Electric Car Rental in Iceland: The Ultimate Guide for Sustainable Travel

13-02-2025

Iceland generates nearly 100% of its electricity from renewable energy, making it one of the most eco-friendly travel destinations on the planet. With this commitment to sustainability, electric car rental in Iceland is more than just a trend.

It is the smartest way to explore the country while reducing your carbon footprint. In this guide, we will cover everything you need to know, from the benefits of driving an EV and Iceland's charging infrastructure to route planning and essential driving tips.

Whether you are cruising the Ring Road or exploring the Golden Circle, we will help you navigate Iceland with ease, sustainably, and stress-free.

Driving a Tesla in Iceland with autopilot engaged, showing the digital dashboard and navigation on an open road. Ideal for an eco-friendly road trip.

Why Choose an Electric Car Rental in Iceland?

Electric car rental in Iceland is the easiest way to explore the country without worrying about fuel costs or environmental impact. Iceland has embraced EVs, with over 60% of new car sales in 2022 being electric, putting it among the world leaders in clean transportation. Renting one means you get seamless travel, cost savings, and a hassle-free road trip experience.

Easy Access to Charging: Iceland has a well-developed charging network, with stations along the Ring Road, Golden Circle, and major towns, so you will not struggle to keep your EV powered.
A More Comfortable Drive: Iceland's electric cars offer smoother acceleration and quieter rides, making long road trips more enjoyable while letting you take in the natural beauty without engine noise.
Lower Travel Costs: Iceland's high fuel prices can add up fast, but charging an EV costs up to 84% less than filling up a petrol or diesel car. Plus, EV rentals often come with free Reykjavik parking perks, saving even more.

The Benefits of Driving an Electric Car in Iceland

Renting an electric vehicle in Iceland is not just about eco-conscious travel. It is about saving money and making your trip easier. Iceland's charging infrastructure, financial perks, and unique EV advantages make driving electric the best way to explore.

Huge Savings on Fuel: A petrol car costs around $23.00 to drive 100 miles (161 km), while an EV does it for just $3.65. That is an 84% reduction, keeping more money in your budget for activities and dining.
Eco-Friendly Travel: Iceland's landscapes are fragile. EVs produce zero tailpipe emissions, helping preserve places like Jökulsárlón Glacier Lagoon, where air pollution can have lasting effects.
Free Parking in Reykjavík: Electric cars get two hours of free parking in the capital, making city sightseeing easier and cheaper.
A Quieter, More Immersive Drive: Without a loud engine, you can fully appreciate Iceland's natural sounds, from rushing waterfalls to seabirds along the coastline.
Cold Weather Comfort: Unlike petrol or diesel cars, EVs stay warm without wasting energy on idling, so you do not burn extra fuel when waiting in traffic or warming up in winter.

Tesla navigation screen showing a turn onto Skaftártunguvegur in Iceland, with scenic landscapes in the background. Perfect for an electric car road trip.

How Electric Cars Align with Iceland's Sustainability Goals

Choosing an electric vehicle in Iceland is a direct way to support the country's push for a cleaner future. Iceland is leading the way in sustainability, and EVs play a huge role in reducing emissions and cutting reliance on fossil fuels.

Less Dependence on Imports: Iceland spends ISK 50 billion ($360 million) annually on fossil fuel imports. EVs help keep that money in the country by running on renewable geothermal and hydroelectric power.
A Country Committed to Change: Iceland plans to ban new petrol and diesel car imports after 2030, making EVs the future of transportation. The government has already invested ISK 28 billion ($200 million) in EV incentives since 2012 to make the switch easier.
Better Charging Access: New buildings are now required to have EV charging stations, and apartment complexes can get grants to install chargers, making it even more convenient to own or rent an electric vehicle.
Aiming for Carbon Neutrality: Iceland's goal is to be carbon neutral by 2040, and since transportation accounts for 20% of the country's total emissions, switching to EVs is a huge step toward achieving that.

Side mirror reflection of snow-covered mountains in Iceland during an electric car road trip, showcasing the scenic winter landscape.

Understanding Electric Cars in Iceland

You might think electric cars are a recent trend, but they have been cruising around Iceland since 2011. As of June 2024, more than 24,000 electric vehicles are registered in the country, and that number keeps growing. If you are considering electric car rental in Iceland, you will find plenty of options. Rental companies offer everything from small city cars for quick trips to spacious SUVs for longer drives.

Types of Electric Vehicles Available for Rent

Cars Iceland offers a range of electric and hybrid vehicles, making it easy to explore Iceland in a way that is both efficient and environmentally friendly. Whether you need a compact EV for city driving or a long-range option for the Ring Road, there is something for every traveler. Here is what you can expect from our fleet.

Opel Corsa Electric – Compact and Efficient

Range: Between 220 and 475 km (137 to 295 miles) on a full charge.
Charging Time: At a fast charging station (DC), you can reach 80% in about 30 minutes.
Best for: Travelers looking for a compact, easy-to-handle EV that is perfect for paved routes like the Golden Circle and South Coast.

MG EHS Hybrid – The Best of Both Worlds

Electric Range: You can drive up to 52 km (32 miles) on electric power alone before switching to petrol.
Charging Time: The 3.7 kW onboard charger can fully charge the battery at a public (AC) charging station in about 4.5 hours.
Best for: Those who want the benefits of electric driving with the backup of a petrol engine for longer trips. A great choice if you plan to explore areas where charging stations may be less frequent.

Tesla Model 3 – Long Range and Premium Comfort

Range: Between 305 and 615 km (190 to 382 miles), depending on the variant and conditions.
Charging Time: At a Supercharger or other DC fast charger (Level 3), you can reach 80% in 15 to 20 minutes with a 250-kW charger. On a 150-kW charger, it may take up to 40 minutes. A Tesla Destination Charger takes around 8 to 12 hours for a full charge.
Best for: Travelers wanting a smooth, high-tech ride with a long-range, making it one of the best choices for long road trips across Iceland.

How Electric Cars Perform on Icelandic Roads

If you are wondering how an electric car handles Iceland's roads, you will be happy to know that the driving experience is smooth and reliable in most conditions. EVs perform well on paved highways and even some gravel roads, but there are a few things to keep in mind for a stress-free trip.

What EVs Handle Well in Iceland

Cold-Weather Adaptability: Winter conditions can reduce battery range by 20 to 30%, but features like battery preheating in some Tesla models help minimize this loss.
Gravel Road Stability: Many EVs, especially AWD models, perform well on unpaved roads along the South Coast. However, rental agreements prohibit EVs from driving on F-roads, which require high-clearance 4x4s due to river crossings.

Challenges to Keep in Mind

Range Limitations in Harsh Conditions: Cold weather and strong winds can reduce range more than expected, so it is best to plan for a 30% buffer on longer routes to avoid running low.
Fewer Charging Stations in Remote Areas: While most of Iceland has good EV charging coverage, places like the Westfjords have fewer stations. Careful planning is key if you are heading off the beaten path.

Where to Find Charging Stations Across Iceland

If you are renting an EV, you will be happy to know that charging stations in Iceland are easy to find, with more than 1,500 stations across the country. Whether you are exploring Reykjavík or heading out on a road trip, you will find plenty of places to plug in.

Highway Coverage: There are over 200 rapid DC chargers and seven Tesla Superchargers along Route 1 (Ring Road), spaced every 50 to 100 km (31 to 62 miles), making long drives stress-free.
City Charging in Reykjavík: The capital has 27 public charging points, including 22 kW AC chargers near cultural sites, shopping areas, and pools.
Tourist Hotspots: Chargers are available at popular stops like Fridheimar Tomato Farm on the Golden Circle and Geysir, allowing you to recharge while sightseeing.
Hotel Charging: Many hotels, including Fosshotel and Courtyard Marriott, offer free overnight AC charging, so you can start each day with a full battery.

Tesla Supercharger station in Iceland, providing fast charging for electric cars on a road trip through the scenic countryside.

How to Use Charging Stations: Costs, Apps, and Tips

Charging electric cars in Iceland is simple, but knowing how to use the stations will make your trip even easier. Here is what you need to know about pricing, apps, and a few handy tips to keep your EV powered up without any hassle.

How Much Does Charging Cost?

AC Charging (7 to 22 kW): Costs around 25 ISK per kWh ($0.18). This is the best option for overnight charging at hotels or slow-charging stops.
DC Fast Charging (50 to 250 kW): Costs between 50 and 65 ISK per kWh ($0.36 to $0.47). You will find these at highway stations, perfect for quick top-ups during longer drives.

Best Apps for Charging in Iceland

ON App: Covers 1,500+ stations, allows QR code payments and helps track your charging usage.
Ísorka: Shows real-time availability and pricing for over 400 charging stations across the country.
PlugShare: A crowdsourced map where EV drivers leave reviews and update station status, helping you avoid broken or busy chargers.

A Handy Tip to Make Charging Easier

If you want to skip app payments and make charging faster, rent an ON key from your car rental company. This small device gives you instant access to ON Power stations, making it easier to charge without needing to log into an app.

White Tesla driving through Iceland’s stunning winter landscape, with snow-capped mountains and a lake in the background.

Planning Your Route with Charging Stops in Mind

When driving in Iceland with an electric car, planning your route with charging stops in mind will make your trip stress-free. Charging stations are well-placed along major routes, but knowing where to stop and how to charge efficiently can save you time and energy.

Best Charging Stops on Popular Routes

Ring Road (Route 1): Tesla Superchargers are available in Höfn, Egilsstaðir, and Akureyri, making long-distance travel easy.
Golden Circle: You will find rapid chargers in Selfoss and Laugarvatn, so you can charge up while visiting geysers, waterfalls, and hot springs.
South Coast: DC fast chargers are available in Vík (N1) and Kirkjubæjarklaustur, perfect for those heading toward glaciers or black sand beaches.

Smart Charging Strategies

Cold Weather Tip: Preheat your battery while the car is plugged in to reduce range loss in freezing temperatures.
Eco-Driving Hack: Use regenerative braking on steep descents, like Öxi Pass, to recover energy and extend battery life.
Be Prepared in Rural Areas: Carry a Type 2 charging cable in case you need to use an AC outlet in remote locations.
Use Eco Mode and Regenerative Braking: Many EVs have an eco-driving mode that helps conserve energy. Regenerative braking also captures energy when slowing down, which can extend your range in hilly areas.
Avoid Peak Hours: Charging between 10 PM and 6 AM can save money at some stations since rates are lower during off-peak hours.

Tips for Driving an Electric Car in Iceland

Exploring Iceland in an electric vehicle (EV) is a fantastic way to experience the country's stunning landscapes sustainably. To ensure a smooth journey, here are some friendly tips to keep in mind:

Best Routes for Electric Cars: Ring Road, Golden Circle, and More

If you are planning a road trip, some routes are better suited for EVs than others. The Ring Road is one of the best choices since it is fully paved, and charging stations are available along the way, making long-distance travel easy.

The Golden Circle is another great option, with reliable roads and charging points near popular attractions like Thingvellir National Park, Geysir, and Gullfoss Waterfall. For a scenic drive without long distances, the Snæfellsnes Peninsula is a good choice. It offers beautiful coastal views, small villages, and short detours that are easy to manage with an EV.

If you prefer staying closer to the city, Reykjavík and its surroundings also have plenty of places to explore with convenient charging options.

Why Avoid F-Roads with Electric Vehicles

While an electric car rental in Iceland is great for most trips, it is not designed for F-Roads. These highland roads are rough, often covered in loose gravel, and can include river crossings that require a high-clearance 4x4. EVs have batteries located underneath, which makes them more vulnerable to damage from uneven terrain.

Most rental companies do not allow electric cars on F-Roads, and taking one off-road could void your insurance. If you want to explore Iceland's rugged interior, it is better to rent a 4x4 designed for highland driving. Sticking to the Ring Road, Golden Circle, and other well-paved routes will ensure a smooth and hassle-free trip.

Winter Driving Tips for EVs in Iceland

Driving an electric car rental in Iceland during winter is easier than you might expect. EVs in Iceland are built for cold weather, but there are a few things to keep in mind to ensure a smooth trip.

Expect a Slightly Reduced Range: Freezing temperatures can reduce battery range by 20 to 30%, so plan for shorter driving distances between charges, especially in remote areas.
Preheat While Plugged In: Turning on the cabin heater and defroster while the car is still charging helps maintain battery efficiency and prevents unnecessary power loss.
Check Road and Weather Conditions: Icelandic winters bring snow, ice, and strong winds. Always check road.is for real-time conditions, and vedur.is for weather updates before heading out.
Drive Smart in Snow and Ice: EVs provide instant torque, which is great for traction, but it also means accelerating gently to avoid wheel spin. Most EVs come with winter tires, making them well-equipped for Icelandic roads.

Rent Your Electric Car in Iceland with Confidence

Exploring Iceland in an EV is easy, affordable, and eco-friendly. With well-placed charging stations, reliable winter performance, and smooth handling on main roads, an electric car rental in Iceland is a smart choice for your trip.

Whether you are driving the Ring Road, Golden Circle, or South Coast, you can enjoy the journey without worrying about fuel costs or emissions. Rent a car in Iceland today and experience the country in a more sustainable way. If you have any questions, feel free to contact us anytime. We are here to help make your trip effortless and enjoyable.