Your guide to choosing the best EV tariff for smart charging.
As electric vehicles (EVs) become increasingly popular, it's important to understand how energy tariffs can make a difference to your charging costs and overall experience of owning an EV.
Choosing the right EV tariff could help you save money, reduce your carbon footprint, and help you make the most of your electric car. With the help of this handy guide, we’ll explain how EV energy tariffs work and how to pick the best one for your needs (and the planet’s).
How EV tariffs work.
Think of EV tariffs as energy plans designed with EV owners in mind, particularly those of us who charge up at home. These tariffs could help you save money and even reduce your carbon footprint by being clever about when and how you charge up. When you start to shop around, you’ll generally find EV tariffs fall into one of two categories:
Time of use tariffs.
Time of use tariffs (also called ‘dynamic two rate’ tariffs) charge you separate peak, off-peak and even, super off-peak electricity prices. These are the most common, and often, the most beneficial tariffs for EV owners. You’ll usually find that the off-peak and super off-peak prices (during the night and early hours) are much lower because there’s less demand on the national grid. Then, 'peak' hours (during the day or early evening) have higher rates.
Single rate tariffs.
Then there’s the straightforward single rate tariff, which usually comes with consistent pricing throughout the day. These tariffs aren’t so common and you won’t normally get a discount during off peak charging. If you don’t want to be charged a top rate during peak hours and prefer a simpler billing structure, a single rate tariff might be the right choice for you.
Maximising cost savings and convenience.
The ever popular time of use tariff encourages customers to use electricity at times when more is available. It charges you a higher price for electricity used during busy peak periods, and lower prices when there’s less demand – at night and the early hours.
If you’re able to charge your EV at home during the night, then you could benefit from an overnight EV charging tariff. 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 up to £379 a year when charging their vehicle overnight.1
To sign up for a time of use tariff, you’ll need a smart meter that can send half hourly updates on your energy use (you’ll also need to consent to providing this data). This is so your energy company can bill you the right rate at the right time. We’ll go more into smart meters in the next section.
The role of smart meters in EV tariffs.
Smart meters aren't just clever gadgets – they go hand in hand with EV tariffs. Let's find out how.
Track your energy use.
Smart meters enable accurate, half hourly tracking of your energy use. Having access to precise data is important for energy suppliers to apply the correct peak and off-peak rates to your energy bill. Without a smart meter, it would be very difficult for your supplier to know exactly when you're charging your EV and apply the discounted off-peak rate.
Basically, your smart meter is the communication bridge between your home and your energy supplier. It sends real time information about your electricity use, allowing for more accurate billing that reflects your charging habits. This is particularly important for our Next Drive and Next Drive Smart tariffs, which rely on these half hourly updates to ensure you're charged the right rate at the right time.
Pair it with the E.ON Home app.
Beyond billing, smart meters can work in tandem with your EV charger and smart home apps to automate charging.
Our clever E.ON Home app lets you set your charging schedule to take advantage of those cheaper, greener hours automatically, connecting to your car to manage charging. It means you can plug in whenever suits you, and the app will ensure your car only charges when it's most cost effective.
Get started with a smart meter today.
Don’t worry if you don't have a smart meter yet. We offer installation at no extra cost to you (if your home is eligible). We’ve installed over 5 million smart meters across the UK, so you’ll be in good hands.
How to choose the best EV tariff for your lifestyle.
After running through the types of tariffs, the next step is choosing the right one for you. It's not a one-size-fits-all solution, as your lifestyle and energy habits play a significant role. Here's some practical advice to help you pick the best EV tariff.
Review your driving and charging habits.
This is perhaps the most important factor. Do you typically charge your car overnight? Or do you need to top up during the day?
If you’re able to charge during off peak or super off peak hours, a time of use tariff could give you the best saving options. However, if your charging needs are less predictable, a single rate tariff might be better suited.
Look at your wider household energy use.
The cheaper off-peak rates on a time of use tariff often apply to all your household electricity use as well. Can you shift other high energy activities, like running your washing machine or dishwasher, to off-peak hours too? Doing so could boost your savings.
Watch out for additional perks.
Some tariffs come with extra benefits. For example, we offer a £50 discount on a 7.4kW home charger installation when you're on the Next Drive tariff (T&Cs apply).
Other suppliers might offer public charging discounts or other incentives as well. Weighing up your options and understanding your own energy habits is the key to finding an EV tariff that works for you.
The potential environmental benefits of EV tariffs.
While the financial benefits of EV tariffs could have their advantages, there are potential environmental benefits that can go hand in hand with smart charging and time of use tariffs. Let’s explore how EV tariffs have the potential to contribute to a healthier planet.
Reduces carbon emissions.
The most significant impact is a reduction in carbon emissions. Renewable energy sources like solar, wind, and hydropower produce electricity without burning fossil fuels, which are the primary source of greenhouse gas emissions contributing to climate change. If you power your EV with renewable energy, you're directly reducing your carbon footprint.
Helps to decrease air pollution.
Carbon emissions aren’t the only pollutant fossil fuel power plants release. There’s also sulphur dioxide, nitrogen oxides, and particulate matter that can harm our health and the environment. Using renewable energy to charge your electric vehicle helps to decrease these harmful emissions, leading to improved air quality.
Supports renewable energy growth.
Choose a renewable energy tariff, and you're sending a signal to energy suppliers that there's a demand for clean energy. This can encourage them to invest in more renewable energy projects, further reducing the reliance on fossil fuels and accelerating the transition to a more sustainable energy system.
Promotes energy independence.
Relying on renewable energy sources could reduce the UK's dependence on imported fossil fuels, increasing energy security and reducing vulnerability to price fluctuations in the global energy market.
Creates green jobs.
It’s not exactly an “environmental issue” but the renewable energy sector is a growing industry that creates jobs in manufacturing, installation, maintenance, and research. Supporting this sector through your energy choices can contribute to economic growth and employment opportunities.
But remember, before you switch to an EV tariff, compare different options from various energy providers to find the best deal for your needs. Consider factors such as the tariff rates, exit fees, contract length, and any additional benefits that might be offered. By doing your research and choosing the right EV tariff, you could enjoy the benefits of electric driving while saving money and reducing your environmental impact.
Ready to switch to an E.ON Next EV tariff?
Head over to our website to explore our Next Drive and Next Drive Smart tariffs. Compare the benefits, consider your charging habits, and choose the tariff that works best for your lifestyle.