Households will save money on their energy bills by using more electricity during off-peak hours and on especially windy or sunny days, according to government plans.
Customers will receive incentives to use electricity when more renewable energy supplies power to the grid as part of energy market reforms announced by ministers.
The plans of the Department of Business, Energy and Industrial Strategy (Beige) also include reducing household bills by decoupling electricity prices from gas prices.
Under the current system, the price of electricity for consumers is effectively determined by the wholesale cost of gas. The government hopes to prevent a crisis in the cost of living in the coming years by cutting the link between the two.
The reforms come after the price of wind power fell to an all-time low due to competition among wind farm developers. Energy companies have agreed to build new wind farms for a guaranteed electricity price of £ 37.35 per MWh, below a price of £ 120 per MWh in 2015.