What is a dynamic energy contract?
6 min read below · SolarFast knowledge base
With a dynamic energy contract you pay the hourly price for power. When does it pay off with solar panels or a home battery, and how does it compare to fixed?
With a dynamic energy contract the electricity price follows the market per hour or quarter-hour. Shift use to cheap moments and you can save. That works best with a smart meter and shiftable use, such as a home battery or EV charger.
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How does a dynamic contract work?
Instead of a fixed amount per kilowatt-hour, you pay the market price at the moment you draw power. With a dynamic supply rate the price for electricity can change every quarter-hour, hour or day; gas usually has a daily rate. Prices follow the wholesale market: when they fall you notice immediately, when they rise you pay more.
Your supplier must explain the risks upfront and that future costs are hard to predict. The ACM explains how dynamic supply costs work. How to shift use to cheap hours is covered separately on our page about smart home energy control.
Dynamic, variable or fixed
Three contract types are often confused. With a fixed contract your price is set for an agreed period. With a variable contract your supplier adjusts rates periodically, for example every quarter. With a dynamic contract the supply rate moves continuously with the market.
| Fixed | Variable | Dynamic | |
|---|---|---|---|
| Price changes | Fixed per contract period | Periodically by supplier | Per hour/quarter (power), day (gas) |
| Predictability | High | Medium | Low |
| Smart meter | Not required | Sometimes needed | Required |
| Cancellation fee | Often yes | Usually not | Usually not |
Suppliers must give a tailored offer for dynamic contracts with an explanation of risks. See the ACM on tailored offers.
Smart meter and hourly rates
A dynamic contract requires a smart meter that can record your use per hour or quarter-hour. That way you pay the rate that applied when you consumed. Through your supplier's app or website you usually see the actual rates a day ahead, so you can plan when to charge or run large appliances.
Your grid operator passes meter readings to your supplier; you do not need to submit them manually. Read more about the smart meter at the ACM on smart meters.
Opportunities and risks
The upside: you benefit from cheap hours, for example at night or on sunny afternoons when a lot of wind and solar power is on the market. The downside: you do not know exactly what you will pay next year. Price peaks in the evening or on cold winter days can hurt if you need to buy a lot then.
Your supplier does provide a forecast in the tailored offer so you can compare contracts. That is an estimate, not a guarantee. Do not compare a dynamic contract one-to-one with a fixed rate without accounting for this risk.
When does dynamic fit, including with solar panels?
With solar panels you often generate cheap power for yourself during the day. A dynamic contract mainly helps with what you still need to buy in the evening and in winter: then you shift use to hours with a low market price. Without smart steering or storage the benefit is smaller, because you still draw at peak moments.
If you have a home battery or charger that loads automatically at cheap hours, you capture more benefit. Whether that pays off depends on your use, your output and your contract. Our page on smart home energy control explains self-steering; that is separate from grid control through your supplier.
Unsure whether dynamic fits your situation? Ask us. We review your meter, use and system.
Dynamic contract and net metering
Net metering and your contract type are two separate things. Net metering is how your supplier settles power you feed back against your use over the year. That runs through your annual statement, regardless of whether you have a fixed, variable or dynamic contract.
A dynamic contract mainly helps with the power you do buy: you purchase more cheaply when you can shift use. Net metering handles what you feed back. How that settlement works is explained on our page about net metering.
Together with panels, battery and charger
A dynamic contract works best when you can shift use or storage. You charge a home battery or EV charger when power is cheap and use that energy when the price peaks. With solar panels on your roof you already have your own power during the day; dynamic mainly helps with what you still draw from the grid.
Time-varying grid tariffs may be added later, separate from your supplier rate. Grid operators are working on flexible grid tariffs for consumers, expected from 2029. That is a separate line on your energy bill; what the proposal entails is covered in our blog on the new grid tariffs.
Frank Energie and your SolarFast system
SolarFast partners with Frank Energie, our official partner for dynamic contracts, so you can take out a tariff that fits your solar panels, home battery or charger. The app shows hourly rates, often a day ahead, so you know when charging or running appliances pays off.
If you already have SolarFast panels or a Dyness battery, we include that in the quote. Your battery then charges automatically at cheap hours and you use that power when the price peaks. That is smart steering for your own bill, separate from grid control through your supplier. More tactics are on smart home energy control.
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Frequently asked questions
What is the difference between dynamic and variable?
With variable, your supplier adjusts rates periodically under your contract. With dynamic, the supply rate follows the market continuously, per hour or quarter-hour for power. Dynamic is therefore less predictable, but you can benefit more from cheap hours.
Is a dynamic contract sensible with solar panels?
It can be, if you can shift use or store power. With panels alone and no battery or smart charging the benefit is smaller. Combine panels with a home battery or charger that steers on price and the calculation becomes more interesting.
Do I need a smart meter?
Yes. Without a smart meter your supplier cannot bill per hour or quarter-hour at the dynamic rate.
How does net metering work with a dynamic contract?
Net metering runs through your annual statement, regardless of contract type. Dynamic mainly determines the rate at which you bought power at each moment. More detail is on our net metering page.
Can I cancel at any time?
With dynamic contracts you usually pay no cancellation fee, but terms differ by supplier. The notice period is in your contract; see also the ACM on tailored offers.
Is a dynamic contract cheaper?
It can be, if you can shift use to cheap hours. Without smart charging or storage the benefit is smaller and the price less predictable.
How do I see the prices?
Through your supplier's app or website. Hourly rates are usually shown a day ahead, so you can plan your use.
We apply this every day
The same knowledge you're reading here, we put to work for households across the Netherlands.