November 26, 2024
Charge Your EV for Less with TOU Rates
5 Min. Read
For a majority of electric vehicle (EV) owners, charging at home is not just a convenient and practical option to starting each day with a full battery—it’s also a more cost effective solution.
As EV adoption continues to grow, utilities are paying attention to how an increase in at-home EV charging is affecting the costs of producing and distributing electricity, as well as observing patterns of when higher energy demand puts a strain on the grid.
To help manage energy consumption linked to EV charging, many utilities now offer time-of-use (TOU) rates with pricing based on the fluctuating energy demands of their communities.
In this article, we will take a closer look at how these rates work and how they impact EV charging costs.
How Do Time-Of-Use Rates Work?
Paying a standard flat rate for electricity use has long been the standard practice, but a growing number of utilities are introducing time-based pricing.
In addition to helping to alleviate grid strain during times of peak energy demand, this is also helping to encourage EV charging during less busy times, and for EV drivers, planning to charge strategically can mean significantly cheaper prices when “fueling up.”
When Are Energy Prices Typically Cheaper with Time-Of-Use Plans?
While the exact times and structure of time-of-use programs can vary depending on the energy demands of the community, they usually follow a weekly schedule divided into off-peak hours and on-peak hours.
On-peak hours, set when grid demand is generally higher, come with a higher per-kWh rate and potentially increased distribution fees. In contrast, off-peak hours—typically at night or on weekends—offer lower rates due to reduced demand during those times. These schedules and prices can also change seasonally depending on your utility.
Are Time-Of-Use Rates Only Available for EV Charging?
While some utilities allow you to shift your entire electricity consumption to their time-based pricing model, others will have limits on how the power can be used and may require or offer you the option to install a dedicated meter to track energy allocated to EV charging.
This allows you to keep a flat rate for household appliances while paying a TOU rate specifically for charging your EV. If a TOU plan is available to you, it can be an excellent way to save on EV charging costs.
For instance, PECO customers in Pennsylvania can enroll in the utility’s TOU program and pay $0.20 per kWh during on-peak hours (2 to 6 pm), while only paying $0.06 per kWh during off-peak hours (6 am to 2 pm and 6 am to midnight), and $0.04 per kWh during super off-peak hours (midnight to 6 am).
With a smart Level 2 EV charger that supports scheduling or prioritizes TOU charging, an EV owner can take advantage of the premium super off-peak $0.04 per kWh rate, ensuring a full charge during the six hours with the lowest rate.
This type of program makes upgrading to a Level 2 EV charger a worthwhile investment, as Level 1 EV charging would be too slow to get a full charge before the rate goes back up so you pay significantly more over time.
Table of TOU Rates from North American Utilities
Why Utilities Offer TOU Rates for EV Charging
While electrification is driving progress, it is also contributing to the growing demand for electricity and the current strain on the U.S. power grid. In fact, experts predict demand for electricity could grow by 4.7% before 2028 as we continue to become increasingly reliant on technology.
To proactively address this, utilities are expanding their power production while also working to stagger electricity usage through initiatives such as TOU programs. This helps prevent demand surges that can reduce distribution efficiency and drive up energy production costs.
Time-based pricing encourages consumers to shift energy consumption to when production costs are lower, promoting mindful use of appliances during peak grid demand.
Additionally, as more homeowners adopt renewable energy and storage solutions, TOU pricing also incentivizes relying on clean, independent energy sources rather than the grid resources during high-demand periods.
For example, installing solar panels to power your EV charging can help you save on EV charging and other energy expenses, while also helping you become more energy independent.
Benefits of TOU Rates for EV Owners
TOU rates can significantly reduce charging costs for EV owners, especially since utilities often offer schedules that align with nighttime hours to match common charging habits.
With home EV chargers and connected smart electrical panels, it’s easy to maximize your savings with this system. You can schedule charging in advance, and your EV charging station or electrical panel can automatically remember your utility’s TOU schedule to ensure you are optimizing your charging during off-peak pricing.
You can also further increase savings by pairing TOU charging with other energy transition technologies. For example, you can use solar panels to charge a home battery, allowing your smart panel to switch to battery power during on-peak rate periods. You could even sell excess solar energy when demand is high to earn more through your local net metering program.
At-Home EV Charging is Easy With Qmerit
Does your utility offer a TOU plan? Consider signing up right away to take advantage of off-peak pricing and save even more on your EV charging. Additionally, installing a smart EV charger and exploring EV charging management apps to automatically take advantage of off-peak rates can help you optimize your charging schedule.
But regardless of the electricity rates in your area, driving electric and charging at home with a professionally installed Level 2 EV charging station can help you save thousands of dollars compared to driving a gas-powered vehicle or relying on public charging for your EV.
When it comes to safely installing an EV charging station in your home, no one is more trusted or recommended than Qmerit.
As North America’s largest network of certified EV charger installers, every Qmerit electrician is fully licensed, background-checked, insured, and properly trained in EV charging station installation so you can rest easy in knowing your installation is done right and backed by the Qmerit Peace of Mind Guarantee.
Recommended by automakers, EV charger manufacturers, utilities, businesses, and homeowners alike, and with over 450,000 EV charging stations installed across the U.S. and Canada, no one is more experienced in energy transition technologies than Qmerit.
Contact Qmerit today and complete our online EV assessment for your customer EV charger installation estimate and to learn more about how Qmerit can help make your next electrification project easy.
