If you drive a Motability Scheme electric car, your electricity tariff plays a big role in your running costs.
Choosing the right energy tariff or electric car tariff can make electric vehicle (EV) charging much cheaper, especially if you charge at home overnight. Here’s what you need to know about electricity tariffs and how they affect the cost of running an EV.
Everything you need to know about energy tariffs and charging your EV:
Most people driving an EV choose to charge at home. It means the electricity tariff you pay directly affects the running costs of your car.
Energy tariffs decide how much you pay for a unit of electricity. Some tariffs charge the same rate all day while others offer cheaper units overnight. If you charge during cheaper, off-peak times your EV becomes more affordable to run.
According to Geraldine, an EV consumer on the Motability Scheme, she saves up to 10p per mile by charging during off-peak times. She says, “I’ve done nearly 10,000 miles since I’ve had the car. So, I’ve already saved £1,000.”
Find out how much it costs to charge an EV on the go.
Types of electricity tariffs and electric car tariff options
Expand your options by understanding electricity tariffs
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Standard variable tariff: The default electricity tariffs most households are on. The rate might go up or down, usually in line with the energy price cap. You pay the same price for electricity regardless of the time of day
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Fixed tariff: Fixed electricity tariffs stay the same for a set period, usually 12 months. If you’re on this tariff it makes budgeting much easier
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Time of use or electric car tariff (EV electricity tariff): An electric car tariff, also called a time of use tariff, offers cheaper electricity at certain times, usually overnight when the demand is low. If you charge your EV during these hours, you can significantly lower the costs of running your Scheme electric car
Dawn, a Scheme EV customer, explains, “I have an EV electricity tariff, so I charge my car overnight for about £7.00. I charge at most three times a month. I’ve saved lots of money compared to my petrol car.”
To summarise, the cheapest energy tariff depends on when you charge and how much electricity your household uses. If you use a lot of electricity every month, you’ll pay more per unit than a person that uses less.
It’s similar with EV charging costs. The more you drive, the more you have to charge, and the more expensive it becomes. Most drivers do not need to charge every day; they can charge two or three times a month without running out of battery.
If you switch to an electric car tariff and set your car to charge overnight when it’s cheaper, each full charge could cost far less than filling up a petrol or diesel car.
Charlotte, another seasoned EV user says, “I’ve saved money charging my EV compared to the cost of petrol. At the moment I’m still on a standard electric household tariff, and even at that tariff I’ve spent half of what I would have on petrol.”
So, savings depend on your driving habits, the electricity tariff you’re on, and when you choose to charge. Reviewing your energy tariff is one simple way to reduce the cost of charging your EV. Potential money saving is just one of the many benefits of switching to an EV.
Before choosing a new electricity tariff, ask yourself the following questions:
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When do you usually charge?
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How much electricity does your family use during the day?
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Do you have a smart meter (because some electricity tariffs require one)?
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Does your current contract include exit fees?
When you switch between energy tariffs or suppliers it does not affect your Motability Scheme lease in any way.
The best energy tariff is the one that matches when and how you use electricity.
When you choose an EV it’s not only the price of the vehicle you should think about. You should also consider what it will cost to run and charge your EV. Understanding electricity tariffs will help you do that. And it’s not just about the price of electricity. It’s about how you use it.
If you can charge at cheaper times and keep EV charging costs low, there is no reason not to drive an electric car.
Choosing the right energy tariff is a practical step that gives you another reason to switch to electric.
What is the best energy tariff for an electric car?
There is not one solution that fits all. The best energy tariff depends on when you charge and how much electricity your household uses. If you charge overnight, an electric car tariff with cheaper off-peak rates could help reduce costs. Keep in mind that range also matters when you choose your EV. Look at how much it has improved over time
What is the cheapest energy tariff for charging an EV?
The cheapest tariff for EV charging is often a time of use car tariff with lower overnight rates. Again, the cheapest option depends on your personal usage and whether you meet the tariff requirements
What is the energy price cap?
The energy price cap is a limit set by the UK energy regulator, Ofgem, on the maximum amount suppliers can charge per unit of gas and electricity for customers on a standard variable tariff. It does not cap your total bill, but it limits the price you pay for each unit of energy and the daily standing charge. Your overall cost will still depend on how much energy you use. The price cap is reviewed and updated every three months to reflect changes in wholesale energy costs.
Is an electric car tariff worth it?
If you regularly charge at home overnight, an electric car tariff will significantly lower your EV charging costs. It makes a noticeable difference over time for many drivers.
Will switching electricity tariffs affect my Motability Scheme lease?
No. Your electricity supplier and your Motability Scheme lease are totally separate. Changing energy tariff or supplier will not affect your lease in any way.
Take control of your EV charging costs
The energy charging tariff you use could make a real impact on the cost of running your electric car.
By choosing an electricity tariff that suits your charging habits you could reduce EV charging costs and feel confident about renewing your Motability Scheme EV lease.
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