According to a study from Northeast Group, 6% of all utilities located in the United States had implemented special electric vehicle (EV) tariffs as of the end of June 2012. Electricity tariffs designed specifically for EV charging are a key driver to EV adoption, as EV tariffs are cheaper than standard residential electricity tariffs.
The study, ”United States Smart Grid: Utility Electric Vehicle Tariffs,” includes a benchmark of the EV tariffs of ten different utilities in six different US states (California, Georgia, Michigan, Nevada, Oregon and Texas).
“In all scenarios we studied, the costs to recharge an electric vehicle were cheaper than fueling a gasoline-powered car. In the most likely EV charging scenarios, costs were approximately one-tenth to half the costs of fueling a conventional vehicle with gasoline,” according to Northeast Group, LLC.
Eleven US states concerned so far
In just the past year, utilities in Arizona, California, Indiana, Michigan and Virginia have added new EV tariffs. In Hawaii, Michigan and Nevada, more than 90% of state residents already have access to EV tariffs through their various utilities. California and Georgia are next in line, where more than 80% of state residents have access to EV tariffs. The large California utilities were early pioneers in launching EV tariffs. As EV numbers grow over the coming years, EV penetration rates are likely to be higher in states with utilities offering their customers special tariffs.
Smart charging without smart grids
EV tariffs offered by utilities have been structured in two main forms to-date: time-of-use (TOU) tariffs and flat rate tariffs. TOU tariffs typically provide for cheaper overnight and off-peak rates for those recharging EVs. Flat rate tariffs charge customers one fixed monthly fee for recharging EVs. In addition, sliding scale tariffs – where rates increase with usage - can also be incorporated in some form with both tariff structures above.
“With the TOU tariffs, customers receive cheaper rates when they charge during off-peak times (typically nights and weekends). With the flat rate tariffs – e.g.$40 (€33) per month – all charging is typically covered. Utilities are now studying which tariffs will best accommodate the increasing number of electric vehicles on US roads” according to Northeast Group, LLC. “. EV tariffs can save approximately half the cost per year for EV owners, compared with standard electricity tariffs.“
State of art in Europe
Nothing exists at the European-level regarding EV tariff. However, off-peak rates exist and OEMs have tried to make it easy for EV owners to set up the charging of their EV at a chosen time through smart meters or via a smartphone application such as Nissan.
Nevertheless, there is interest in Europe for having EV tariffs implemented, such as Narec's Chief Technical Officer,Steve MacDonald, who, speaking at Utility Week's electric vehicle (EV) conference in June 2012, said that “energy suppliers should offer consumers home charging points with smart functionality and a specific tariff for EV owners to help support the take up of EVs.”
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