British Gas and Mixergy ‘pay home-owners to switch on’

British Gas is working with smart water solutions developer Mixergy on what they are calling a first-of-its-kind energy offer that pays the homeowner to switch on hot water during low peak times.

Through the offering, British homeowners will be paid to switch on the hot water cylinder during low peak times, supporting the national grid’s onboarding of more renewables.

Through Mixergy Extra, customers will receive extra financial rewards when they enable British Gas to optimise their Mixergy tank to heat when local or national electric demand is lower.

This follows an initiative from Mixergy, whereby more than 70% of their customers already opt-in as a ‘Mixergy Hero’ to help solve grid congestion.

Additionally, Mixergy customers who sign up for a British Gas fixed-rate tariff will save a further £40 ($50.79) a year when they opt-in to Mixergy Extra. The £40 rebate will be deducted by British Gas from the energy bill.

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Commenting in a release was Pete Armstrong, CEO of Mixergy: “We have been working with British Gas to explore how hot water tanks can support our power grid infrastructure by alleviating grid congestions as more renewables are installed on an already overloaded grid.

“Imagine if every hot water tank in the UK worked just like a battery and was connected to the grid so you could charge when power was cheapest and cleanest. This could free up a phenomenal amount of room to onboard more renewables. Instead of paying windfarms to switch off we could pay home-owners to switch on!”

According to British Gas, traditional hot water tanks heat the whole volume each morning regardless of how much is needed. It then cools throughout the day and needs to be reheated again in the evening. However, Mixergy heats from the top down in sections to save on energy and carbon use, using 40% less power to heat water than the conventional tank.

“This is why we’re thrilled British Gas has chosen to be the first utility to offer Mixergy Extra. The first smart hot-water tank energy offer which pays homeowners,” adds Armstrong.

Said John Evans, commercial director for British Gas: “This offer supports our ambitions to decarbonise homes. The Mixergy smart hot water tank cylinder uses less energy to heat water faster which saves our customers money whilst also supporting grid demand.”

“We wanted to encourage more of our customers to take up these benefits so are giving them an added incentive to switch and reduce cost and carbon.”

The British Gas Mixergy Extra offer will be available in September 2024.