Time-of-Use Rates: How to Save Money on EV Charging

Time-of-use electricity rates have gotten complicated with all the varying utility programs, peak hour definitions, and pricing structures flying around. As someone who saves about $40 monthly by understanding TOU rates, I learned everything there is to know about optimizing charging costs. Today, I will share it all with you.

How TOU Works

Probably should have led with this section, honestly—TOU rates charge different prices at different times:

• Peak hours (typically 4-9 PM): Highest rates, sometimes 2-3x off-peak
• Off-peak hours (typically 9 PM-6 AM): Lowest rates, often 30-50% cheaper
• Mid-peak: Some utilities have intermediate periods

Why This Matters for EVs

That’s what makes TOU optimization endearing to us cost-conscious drivers—EV charging is flexible. Your car doesn’t care whether it charges at 6 PM or midnight, but your bill does.

Example: 300 kWh monthly charging
– Peak rate ($0.18/kWh): $54/month
– Off-peak rate ($0.10/kWh): $30/month
– Annual savings: $288

Implementation

• Check if your utility offers TOU rates (most do)
• Enroll in appropriate rate plan
• Use smart charger scheduling or vehicle’s built-in timer
• Set charging to start when off-peak begins

Most Northwest utilities offer some form of TOU or EV-specific rates. Call yours and ask—the savings are real and automatic once set up.