PG&E EV2-A vs. E-TOU-C: Which Rate is Better for EV Owners?

If you live in Northern or Central California and buy an electric vehicle, Pacific Gas and Electric (PG&E) will immediately encourage you to switch to their EV2-A rate plan.

Marketed specifically for EV owners and households with battery storage, EV2-A offers a massive discount for charging your car while you sleep. But is it actually the cheapest option for your household as a whole?

In this guide, we dive deep into the math, comparing EV2-A against the standard E-TOU-C plan, and explain why switching to the "EV plan" could actually cause your electricity bill to go up.

The Contenders: Rate Structures Explained

Note: All rates are illustrative estimates as of August 2026 for summer pricing.

1. PG&E EV2-A (The "EV Plan")

The EV2-A plan has three distinct pricing tiers and heavily penalizes usage during the late afternoon.

Off-Peak (~$0.31/kWh): 12:00 AM to 3:00 PM (Daily)
Partial-Peak (~$0.48/kWh): 3:00 PM to 4:00 PM & 9:00 PM to 12:00 AM
Peak (~$0.62/kWh): 4:00 PM to 9:00 PM (Daily)

The Strategy: You must shift almost all of your heavy electrical usage (car charging, laundry, dishwasher) to the morning and early afternoon.

2. PG&E E-TOU-C (The Standard Time-of-Use Plan)

The E-TOU-C plan is the default rate for most residential customers in California. It only has two tiers.

Off-Peak (~$0.44/kWh): All hours except 4:00 PM to 9:00 PM
Peak (~$0.52/kWh): 4:00 PM to 9:00 PM (Daily)
Note: E-TOU-C includes a Baseline Allowance credit which lowers the effective rate for a portion of your usage.

The Strategy: Avoid running major appliances from 4 PM to 9 PM, but otherwise, your rates are relatively flat.

The Danger of the EV2-A Plan

Looking at the numbers, EV2-A seems like a no-brainer for charging a car. $0.31 per kWh is significantly cheaper than $0.44 per kWh.

However, the trap lies in the Peak Rate.

On EV2-A, your peak rate is a punishing ~$0.62/kWh during the summer. If you have a family that comes home at 5:00 PM, turns down the AC, cooks dinner on an electric stove, and turns on the TV, your household usage will spike precisely when electricity is most expensive.

Because EV2-A applies to your whole house (not just a sub-metered car charger), the massive peak penalty you pay for running your AC at 6:00 PM can entirely wipe out the savings you gained by charging your car at 2:00 AM.

Worked Annual Comparison

Let's look at a typical household driving an EV 1,000 miles a month (using ~300 kWh to charge) and using 500 kWh of normal household electricity.

Scenario A: Switch to EV2-A (High Peak AC Usage) Imagine this family cannot avoid using AC during the 4 PM - 9 PM window. They use 200 kWh during peak, 100 kWh during partial-peak, and all 500 kWh of remaining house/car usage off-peak.

Peak: 200 kWh * $0.62 = $124
Partial: 100 kWh * $0.48 = $48
Off-Peak: 500 kWh * $0.31 = $155
Total Monthly Bill: ~$327

Scenario B: Stay on E-TOU-C (Standard Plan) Same usage, but billed on the standard plan. E-TOU-C has a lower peak rate ($0.52) but a higher off-peak rate ($0.44).

Peak: 200 kWh * $0.52 = $104
Off-Peak (includes car): 600 kWh * $0.44 = $264
Total Monthly Bill: ~$368 (Before baseline credits)

In this scenario, EV2-A is still cheaper overall because the volume of off-peak usage (driven by the EV) outweighs the peak penalty.

However, if this family drove less (e.g., only 100 kWh of charging) but kept the same heavy AC usage at 5:00 PM, the math would flip, and E-TOU-C would become the cheaper plan.

Who Should NOT Switch to EV2-A?

You should likely stay on E-TOU-C (or a legacy flat rate like E-1 if you still have it) if:

You drive very little: If you only charge your EV once every two weeks, you won't use enough off-peak electricity to offset the brutal 4 PM - 9 PM peak penalty on your household usage.
You have a pool pump or central AC you run in the evening: If you cannot automate these high-draw appliances to run before 3:00 PM or after midnight, EV2-A will be exceptionally expensive.
You work from home and use a lot of power in the afternoon.

FAQ

Can I put my EV charger on its own meter? Technically yes (PG&E calls this the EV-B rate), but installing a second meter box and running new service from the street costs thousands of dollars. It rarely pays for itself.

Does solar change the math? Absolutely. If you have solar and a battery (like a Tesla Powerwall), EV2-A is fantastic. Your solar/battery can power your house during the expensive 4 PM - 9 PM peak, allowing you to buy virtually zero peak grid power, while still charging your car on the cheap overnight rate.

Next Steps

Before making the switch, look at your last 12 months of usage on PG&E's portal. If you are ready to set up your charging infrastructure, use our Install Cost Calculator to estimate your hardware expenses, and check out our Rate Check tools for more data.