diff --git a/homeassistant/components/compensation/__init__.py b/homeassistant/components/compensation/__init__.py
index 5e09cf26003..cb3e5e16584 100644
--- a/homeassistant/components/compensation/__init__.py
+++ b/homeassistant/components/compensation/__init__.py
@@ -159,7 +159,15 @@ async def async_setup(hass: HomeAssistant, config: ConfigType) -> bool:
 
 async def async_setup_entry(hass: HomeAssistant, entry: ConfigEntry) -> bool:
     """Set up Compensation from a config entry."""
-    await create_compensation_data(hass, entry.entry_id, dict(entry.options), True)
+    config = dict(entry.options)
+    data_points = config[CONF_DATAPOINTS]
+    new_data_points = []
+    for data_point in data_points:
+        values = data_point.split(",", maxsplit=1)
+        new_data_points.append([float(values[0]), float(values[1])])
+    config[CONF_DATAPOINTS] = new_data_points
+
+    await create_compensation_data(hass, entry.entry_id, config, True)
     await hass.config_entries.async_forward_entry_setups(entry, PLATFORMS)
     entry.async_on_unload(entry.add_update_listener(update_listener))
 
diff --git a/homeassistant/components/compensation/config_flow.py b/homeassistant/components/compensation/config_flow.py
index 75cb56e8edb..09009002abe 100644
--- a/homeassistant/components/compensation/config_flow.py
+++ b/homeassistant/components/compensation/config_flow.py
@@ -76,6 +76,20 @@ async def get_options_schema(handler: SchemaCommonFlowHandler) -> vol.Schema:
     )
 
 
+def _is_valid_data_points(check_data_points: list[str]) -> bool:
+    """Validate data points."""
+    for data_point in check_data_points:
+        if data_point.find(",") > 0:
+            values = data_point.split(",", maxsplit=1)
+            for value in values:
+                try:
+                    float(value)
+                except ValueError:
+                    return False
+            return True
+    return False
+
+
 async def validate_options(
     handler: SchemaCommonFlowHandler, user_input: dict[str, Any]
 ) -> dict[str, Any]:
@@ -84,9 +98,8 @@ async def validate_options(
     user_input[CONF_PRECISION] = int(user_input[CONF_PRECISION])
     user_input[CONF_DEGREE] = int(user_input[CONF_DEGREE])
 
-    for datapoint in user_input[CONF_DATAPOINTS]:
-        if not isinstance(datapoint, list):
-            raise SchemaFlowError("incorrect_datapoints")
+    if not _is_valid_data_points(user_input[CONF_DATAPOINTS]):
+        raise SchemaFlowError("incorrect_datapoints")
 
     if len(user_input[CONF_DATAPOINTS]) <= user_input[CONF_DEGREE]:
         raise SchemaFlowError("not_enough_datapoints")
diff --git a/homeassistant/components/compensation/sensor.py b/homeassistant/components/compensation/sensor.py
index b8836f8dfa6..b13b75fc42b 100644
--- a/homeassistant/components/compensation/sensor.py
+++ b/homeassistant/components/compensation/sensor.py
@@ -12,6 +12,7 @@ from homeassistant.config_entries import ConfigEntry
 from homeassistant.const import (
     ATTR_UNIT_OF_MEASUREMENT,
     CONF_ATTRIBUTE,
+    CONF_ENTITY_ID,
     CONF_MAXIMUM,
     CONF_MINIMUM,
     CONF_SOURCE,
@@ -90,14 +91,14 @@ async def async_setup_entry(
     compensation = entry.entry_id
     conf: dict[str, Any] = hass.data[DATA_COMPENSATION][compensation]
 
-    source: str = conf[CONF_SOURCE]
+    source: str = conf[CONF_ENTITY_ID]
     attribute: str | None = conf.get(CONF_ATTRIBUTE)
     name = entry.title
 
     async_add_entities(
         [
             CompensationSensor(
-                conf.get(CONF_UNIQUE_ID),
+                entry.entry_id,
                 name,
                 source,
                 attribute,
diff --git a/homeassistant/components/compensation/strings.json b/homeassistant/components/compensation/strings.json
index 568144b66c6..f7e428272fa 100644
--- a/homeassistant/components/compensation/strings.json
+++ b/homeassistant/components/compensation/strings.json
@@ -4,8 +4,8 @@
       "already_configured": "[%key:common::config_flow::abort::already_configured_device%]"
     },
     "error": {
-      "incorrect_datapoints": "Datapoints needs to be provided in list-format, ex. '[1.0, 0.0]'.",
-      "not_enough_datapoints": "The number of datapoints needs to be less or equal to configured degree."
+      "incorrect_datapoints": "Datapoints needs to be provided in the right format, ex. '1.0, 0.0'.",
+      "not_enough_datapoints": "The number of datapoints needs to be more than the configured degree."
     },
     "step": {
       "user": {
@@ -31,7 +31,7 @@
           "unit_of_measurement": "Unit of measurement"
         },
         "data_description": {
-          "data_points": "The collection of data point conversions with the format '[uncompensated_value, compensated_value]'",
+          "data_points": "The collection of data point conversions with the format 'uncompensated_value, compensated_value', ex. '1.0, 0.0'",
           "attribute": "Attribute from the source to monitor/compensate.",
           "upper_limit": "Enables an upper limit for the sensor. The upper limit is defined by the data collections (data_points) greatest uncompensated value.",
           "lower_limit": "Enables a lower limit for the sensor. The lower limit is defined by the data collections (data_points) lowest uncompensated value.",