The Real Cost Of Charging An Electric Vehicle: Here's What To Expect – HotCars

EVs, or rather electric cars, are currently the trending tropic topic in the automotive scene. Governments in every corner of the globe have set up policies to speed up the transition from traditional fossil fuel-driven vehicles to EVs. This has seen more and more carmakers jump on the EV bandwagon in recent years, including new startup companies like Lucid, Rivian, and Fisker. While there are obvious environmental advantages of switching to EVs when compared to gas-powered vehicles, the transition involves more than just clean energy for most consumers.

The biggest question about EVs is: How much does it actually cost to charge an electric car? And is charging an electric car cheaper than gas? While there is no one-size-fits-all answer to such questions, there are several variables that go towards determining the actual cost of charging an electric car. Charging at home or overnight, for example, is way cheaper than charging on the road. But more on that later. If you are thinking of switching to an electric vehicle, read on to find out how much to charge an electric vehicle costs.

First, What Is The Cost Of Electricity Per kWh?

One significant variable that determines how much it costs to charge an electric vehicle is the cost of electricity. The cost of electricity is far more expensive in some states than in others. That means the cost of electricity per kilowatt-hour (kWh) varies from state to state and sometimes even within states. The rate can also vary depending on the time of the day you charge your electric car. The rate is often higher when demand is high (daytime) and lower when the demand is low (at night).

You should, therefore, know the cost of electricity in your area. Generally, the electricity cost in the U.S. ranges from $0.09 to $0.35 per kilowatt-hour. According to the United States Energy Information Administration, the national rate for the average American household is about 16 cents per kilowatt-hour, or $0.16/kWh.

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Calculating The Real Cost To Charge An Electric Vehicle

The general thumb rule for EVs is that electric cars travel about 3–4 miles per kWh of electricity. So, to calculate the amount you spend in, say, a month to charge an electric car, take the total miles you drive each month, divide by 3 – to get the total kWh you’d use in a month – then multiply that number by the cost of electricity per kWh in your region.

In other words, Cost to Charge = (CR / RPK) x CPK where CR is the car range in miles, RPK is the range your EV travels per kWh, and CPK is the cost of electricity per kWh.

To put that into perspective, let’s take an example where an average American drives 13,489 miles annually, according to KBB. That translates to 1,124 miles per month. Using the above formula, you’ll use about 375 kWh to drive 1,124 miles. Using the U.S. average rate of 16 cents per kWh, it would cost you about $60 per month to charge an electric car at home.

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How Does Charging An EV Compare To A Gas Fill-Up?

The real question many consumers face before switching from a car that burns fossil fuels to an EV is whether charging an electric is cheaper than a gas fill-up. At the time of writing, the average gas price is $3.80 per gallon, per AAA. So, you’d spend about $46 to fill up a 12-gallon gas tank, for example.

Now, let’s say your car returns an average of 30 miles per gallon (mpg) during city and highway driving. With the 12-gallon tank as our reference point, you’ll have a driving range of 360 miles for each gas fill-up. If you drive the U.S. average of 1,124 miles in a month, you’ll need to refuel thrice. That equates to a total of $138 ($46 x 3) in monthly fuel costs. For reference, we found that recharging an EV costs about $60 per month.

Note that this is just an estimate since gas prices and vehicle fuel economy vary. But considering only a few gas-powered vehicles come close to achieving a combined fuel economy of 30 mpg on average, it’s clear that charging an electric vehicle is cheaper than refueling an engine-driven vehicle.

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How Much Does It Cost To Charge An Electric Car At Home Vs A Commercial Charger

There are basically three types of electric charging stations, namely Level 1, Level 2, and Level 3. Level 1 is the charging station in your home or anywhere with a standard outlet. While it’s the slowest to recharge an electric car, it’s also the cheapest as it uses your region’s electricity rate. In our case, we used the national average of $0.16/kWh. Cost varies depending on your region, time of the day, and sometimes even the time of the year.

Unlike the Level 3 fast-charging station, you can install a Level 2 charger in your home. It isn’t cheap, though; it costs about $2,000 for parts and installation. But that would mean cutting your charging time by half or more. Its recharge costs vary anywhere from zero to a standard fixed hourly rate. Several states and companies even offer incentives and rebates for EV owners who opt to install home chargers.

Level 2 and Level 3 are public (commercial) chargers that use different rates from Level 1. However, determining the cost of recharging with a commercial charger is a bit harder since prices vary from one network to another. It also depends on whether a driver is a member of the network.

It Costs More To Recharge At A Fast Charging Station

In the EVgo network, for example, it has a pay-as-you-go approach that costs $0.36 per kWh. However, the rate drops to $0.24 per kWh if you upgrade to the EVgo PlusMax plan or, in other words, if you become a member.

EV companies like Tesla have a dedicated Supercharger network across the globe. Like other commercial chargers, Tesla’s rates vary depending on your region, the Tesla model you’re charging, timing, and the tier you select for recharge speed. So, how much does it cost to charge a Tesla, you may ask? Taking the Model Y as an example, which is currently the best-selling EV, it has a battery capacity of 75 kWh, giving it an EPA-rated range of 330 miles.

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Using a rate of $0.16/kWh, it would cost you about $12 to charge a Tesla Model Y to full capacity at home. Elsewhere, recharging at a Tesla Supercharger with a rate of $0.25-$0.50/kWh would cost you $18.75 in the best-case scenario and double that in the worst case.

While charging at home is generally the best option, it’s equally important to know other charging stations near you. Some workplaces even offer to charge their employee cars for free. Other places like Walmart lure EV owners with the promise of cheap or free charging. For reference, it would cost you $0.12 per kWh to charge an electric car at Walmart, according to Energy 5. That’s cheaper than even the average U.S. household rate.