It’s hard not to notice vanity license plates such as “GASLOL” on electric vehicles while driving. Why so arrogant? Maybe electric car drivers know something we don’t?
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We combed through popular social media platforms like Reddit and TikTok and found that the cost of charging electric vehicles versus the cost of gasoline is currently a hot debate.
One Reddit user said their electricity bill for charging at home has increased by $70, compared to their previous monthly gas bill of $330. Some Reddit users objected to the actual savings. For example, one opponent said they believed public supercharging would be expensive and time-consuming, while another said the cost of installing home electric vehicle chargers negated any savings.
Lower fuel costs may be the main reason why people interested in electric vehicles consider switching to all-electric in the first place. In June 2022, gasoline prices hit an all-time high, with the national average price exceeding $5 per gallon, and although as of June 2024, gasoline prices had fallen to around $3.56, volatile gasoline prices have many motorists looking for alternatives, such as Electric or hybrid cars.
We asked automotive and EV industry experts this question: Is it cheaper to charge an electric vehicle than to refuel a gas-powered one? Based on U.S. averages, the conclusion is that electric vehicle charging is superior.
Gasoline prices are unstable and in some areas even expensive. Prices for electricity also vary, but are “much cheaper” than gasoline, said Anastasia Boutziouvis, solutions product manager at ChargePoint. This means that charging an electric car is also much cheaper than filling up the tank of a gasoline-powered car.
“Generally speaking, I find it’s cheaper to charge an electric car than to refuel a gasoline-powered car, even in my state of California, which has the second-highest energy prices in the United States,” CNET’s 16-year auto industry insider said. Electric Automotive expert Antuan Goodwin. “This may be because California also has the highest gas prices in the country.”
We’ll use math to show you how much cheaper it actually is to charge an electric car compared to an internal combustion engine car.
Let’s do the math: Compare EV charging to gas tank refilling
When considering the cost of refueling or charging an electric vehicle versus a gasoline vehicle, the difference is clear and quite significant. Electric vehicles are powered by electricity and use batteries to store electricity and need to be recharged.
Gasoline-powered cars, or cars with an internal combustion engine, run on gasoline and the driver needs gasoline in the vehicle’s tank to drive.
We’ve done the math using averages from government sources and come up with a list for you of all charging and refueling costs over a month.
These calculations use U.S. driving averages for electric and internal combustion engine vehicles and include data points such as fuel economy, range, electricity and gasoline costs, and the power required by the average electric vehicle. You can drive more (or less) and your fuel costs will vary accordingly.
Electric vehicle charging costs vs. fuel costs (U.S. average)
Based on U.S. averages using these sources:
Based on the U.S. average, we found that the monthly charging cost for an electric car is $66.66, while the monthly charging cost for an internal combustion engine car is $182.50.
Using the same numbers above, here’s a year-over-year cost comparison:
- $2,190 USD Average annual fuel costs for internal combustion engine vehicles
- $799.92 USD Average annual cost of charging an electric vehicle
- This is the difference from year to year $1,390.08
Likewise, gas and electricity prices vary by location, so your actual savings may be more or less. For example, states such as Connecticut, Hawaii, California, Rhode Island, Massachusetts, Maine, New York, and New Hampshire pay electricity prices ranging from 23 cents to 43 cents per kilowatt hour. cents, which is much higher than the 16 cents figure we used in the math example above.
The type of car or electric vehicle you own is also a cost-saving factor. The Tesla Model 3 and Ford F-150 Lightning (although both are electric vehicles) will not have the same energy efficiency.
Electric vehicle monthly charging costs
The cost of fueling or charging an electric vehicle depends on several factors, but the cheapest way is to charge your electric vehicle at home during off-peak hours. In other words, charging an electric vehicle overnight using a home charger may be the cheapest way to charge, and in some areas, may only cost a dollar or two — a fraction of the price of a gallon of gas.
“At a high level, we’re looking at about one-half or one-third of the cost of a gasoline-powered car,” in terms of getting a “full tank,” so to speak, Buziouweis said.
Charging an electric car costs an average of a few dollars, she said. Assuming you charge your electric car at home using your own charger, though, the price of doing so really boils down to the electricity bill you pay. “It’s all based on local utility rates, and utility rates vary across the United States,” she said.
The overall cost of charging may also depend on whether you’re on a fixed or variable rate, or how the energy plan you choose outlines its time-of-use rates throughout the day.
Costs of Home Electric Vehicle Charging vs. Public Electric Vehicle Charging
Another key issue for EV owners to consider is the cost difference between charging at home versus public charging. If you don’t have a charger or can’t charge your electric vehicle at home, you’ll need to charge elsewhere. There are public charging stations in many places, such as retail car parks – here’s an in-depth guide to where you can charge for free.
Yes, home charging tends to be cheaper, although there may be upfront costs when installing an EV charger and potentially upgrading your home’s electrical system.
Home charging costs
As mentioned before, the cost of charging at home depends on how much you pay for electricity, which varies depending on where you live. Electricity prices tend to be higher in Hawaii, New England and California, while lower in western and midwestern states such as North Dakota, Utah and Washington. The national average is about 16 cents per kilowatt hour.
Another thing to keep in mind is that some states with deregulated energy markets (often called energy choice markets) may offer additional incentives for electric vehicle driving. Some states “offer really cool programs where they’ll give you [EV] “Free charging,” Boutziouvis said.
read more: You can choose your electricity provider in states with deregulated markets
These programs or incentives vary by state. In Texas, for example, TXU Energy and Gexa offer energy plans aimed at attracting electric vehicle drivers through free charging periods.
Another thing is that you can use a smartphone app to save even more money by scheduling EV charging during off-peak hours or when electricity is cheapest (usually at night).
Goodwin said driving an electric vehicle gives you some control over operating costs. “I can save money by charging at home, or pay more for the convenience of fast charging when traveling long distances.”
“Or you would go to the extreme and invest in solar or home energy storage to gain greater flexibility and energy independence in the long term versus a gas-powered vehicle that is completely at the mercy of the price of gasoline,” Goodwin said.
Public charges
As for public charging, Buziouweis said, “there are different ways of pricing” because most public charging stations are independently owned, so pricing is determined by the owner. Tesla is a striking example. It has its own fleet of charging stations, and on top of the cost of electricity, it charges an “idle fee” of 50 cents per minute to encourage you to drive away and free up chargers for other users.
In addition to Tesla chargers, other charging stations typically charge a flat rate, charge based on consumption or based on how long EV drivers use the charger, Bucciouweis said. Cost is determined by local electricity prices plus any applicable fees or markups imposed by the charger owner.
But there are also two “levels” or types of charging to know about, namely AC and DC, or Level 2 and Level 3 charging (more on that below). DC charging at public charging stations is actually faster and can be more expensive. “DC charging can cost $10 to $30 each and takes 20 or 30 minutes to charge the battery from 0 to 80 percent,” Boutziouvis said. In contrast, “AC public charging can cost a few dollars,” she said.
“A two- to three-hour trip is enough to get you back on the road,” Goodwin said. “A true full charge at Level 2 can take anywhere from six to 12 hours, depending on your car and charging station.” Here’s Why Goodwin Wen recommends fully charging an electric car overnight at home. “This is usually the cheapest and most convenient option,” he said.
In other words: the faster the charger, the more expensive it is. You can also find free public charging facilities at certain locations.
Goodwin said there are more ways to save on electric driving costs, but they require some planning. “Taking advantage of off-peak charging at home if you can, taking advantage of free EV charging at work or shopping and maximizing local incentives are all good places to start.”
Cost of Level 2 Charging vs. Level 3 Charging
Therefore, the difference between Level 2 (AC) charging and Level 3 (DC) charging mainly involves speed and how much power goes into the EV battery through the charger.
Level 2 charging
Level 2 charging “is what you find at home,” Boutziouvis said, typically providing 7 to 11 kilowatts of charge to an electric vehicle battery. If charged for a few hours, the typical range of an electric vehicle might be 30 or 40 miles. Charging an electric vehicle at a Level 2 public charging station can cost a few dollars due to slower charging speeds. Some public electric vehicle charging stations are even free.
Level 3 charging
Level 3 or DC fast charging, on the other hand, can deliver 50 to 350 kilowatts in the same time frame. Given that many, if not most, EV owners charge at home overnight, it is often impractical to set up a Level 3 charging unit at home, so these chargers are often located in public places. As Boutziouvis mentioned, considering they’re faster, a single charge could cost between $10 and $30.
The cost of home charging equipment for electric vehicles
Charging an electric vehicle at home may be the cheapest way to charge, but connecting to a charger can be a relatively large expense.
The cost really depends on whether your home electrical setup can support adding a charger. If not, you may need an electrician to replace your electrical panel (the breaker box may be located in your basement or garage). Again, this can be expensive depending on where you live and other factors.
Boutziouvis said installing a charger can cost around $700, assuming you don’t need to upgrade, but the cost can vary depending on the physical distance of the charger from your electrical panel. Longer distances mean higher costs because more materials are required. If you do need to upgrade your electrical setup, a new electrical panel can cost thousands of dollars.
Note that tax credits and incentives are available for home charging installation costs. For example, there is a 30% federal tax credit for up to $1,000 of hardware and installation costs, which was implemented as part of the Inflation Reduction Act. There may also be some utility discounts and incentives. Duke Energy, for example, offers one-time credits of more than $1,100 per charger in some areas.
A good rule of thumb: If you’re going to shop around for a charger, check with multiple companies, check with your utility company for credits and rebates, and explore any applicable tax incentives to make sure you’re getting the best possible price. Great price.
read more: Best Home Electric Car Chargers
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