Electric cars charged the smart way
Cost-cutting deals could save hundreds of pounds a year.
There are now more than one million fully electric cars on the road. Some of the big energy suppliers are driving the electric revolution forward by offering cut-price deals to the growing number of motorists who charge their vehicle at home. These tariffs reward drivers who are happy to charge their car at night-time when electricity is cheapest. Experts say a surprising number of EV (electric vehicle) owners are unaware of these special rates that could save them hundreds of pounds a year.
How much does EV charging add to my energy bill?
Charging an electric car can be expensive, often accounting for a third of a household electricity bill. The cost will depend on a range of factors, including the size of your EV battery and annual mileage. If you have solar panels, they can help to offset the cost. But like any household energy bill, it pays to find a good tariff. One of the best ways to do this is to take advantage of the cheaper off-peak rates to charge your EV through the night or when energy demand is low.
Instead of the standard rate 32 per kWh that most of us pay for our electricity, EV owners on the specialist tariffs can reduce the cost to between 7p and 9p per kWh during off peak period (usually between 12am to 5am) – prices correct March 2024. So, the savings can be quite dramatic. On rare occasions, owners may even be paid to charge their cars because there is excess capacity in the grid, for example on windy nights or sunny days.
Which are the cheapest deals?
Octopus Energy has been the pioneer for EV owners charging at home and its popular Go tariff is among the cheapest at 7.5p/kWh. The smart charging deal for six hours every night between 11.30pm and 5.30am can be used for your whole home – laundry, dishwashers, laptops.
But the company is facing growing competition from firms including Ecotricity, EDF, Ovo, E.on, Scottish Power, British Gas and Good Energy. For example, Ecotricity offers a one-year fixed EV rate of 7p per kWh (prices correct March 2024). And the added bonus is that it’s 100% green electricity – solar and wind. British Gas is offering 12 months’ free charge when you buy a Hive EV charger. The FreeCharge is enabled via the Hive app. Your electricity bill will be credited according to the amount of energy you’ve charged to your EV.
Some energy suppliers offer one or two-year fixed tariffs, so you’ll be safe in the knowledge of what energy price you’re paying for the length of the contract. On the downside, energy prices could go down and you’ll be stuck at the higher rate. Remember to compare exit fees in case you choose to switch.
So how do you find the cheapest EV tariff? The Rightcharge website is a possible starting point. To find a deal you need to enter details, including your postcode, car type and how far you drive. We found a Nissan Leaf owner who drives 10,000 miles a year from their three-bedroom Winchester home would save £318 a year by being on the cheapest tariff compared to the standard rate. Rightcharge calculated that Octopus Energy’s Intelligent tariff at 7.5p would be the cheapest option at £1,967 per year. These figures assume a three-bedroom house to estimate energy usage. The deal is unusual with dynamic pricing that reflects the cost of wholesale power at that time. Octopus’s overnight Go tariff, was in second place at £2,007 while Good Energy was in third place at £2,324 with its Smart EV rate of 9.4p per kWh.
And the greenest?
If you have an EV, chances are you care about the planet. Ecotricity appears to have the greenest credentials. Its electricity is 100% renewable from solar and wind power. The company generates about 12% of this energy and the rest is certified green energy it buys directly from other green generators or through the wholesale market. The firm is also building new wind and sun parks across the country. Ecotricity offers a one-year fixed night EV rate of 8p per kWh (prices correct March 2024).
Some energy suppliers, for example E.on, state the electricity they provide is “backed by 100% renewable sources.” But under a ** it adds the electricity supplied to your home comes from the National Grid - and that uses a mix of power sources from wind to fossil fuels and nuclear. The National Grid is increasing powered by renewable sources but it’s not 100% yet. That said, nighttime is when energy is typically greenest as demand is lower and there’s less need to boost supply by burning fossil fuels. Similarly, EDF states it uses 100% zero carbon nuclear electricity. But a note at the bottom of the web page explains customers receive electricity via the National Grid, not directly from zero-carbon generators, though EDF is Britain’s biggest generator of zero carbon electricity.
Octopus Energy claims its electricity tariffs are 100% green. The company buys directly from about 700 UK renewable generators in the UK (wind, solar and hydro generators). It has also begun buying its own renewable electricity generators. Octopus Energy Generation is one of Europe’s largest investors in renewable energy, including offshore wind. “We work out how much power our customers are taking out of the grid annually… and ensure an equal amount of renewable energy is added into the system in its place over the year,” says the supplier, adding it is “making the energy system greener for everyone.”
Do I need a smart meter?
Before you rush to sign up, there are a few conditions. Before you can switch to one the cheaper overnight rates you will need a smart meter that can send the energy supplier half hourly updates on your energy use. This is so they can bill you at the right rates. Energy suppliers are obliged by government to install meters across the UK free of charge. If you don’t have a smart meter, book an appointment to see if your home is suitable (weak mobile phone signal may scupper installations in some rural areas). There may be a waiting list. If you already have a smart meter installed, before you switch ask the energy supplier if they will be able to connect straight away. If they can’t, the meter will be in “dumb” mode, like a traditional meter. This means you won’t be able to take advantage of the cheaper overnight tariff until your meter is upgraded remotely. Some EV tariffs are only available to existing customers, so you’ll need to switch.
Power of the app
Octopus Energy Intelligent tariff can automatically schedule your charge for when energy is cheapest and greenest regardless of the time of day. The app can be used to check your charging schedule and track your energy spend at a glance. OvoEnergy offers an Anytime tariff at a rate of 7p per kWh. This tariff lets you plug in your car anytime, day or night and then the energy provider makes sure it is charged when the most renewable energy is available from the grid. But if you need your car in a hurry, you can override your smart charging schedule and you’ll be charged at the standard rate.
EV tariffs can help you save on your electricity bill. But special EV tariffs are only available to those who charge their cars at home rather than those who rely on public charging points. The less well-off in rented accommodation are less likely to have access to the better deals. The Resolution Foundation is calling for the government to address this “charging divide” so those without access to at-home charging don’t pay a higher rate.
Prices correct at time of writing (March 2024)