Time of use tariffs for your electric vehicle.
Electric vehicles (EVs) can be more expensive to buy outright compared to petrol or diesel cars, but the cost of running them is significantly less.1 The good news is there are ways you can maximise your savings even further in the long run, helping to make EVs a more affordable option.
One helpful thing you can do is choose the right electricity tariff. For example, there are tailor-made time of use tariffs (also known as two-rate tariffs) for EV owners who charge from home. Let’s take a look at what you need to know about choosing an electric vehicle tariff.
How to compare EV charging tariffs?
There are some key factors to consider when choosing an EV tariff. When you start to shop around, you’ll generally find electric vehicle tariffs fall into one of two categories:
There’s the dynamic two-rate tariff, which charges separate peak and off-peak electricity prices. You’ll normally find that the off-peak prices are much lower.
Then there’s the straightforward single-rate tariff, which comes with consistent pricing throughout the day. These aren’t so common and you won’t normally get the big discount during off-peak charging that you do with two-rate tariffs. But equally, you won’t be charged a top rate during peak hours.
If you want the freedom to charge during peak hours, then a single-rate tariff might be best for you. Alternatively, if you’re happy to charge your EV during off-peak hours, like overnight, then you can benefit from the flexibility and potential cost savings of a two-rate tariff.
Popular EV tariffs and their features.
A popular type of EV tariff is a time of use tariff. Time of use tariffs encourage customers to use electricity at times when more is available. It charges you a higher price for any electricity used during busy peak periods, and charges a lower price during lower demand, off-peak periods, such as the night-time.
If you’re able to charge your EV at home during the night, then you could benefit from an overnight EV charging tariff. Recent research from Uswitch.com revealed that more than four fifths of EV owners (82%) aren’t using an EV or time of use tariff, which could have saved them £379 a year when charging their vehicle overnight.2
To sign up for a time of use tariff, you need to have a smart meter that can send half hourly updates on your energy use (you’ll need to consent to providing this data). This is so your energy company can bill you the right rate at the right time, provide help on how to save money, and understand your electricity usage, as well as settling your usage accurately with network operators.
Benefits of EV time of use tariffs.
Time of use tariffs give you greater control over your energy use, so you can choose to charge your EV at cheaper times of day, such as overnight. This flexibility and cost-effectiveness often works if you rely on your electric vehicle for daily transport - whether that’s driving to work, taking the kids on the school run, or using your vehicle throughout the day.
Time of use tariffs aren’t just good for your wallet - they can also be better for the environment. The electricity grid is powered by various energy sources, some of these are renewable like wind and solar, and others are fossil fuels like gas. The more demand there is on the grid, the more that fossil fuels are needed to generate electricity and ensure that there’s enough for everyone to use. The grid can’t always rely on renewable energy during busy peak periods because the sun doesn’t always shine and the wind doesn’t always blow.
Choosing a time of use tariff is better for the planet because it encourages people to use energy when there’s less demand, such as overnight. This allows the grid to use less fossil fuel energy across the day, reducing the carbon emissions that harm the environment.
How to charge your EV more cost-effectively?
Peak and off-peak hours for EV tariffs.
Understanding peak and off-peak electricity prices is key to minimising your charging costs. Off-peak hours are typically between 12am and 7am, when electricity demand is lower.
At E.ON Next, we created our Next Drive tariff to give you lower overnight energy prices and the satisfaction that you’re using 100% renewable electricity when you charge your EV.
Our Next Drive electric vehicle tariff gives you:
Lower-priced electricity at 6.7p per kWh when you charge between 12am and 7am.3
100% renewable electricity at no extra cost.4
Fixed energy prices for one year.
No exit fees.
Find out how much you could save by getting a quote for Next Drive today.
Optimising the cost of EV charging.
As well as charging your EV during off-peak hours, there are other ways that you can charge your EV more cost-effectively. Using an EV specific app can help you set your EV to automatically start charging during off-peak hours, in case you forget. If you’re not in a hurry, slower EV charging is usually cheaper, which can lead to decent savings over time and extend the life of your EV battery.
Everyone drives differently, but your driving style can make a difference to how often you need to charge your EV. If you can avoid sudden sharp acceleration and braking, then this helps conserve your battery power and reduce wear and tear. Not only does this calm approach to driving help to reduce how often you have to charge your vehicle, it can also improve the longevity of your EV - making it a win-win for saving money in the long run.
How else can I make EVs more affordable?
You could save money in the long run by installing a home charger. On average, the cost to charge at home is over 50% per unit cheaper than paying at a public charger.5 And, as we’ve already looked at, the savings are even bigger if you use cheaper off-peak electricity at home thanks to a time of use tariff.
If you’ve not yet bought an EV, you can also save money by choosing a second-hand model. With more and more second-hand EVs on sale, prices have been falling recently, and you may be able to snap up a real bargain, if you know what to look for. Our guide to buying a used EV walks you through the ins and outs of the process - from where to find the perfect model to inspecting battery health and understanding home charging tech.
Ready to take charge of your EV charging costs? Our Next Drive tariff helps you maximise savings while enjoying the benefits of clean energy.