How Duke Energy Manages EV Charging, Helps Customers Save
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The introduction of Duke Energy's EV Off-Peak Credit program is a strategic move that aligns with broader energy demand management practices. By incentivizing off-peak EV charging, the utility is effectively smoothing out demand curves, which can lead to more stable wholesale electricity prices. This has the potential to reduce the need for expensive peak-time energy generation, often sourced from less efficient and more costly peaker plants.
From an economic standpoint, the program can be seen as a demand-side response tool that allows consumers to contribute to grid stability, which in the long term could translate into lower operational costs for the utility and potentially lower rates for consumers. However, the success of such programs hinges on the level of customer participation and the actual shift in consumption patterns. If the program leads to significant adoption, it could serve as a model for other utilities grappling with similar challenges posed by the rise of EVs.
Market implications of the EV Off-Peak Credit program extend beyond energy savings for consumers. This initiative by Duke Energy could influence consumer behavior and potentially accelerate EV adoption rates. By offering tangible financial benefits for off-peak charging, Duke Energy is not only promoting the utility's program but also indirectly supporting the EV market. This could lead to an increase in customer loyalty and satisfaction, as well as a competitive advantage in regions where multiple utility companies operate.
It's important to monitor the program's impact on customer retention and acquisition for Duke Energy, as well as any ripple effects on the EV industry. If successful, similar programs could be rolled out by other utilities, creating a more favorable environment for EV manufacturers and potentially impacting the stock valuations of companies in this sector.
The environmental implications of the EV Off-Peak Credit program are also noteworthy. Encouraging off-peak charging reduces the need for additional power generation during peak times, which often relies on fossil fuels. This can contribute to a reduction in greenhouse gas emissions, aligning with environmental targets and regulations. Additionally, by managing the load more effectively, utilities like Duke Energy can integrate renewable energy sources more efficiently, as these sources are often intermittent and may not align with peak demand periods.
While this program is a positive step towards environmental sustainability, its overall impact will depend on the scale of participation and the utility's energy mix. It's crucial to assess whether the program is effectively reducing emissions and how it fits into the broader context of state and national environmental policies.
Customers are incentivized to charge their EVs during off-peak times, when the grid has more capacity
NORTHAMPTON, MA / ACCESSWIRE / March 5, 2024 / Duke Energy
By Virginia Brown
As Duke Energy strengthens the electric grid to be more resilient and reduce outages, the company is offering money-saving programs to customers while ensuring it can handle the increase in electric vehicle (EV) adoption.
Charging EVs during off-peak hours, when fewer people are using electricity, allows the grid to function more efficiently - behaviors that can help keep costs down by reducing the need for new infrastructure.
When Kevin Davis of Indiana, a new EV owner, bought his Tesla, the company suggested he look into tax incentives and other discounts through the state or his electric utility. That's when he learned of Duke Energy's EV Off-Peak Credit program.
The pilot program, which launched in Indiana in 2022, helps Duke Energy customers with EVs save money on their monthly electricity bills when charge their vehicles during off-peak hours (Monday through Friday, 9 p.m. to 6 a.m., plus holidays and weekends).
Davis, founder and CEO of Indiana Charters, an Indianapolis-based charter school consulting company, takes advantage of the program since it's easy and saves him money.
"It's all automated," Davis said. "I don't even have to think about it. They even surprised me with a gift card."
In the six months since Davis switched from a gas-powered vehicle to an EV, reports indicate a savings of
Through financial incentives, the company aims to shift demand on the energy grid to times when it is used less, which is important since about 2 million EVs are expected to be on the road in Duke Energy's service territories by the end of 2030.
When is off-peak EV charging?
Monday through Friday, 9 p.m. to 6 a.m., plus holidays and weekends.
It's why the company expanded incentives for off-peak EV charging in 2023. Through a pilot program, eligible Florida customers who have a Level 2 EV home charger can receive a
In Indiana, the program provides a
The goal, said Candyce Marsh, manager of program management transportation electrification at Duke Energy, is to support customers' EV transition by offering programs that are simple and easy to take advantage of.
"The good news," she said, "is that program enrollment has exceeded expectations."
In 2023, the Florida program reached 2,000 enrollees, which shifted peak grid consumption equivalent to the annual use of several dozen homes.
"It demonstrates that voluntary-managed charging programs can help balance demand on the grid with little inconvenience to customers," Marsh said. "We want people to be able to simply, ‘set it and forget it.'"
That's the case for Davis.
"The convenience of charging is incredible," he said. "I plug in when I get home from work and program my car to charge fully, which for me is
Duke Energy's EV programs
Use the EV Savings Calculator to see how much you'll save by switching to an EV or the EV Selector Tool to help find a vehicle that's right for you at EVs - Duke Energy (duke-energy.com)">EVs - Duke Energy (duke-energy.com).
Programs vary by service area but may include off-peak charging, charger options and installation credits. To see programs available in your area, visit EV Complete - Duke Energy (duke-energy.com).
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FAQ
What is Duke Energy's EV Off-Peak Credit program?
How can customers benefit from charging their EVs during off-peak hours?
Who is Kevin Davis and how does he benefit from Duke Energy's program?
