Electric Car Rental Iceland: Save on Fuel, Explore Green

Experience the future of road tripping with Hertz Iceland’s diverse fleet of electric vehicles. From the compact VW ID.3 perfect for the Golden Circle to the spacious Kia e-Niro and Tesla Model Y for family Ring Road adventures, we have an EV to suit every budget.

Driving electric in Iceland isn’t just eco-friendly—it’s smart economics. With electricity costs significantly lower than petrol and a charging network that covers the entire island, you can explore Iceland’s nature while keeping your travel costs down.

Why Rent Electric in Iceland? The Real Cost Breakdown

The Energy Savings (Gas vs. Electric)

Let’s look at the cost of driving 100km on the Ring Road:

• Petrol Car: A standard SUV consumes ~8 liters per 100km. At ~225 ISK/liter, that costs you 1,800 ISK per 100km.
• Electric Car: An EV consumes ~18 kWh per 100km. At ~64 ISK/kWh (public fast charging), that costs you 1,152 ISK per 100km.
• The Result: You save approx. 35-40% on energy costs every time you charge instead of pump.

Important 2026 Update: The Kilometer Tax

As of Jan 1, 2026, the Icelandic government introduced a “Road Usage Charge” to replace older fuel taxes. This applies to all vehicles on the road.

• Government Tax: 6.95 ISK per km
• Hertz Admin Fee: 1.40 ISK per km (+ VAT)
• Total Charge: Approx. 8.35 ISK per km

How you pay: This fee is calculated automatically based on your usage and added to your final invoice when you return the car.

The Verdict: Since you pay the kilometer tax regardless of whether you rent a petrol or electric car, the massive savings on electricity make the EV the clear budget winner for your Icelandic road trip.

Charging Made Simple in Iceland

Iceland’s charging infrastructure is one of the best in the world. With a network that has grown exponentially in the last 2 years, you are never far from a top-up.

1. For Our Tesla Fleet (The “Plug & Charge” Advantage)

If you rent a Tesla Model 3 or Model Y from us, you get the simplest charging experience possible.

• How it works: Our Teslas are fully compatible with the Tesla Supercharger network across the country. To access charging, simply connect your personal Tesla app to the rental vehicle — this links your credit card directly for payment.
• The Process: Once your app is connected, drive up to any Tesla Supercharger, plug in the charging cable, and the session will begin automatically. You can monitor the charging status and cost through your Tesla app.
• Payment: Charging fees are billed directly to the credit card linked to your Tesla account, making it easy to manage your own charging expenses throughout your rental.

2. For All Other EVs (VW, Kia, etc.)

Our VW ID.4 and Kia e-Niro models have access to the massive public network provided by ON Power, N1, Orkan and Ísorka.

• Where to find them: These chargers are ubiquitous at grocery stores (Krónan/Bónus), gas stations (N1/Orkan/Olís), and public parking lots.
• How to pay: We recommend downloading the ON Power, N1 , E1 (from Orkan gas station) or Ísorka apps before your trip. You simply connect your credit card to the app and start the charge from your phone.
• Pro Tip: Look for the orange “Hraðhleðsla” (Fast Charging) signs at N1 and Orkan stations for the fastest speeds (up to 225kW).

3. Overnight Charging (Wake Up Full)

The most convenient way to charge is while you sleep. Many hotels, guesthouses, and Airbnb rentals in Iceland now offer Type-2 destination charging.

• The Benefit: Plug in when you check in at night, and wake up with a 100% battery, ready for a full day of adventure without needing a midday stop.

Choose Your Electric Vehicle

At Hertz Iceland, we offer a diverse range of electric vehicles to suit every type of traveler. Whether you need a compact car for a city break or a long-range SUV for the full Ring Road, we have the perfect plug-in option.

Compact & City EVs

Best for: Couples, Solo Travelers & The Golden Circle Perfect for those staying in Reykjavík or planning shorter day trips to the South Coast and Golden Circle. These agile cars are easy to park downtown and offer incredible efficiency.

More Details

• Top Model: Volkswagen ID.3
• Why choose it: It offers surprising interior space (similar to a Golf but roomier) and a real-world range that easily covers a round trip to Gullfoss and Geysir on a single charge.
• Range Estimate: ~300-350 km (Summer)

Electric SUVs (Family & Adventure)

Best for: The Ring Road & Groups of 3-4 Our most popular category. These mid-size SUVs combine the high seating position and ground clearance of a traditional 4×4 with the silence of electric drive. They have larger batteries designed for long-distance travel.

More Details

• Top Model: Volkswagen ID.4
• Why choose it: The high seating position gives you excellent visibility for sightseeing. It has a large 543L trunk that easily fits 3-4 suitcases, making it the top choice for families doing the full Ring Road loop.
• Summer Range Estimate: ~420 – 450 km (Real-world driving)

More Details

• Top Model: Kia e-Niro
• Why choose it: It is the “Efficiency King.” The e-Niro is famous for getting closer to its official range than almost any other EV. If you want a no-nonsense electric car that just keeps going with minimal charging stops, this is your best bet.
• Summer Range Estimate: ~380 – 400 km (Real-world driving)

More Details

• Top Model: Nissan Ariya AWD 
• Why choose it: Safety & Traction. If you are nervous about Icelandic road conditions, the Ariya’s AWD system offers unmatched stability. It is powerful, luxurious, and the safest choice for navigating gravel sections of the Ring Road or East Fjords.
• Summer Range Estimate: ~400 – 450 km (Real-world driving)

Plug-in Hybrids (PHEV)

Best for: Flexibility & First-Time Eco Drivers Not ready to go fully electric? A Plug-in Hybrid (PHEV) gives you the best of both worlds. You get a battery range of 30–50km for silent, fuel-free city driving, backed by a traditional petrol engine for long-distance peace of mind.

• Top Models: Land Rover Defender 4×4; Range Rover Sport 4WD ;BMW X5 4WD; Hyundai Tucson 4×4
• Why choose it: You never have to worry about finding a charger. If the battery runs out, the car seamlessly switches to petrol. It is the perfect stepping stone to electric driving.

Quick Comparison: Which Power Train Suits You?