One of the biggest joys of driving an electric vehicle is skipping the gas station and “refueling” at home. However, if you’re only charging when you think of it at night, you might be missing out on significant savings. The key to lowering your electricity bill isn’t an odd charger or a complex device; it’s about understanding and using fluctuating electricity rates. By simply shifting when you power up your car, you can take advantage of lower, quieter times for the power grid when the electricity rates are at their most affordable.
This concept is similar to how movie theaters have matinee pricing or how hotels are cheaper in the off-season. The goal is to use power when demand is low, which costs the utility company less to produce. They pass these savings on to you through lower electricity rates. Let’s break down how you can become a smart charging strategist and save money every single time you plug in.
Why Do Electricity Rates Change?
To understand the best time to charge, you first need to know how the electrical grid works. Think of the grid like a road system. During the day, especially in the late afternoon and early evening, everyone is using power—factories are running, offices are lit up, and people are home cooking dinner, watching TV, and running air conditioners. This is the grid’s “rush hour.” This period of high demand is called Peak Hours.
To meet this high demand, power companies need to run all their plants, including older, less efficient, and more expensive ones. This increases production costs for electricity during these times, so they raise the prices they charge you. That’s why peak-hour electricity costs are so high.
Now, think about the middle of the night. Most people are sleeping, stores are closed, and the overall demand for electricity drops sharply. This is when the grid has a “clear path.” During these quiet hours, utilities can rely on their most cost-effective and efficient energy sources, like base-load nuclear or hydroelectric plants. They are eager to sell this electricity at a lower price. This results in the lowest electricity prices of the day. For an EV owner, taking advantage of these times is crucial for saving money. The fluctuating electricity prices can help you save.
The Golden Rule: Find Your “Time-of-Use” Plan
The entire strategy of saving money hinges on a specific type of electricity billing offered by most utility companies. It’s called a “Time-of-Use” or TOU rate plan. If you’re on a standard plan, you pay a flat rate for electricity no matter when you use it. A TOU plan changes the game entirely because it directly ties your cost to the real-time electricity rates.
On a TOU plan, the cost of a kilowatt-hour (kWh) of electricity changes based on the time of day. The day is typically divided into three periods, each with different electricity rates:
- Peak Hours: The most expensive time with the highest electricity rates. (e.g., 4 PM to 9 PM on weekdays).
- Shoulder Hours: Mid-priced, moderate demand and moderate electricity rates. (e.g., late morning and early afternoon).
- Off-Peak Hours: The cheapest time with the lowest electricity rates. (e.g., 9 PM to 8 AM and all weekend).
The exact timing of these periods and the corresponding electricity rates vary by your location and utility provider, so your first step is to contact them or check their website. For many, the cheapest electricity rates are overnight, from late evening until early morning. Shifting your EV charging to these times can cut your charging cost by half or even more compared to peak rates. Making a habit of charging when electricity rates are low is the single most effective financial decision an EV owner can make.
How to Make Low-Rate Charging Effortless
You might be thinking, “I’m not going to wake up at midnight to plug in my car!” Don’t worry, you don’t have to. Modern technology does all the work for you. Here’s how:
- Your EV’s Built-In Scheduler: Almost every modern electric vehicle has a feature called a “Scheduled Departure” or “Charge Timer” right in its infotainment system or companion app. You can simply tell your car: “I want to be ready by 8 AM,” and then plug it in when you get home. The car’s computer will calculate when it needs to start drawing power to finish by your departure time. It will automatically wait to begin charging until the time when electricity rates drop to their lowest point. This is the easiest way to ensure you are consistently capitalizing on low electricity rates.
- Your Smart Charger: If your car doesn’t have a sophisticated scheduler, your home charging station (EVSE) might. Many “smart” Level 2 chargers can connect to your home Wi-Fi and be controlled via an app. You can set schedules on the app to only allow power to flow during your utility’s designated low electricity rates periods. Even if you plug in at 6 PM, the charger will remain dormant until the clock strikes the start of the cheapest electricity rates.
By using these tools, you set your schedule once and then forget about it. You get the savings without any nightly hassle, guaranteeing you almost always charge at the best electricity rates.
The Superpower: Charging on Weekends
A wonderful bonus of many TOU plans is that weekends are often considered one long stretch of low electricity rates. This is because the traditional commercial demand is lower on Saturdays and Sundays. This is fantastic news for EV owners. If you have a busy weekend planned with lots of driving, you can charge at any time during the day on Saturday or Sunday and still get the lowest possible electricity rates. It provides fantastic flexibility. Planning your main charging session for the weekend is a brilliant way to maximize your use of the best electricity rates.
Good for Your Wallet, Good for the Planet
This approach, often called “grid-smart charging,” helps your budget and supports the environment and your local community. By timing our charging for hours with lower electricity rates, we help level out the demand on the power grid. This reduces the need for “peaker plants,” which are expensive and polluting facilities that run only when demand is high and electricity prices rise. It also helps the grid take in more renewable energy sources like solar and wind. Charging during off-peak times leads to a more reliable and eco-friendly energy grid. Your commitment to using low electricity rates benefits everyone in the community.
What If You Can’t Charge at Night?
We acknowledge that not everyone has a consistent overnight charging window. If you have an unpredictable schedule, the core principle remains the same: avoid the peak. Even if you can’t hit the absolute cheapest window, charging during the daytime “shoulder” hours when electricity rates are moderate is still far better than charging during the evening peak crunch. The most expensive thing you can do is plug in the moment you get home from work, right as the peak period with its high electricity rates begins. A little delay can mean significant savings. Always prioritize the lowest electricity rates, but if that’s impossible, any time outside the peak is a good second choice.
Your Action Plan to Start Saving Today
- Investigate: Call your utility company or check their website. Ask: “Do you offer Time-of-Use plans for EV owners?” and “What are the exact times for your lowest Electricity Rates?”
- Switch: If you’re not on one, consider switching to a TOU plan. Do the math—for most EV owners, the savings on charging far outweigh a slightly higher rate during peak times for other home uses.
- Program: Sit in your car or open your charger’s app. Spend 10 minutes setting up a charging schedule that aligns perfectly with your utility’s lowest electricity rates. Set your desired departure time and let the technology handle the rest.
- Plug and Forget: Make it a habit. When you get home, plug the connector into your car. That’s it. The system will take care of the timing, ensuring you wake up to a full “tank” purchased at the lowest available electricity rates.
To sum up, the key to affordable EV charging is clear. It requires simple changes in habits, supported by smart technology, to take advantage of low electricity rates. By making an effort to understand and use the best electricity rates, you can fully benefit from electric driving. This will be good for both your wallet and the grid. Use timing wisely to turn your EV from just a means of transport into a smart financial investment. The main point is to keep an eye on electricity prices.