How much EV drivers could save on charging costs

A new pilot study in the Greater Toronto and Hamilton Area (GTHA) aims to save electric vehicle drivers up to 70 per cent on charging costs while addressing the increased strain on the electric grid.

The pilot program is part of a study conducted by San Francisco-based Optiwatt, a telematics-based home energy analytics platform, and Toronto’s The Atmospheric Fund (TAF). The study is investigating how regional utilities can meet increased energy demand as EV adoption rises across the region.

Experts have warned that the growing number of EVs could strain Canadian electricity grids. The Fraser Institute predicted that annual EV electricity demand will increase between 46.8 terawatt hours (7.5 per cent of total generation) to 95.1 terawatt hours (15.3 per cent) by 2035.

Additionally, a study from the University of Concordia found that simultaneous EV charging could potentially cause blackouts.

While the study aims to find ways to reduce the strain on the region’s utilities and meet the rising demand for EVs, the immediate beneficiaries will be local participants who will save an average of $388 per year. EV drivers in the GTHA are encouraged to join the free program by downloading the app or visiting www.optiwatt.com/gtha.

The cost savings come as the J.D. Power 2024 Canada Electric Vehicle Consideration Study, released in June 2024, found that Canadians are becoming more wary of the cost of buying and maintaining an electric vehicle. Only 11 per cent of new-vehicle shoppers in Canada say they are “very likely” to consider an electric vehicle (EV) for their next purchase, down three percentage points from 2023 and less than half of the 24 per cent of U.S. shoppers who say they are “very likely” to consider an EV.

The pilot program automates EV charging during hours with cheaper electricity rates. EV owners with Time of Use (TOU) or Ultra Low Overnight (ULO) plans stand to save up to 70 per cent on their EV charging costs. A similar study took place in Alberta in 2023.

“We launched Optiwatt to help EV drivers who were having a hard time optimizing their charging routines, but our platform has since grown and evolved. Now, it not only delivers real savings for EV owners but also helps utility companies incentivize drivers to use clean energy at reduced rates,” says Casey Donahue, founder and CEO of Optiwatt. “This is a win-win solution, allowing users to save time and money while encouraging greater EV adoption, and accelerating a smoother transition to green energy for communities by supporting the electrical grid.”

U.S. utilities that use similar programs to the one being piloted by Optiwatt offer drivers additional monetary rewards such as rebates or refunds. Canadian utilities that adopt the program at scale are expected to offer similar compensation, essentially rewarding drivers for helping their communities transition to clean energy.

Optiwatt will administer the pilot program in partnership with Dunsky Energy + Climate Advisors, a Canadian-based consultancy firm that supports governments, utilities, and other organizations across North America in their efforts to accelerate the clean energy transition. Dunsky and Optiwatt will provide an effective analysis to assist utility companies in using these findings to develop improved rewards programs for EV drivers.

“There is tremendous potential for technologies that manage electricity demand to support rapid electrification and clean energy production in the GTHA,” says Aakash Harpalani, director of clean energy at TAF.

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