Short answer: An electricity pricing structure where the cost per kWh changes based on the time of day, with cheaper rates during off-peak hours.
Explanation
Time-of-use rates mean electricity costs different amounts at different times. Typically, rates are highest during afternoon and early evening (when demand peaks), moderate during normal business hours, and cheapest overnight and on weekends. These rates reflect the actual cost of generating and delivering electricity at different times.
For EV owners charging at home, TOU rates are a significant money-saver. By using scheduled charging to shift your charging to off-peak hours (usually midnight to 6 AM), you can cut your per-kWh cost by 30-60% compared to peak rates. Some electricity providers offer EV-specific TOU tariffs with especially low overnight rates.
TOU rates also affect public charging prices, though indirectly. Charging operators pay wholesale electricity rates that vary by time of day, which is one reason some networks are introducing dynamic pricing that passes these time-based cost variations through to drivers.
Where you'll see this
- In charging network apps
- On your charging receipt
Common confusion
TOU rates benefit EV owners most at home, where you control when you charge. At public chargers, the per-kWh price you see already reflects the operator's electricity costs, so TOU does not directly apply to your public charging bill.
Example
A Finnish electricity provider offers a TOU tariff with night rates of 0.04 EUR/kWh (23:00-07:00) versus day rates of 0.12 EUR/kWh. Charging a 77 kWh battery overnight costs about 2.50 EUR instead of 7.40 EUR.
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