Electric Car Hire in Iceland

Is it cheaper to hire an electric car?

Yes, it is, and in Iceland, the cost of electricity for charging an EV can be considerably cheaper than filling the equivalent ‘traditional’ vehicle with petrol. We estimate, for example, that the fuel cost for driving 1,600km in a standard VW Golf is around £120*, while the equivalent VW ID.3 electric car would cost about £58 to £100** depending on the type of charger you use – AC charging is less costly than DC fast charges over the same distance. In addition, the rental cost of EVs is currently the same or lower than similar traditional cars, boosting the saving of going electric. Remember that, by hiring an EV, a significant part of your travel will be emissions-free, so you will be paying less if you choose to carbon-offset your trip.

As a guide, Iceland’s Ring Road (Route 1) is 1,332km. Costs estimated in January 2026.

* Fuel cost based on approx ISK200 per litre; consumption 6 litres per 100km
** Charging cost based on approx ISK6 per 100km

Please note that as of 01 January 2026 Iceland has removed fuel taxes from the price you pay on the pump, and introduced an ISK 8.81 (around 6 pence) per kilometre road charge for all vehicles. This is payable directly to the car rental company at the end of your rental.

Are there many electric car charging stations in Iceland?

There are hundreds of EV charging stations in Iceland. You’ll find them at car rental depots, hotels, swimming pools, rest stops in towns, and all around the Ring Road. Some hotels and accommodation providers also offer free charging for their guests. Hook up to a rapid charging station (which provides power at up to 250kWh) and you can charge your car battery from 20% to 80% in as little as 30 minutes – or about the same time it takes you to enjoy a traditional Icelandic hot dog from the service station! Your EV is also provided with a cable for ‘slow charging’ using 22kWh power. This is ideal for when you’re charging overnight and can take 5-10 hours.

Most of your driving will likely either be in the southwest where most of the population lives, or on (or near) the Ring Road that encircles Iceland. Whichever self drive itinerary you’re following, you’ll be able to join the dots between an easy-to-reach succession of charging stations. You can view maps of charging stations in Iceland at plugshare.com and also, hlada.is.

How much does EV charging cost in Iceland?

In 2026, EV charging costs range from around 26-38 ISK per kWh at a slower AC charging point, while fast DC charging stations range from 60-75 ISK per kWh. The VW ID.3 has a 58kWh battery, so if you use a fast-charging station (with DC 65kWh power) it will cost around ISK 3,770 (or about £24) to fully charge the battery and give you a range of 265 miles.

What about range and variable driving conditions?

Let’s take one of our most popular self drive holidays – Essential Iceland – as an example. This seven-night itinerary packs a wealth of natural wonders into an unforgettable road trip along Iceland’s south coast. A typical EV (like the VW ID.3) can travel up to 265 miles on a full charge – and with its ‘quick charge’ mode you can top up its range to around 180 miles in just 30 minutes. Even if you mostly charged your vehicle at overnight stops, you’d still be able to comfortably drive this route. And, of course, don’t forget there are numerous charging stations at locations between these overnight stops.

Extreme cold weather can reduce the range of EV batteries, which is why we only recommend electric car rental in Iceland for the summer months, May-September. How you drive can also affect EV battery performance (avoid harsh braking and acceleration), while heavily laden vehicles (with multiple passengers and lots of luggage) can also have an impact. When you collect your vehicle, it will have 70-80% charge, and you need to return it with at least 60-70%.

What electric cars can I hire in Iceland?

We offer the following rental EVs in Iceland: Tesla Model Y, Volkswagen ID.4, KIA EV3, BYD Alto, BYD Seal and BYD Sealion.

Can I drive an EV in Iceland’s interior?

A 4WD vehicle is required for the unsurfaced tracks of the interior Highlands (only open in summer). Although there are several electric 4WD vehicles, they are not suitable for tackling this terrain (or any of Iceland F-roads). We do, however, offer a hybrid MMC Outlander 4×4, which is suitable for driving in Iceland’s Highlands.