EV Energy Tariffs Explained

Electric Vehicle Energy Tariffs: What are they and how do they work?

Why Do Electric Cars Have Special Energy Tariffs?

Electric car energy tariffs are designed to encourage EV drivers to charge their vehicles during off-peak times, usually overnight, when the demand on the national grid is lower overall. 

As EV driving is a relatively new phenomenon, the UK’s energy infrastructure is still catching up to the demands of home charger adoption. By offering cheaper rates of energy during certain hours, energy companies with EV energy tariffs can offer their customers an effective way to save money while minimising the impact on the grid.

How Do EV Tariffs Work?

Though energy providers’ approach to EV tariffs are evolving all the time, you’ll generally have access to two main types of EV energy tariffs:

Two-Rate Tariffs:

Two-rate tariffs are the most common type of EV energy tariffs, and offers two set electricity rates depending on the time of day when it’s used, with a standard day rate and a much lower rate at night. This lower rate will apply whether you’re using grid energy to charge your EV or anything else.

Generally, if you take full advantage of the lowered nighttime rate, a two-rate EV energy tariff will work out cheaper in the long term than a single-rate tariff.

Single-rate tariffs

Single-rate tariffs charge you for electricity at a single flat rate throughout the day, but offer a discounted rate specifically for when you’re charging your EV with a compatible smart charger. This means you’ll be able to save money on charging your vehicle at any time, and won’t be restricted to charging at night if you want to keep electric bills to a minimum.

Key Benefits of EV-Specific Tariffs

Whether you opt for a two-rate or single-rate EV energy tariff, you’ll generally have access to many of the same benefits that come with EV-specific tariffs. Some of these benefits include:

• Saving money on the cost of home charging, especially if you only charge at night on a two-rate tariff
• Making your general energy usage more sustainable, as many EV tariffs prioritise renewable energy sources
• Enjoying new-customer perks and rewards offered by many providers looking to increase their EV customer base
• Reducing pressure on the grid and contributing to more sustainable energy usage habits

Time-of-Use Tariffs

Time-of-use tariffs are the most common kind of two-tier EV energy tariff, encouraging members to charge their vehicles overnight when more electricity is available.

These energy plans, often called “off-peak EV tariffs”, have the potential to save hundreds of pounds a year on your overall energy usage, provided that you’re charging mainly during its designated off-peak times and avoiding the more expensive charging periods. In order to sign up for one, you’ll need a smart electricity meter that can share periodic updates with your energy provider, allowing them to apply the relevant rates to your hours of usage.

How to Maximise Savings with Time-of-Use Tariffs

Unlike single-rate tariffs, time-of-use tariffs depend somewhat on your own behaviour to maximise the financial benefits.

Some of the steps you can take to get the best EV electricity rates possible include:

• Adopting a charging routine that ensures your vehicle is only plugged in during the reduced-rate hours set by your provider. A number of EV vehicle manufacturers such as BMW, MINI, and Porsche allow you to schedule your charging through your car’s infotainment system or associated app - thus ensuring you’re only charging during the reduced-rate hours. 
• Consider using home battery storage to store up off-peak electricity, then use this energy during peak times.
• Remember that off-peak rates don’t just apply to the electricity you use for charging your EV. If you get into the habit of using large appliances and other high-demand items during off-peak periods, this can also help to maximise the total savings you’ll achieve with time-of-use tariffs.

EV Tariffs for Solar Panel Users

If you have your own solar panels installed at home, you can potentially make your EV charging even more affordable by looking for EV energy tariffs that use the government’s Smart Export Guarantee (SEG). 

These tariffs will automatically export any electricity you don’t use to the national grid, which you’ll be paid for by your energy supplier, helping you minimise the total cost of charging your vehicle. Depending on how much energy you can generate with your home solar panels, you may even be able to achieve negative energy bills.

What are the Cheapest EV Tariffs?

To give you a better idea of how much you’ll pay on an EV tariff, here’s a comparison of some of the cheapest UK electric car energy tariffs by unit rate, based on data from January 2025:

Factors to Consider When Comparing Tariffs

While it’s easy to find the unit rate of various EV energy tariffs online, this isn’t the only variable that differentiates EV energy plans, and there are various other factors you’ll need to consider to find the tariff that’s right for you.

Some of the key factors to bear in mind include:

Usage Requirements: How much energy you need to charge your EV, and how often you expect to charge your vehicle.

Preferred Tariff Type: Whether your preferred charging habits are better suited to a two-tier tariff or a single-rate tariff.

Cost: The cost per unit, how this differs during peak and off-peak hours, and how much you can expect to pay based on these rates according to your regular charging habits.

Compatibility: Many EV energy tariffs will only be compatible with smart chargers, or in certain regions. There may also be some models of chargers that are incompatible with certain EV tariffs.

Customer Service: Like any utility service, there may be times when things go wrong and you’ll need support from your energy provider. It’s always worth researching the company’s reputation for timely, effective customer service before you commit to a contract.

Added Benefits: Some EV tariffs come with special benefits like free miles or included memberships for public charging networks, which can make them more economical or appealing compared to others. 

How to Get an EV Tariff

If you’re a new EV owner, or you’re switching to an EV energy tariff for the first time, the basic steps you’ll need to complete are as follows:

1. Research the best EV energy tariffs in the UK using a comparison site and your own research, considering factors like the tariffs’ unit rate, off-peak hours, and other variables that may affect your experience.
2. Check your preferred tariffs’ compatibility requirements, and whether you’ll need to make any changes to your home charging setup to use them. Many EV tariffs will require you to install a smart meter, as they rely on regular, real-time updates to track your usage.
3. Select your tariff and follow the steps of the provider’s sign-up process. The majority of EV energy tariffs allow you to sign up online, making the process quick and convenient.
    

Steps for Switching Providers

If you’re already set up with an energy provider, getting signed up to an EV tariff comes with a few extra considerations, such as organising your final meter readings and covering exit fees.

Here are the steps to follow when you want to ensure you’re making a smooth transition:

1. Compare tariffs, looking for plans that offer favourable off-peak or dynamic rates, as well as any added benefits like free miles or public charger membership. 
2. Check the policies of your current energy plan, and see if there are any fees involved for exiting the agreement early. Remember this shouldn’t be too much of a blocker, as the money you’ll save with an EV energy tariff will usually cover your exit fees relatively quickly.
3. Get in touch with the new provider and follow their instructions to complete the switching process. Following this, the new provider will be able to get in touch with your current provider, and arrange the technical aspects of switching your energy supply.
4. Submit your meter readings to your old provider to ensure you’re getting billed accurately and not paying more than you have to.
5. Check the timeline of the switch, and keep an eye out for any communications from your new energy provider. This process is usually straightforward and won’t require anything from your side, but technical issues can occur, and you’ll need to be responsive to get them resolved quickly.
    

What to Check Before Switching

Providers of EV energy tariffs generally make sure to guide you through the switching process, and make sure you’re completing all the steps necessary for a smooth changeover. However, it’s still important to make certain checks during the process to avoid any mishaps or disappointments.

Some key things to consider before you switch include:

• Smart meter requirements, and how each provider can help you with installation.
• The tariff’s precise off-peak hours, and how easy it will be to adapt your charging habits to this period.
• The tariff’s standing charges, and how much this will add to the overall cost of home charging.
• Any sustainability guarantees provided by your chosen supplier, and how these align with your personal goals for reducing your household’s carbon footprint.
• The flexibility of the tariff, and whether your plans for EV driving in the future will mean you’ll want to change any aspects of it.