer
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Renewable energy generation reached record levels in Great Britain last year, with wind power remaining the largest source.
Solar generation increased by nearly one third compared with 2024, while 2025 was recorded as the sunniest year on record in the UK.
There were also around 250,000 new small-scale rooftop solar installations added over the year.
The National Energy System Operator (NESO) said: “The complexity of operating the system at low demand is increasing, and we may need to use more of our tools, and use them more often, than in previous summers.”
It added that demand patterns are increasingly influenced by weather conditions, while growth in localised generation is reducing reliance on traditional power stations.