Discounted Charging Rates for Electric Vehicles to Launch Next Year

The government aims to implement a seasonal and time-based charging rate system for electric vehicles (EVs) in the first half of next year. In preparation, it plans to discount public EV charging fees by up to 32% this autumn to assess how price changes affect charging demand.

The Ministry of Climate, Energy and Environment announced on September 3 that it will offer discounts on EV charging fees during weekends and holidays from September 5 to October 31, specifically from 11 a.m. to 2 p.m. on a total of 21 days.

This discount is intended to shift EV charging demand to daytime hours when renewable energy sources, such as solar power, provide a more stable electricity supply.

Korea Electric Power Corporation (KEPCO) will offer a 50% discount on electricity rates for home and business charging during this time, with savings ranging from 40.1 to 48.6 won per kilowatt-hour.

Discounts will also apply to over 14,000 public fast chargers and approximately 3,400 slow chargers operated by KEPCO. Notably, the 9,600 public fast chargers managed by the ministry will combine the 50% discount on KEPCO's electricity rates with additional discounts, resulting in a total reduction of 22% to 32% for consumers, equating to savings of 85.4 to 97.2 won per kilowatt-hour.

Discount rates at KEPCO and Seoul's charging stations will be around 11% to 17%. Nineteen private charging operators will also participate in the discount program through various methods, such as fee reductions or point rewards, with specific discount rates and methods varying by operator.

The government has differentiated discount rates by charging station to analyze how price changes influence EV users' charging behavior. This data will be crucial for designing the upcoming seasonal and time-based charging rate system, as it will help determine the necessary price reductions to effectively shift charging demand to times of ample electricity supply.

Jung Sun-hwa, the director of green transition policy at the ministry, stated in a briefing, "Understanding how charging demand changes with price fluctuations is essential for accurately designing the seasonal rates. The pricing patterns have been intentionally structured to create a temporary differential at public charging stations this autumn."

Previously, the government implemented its first EV charging fee discount from April 18 to May 31 during weekend and holiday daytime hours, reducing electricity rates by 50% and resulting in a maximum 15% discount for consumers.

As a result, the average daily usage of charging stations increased by approximately 9.2% compared to before the discount was implemented. The government analyzed that about 20% of charging demand shifted to holidays like Sundays following the spring discount.

However, there are limitations in interpreting the effects of the spring discount. The 9.2% increase is based on a comparison of usage just before and after the discount, rather than year-over-year data. The ministry noted that significant differences in the number of EVs and charging infrastructure between last year and this year make it difficult to draw meaningful comparisons based on 2025 data.

It remains unclear how much the discounts contributed to stabilizing the power grid. During the spring discount period, charging volume averaged about 0.1 GWh per day, totaling around 17 GWh. The ministry has not yet analyzed the impact on the power grid, as the charging volume is still relatively small.

The government plans to use the results from this autumn's discounts to inform the introduction of the seasonal charging rate system next year. A ministry official stated, "We are working to implement it as soon as possible, aiming for the first half of next year."

However, as charging rates will continue to vary by time, there are still challenges to address, including reviewing the billing systems of charging operators. The government plans to assess related systems during the spring and autumn discount processes.

In the long term, the government is also considering a dynamic pricing system that reflects weather and real-time electricity supply conditions, as well as the potential for vehicle-to-grid (V2G) technology, which allows EV batteries to return power to the grid.

Jung emphasized, "Electric vehicles are an excellent means to efficiently utilize surplus electricity. We plan to analyze these results closely to design the seasonal charging rate system in a way that benefits users while contributing to grid stability."