Dynamic Pricing Optimizes California EV Charging

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A smart electric vehicle (EV) charging pilot in California, ChargeWise California, has revealed that dynamic price signals significantly enhance the management of EV charging. This initiative, funded by the California Energy Commission’s (CEC) REDWDS program and executed by ev.energy alongside MCE and Silicon Valley Clean Energy (SVCE), underscores how a dynamic approach can bolster grid stability, decrease energy expenses, and encourage renewable energy consumption in California.

Key Highlights

  • Achieved up to 98% of EV charging load off-peak using dynamic price signals combined with managed charging.
  • Substantially surpassed traditional Time-of-Use (TOU) rates, which typically achieve 60-70% off-peak charging, and even TOU combined with managed charging programs (around 90%).
  • Reduced customer energy bills by $10–$20 per month, translating to approximately $200 in annual savings per EV driver.
  • Successfully shifted up to 30% of EV charging to hours rich in solar power, promoting greater use of renewable energy.
  • Effectively smoothed electricity demand by avoiding “snapback” secondary peaks that can occur with rigid TOU schedules.
  • Ensured equitable access through a “type-of-use” submetering solution, which enrolled over 1,000 participants within two months, with more than 50% hailing from disadvantaged communities.
  • Projected to unlock over $1,000 in annual system value per EV by aligning charging rates with comprehensive grid signals.
Dynamic Pricing Optimizes California EV Charging

Dynamic Approach Yields Superior Results

The initial findings from ChargeWise California clearly indicate that dynamic price signals, when coupled with automated charging management, are considerably more effective than conventional TOU rates for managed EV charging. The pilot program demonstrated an ability to shift up to 98% of EV charging load to off-peak periods. This performance notably exceeds the typical 60-70% achieved by TOU rates alone and the 90% often seen when TOU is combined with managed charging programs.

Beyond optimizing charging times, this dynamic approach offers tangible financial benefits. Customers participating in the program saw savings of $10–$20 per month. Furthermore, this strategy can reduce overall system costs, potentially leading to lower utility bills for non-EV drivers as well. ev.energy estimates that aligning charging rates with both grid-wide and local distribution signals could generate over $1,000 in annual system value for each EV. The system also mitigated the “snapback” effect—secondary demand peaks that often follow fixed TOU off-peak periods.

Dynamic Pricing Optimizes California EV Charging

Ensuring Equity and Enhancing Program Impact

A critical insight from the pilot was the potential inequity of applying dynamic rates across a customer’s entire home energy load, which could disproportionately affect those without flexible technologies like home batteries or EVs. ChargeWise California addressed this by implementing a “type-of-use” submetering solution. This targeted incentives specifically at EV charging, fostering high participation and ensuring equity. The program successfully enrolled over 1,000 participants in just two months, with over half from disadvantaged communities.

The pilot also underscored that the benefits of dynamic rates are magnified when integrated with smart, customer-centric programs. The collaboration between dynamic pricing and the managed charging programs mobilité de MCE and SVCE drove significant engagement, benefiting both customers and the electrical grid. Franco Maynetto, an MCE Sync participant, shared, “Enrolling in MCE Sync was incredibly easy… 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.”

Collaborative Path to a Flexible Grid

Leaders from the participating organizations emphasized the significance of these findings. Nick Woolley, CEO of ev.energy, noted, “The early results highlight just how impactful dynamic pricing can be in reshaping EV charging to support a cleaner, more flexible grid.” He stressed the need for solutions that are “equitable, dynamic, system-aligned, and built through collaboration.”

Monica Padilla, CEO of SVCE, remarked, “Helping our customers charge off-peak to lower their bills and align their charging with when energy is cleanest is not just valuable for our community, but for the broader California energy ecosystem.”

Alice Havenar-Daughton, Vice President of Customer Programs at MCE, highlighted the importance of innovation and partnerships. “Combining targeted dynamic pricing with managed charging can significantly shift peak load and reduce costs, especially for residents and businesses in underserved communities,” she stated.

The initial results from ChargeWise California advocate for the energy industry to embrace a collaborative and holistic strategy. This approach involves considering all elements of the energy system and prioritizing equitable program design and adaptive learning through ongoing testing to optimize grid efficiency, seamlessly integrate renewable energy sources, and ultimately lower costs for all customers.

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