Time-of-Use (TOU) Rates + Smart Charging: How to Cut Your EV Charging Bill in 2026

Quick answer: the “cheapest hours” strategy

The money-saving workflow that works for most people:

1. Charge during off-peak hours (usually late night/early morning)
2. Set charging to complete before you need the car (morning commute)
3. Avoid peak-time charging except for genuine emergencies
4. Right-size your charging power to your actual needs (faster isn’t always cheaper)

The DOE confirms that “most drivers… charge their vehicles overnight at home” and that “some utilities offer residential time-of-use rates or other rate incentives” that reward this behavior.

Source: https://afdc.energy.gov/fuels/electricity-charging-home

Understanding time-of-use rates in practical terms

Time-of-use (TOU) pricing reflects the reality of electrical grid management: electricity is cheap when demand is low and expensive when everyone wants it at once.

Typical TOU patterns: - Peak hours (expensive): Late afternoon to early evening (3 PM - 8 PM) - Off-peak hours (cheap): Late night to early morning (11 PM - 6 AM)
- Shoulder hours (moderate): Everything else

Real-world rate differences: Many utilities offer TOU plans where off-peak rates are 40-60% lower than peak rates. In extreme cases, the difference can be even more dramatic.

Example TOU schedule (varies by utility): - Peak: $0.40/kWh (4 PM - 9 PM) - Off-peak: $0.15/kWh (11 PM - 6 AM) - Shoulder: $0.25/kWh (other hours)

With smart charging, you’d pay $0.15/kWh instead of $0.40/kWh for the same energy—nearly a 3:1 savings ratio.

Calculate your actual EV charging costs (2-minute math)

The DOE provides a straightforward method for estimating EV fueling costs using kWh per 100 miles and your $/kWh electricity rate:

“The fuel efficiency of an EV may be measured in kilowatt-hours (kWh) per 100 miles… To calculate the cost per mile… the cost of electricity… and the efficiency of the vehicle… must be known.”

Source: https://afdc.energy.gov/fuels/electricity-charging-home

Step 1: Find your vehicle efficiency

If your car displays kWh/100 miles: Use that number directly.

If your car displays mi/kWh: Convert using: kWh/100 miles = 100 ÷ (mi/kWh)

Efficiency reality check: The DOE’s Vehicle Technologies Office notes that for model year 2024 EVs, combined efficiency ranged from 1.49 to 4.17 mi/kWh—a wide spread that significantly affects charging costs.

Source: https://www.energy.gov/eere/vehicles/articles/fotw-1373-december-16-2024-efficiency-evs-model-year-2024-ranges-53-140-mpge

Step 2: Apply your off-peak electricity rate

Basic formula: Cost per 100 miles = (kWh/100 miles) × ($/kWh off-peak)

Example calculation: - Vehicle efficiency: 28 kWh/100 miles - Off-peak rate: $0.18/kWh - Cost per 100 miles = 28 × $0.18 = $5.04 - Cost per mile = $0.05

Step 3: Account for charging losses

The EPA’s MPGe ratings include charging losses, noting that measurements “move… to the outlet in the wall to better represent how much users would pay.”

Source: https://www.epa.gov/greenvehicles/fuel-economy-and-ev-range-testing

Real-world factors that affect efficiency: - Cold weather reduces efficiency - Lower charging speeds can have higher losses - Older charging equipment may be less efficient

Rule of thumb: Add 5-15% buffer to your calculations for real-world charging losses, especially in cold climates or with older equipment.

Setting up smart charging schedules

Modern chargers make this easy

Most current EVSEs and many vehicles support automated scheduling. ChargePoint’s guidance suggests connecting to Wi-Fi and “follow these steps to find the right schedule based on your local utility rates.”

If the app doesn’t automatically recognize your utility plan, “you can set your own… in the app.”

Source: https://www.chargepoint.com/drivers/home/settings/flex/

Scheduling best practices

Start with your daily routine: - When do you typically plug in? - When do you need the car ready? - How much charge do you typically need overnight?

Build in flexibility: - Set completion time 30-60 minutes before you actually need the car - Leave some buffer for occasional longer driving days - Ensure manual override is available for emergencies

Monitor and adjust: - Track actual charging costs vs. estimates - Adjust schedule based on seasonal rate changes - Fine-tune charging amperage if you’re consistently finishing with excess time

When TOU rates can backfire

Scenarios where TOU might not save money

Unpredictable schedules: If you frequently need emergency charging during peak hours, the savings from off-peak charging can be wiped out by occasional peak-rate sessions.

High household evening loads: If your home already has high electricity usage during off-peak hours (electric heating, hot water, etc.), adding EV charging might push you into higher-tier pricing.

Inadequate off-peak window: Some TOU plans have very narrow off-peak windows that don’t provide enough time for full charging, forcing you to use more expensive shoulder or peak rates.

Mitigation strategies

Load management: If you share circuits with other high-power appliances, use load management devices to prevent simultaneous operation and avoid peak demand charges.

Right-size your charging: Don’t default to maximum charging speed if lower amperage provides adequate overnight charging within your off-peak window.

Emergency planning: Have a strategy for peak-time charging when absolutely necessary—and limit it to genuine emergencies rather than convenience.

Advanced TOU optimization strategies

Demand charges and peak power management

Some utilities add demand charges based on your highest power usage during the billing period. For these plans: - Spread high-power usage across multiple hours rather than concentrating it - Consider lower-amperage charging that extends over more hours - Coordinate EV charging with other major appliances to avoid simultaneous peak demands

Seasonal rate variations

Many TOU plans have different schedules for summer vs. winter months: - Summer plans often have longer, more expensive peak windows - Winter plans may shift peak hours earlier or later - Adjust your charging schedule when plans change seasonally

Real-time pricing programs

Some utilities offer real-time pricing that varies hourly based on actual grid conditions: - These can provide even greater savings than standard TOU - Require more sophisticated charging management - Best suited for households with flexible charging schedules

FAQ

Is Level 2 charging always more cost-effective than Level 1?

Not necessarily. Both charge at the same $/kWh rate, but Level 2 can be more efficient (lower charging losses) and provides better TOU optimization by reliably completing charging within off-peak windows.

How accurate are utility rate schedules in charging apps?

Variable. ChargePoint explicitly warns that their app might not automatically select the correct utility plan and provides manual override options. Always verify that your app’s rate schedule matches your actual utility plan.

Can I override smart charging schedules for emergencies?

Good smart charging systems always provide manual override capability. If your system doesn’t allow immediate charging when needed, consider it a red flag for the equipment choice.

What happens if my TOU schedule changes?

Utility rate schedules can change seasonally or due to regulatory updates. Monitor your utility communications and update your charging schedules accordingly. Many modern systems can automatically adapt to published rate changes.

Bottom line

Time-of-use optimization is one of the highest-impact, lowest-effort strategies for reducing EV charging costs. The key is shifting when you charge, not upgrading how you charge.

Success formula: - Understand your utility’s TOU schedule - Set up automated charging during off-peak hours
- Build in schedule flexibility for real-world variation - Monitor actual costs vs. estimates - Adjust as needed for seasonal or rate changes

Most importantly: TOU savings compound over time. A strategy that saves $30/month on charging costs saves $360/year and $1,800 over five years—often more than the cost difference between charging equipment options.

The best part? Once you set up smart scheduling, the savings happen automatically without ongoing effort or lifestyle changes.

Want to maximize TOU savings while safely sharing circuits? NeoCharge’s Smart Splitter enables reliable off-peak charging even when sharing 240V circuits with other appliances, while the NeoCharge app helps you track and optimize your charging costs over time.

Next steps (NeoCharge)

• If you want to safely share a 240V outlet (dryer + EV) or avoid a costly panel upgrade, check out the NeoCharge Smart Splitter.
• If you want to reduce charging cost with off-peak schedules and rate-aware automation, explore the NeoCharge App.