With the popularity of electric vehicles on the rise and almost 50% of the population in support of phasing out gasoline cars completely, you may be one among the many who are considering an electric vehicle (EV) for your next car purchase. You likely won’t be disappointed — a recent J.D. Power study found that the majority of first-time EV owners are reluctant to go back to gasoline-powered cars.
But before you do so, it’s best to familiarize yourself with the prices of electric cars themselves, as well as how much charging your EV will cost you on a monthly or yearly basis. To prepare for your new electric life, check out this guide on the real costs of charging an electric vehicle.
When comparing the costs of fueling either an EV or a gasoline vehicle, there are a few variables to consider, such as:
- Miles per gallon on gasoline vehicles under consideration
- Type of charger that the electric car will use
- Whether the EV will be charged at home or at a public charger
When comparing a gasoline vehicle to charging an EV solely at public charging stations, for example, the electric car is a bit more expensive than the gasoline vehicle. However, when you compare a gasoline vehicle to charging an EV with an at-home EV charger, the latter is actually more cost-effective. This is because public charging stations charge a pretty high rate in terms of kilowatts per hour (kWh). While installing an EV charging station at home has higher upfront costs, the amount of savings on a monthly basis will make up for it in the long run.
Of course, recent events have driven up the prices of both gas and electricity. Has that had an effect on cost-effectiveness? According to CNBC, even with these recent surges, EV charging is still cheaper.
Here are the average monthly costs for all three options. Note that the example gasoline vehicle we’re using gets roughly 33 miles per gallon at the current national average gas price of $4.16 per gallon and assuming that each vehicle goes 1,000 miles per month.
- Monthly gasoline vehicle fueling costs: $126.06
- Monthly public EV charging costs: $129.50
- Monthly at-home EV charging costs: $30-$70
To determine your at-home costs, check out your latest electric bill. Divide the total by the number of kilowatt-hours used. On average, U.S. households pay almost 14 cents per kWh. Since most electric cars get 3 to 4 miles per kWh, a person who travels 1,000 miles per month and spends the same as the average household would pay $46.67 in EV charging costs monthly.
If you’re considering buying an electric vehicle, it’s important to prepare for indirect costs associated with owning an EV. Many new EV owners are surprised at the additional, unbudgeted costs.
Level 2 charger prices and installation
While charging your EV at home costs significantly less than both fueling a gasoline vehicle and charging an EV at public stations, installing a Level 2 charger at home can be costly upfront. Electric cars usually include a Level 1 charger which can be plugged into any 120-volt outlet. However, a Level 1 charger can take a full 20 hours to charge up the vehicle, so many EV owners purchase and install a Level 2 charger in their home which can power up the vehicle in almost half the time.
A Level 2 charger can range in cost, but it will typically cost up to $3,500 for both the equipment and installation costs.
Annual EV registration fees
Most states have a gas tax that contributes to the budget for keeping highways maintained. Since EV owners don’t buy gasoline, many states require an additional fee for electric vehicles so EV owners still pay their part for infrastructure maintenance. This fee is often between $50-$225 annually depending on the state.
The cost of driving to a faster charger
While you can find a gas station on pretty much every corner, an available EV charging station may be more difficult to find and further away than anticipated. Many EV owners spend a good amount of time and money driving to a more distant charging station to get a faster charge.
With all these added costs for keeping and charging your new electric vehicle, you’ll be happy to know that there are some ways you can save on EV charging costs.
Install an at-home EV charging station
As discussed, your home’s electricity costs are lower than the cost of using a public charging station, so installing an at-home EV charging station is the less expensive choice, despite the initial cost. You can also get a tax credit of up to $1,000 for the year in which you install an at-home Level 2 EV charger.
Keep up with vehicle maintenance
A well-maintained electric vehicle will charge more efficiently and keep its charge longer. Keeping up with regular maintenance on your EV will keep your battery in good shape and save you money on costly repairs in the long run.
Charge and store your EV in temperature-regulated places
Extreme hot and cold temperatures can damage your EV’s battery, ultimately making it charge slower and maintain its charge poorly. Keeping your vehicle in a temperature-controlled location will ensure your battery will last longer and be more efficient.
While charging electric vehicles is costly, prices are likely to come down in the next few years. Many vehicle manufacturers have committed to making most or all of their new vehicles electric in the next 10-15 years, and almost 40% of drivers say their next vehicle purchase will likely be electric. As the supply of EVs expands, competition between vehicle and charging station manufacturers will lower costs overall, making it an affordable option for millions of drivers.
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