Electric vehicles (EVs) are smarter, more affordable to run, and better for the planet. If you’re looking to rent a car while you’re in Iceland, it makes sense to hire an EV.
In this guide, you’ll learn everything you need to know about driving electric cars in Iceland. We’ll cover the kinds of cars available, charging stations, and tips for efficient and safe driving.
Over the last decade, electric vehicles have become the most popular type of car in Iceland. Up until 2014, there were only 100 EVs in the whole of the island. Roll on 2022, though, and 60% of all new cars sold were electric.
Overall, around 15% of Iceland’s vehicles are now EVs—the highest proportion of any country in the world after Norway. So, if you’re concerned about a lack of clean vehicles or charging infrastructure in Iceland, you don’t need to worry.
We’re proud of Iceland being a leader in EVs for a couple of reasons:
Overall, driving an electric car in Iceland is better for you, the planet, and everyone else on the road. We’d really recommend that you rent one on your trip.
As Iceland is such a large market for electric vehicles, you can hire any type of model of car that you’re comfortable with. These include the main EV types:
If it’s the lowest environmental impact that you’re looking for in your rental vehicle, choose a BEV—as they don’t use any fossil fuels at all and have no emissions. But if you’re planning on travelling long distances in remote areas, having a PHEV or hybrid is smart, so you know you won’t run out of fuel.
The first question many drivers will have before hiring an EV will be about where they can charge it. To put your mind at ease straight away, in Iceland electric charging stations are very common.
You’ll find most charging stations around Reykjavík and the Capital region—as this is where most Icelanders live. If you’re mostly visiting areas such as Reykjanes, the Golden Circle, and Iceland’s south coast, you’ll have plenty of opportunities to charge. In this area, charging stations, like fueling stations, are typically open 24 hours a day.
If you’re travelling further afield, charging stations are less frequent as there tend to be fewer people that use them. Those stations in particularly quiet areas may even have reduced opening hours—however, self-service pumps are usually available.
If you’re new to driving an EV, it’s important to be aware that not every chargepoint is compatible with every vehicle. You’ll find 3 main types of charging stations in Iceland:
Many charging points in Iceland are run by companies such as Ísorka and ON. Both companies have useful apps, which show you where to find charging stations and current rates. Another useful resource is PlugShare, a site that maps different types of charging stations across the world.
As the map below shows, all of the inhabited areas of Iceland are well-served by EV charging points. However, if you’re driving in remote corners of the country, it’s really important that you ensure your vehicle is fully charged before you go.
But don’t worry—you won’t have to navigate all this information by yourself. If you rent a vehicle from Höldur, we’ll provide you with everything you need about where to find charging stations that are compatible with your vehicle.
Typically, running an EV in Iceland is cheaper than driving a standard petrol or diesel car.
That’s because electricity tends to be more affordable in Iceland. As Iceland is a very volcanically active country, we get most of our electricity from local renewable sources. It’s a much more efficient way of doing things.
In many cases, EV chargers are even free—for example, if you’re staying at a hotel with complimentary charging. Alternatively, they’ll be priced by ISK (that’s Icelandic krona) per kilowatt hour (kWh).
In 2024, you can expect to pay something like the following for different charge points:
That may not mean much by itself, so take an example. The Tesla Model Y is the world’s most popular electric vehicle, and it has a battery capacity of 75kWh. On a full charge, this car can drive over 300 miles (480 km). Given that Iceland’s entire “Ring Road” (Highway 1) is about 1,300 km, you won’t need to charge very often.
If you were to fully charge the Model Y from empty, you’d pay 3.750 ISK, or about €25. Compare that to a conventional car, which can cost as much as €80 per tank of petrol.
Primarily, you can pay for charging by card or via your EV app, such as On or Ísorka.
Electric vehicles can take you to the vast majority of places you’ll want to go in Iceland. As the charging network is so large, you won’t usually need to worry about charging.
However, there are some things that it’s really important to know when driving in Iceland—and not only in an EV. Here, we share some key tips, to help you navigate easily, stay safe, and enjoy your journey.
Ultimately, they’re simple tips. But they can help you to stay safe and enjoy a stress-free road trip.
To give you a sense of where you can drive in your electric vehicle, here are some favourite routes with all the EV-related information you need.
The “Ring Road” is one of the most popular road trip routes in Iceland. It takes you from Reykjavík in a circle around the country, following Highway 1. You’ll see some of Iceland’s most incredible sights along the way.
The road is paved and well-maintained throughout, making it perfect for EV drivers. Plus, you’ll find charging stations around the entire route.
For instance, Tesla drivers will find superchargers in Kirkjubæjarklaustur, Höfn, Egilsstaðir, Akureyri, Staðarskáli, and in Reykjavík. Other EV drivers will find compatible charging points along the route too.
What can you see on your road trip?
Most people complete the route in a week to 10 days. We wouldn’t recommend much less than that. However, you can take as much time as you want.
The Golden Circle is the name for the iconic travel itinerary in southwest Iceland. Along the route, you’ll visit 3 favourite destinations:
The Golden Circle route is about 300 km (180 miles) and most people complete it in a day or two. If you’re driving an EV, you’ll usually be able to do the whole itinerary on a single charge from Reykjavík.
If not, you can find charge points at car parks in Þingvellir and Geysir. You’ll pass plenty on the road too.
The Arctic Coast Way runs across the north coast of Iceland. It takes you through some more remote areas of the country, along the rugged shore of the Arctic Ocean.
Along the way, you’ll see:
Like everywhere else in Iceland, you’ll find electric vehicle charging points along the way. For instance, there’s a Tesla supercharger in Akureyri, as well as many public chargers across the region.
In this guide, we’ve shared some of the key things to know about driving an electric vehicle in Iceland. But is it worth renting one?
It definitely is. Here are some of the best bits about renting an EV in Iceland:
There are many great reasons to rent an electric car in Iceland. Explore our range here.
Got more questions about driving or renting an EV in Iceland? We answer some common queries below.
Charging an EV is often free in Iceland. For instance, any hotels and destinations, including the Blue Lagoon, offer complimentary charging.
However, not all chargers are free. If you’re using charge points run by On or Ísorka, for instance, you’ll need to pay.
Charging an electric car in Iceland is much more cost-effective than fuelling a petrol car.
In many cases, you can fully charge an EV for as little as €25. If you were fuelling a petrol vehicle, it might cost you 3 times that for the same distance.
It’s easy to charge a Tesla in Iceland. There are currently 7 Tesla superchargers across the country, with little more than 250 km (150 miles) between them. But you can also use domestic or other public chargers too.
The Tesla Model Y is Iceland's most common vehicle and the country's best-selling personal car in 2022. So, it’s fair to say that Teslas are pretty popular!
Electric vehicles can usually be charged with the following cables:
If you’re travelling to Iceland from the US, it’s not worth bringing your EV charger with you. Instead, every EV vehicle that you rent will come with a relevant cable.
There are many charging stations in Iceland. Ísorka alone operates over 3,000 charging points across the country—and that’s just one company.
Renting an electric car in Iceland is more affordable, better for the environment, and it gives you a superior driving experience overall. There’s no good reason not to rent one!
How much is the new per-kilometer tax?
Starting from January 1, 2024, Icelandic Authorities have introduced a new Road Tax. The purpose of this tax is to contribute to the construction and maintenance of the Icelandic road system.
Under this new Per-km Tax system, Plug-in Hybrid Electric Vehicles (PHEV) are charged ISK 2 per kilometer (approximately Euro 0.014), while electric cars face a rate of ISK 6 per kilometer (approximately Euro 0.04). Conventional fossil fuel cars will have this tax added in the price of petrol or diesel.
As part of the regulations, Europcar Iceland is required to apply this Per-km Tax upon the return of rental cars, as it is based on the total distance driven. Therefore, we will be charging you for this additional cost after the return of the rental vehicle.
See the Land of Fire and Ice from behind the wheel of an electric car. With Höldur, it’s easy to find the perfect vehicle for you.
We’re the largest car rental operator in Iceland, with over 7,000 vehicles and rental outlets across the country. If you want to drive an EV, you can choose between Tesla, Renault, Volkswagen, and other models.
Whichever you pick, you’ll benefit from our professional service and our decades of experience.
Explore our range of EVs to book your trip.
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