Explanation
Dynamic pricing means the cost per kWh or per minute at a charger changes depending on factors like time of day, wholesale electricity prices, grid demand, or how busy the charging station is. During peak hours, prices go up. During off-peak times or when the grid has excess renewable energy, prices may drop.
Some networks like Ionity and Tesla already use forms of dynamic pricing, adjusting rates based on the time of day or membership status. As smart grid technology improves, more granular dynamic pricing is likely to become common, with prices changing every 15 or 30 minutes based on real-time grid conditions.
As a driver, dynamic pricing can work in your favor if you are flexible about when you charge. Charging during off-peak hours (late night, early morning, midday when solar generation peaks) is often cheaper. Some apps show current pricing before you start, letting you compare rates at nearby chargers and choose the cheapest option at that moment.
For current specifications, see OpenADR Alliance.
Where you'll see this
- In charging network apps
- On the charger screen
Common confusion
Dynamic pricing does not mean the price changes during your session. Most networks lock in the price when you start. Dynamic pricing means the starting price varies depending on when you begin the session.
Related terms
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From Finn, engineer: Understanding charging terminology helps you troubleshoot faster at the charger. These definitions are based on industry standards and our consulting work with automotive manufacturers.
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