The UK faces increasingly hot summers and rising air-conditioning (AC) usage. Thanks to an abundance of solar energy production during summer days, electricity prices are dropping – and more often than ever, turning negative. This year, the UK recorded a stretch of 17 consecutive hours of negative pricing on 25 May – matching the record set in 2023[1]. tado° is helping to tap into this growing opportunity to cool homes at the lowest cost.
High demand for cooling
The demand for cooling UK homes has surged, with a recent study revealing a dramatic surge in overheating within homes – soaring from just 18% in 2011 to a staggering 80% in 2022. Alongside this, AC installations have increased seven-fold over the same period, now present in around 21% of homes[2].
This rising demand coincides with the UK’s increasing investment in renewable energy, particularly solar and wind, which is now creating unprecedented instances of electricity oversupply. During these times, often around midday, wholesale electricity prices often drop below zero. This presents a unique opportunity for smart energy use at home.
Customers benefit from negative prices
Smart, cost-saving cooling is made possible by dynamic hourly electricity tariffs – where the cost of electricity changes each hour based on real-time wholesale prices. When households shift their consumption to times when energy is cheap (or even free), they can cut costs, especially when using devices with higher energy demands such as electric cars, heat pumps and air conditioners.
Graph taken from 5 July 2025 showing negative electricity prices in Germany – tado° ‘s headquarters
tado° smart cooling – how it works
tado° is at the forefront of this shift, enabling households to tap into this “free cooling” potential. By combining the tado° Smart AC Control with dynamic electricity tariffs and intelligent scheduling, the system activates air conditioning units during these negative pricing windows. This allows homes to pre-cool or maintain comfortable temperatures without incurring any energy cost. The tado° Smart AC Control is easy to install: by pressing a single button on your AC remote control the tado° Smart AC Control recognises your AC model and the installation is done in a few minutes. tado° is compatible with all popular AC brands like Midea, Samsung, Daikin, Toshiba, Panasonic, Haier, Fujitsu and more, that is in total more than 500 ACs.
“The concept of negative electricity prices is a game-changer for energy consumers,” says Christian Deilmann, Co-Founder & Managing Director of tado°. “We’re transforming what was once a challenge – hotter summers and energy demand peaks – into an incredible opportunity. Not only do households save significant money, but this smart utilisation of surplus renewable energy also plays a vital role in stabilising and relieving pressure on our national grids, fostering a more sustainable energy future for the UK.”
This initiative offers a practical, immediate solution to both rising energy costs and the environmental impact of increased cooling demand. It underscores how technological innovation can empower consumers to become active participants in the energy transition.
Cooling homes in hot summer now becomes affordable for many UK households.
[1] Source: Argus Media
[2] Source: University of East London
