How EV drivers can benefit from an EV energy tariff

What is an EV energy tariff?

An EV energy tariff is a type of electricity pricing plan designed specifically for electric vehicle owners. These tariffs often offer lower rates for charging EVs during off-peak hours, usually at night when the demand for electricity is lower. The aim of such tariffs is to encourage EV charging when the grid is less stressed, and to make electric vehicle operation more economical for owners. Each utility company may offer different EV energy tariffs, with variations in rates and charging times, so it’s advisable to explore the options available in your specific location.

Why switch to an EV energy tariff

In a recent advisory, the AA highlighted the importance of exploring different electricity tariffs to maximise value for electric vehicle owners.

The organisation’s research indicates that EV drivers could potentially pay up to 3.5 times more on some tariffs compared to others. This could result in an additional yearly expense of over €1,000 for some users.

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Saving potential

To illustrate this, we are using Ireland’s top-selling EV, the Volkswagen ID.4, and some of Electric Ireland’s rates as examples.

If an ID.4 owner were to use Electric Ireland’s pay-as-you-go tariff at €0.43 per kilowatt hour, it would cost approximately €33.32 to charge the vehicle’s 77kWh battery fully.

Although this figure might seem economical compared to petrol or diesel costs, it’s significantly more than what an EV driver could be paying with a more suitable plan. With average annual mileage in Ireland being 17,000km, this tariff could add an extra €1,381 to domestic electricity bills.

By using smart or day-and-night electricity meters, users could benefit from Electric Ireland’s night rates at €0.215 per kilowatt hour. This reduces the cost of charging an ID.4 battery to about €16.59, translating to an annual cost of €688.

This is significantly cheaper than the €2,300 yearly petrol costs.

The advantage of night boost

Further savings can be made with Electric Ireland‘s Night Boost tariff, charging users only €0.126 per kilowatt hour between 2-4am. Although it might not fully charge an empty battery in the limited two-hour window, it could add around 80km of range for just €1.90. This should provide sufficient range for many drivers, reducing the yearly cost to as low as €404.

“As per our findings, an average Irish driver covering about 17,000km per year could save up to €1,000 annually by choosing the right charging time and tariff. If they can make do with an 80km range top-up every night, the annual cost could be just €404.00,” said Blake Boland of AA Ireland.

Alternative EV tariffs

While Electric Ireland’s Night Boost tariff is indeed competitive, it is not the only option. There are more flexible and cost-effective tariffs on the market that offer savings over a longer duration. For instance, Energia’s Electric Car Energy plan charges only €0.103 per kilowatt hour from 11pm to 8am in winter and 12am to 9am in summer.

Using this tariff, it would cost a mere €7.93 to fully charge an ID.4 battery.

Our top tips for sourcing the right energy deal for your EV

Go direct to the supplier, EV friendly tariffs are not accessible on comparison sites, so you will need to go direct for the best deal.
You must have a Smart Meter already installed at your home.
An EV friendly energy tariff will be most effective at generating savings when used with a dedicated EV charger, not just plugging your car in at the mains.