Greening your drive: A comprehensive guide to electric vehicle tariffs for smart charging.
Electric vehicles (EVs) offer long term savings compared to petrol or diesel cars1, especially when paired with smart charging. Choosing the right electricity tariff is one of the most impactful ways EV owners can save money when charging at home.
Tailor made EV tariffs, often called time of use or two rate tariffs, are designed specifically for this purpose. This guide will explain how EV tariffs work, their benefits, and how to pick the best electricity supplier for your lifestyle.
The power of EV tariffs: charging your way to savings and sustainability.
An EV tariff is a smart energy solution designed for electric vehicle owners who charge at home. Unlike standard energy tariffs, EV tariffs offer lower rates during specific periods, typically overnight. This provides flexibility and cost effectiveness for daily EV use.
Imagine plugging in your car before bed, knowing you're charging it at the cheapest possible rate. This isn't just about convenience, it's a key tool for EV owners to:
Save money: By taking advantage of off-peak electricity prices, you can drastically reduce charging costs. Recent Uswitch.com research shows that over four fifths of EV owners (82%) aren’t using an EV or time of use tariff, potentially missing out on around £379 in annual savings from overnight charging.
Reduce your carbon footprint: Charging when the grid is 'greener' means your car is powered by more renewable energy. Off-peak hours often align with times when a higher proportion of renewable sources are supplying the grid, contributing to a cleaner overall energy mix.
Optimise home charging: These tariffs encourage smart charging behaviour, integrating your EV efficiently into your home energy ecosystem.
For most EV owners who charge at home, EV tariffs are an economical and environmentally friendly choice.
How EV tariffs work: understanding your options.
EV tariffs generally fall into two primary categories, each with a different approach to pricing your electricity:
Time of use tariffs: the smart way to charge.
Time of use (TOU) tariffs, also known as "dynamic two-rate tariffs" are the most common and beneficial for maximising savings. The price you pay for electricity varies depending on the time of day:
Off-peak hours: These are periods of lower electricity demand on the national grid, typically late at night and in the early morning. Electricity is much cheaper during these times, ideal for EV charging and running other energy intensive appliances.
Peak hours: Conversely, peak hours are when demand on the grid is highest (e.g. morning rush or early evenings). Electricity rates will be higher during these times.
TOU tariffs encourage shifting heavy electricity use, like EV charging, to cheaper, off-peak periods. This saves money and helps balance demand on the national grid, improving efficiency and sustainability.
Single-rate tariffs: simplicity and consistency.
Single-rate tariffs offer consistent pricing throughout the day. While they don't provide the significant off-peak discounts of two-rate tariffs, they also avoid higher peak hour charges. If you need the flexibility to charge frequently during peak hours, a single-rate tariff might be suitable.
However, for most EV owners with smart meters and the ability to schedule charging, time of use tariffs offer greater financial benefits through lower overnight rates.
Maximising cost savings and convenience with your EV tariff.
Choosing the right EV tariff significantly enhances your electric vehicle ownership experience and reduces charging costs.
Financial benefits: cheaper charging at night.
The main financial advantage of a TOU EV tariff is charging when electricity is cheapest. Consistently charging during off-peak hours can lead to substantial savings. For instance, our Next Drive tariff offers a lower unit rate of 7.5p per kWh between 12am and 6am.
This difference can save hundreds of pounds annually, making your EV even more cost effective than a traditional car. A fixed EV energy tariff like Next Drive also offers more predictable budgeting compared to variable rates.
Convenience and control: the power of home charging.
EV tariffs enhance the convenience of home charging. Plug in your car upon arrival, and your smart charger (paired with your EV tariff) can automatically schedule charging to begin during the lowest rate periods. This "set it and forget it" approach ensures you wake up to a fully charged car without manual effort. Many electric cars also allow you to set charging times via their apps.
Compared to public charging stations, home charging with an EV tariff offers:
Reduced hassle: No need to search for available public charge points or wait.
Greater control: You decide when and how your car charges.
Lower costs: Home charging, especially with an EV tariff, is almost always cheaper than public rapid charging (often over 50% cheaper per unit than public ultra-rapid chargers).
This combination of convenience, control, and significant cost savings makes an EV tariff highly attractive.
The essential role of smart meters in EV tariffs.
For most modern EV tariffs, particularly those with time of use pricing, a smart meter is essential. Your energy supplier needs it to accurately track your energy use at different times of the day to apply the correct off-peak and peak rates.
To sign up for a time of use tariff, you'll need a smart meter capable of sending half hourly use updates. Here's why smart meters are crucial:
Accurate energy use tracking: Smart meters send automatic, half hourly readings directly to your supplier, enabling precise billing based on your EV tariff's varying rates. Without this detailed data, distinguishing between peak and off-peak use for billing would be impossible.
Facilitating automated off-peak charging: Many modern EV smart chargers and vehicle apps can communicate with your smart meter, allowing automated scheduling of charging sessions to align with off-peak hours.
Optimising tariff benefits: Detailed data helps you and your supplier understand your energy patterns, enabling you to optimise not just EV charging, but also other household electricity use (e.g., running washing machines or dishwashers during off-peak hours) for greater savings.
If you don't have a smart meter, most energy suppliers, including us, offer free smart meter installations if your home is eligible. It's an essential step to unlock the full potential of an EV tariff.
Choosing the best EV tariff for your lifestyle.
Selecting the right EV tariff can feel overwhelming, but by considering your personal habits, you can make an informed decision for maximum savings. Here's what to consider:
Assess your driving and charging habits: How much do you drive? When do you typically charge? Do you have a home charger? If you can reliably charge overnight, a two-rate tariff like Next Drive is beneficial. If you need to charge frequently during peak hours, a single-rate tariff might suit you.
Ability to shift other household energy use: Most EV tariffs apply to all electricity consumed during off-peak hours. The more energy intensive appliances you can run during these cheaper times, the more you save.
Compare off-peak hours and rates: Different suppliers and tariffs have varying off-peak windows and unit rates. Compare these carefully to align with your charging patterns. Next Drive offers 42 hours of lower rate off-peak electricity per week (12am to 6am daily).
Contract length and exit fees: Our Next Drive tariff offers fixed energy prices for one year and no exit fees, providing peace of mind and flexibility.
Read the fine print: Always check eligibility criteria, such as needing a smart meter that sends half hourly readings and paying by Direct Debit.
By considering these factors, you can determine if Next Drive or another energy tariff is the right fit to help you save money and green your drive.
Beyond savings: environmental advantages of EV tariffs.
While financial savings are a significant driver, EV tariffs also play an important role in supporting a more sustainable and greener energy system. Charging during off-peak hours contributes to a cleaner environment by:
Reducing reliance on fossil fuels: Shifting charging to off-peak hours reduces strain on the grid during peak demand, lessening the need to activate older, less efficient fossil fuel power plants. This helps reduce carbon intensive energy production.
Supporting grid stability: Spreading out electricity demand more evenly helps stabilise the national grid, which is vital as the UK transitions towards a net-zero energy system with more renewable sources. Your smart charging actively contributes to this stability.
Choosing an EV tariff is not just a smart financial move; it's a conscious decision to contribute to a cleaner, more sustainable future.
How to charge your EV more cost-effectively.
Beyond choosing the right tariff, here are other practical steps to optimise your EV charging costs:
Optimising your charging habits
Charge during off-peak hours: Leveraging off-peak electricity prices is crucial for minimising costs.
Use smart charging features: Utilise EV apps or your car’s built-in features to automatically schedule charging during off-peak hours.
Embrace slower charging: Slower overnight charging is generally cheaper and can extend EV battery life.
Consider your driving style: A calm driving approach (avoiding sudden acceleration/braking) conserves battery power, reduces charging frequency, and improves EV longevity.
Don't always charge to 100%: Charging the final 20% of an EV battery takes longer and increases expenditure. Aiming for a 20-80% charge can save time and benefit battery longevity.
Making EVs more affordable overall.
Install a home charger: Home charging is significantly more cost effective than public charging (over 50% cheaper per unit on average), especially with an off-peak EV tariff. We offer a range of home EV chargers, sometimes with discounts for existing energy customers.
Consider a secondhand EV: As the used EV market grows, prices are falling, offering opportunities to find bargains. Our guide to buying a used EV can walk you through the process, from finding models to inspecting battery health.
Drive greener, save smarter.
Understanding and embracing EV tariffs is a game changer for electric vehicle owners. By taking advantage of off-peak electricity rates, you not only reduce how much it costs to charge a car but also contribute to a greener, more stable energy grid.
Our Next Drive tariff is specifically designed to offer lower rates when you charge overnight, making your greener drive even more affordable and sustainable. With lower-priced electricity at 7.5p per kWh when you charge between 12am and 6am, fixed energy prices for one year, and no exit fees, it's built with EV owners in mind.
Ready to take control of your EV charging costs and make a positive impact on the environment? Get a quote for Next Drive today. and see how you can drive greener and save smarter.