The price of plugging in.
Before you commit to an electrified lifestyle, you’ll probably want to know what it costs to drive. Specifically, how much does it cost to charge an electric vehicle? Unlike gas, the price isn’t always crystal clear. You’ll probably save money at the pump, but what you pay will depend on where you do your charging.
Charging an Electric Vehicle at Home
For many EV owners, plugging in at home will be the most practical way to recharge. And whether you use a standard AC outlet or DC Fast Charging, you’ll be paying per kilowatt-hour (kWh). As of November 2020, the average price of electricity in the United States is 13.23 cents per kilowatt-hour. The amount varies widely based on where you live, with rates ranging from 9.49 cents in Louisiana to 20.52 cents in California.
To calculate the cost to fully charge an electric vehicle, simply multiply the cost per kilowatt-hour with the battery’s maximum capacity. Consider the Chevy Bolt, equipped with a 66-kWh battery. Taking the average rate of 13.23 cents per kilowatt-hour, this vehicle would cost the average American $8.73 to go from empty to full. Each EV has a different sized battery, so you’ll have to run the numbers based on your vehicle and electricity costs.
You may be wondering about how to figure out an electric vehicle’s efficiency, which is traditionally measured in miles per gallon. With electric vehicles, the most helpful measure is kilowatt-hours per 100 miles driven. You can find this number on the EPA fuel economy sticker attached to new vehicles. Alternatively, you can use the U.S. Department of Energy’s official tool to find and compare fuel economy ratings.
Charging an Electric Vehicle at a Public Station
Range anxiety is quickly becoming a symptom of the past, as more and more EV charging stations are being built across the country. And while public stations typically cost more compared to plugging in at home, they offer the added convenience of charging while you dine, shop, or work. Many charging networks have apps to help streamline the payment process, or you can pay using a credit or debit card.
Today, many public stations bill based on time spent charging. That means you’ll be billed the same amount whether your vehicle charges quickly or slowly. The exact rate will vary based on the charging station. Others may use a subscription fee for unlimited charging or a discounted rate. California is now requiring new stations to bill by kilowatt-hour, paving the way for other states to make the change.
Public charging stations with DC Fast Charging, also known as Level 3, are quickly growing in popularity. These stations can recharge compatible vehicles much faster than their Level 2 counterparts, but usually at a more expensive rate. The good news is that some new vehicles like the Nissan Leaf offer free DC Fast Charging for two years with the EVgo charging network.
Is It Really Cheaper to Drive an Electric Vehicle?
Of all the ways that electric vehicles save you money, spending less on gasoline is arguably the most compelling. The price of both gasoline and electricity will vary depending on your state. But as of this writing, the average cost of regular gasoline per gallon is about twice the equivalent cost in electricity. If you buy an electric vehicle for the long run, the money you save on fuel can really add up.
Electric vehicles are also less expensive to maintain, aside from the usual wear items like tires, brakes, and windshield wipers. You will eventually need to replace the battery, but new EVs today are sold with an eight-year or 100,000-mile limited warranty. There’s a good chance you won’t have to deal with any major mechanical repairs, lowering your average maintenance costs.
There are also electric vehicle tax credits and rebates, which can make your ownership experience that much more rewarding. If you’re able to claim federal tax credits, state rebates, and utility rebates, the savings can be more substantial than you might realize. Some utility companies also offer reduced electricity rates with your purchase or lease, lowering the cost of charging an electric vehicle at home.
Other Costs to Consider
If you’re going to charge your vehicle at home, you’ll need the right charging equipment. All new electric vehicles include a Level 1 Charger, which can plug into any standard 110-volt outlet. However, your charging speeds will be limited compared to other options. This might be OK if you commute short distances or don’t drive often. But if you drive more frequently, you should consider installing faster charging equipment.
A Level 2 Charger can fill up your battery more quickly, and is currently the most popular option for electric vehicle owners. It does require special installation by an electrician, which will add upfront costs. The good news is that you may be able to claim a federal tax credit for 30 percent of the equipment cost and installation up to $1000. Installing a charger can also be a good investment if you plan to drive electric for the long haul.
When Is the Best Time to Charge an Electric Vehicle?
In the United States, electricity usage is lowest between midnight and 6AM. This off-peak period is when most people are asleep, and an ideal time to charge since the electrical power grid has very little load. Electricity usage tends to peak around 6PM, when people come home from work, turn on the lights, and use various appliances. Based on this, the best time to start charging your vehicle is usually after midnight.
To help ensure the grid isn’t overloaded, some utility companies offer reduced rates during off-peak hours. Rates during peak hours may also be higher, incentivizing owners to recharge their electric vehicle when it costs less. Additionally, rates may be different during the summer and winter. If your local provider offers off-peak pricing, it’s a good idea to keep track and adjust your charging schedule accordingly.
