Earlier this year, Duke Energy revealed a new residential electricity rate that offers big savings — for the grid and customers’ wallets. The EV Overnight Advantage Option is a pilot rate for electric vehicle (EV) drivers that offers half-off electricity used overnight. Fully charging a typical EV at this price would cost about $5, and customers could easily see $200 to $300 of savings per year on charging, depending on driving habits, compared to a standard electricity rate.
From 11 p.m. to 5 a.m., customers on this rate will pay $0.065/kilowatt-hour (kWh) for all home electricity use, EV charging included. A form of time-of-use rate, this offering is unusual, and special, in that there’s no real penalty for using electricity during other parts of the day.
Instead of implementing higher “on-peak” prices to discourage customers from running appliances and other devices when the grid is most strained, the EV Overnight Advantage Option charges just $0.13/kWh for the remaining 18 hours of the day — only about one cent more than the standard electricity rate. This straightforward setup presents a highly compelling reason to schedule EV charging (and possibly other electricity uses) for the late-night window, without fear of getting hit with a steep utility bill when shifting energy consumption is less feasible.
What’s in it for Duke Energy?
Promote better grid utilization by encouraging electricity use during off-peak periods, when capacity is more available, potentially reducing the need for additional generation facilities.
Decrease the need for complicated and costly technology to manage EV charging.
Gauge the appetite of North Carolina customers for non-traditional electricity rates.
Is it too good to be true?
In this case, no. Rather than focusing programming and tariffs on complex schedules that account for seasonal variation in electricity demand — peak periods in North Carolina are generally in the early evening in the summer and in the morning in the winter — this simple pilot provides a fixed year-round structure and a strong incentive to change behavior.
Ultimately, the objective is clear: to better utilize the grid by taking advantage of times when it’s under less stress. When energy use is more predictable and balanced, rates for all customers — EV drivers and not — can stay more affordable.
Full details about the EV Overnight Advantage Option can be found here.
