EV Time-of-Use vs. Standard Rates: Which Costs Less? (2026)
Last updated: October 29, 2026
Quick answer: An EV time-of-use (TOU) rate can cost less than a non-TOU rate when you charge during lower-priced hours and those savings outweigh any increase in household electricity costs and fixed charges. It is not automatically cheaper. If the EV rate applies to your entire home, compare the whole bill, not just the cost of charging the car.
One published 2026 example: SMUD's summer Fixed Rate is $0.2189 per kWh. Its standard Time-of-Day plan charges $0.1550 per kWh during summer off-peak hours, and an eligible EV credit reduces qualifying midnight–6 a.m. use by another $0.015 per kWh, producing an effective energy price of $0.1400 per kWh during that window. For 300 kWh of qualifying overnight electricity use, the energy charges are $65.67 on the Fixed Rate versus $42.00 on TOD with the EV credit. These are SMUD rates, not U.S. averages. [1] [3]
Terminology matters: “standard rate” does not always mean a flat or non-TOU rate. SMUD's standard residential rate for customers with smart meters is already a Time-of-Day plan. This article uses SMUD's optional Fixed Rate as the non-TOU comparison in the worked examples.
TOU vs. Non-TOU Rates
| Feature | Time-of-use rate | Non-TOU rate |
|---|---|---|
| Energy price | Changes according to the applicable time period; seasons may also change the price | Does not change by hour, although the rate may still vary by season, usage tier, or other tariff rules |
| Charging schedule | The time you charge can materially change the energy cost | Changing the hour alone generally does not change the energy price |
| Main comparison | Low-price-period savings versus higher-price usage and other plan charges | Applicable energy rate, tiers, seasonal changes, and fixed charges |
A fixed energy price does not mean a fixed monthly bill. Using more electricity can still increase the bill. Likewise, a TOU plan's lowest advertised price describes only certain hours and does not represent every hour or every component of the bill.
Whole-Home vs. EV-Only Plans
Before comparing rates, determine exactly which electricity usage moves to the new plan.
A whole-home EV rate can change the cost of air conditioning, cooking, laundry, water heating, and other household use along with vehicle charging. That means cheap overnight charging can be offset by expensive household use during peak hours.
An EV-only rate can separate vehicle charging from household usage, but it may require different metering equipment or installation work.
PG&E provides a useful example of the distinction. Its EV2-A plan combines the home's electricity use with EV charging on the same rate. Its EV-B plan separates EV charging from household electricity and requires installation of a second meter dedicated to the vehicle load. [6]
For an EV-only option, compare charging savings with any meter, installation, or related costs. For a whole-home plan, recalculate the rest of the home's electricity use across each time period. Do not assume household usage remains billed at the previous rate.
A Published 2026 Rate Comparison
The following example uses SMUD's regular Time-of-Day (5–8 p.m.) Rate and its optional Fixed Rate in the Sacramento area. SMUD defines summer as June through September and non-summer as October through May. [2] [4]
| Price component | Summer | Non-summer |
|---|---|---|
| Fixed Rate, all hours | $0.2189 | $0.1371 |
| Regular TOD off-peak, before EV credit | $0.1550 | $0.1285 |
| Regular TOD mid-peak | $0.2139 | Not applicable |
| Regular TOD peak | $0.3765 | $0.1776 |
| Regular TOD midnight–6 a.m., with eligible EV credit | $0.1400 | $0.1135 |
On SMUD's regular Time-of-Day plan, peak hours are weekdays from 5–8 p.m. Weekends and SMUD-designated holidays are off-peak. [2]
During summer weekdays:
- Off-peak: midnight–noon
- Mid-peak: noon–5 p.m. and 8 p.m.–midnight
- Peak: 5–8 p.m.
During non-summer weekdays:
- Off-peak: midnight–5 p.m. and 8 p.m.–midnight
- Peak: 5–8 p.m.
SMUD's EV credit is $0.015 per kWh for eligible electricity use between midnight and 6 a.m. The discount applies to all household electricity used during that window, not only electricity measured as vehicle charging, when the household qualifies under the applicable Time-of-Day tariff. Registration and eligibility requirements apply. [3] [5]
For 2026, the regular Time-of-Day and Fixed Rate options used in these examples each have a $27 monthly System Infrastructure Fixed Charge. [4] [5]
These examples do not include SMUD's optional Low Use or Critical Peak Pricing rates.
What 300 kWh of Charging Costs
Illustrative summer month: Assume 300 kWh of electricity associated with EV charging is used entirely between midnight and 6 a.m. and the household qualifies for SMUD's EV credit.
- Fixed Rate: 300 × $0.2189 = $65.67
- TOD with EV credit: 300 × ($0.1550 − $0.0150) = $42.00
- Energy-charge difference: $65.67 − $42.00 = $23.67 less under TOD
This calculation covers only the electricity associated with the 300 kWh charging example. It does not include the rest of the home's electricity usage or other bill components.
The 300 kWh figure is an assumption for comparison, not a recommended charging amount, driving-distance estimate, or battery-capacity assumption.
When the Whole-Home Result Changes
Cheap overnight EV charging does not guarantee a lower total household bill. To show why, add 600 kWh of non-EV household use to the 300 kWh charging example, producing 900 kWh of total monthly electricity use.
The two hypothetical households below consume the same total amount of electricity and both charge the EV overnight. The only major difference is when the rest of the household uses electricity.
In each example, 100 kWh of the non-EV off-peak use occurs between midnight and 6 a.m. and therefore receives an additional $1.50 EV-related household credit. The 300 kWh EV example already includes its corresponding credit in the $42 energy charge.
| Component | More off-peak household use | More peak household use |
|---|---|---|
| Non-EV off-peak use, including 100 overnight kWh | 400 kWh | 100 kWh |
| Non-EV mid-peak use | 100 kWh | 100 kWh |
| Non-EV peak use | 100 kWh | 400 kWh |
| Non-EV TOD energy before overnight credit | $121.04 | $187.49 |
| Non-EV midnight–6 a.m. credit | −$1.50 | −$1.50 |
| EV energy: 300 overnight kWh, after credit | $42.00 | $42.00 |
| Monthly fixed charge | $27.00 | $27.00 |
| TOD subtotal | $188.54 | $254.99 |
| Fixed Rate subtotal: 900 × $0.2189 + $27 | $224.01 | $224.01 |
| TOD result versus Fixed Rate | $35.47 less | $30.98 more |
For the first household, non-EV electricity before the overnight credit is:
(400 × $0.1550) + (100 × $0.2139) + (100 × $0.3765) = $121.04.
For the second household:
(100 × $0.1550) + (100 × $0.2139) + (400 × $0.3765) = $187.49.
The second household's heavy peak-period usage more than offsets its cheaper overnight EV charging. That is why an EV TOU rate should be evaluated using the home's complete electricity profile rather than the EV alone.
Assumptions: eligibility for both rate options and the EV credit; one full summer billing period; no solar generation, battery exports, assistance discounts, special event pricing, or other rate options. These are modeled comparisons, not customer bills or annual savings forecasts. [4] [5]
How to Check the Break-Even Point
For a whole-home rate change, a useful simplified framework is:
Net TOU savings = EV charging savings − additional non-EV electricity cost − additional fixed or other plan charges.
If the TOU plan also reduces non-EV electricity costs, those savings should be added rather than subtracted.
For a simplified situation in which every EV kWh receives the same lower TOU price, you can estimate the charging amount needed to offset higher household or fixed costs:
Break-even EV kWh = additional non-EV and fixed costs ÷ savings per EV kWh.
This shortcut only works when the per-kWh charging savings remain constant. Seasonal pricing, tiers, credits, demand charges, or other tariff provisions may require a more detailed calculation.
What to Check Before Switching
- Your current rate: Determine whether it is flat, tiered, seasonal, or already time-of-use.
- What moves to the EV plan: Whole-home electricity, a dedicated EV meter, or another approved metering arrangement.
- Exact time periods: Check peak, partial-peak, off-peak, seasonal, weekend, and holiday rules.
- Your charging flexibility: Determine whether you can regularly complete charging during the cheapest period.
- Household peak usage: Air conditioning, electric cooking, laundry, and other large loads can change the result.
- Fixed charges: Include monthly base or infrastructure charges and any meter-related costs.
- Eligibility: Check EV registration, metering requirements, solar restrictions, and enrollment rules.
- Solar or battery effects: Imports, exports, and compensation can materially change the comparison.
- A full year of usage: Summer savings may not represent winter savings.
- Rate-switch restrictions: Check minimum enrollment periods and limits on switching back.
Do not copy another utility's charging schedule. PG&E's EV2-A plan, for example, currently uses off-peak hours from midnight to 3 p.m., partial-peak from 3–4 p.m. and 9 p.m.–midnight, and peak from 4–9 p.m. That differs substantially from SMUD's schedule. [6]
PG&E also illustrates why whole-home versus EV-only design matters: EV2-A applies to both household electricity and vehicle charging, while EV-B separates EV electricity using a second meter. [6]
Charging timers can help keep charging within lower-priced periods. The U.S. Department of Energy's Alternative Fuels Data Center notes that advanced Level 2 charging equipment can include features such as charging timers, data collection, communications capabilities, and user interfaces. [7]
Frequently Asked Questions
- Is an EV TOU rate always cheaper?
-
No. The result depends on charging hours, household electricity usage, seasonal rates, fixed charges, and the complete rate structure. The examples above show that the same 900 kWh of monthly usage can produce either savings or a higher bill depending on when the household consumes electricity.
- Does an EV rate apply only to my car?
-
Not necessarily. Some plans apply to the entire home, while others separately meter EV charging. PG&E's EV2-A and EV-B plans are examples of those two different structures. [6]
- Is electricity always cheapest after midnight?
-
No. There is no universal U.S. EV charging schedule. Off-peak hours vary by utility and rate plan.
- Does “Fixed Rate” mean my monthly electricity bill stays the same?
-
No. In this SMUD example, “Fixed Rate” means the energy price does not change by hour within the season. The total bill still changes with electricity consumption and other applicable charges.
- What if I have solar panels or a home battery?
-
Do not use the simplified examples above without adjustment. Solar exports, battery charging and discharging, compensation rules, and rate-plan eligibility can materially change the result.
- Can I multiply one month's savings by 12?
-
Not reliably. The worked examples use summer rates. Annual savings should be calculated using the applicable rates and electricity usage for each season.
- Does unlimited overnight charging automatically make TOU cheaper?
-
No. Even if all EV charging occurs during a low-cost period, expensive household consumption during peak hours can offset or exceed those charging savings.
Choosing a Plan
An EV TOU plan is worth comparing when you can regularly shift a meaningful amount of charging into low-price periods. It can be especially attractive when other large household loads can also be moved away from peak hours.
A non-TOU option can remain competitive when the household uses substantial electricity during expensive TOU periods or when additional fixed, metering, or installation costs outweigh the charging savings.
The most useful comparison uses a full year of actual household interval data, the current utility tariff, and the same total electricity needs under each plan.
Sources
Sources checked October 29, 2026. Worked examples use 2026 prices. Utility rates and program rules can change, so verify the current tariff before switching plans.
- SMUD — Residential Rates. Used to distinguish SMUD's standard Time-of-Day plan from its optional Fixed Rate and to confirm residential rate structure.
- SMUD — Time-of-Day Rate Details and Holidays. Used for 2026 peak, mid-peak, off-peak prices, seasonal periods, and weekend and holiday treatment.
- SMUD — Electric Vehicle Rates. Used for the EV discount and eligibility requirements.
- SMUD — Residential Service, Rate Schedule R. Used for the January 1, 2026 Fixed Rate energy prices and $27 monthly System Infrastructure Fixed Charge.
- SMUD — Residential Time-of-Day Service, Rate Schedule R-TOD. Used for January 1, 2026 TOD rates, the monthly fixed charge, and EV-credit provisions.
- PG&E — Electric Vehicle Rate Plans. Used for EV2-A whole-home treatment, EV-B second-meter treatment, and EV2-A time-of-use periods.
- U.S. Department of Energy, Alternative Fuels Data Center — Charging Electric Vehicles at Home. Used for home-charging considerations and smart Level 2 charger features.
