Is an EV Electricity Plan Worth It? A Deep Dive for Aussie Drivers
Electric vehicles (EVs) are rapidly gaining popularity in Australia. As of 2025, almost 10% of new car purchases were EVs, and this number is only set to climb. With this surge in EV ownership, energy retailers are increasingly offering specialised EV electricity plans. But the big question is: are these plans actually worth it for EV owners?
The short answer? Generally, yes! But let's break down why, and under what circumstances an EV electricity plan makes financial sense. Complete Guide
The EV Electricity Demand
A typical EV, driven around 15,000km per year, will consume roughly 3,000kWh of electricity. This can significantly increase your household's energy consumption – often by 50-70%. While public fast chargers offer convenience on long trips, they come at a premium, costing around 40-80 cents per kWh. The most economical and convenient way to power your EV is undoubtedly at home, ideally utilising solar power during the day or taking advantage of off-peak rates overnight.
Unlocking Super Off-Peak Savings
EV electricity plans are designed to encourage home charging by offering exclusive super off-peak rates. To be eligible, you'll typically need to prove you own an EV. These plans often feature incredibly low rates for overnight charging, sometimes as low as 5 cents/kWh! Some even offer "free power" windows during the day for home EV charging.
The appeal is obvious: drastically reduced charging costs make home charging the preferred option for EV owners. Another perk of these plans is that the super off-peak rate applies to all electricity usage during those hours. Your meter doesn't distinguish between EV charging and general household appliance use! (Note: this generally excludes dedicated controlled load circuits, such as off-peak hot water systems).
The Catch: Higher General Rates
Like solar plans, EV electricity plans often have higher general usage and supply charges. This is to compensate for the loss incurred by the retailer offering those enticingly low super off-peak rates. Therefore, to benefit from an EV plan, you need to charge your EV at home enough to offset the higher general rates with the savings from the super low-cost charging.
Crunching the Numbers
To illustrate the potential savings, let's consider a hypothetical household using the average amount of energy for heating, cooling, lighting, and other non-EV related activities. For simplicity, let's also assume this household doesn't have solar panels (though plans with good feed-in tariffs are available). We'll compare the annual electricity costs of this household using an EV plan versus the cheapest generally available plan.
Let's say this household drives a Tesla Model Y (a popular EV choice) and clocks up 10,000km annually, requiring about 1700 kWh to charge the EV (17kWh per 100km driven). We'll also assume that 80% of charging occurs at home during super off-peak periods.
Our findings show that EV plans offer competitive prices, especially for households driving over 10,000km per year.
Furthermore, if households actively shift their general electricity usage to coincide with super off-peak periods, the savings can be even more significant. This might involve running appliances like washing machines and dishwashers during those cheap energy windows. Plans with cheap daytime charging windows offer the best value for those who can charge their car at home during the day.
Factors to Consider
- Driving Distance: The more you drive, the more electricity you'll need, and the greater the potential savings with an EV plan.
- Charging Habits: Maximize your home charging during super off-peak periods to reap the biggest benefits.
- Time of Use Tariff: EV plans typically require a smart or interval meter to accurately measure energy usage during super off-peak hours.
- Home Charging Capacity: Ensure your home charging setup can handle the demand, especially during peak charging times. A 32A charging station is often recommended.
- Super Off-Peak Window Length: Some plans have limited super off-peak charging periods (e.g., only a few hours per week). Factor this into your charging schedule.
- Solar Power: If you have solar panels, consider EV plans with generous feed-in tariffs to maximize your return on excess solar energy.
- General Usage and Supply Charges: Compare these carefully between different EV plans and standard plans to see which works best for your household.
The Verdict
For most Australian EV owners, an EV electricity plan is a worthwhile investment. By taking advantage of super off-peak charging rates and optimising your electricity usage, you can significantly reduce your running costs and contribute to a more sustainable future. However, it's crucial to compare plans carefully and consider your individual driving habits and energy consumption patterns to ensure you choose the best plan for your needs. Make sure to compare the latest offers.
