Time-of-use (ToU) pricing is a tariff approach where the price of EV charging changes depending on the time the charging takes place. Prices are typically higher during peak grid-demand periods and lower during off-peak periods. ToU pricing is used to encourage drivers and fleets to shift charging to times when electricity is cheaper and the grid is less constrained.
Time-of-use pricing can apply to:
– The customer-facing charging price (what the driver pays)
– The operator’s electricity cost (what the site pays)
– Both, depending on the business model
Why Time-of-Use Pricing Matters in EV Charging
ToU pricing helps charging stakeholders:
– Reduce energy costs by encouraging off-peak charging
– Improve site capacity usage without costly grid upgrades
– Lower peak demand and support load management goals
– Reduce congestion at constrained sites by spreading sessions over time
– Align charging with higher renewable generation periods (depending on grid mix)
For fleets and workplaces, ToU pricing can be one of the simplest drivers of behavioral change.
How Time-of-Use Pricing Works
A ToU price plan typically defines:
– Time blocks (peak, shoulder, off-peak)
– A price per block (often €/kWh, sometimes combined with time-based fees)
– Special schedules for weekends/holidays
– Rules for seasonal changes or exceptional events
Charging platforms apply these rules automatically based on session timestamps and site location.
Common Time-of-Use Pricing Models
– Peak/off-peak pricing
Two rates: higher daytime peak and lower night off-peak
– Peak/shoulder/off-peak pricing
Three-tier structure for more nuanced control
– Time-of-day incentives
Discount windows to encourage charging at specific times (e.g., overnight)
– Fleet ToU pricing
Contracted ToU schedules aligned to shift operations and depot readiness
Operational Considerations
– ToU pricing is most effective when users have flexibility (long dwell times)
– Fleet depots often pair ToU with managed charging and charge-by-departure rules
– Public charging may use simpler ToU to avoid customer confusion
– Clear price display and receipts reduce disputes
– Roaming partners may not mirror ToU pricing, creating inconsistency
Benefits
– Lower energy cost and improved margins
– Reduced peak demand and improved compliance with site limits
– Better utilization of existing electrical capacity
– Can improve sustainability metrics if charging shifts to lower-carbon periods
Limitations and Pitfalls
– Too many price tiers can confuse users
– If load management reduces charging power during peak windows, time-based fees can feel unfair
– Some users cannot shift charging times (short dwell times, urgent needs)
– Incorrect timezone or schedule configuration can cause billing errors
– Price variability may reduce trust if not communicated clearly
Best Practices
– Keep price windows simple for public users; use more advanced schedules for fleets
– Pair ToU pricing with automation (scheduled charging, priority rules) where possible
– Monitor off-peak share and peak demand reduction to validate impact
– Ensure signage/app displays the active price window clearly
– Align ToU pricing with idle fee policy and bay turnover objectives
Related Glossary Terms
Time-of-Use (ToU) Tariffs
Time-based Pricing
Time-based Billing
Tariff Structures
Managed Charging
Load Management
Off-peak Charging
Peak Demand
Time-of-use Optimization