EV Time-of-Use Rates: The Cheapest Way to Charge (2026 Guide)
If you want the single biggest lever on what it costs to run an EV, it isn't the car — it's when you charge. On a time-of-use (TOU) electricity plan, charging overnight can cost a third of what the same electricity costs at dinnertime. Done right, it drops your cost per mile below 3 cents. Done wrong, you pay nearly gas prices. Here's how it works.
What a time-of-use rate is
Most people pay a flat rate — the same price per kWh whenever they use it. A time-of-use plan charges different prices by time of day:
- Off-peak (usually overnight): cheap, because demand is low.
- Peak (afternoon and evening): expensive, because everyone's home running the AC.
- Sometimes a mid-peak shoulder in between.
Utilities use it to pull demand off the strained late-afternoon grid. For EV owners, that incentive lines up perfectly with overnight charging.
Why it matters more for EVs than anything else
An EV is a big, flexible load. Unlike your fridge, you don't care exactly when it charges — only that it's full by morning. That makes it the ideal thing to shift into the cheapest hours. Many utilities now offer a dedicated EV rate plan with off-peak prices well below the standard flat rate. Here's the swing, with an efficient EV at 3.4 miles per kWh:
| When you charge | Rate | Cost per mile |
|---|---|---|
| Off-peak / overnight | ~$0.10/kWh | ~3¢ |
| Standard flat rate | ~$0.16/kWh | ~5¢ |
| Gas car (28 mpg @ $3.50/gal) | — | ~12.5¢ |
| Peak (afternoon/evening) | ~$0.40/kWh | ~12¢ |
Charge overnight and you're at roughly a quarter the cost of gas. Charge during peak and you've thrown away most of the EV's advantage.
How to actually capture it
- Check your utility for an EV or TOU rate. Many have a plan built specifically for EV owners, sometimes with a separate meter for the car.
- Schedule charging for off-peak hours. Nearly every EV and Level 2 charger lets you set a start time or a "charge by" time — set it to the overnight window.
- Mind the trade-off. A whole-home TOU plan also makes peak power more expensive for everything else — AC, cooking, laundry. The win comes from shifting your EV (and ideally other big loads) off-peak. If you barely drive, higher peak rates on the rest of your usage can eat the savings, so run the numbers before switching.
The catch most people miss
A TOU plan isn't free money — it's a bet that you'll shift your usage. Enroll and then charge whenever, or run heavy appliances at 6 p.m., and you can end up paying more than the flat rate. The savings are real but conditional: they reward people who can move their EV charging (and a bit of household load) into the cheap hours.
How this fits your cost estimate
If you're on a TOU or EV rate and you charge off-peak, the number that matters isn't the flat rate — it's your utility's off-peak rate. Plug that into the calculator's home electricity field and you'll see how low your cost per mile actually goes.
Bottom line
Time-of-use rates are the closest thing to a cheat code for cheap EV running costs — overnight charging on an EV rate plan can push fuel cost under 3 cents a mile. But it only pays off if you actually charge off-peak and don't let higher peak prices clobber the rest of your usage. Check whether your utility offers an EV rate, set your car to charge overnight, and the savings follow.
See your real cost per mile →FAQ
- What is a time-of-use rate for EV charging?
- It's an electricity plan that charges different prices depending on the time of day — cheap overnight (off-peak) and expensive in the afternoon and evening (peak). Charging your EV overnight captures the low off-peak rate.
- Does a time-of-use plan actually save money on EV charging?
- Usually yes, if you charge off-peak — off-peak rates can be a third of peak rates, dropping your cost per mile well below gas. The catch is that peak power costs more for your whole home, so the savings depend on shifting your EV (and ideally other loads) to off-peak hours.
- When is the cheapest time to charge an EV?
- Overnight, during your utility's off-peak window — typically late evening to early morning. Set your car or charger to start then, and you'll pay the lowest rate available.