Dynamic Pricing Beats Time-of-Use Pricing — EV Charging Pilot

Last Updated on: 4th June 2025, 12:46 am

We are quickly entering the electric vehicle era, and one of the most exciting things about this era is the opportunity and possibility from flexible, smart EV charging. There’s already potential here, but as the vehicle fleet electrifies, the potential will become humongous. A new pilot program in California takes us one more step forward along this path.

“We’re sharing new research findings from a California EV charging pilot that could have significant implications for the clean energy transition, consumer costs, and infrastructure investment as EV adoption accelerates,” a representative from ev.energy writes.

“The ChargeWise California pilot, funded by the California Energy Commission and implemented by ev.energy in partnership with local energy providers MCE and Silicon Valley Clean Energy, tested the effectiveness of dynamic price signals in managing EV charging load. The results indicate a substantial leap forward in optimizing EV charging to support grid stability and renewable energy integration.”

In fact, in this pilot, they determined that dynamic pricing was better than time-of-use pricing. What does that mean? Well, while time-of-use (TOU) pricing does get people charging at off-peak times 60–70% of the time, dynamic pricing got them charging off-peak a whopping 98% of the time! This also led to greater savings for these EV drivers.

Here are some more key takeaways from the pilot directly from ev.energy:

• Economic Impact: The approach saved EV drivers $10–20/month, and ev.energy estimates aligning rates with grid signals could unlock over $1,000+ in annual system value per EV, potentially lowering overall utility bills for all customers.
• Equitable Solutions: Unlike applying dynamic rates broadly, the pilot’s targeted “type-of-use” solution ensured incentives directly benefited EV charging, promoting high participation (over 1,000 enrolled, 50%+ from disadvantaged communities) without penalizing non-EV owning households.

It’s hard to believe it’s just a win–win–win story. But it is. The grid gets more efficient and more reliable, the EV owner saves money, and the world has less pollution. It’s also user friendly.

“Enrolling in MCE Sync was incredibly easy, and it has made managing my EV charging so simple,” said Franco Maynetto, MCE Sync participant. “I love being able to track my energy consumption and see how much I’m saving each month. It’s reassuring to know I’m charging with clean energy during off-peak times and making a positive impact, all while keeping more money in my pocket!”

“The early results highlight just how impactful dynamic pricing can be in reshaping EV charging to support a cleaner, more flexible grid,” added Nick Woolley, CEO and Co-Founder of ev.energy. “To fully realize the value of managed charging, we need an approach that is equitable, dynamic, system-aligned, and built through collaboration. That means designing solutions which precisely target flexible load, while making it easy for all customers to benefit—especially those in underserved communities. By utilities, aggregators, and policymakers working together in programs like ChargeWise California, we can create a path to unlock flexibility and deliver sustained reductions to electricity rates, with no negative consequences.”

“As local electricity providers, the flexibility to innovate helps us meet the needs of our communities while advancing the California’s clean energy goals. Combining targeted dynamic pricing with managed charging can significantly shift peak load and reduce costs, especially for residents and businesses in underserved communities. This pilot is proof that building partnerships with companies like ev.energy, backed by support from the CEC, is crucial for creating a dynamic, efficient, and equitable energy future for all Californians. We will continue to track the value of combining managed charging with dynamic versus time of use rates,” said Alice Havenar-Daughton, Vice President of Customer Programs at MCE.

Indeed. This has got to be the charging of the future. I expect to see much more of this in coming years.