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Electrical vehicles (EVs) can represent considerable cost savings compared to gas-powered vehicles in refueling and maintenance. However, the cost of charging an EV can vary based on your charging strategy.
How much does it cost to charge an electric vehicle? There are two primary considerations, so we&#;ll explore the difference between home charging and public charging costs below.
With 80% of EV owners charging at home, paying residential electricity rates is proving to be a cost-effective way of charging electric vehicles.
As of July , the average American is paying between $0.15 and $0.16 cents per kilowatt-hour. However, this rate can vary from $0.31 in California or Connecticut to as high as $0.41 in Hawaii or as low as $0.11 in the state of Washington.
How much does home EV charging cost?
Given an average electricity rate of $0.16/kWh, adding 100 kWh to an EV battery has an average cost of $16, but it can cost as little as $11 in Washington and as much as $41 for Hawaii residents. With an average battery size of 40 kWh, a full charge could cost between $6.00 and $6.40 at home. We&#;ll compare this cost to public charging costs later in this article.
EV owners can expect to get three to four miles per kWh of charge, but newer EVs are better performing and can exceed the four-mile limit.
Depending on the make and model of your EV, the cost per mile driven generally starts at $0.05 and decreases if you have a more effective model or live in a state with lower-than-average electricity rates. EV owners who take advantage of time-of-use rates by charging during off-peak hours are able to further reduce the cost of EV charging.
On average, Americans drive 13,489 miles a year. For EV owners, this average translates into a cost of $506 to $720 with at-home charging. Depending on fuel efficiency and local fuel prices, driving 13,489 miles a year in a gas-powered car would cost around $1,600 to $2,100 a year.
A majority of EV owners who rely on at-home charging have purchased a Level 2 charging station, which requires installation by a certified electrician. EV charger installation cost starts at less than $1,000, but it can exceed $3,000 if an electric panel upgrade is needed. It&#;s possible to offset this initial cost by taking advantage of incentives, including a federal tax credit of up to $1,000 and additional EV charging rebates and tax credits offered at the state, municipality, and utility levels.
The public charging network is growing at a fast pace and now counts over 53,000 stations with more than 130,000 ports.
Public EV charging is convenient when traveling, but the cost can be as much as three times higher compared to at-home charging. A full charge on a 40kW battery costs $8 to $10 for Level 2 charging and $16 to $24 for Fast DC charging. A public Level 2 charging station typically costs $1 to $5 an hour, translating to $0.20 to $0.25 per kWh. For Level 3 or DC fast charging, a full charge can cost anywhere from $10 to $30, which is the equivalent of $0.40 to $0.60 per kWh.
Based on the national average of 13,489 miles driven yearly, relying exclusively on public Level 2 charging stations would cost $770 to $963. If an EV driver were to exclusively rely on Fast DC charging, driving 13,489 miles a year would translate to approximately $1,540 to $2,300 a year.
Pricing can vary a lot based on location, charging network, and the type of charger used. Local energy prices and regulations are also important factors to consider. While some businesses and municipalities offer free public charging as a perk, these free stations often have long lines and frequent outages. Relying on free public charging isn&#;t a viable option.
Is it cheaper to charge EV at home or public?
At-home charging remains an affordable and efficient way to charge an EV. There is a pricing difference of at least $0.04 per kWh, and often significantly more, when compared to public Level 2 charging, and it can be as little as one-third of the cost when compared to DC fast charging. However, fast charging can offer a more convenient experience. Since Level 2 charging requires anywhere from four to ten hours to fully charge a battery, it&#;s only a viable option for charging your vehicle whenever you can leave your EV parked for several hours at a time.
If you can&#;t afford to wait for your vehicle to charge, spending a few more cents to use a public DC fast charging station may be worth it. Public stations also expand your driving radius by giving you access to more locations where you can top off your battery and extend your travels before returing home.
How much does it cost to charge an electric vehicle in the long term? The answer depends on your personal driving habits and charging patterns.
How much money do EV drivers save? Compared to an ICE vehicle, driving an EV saves EV drivers an estimated $950 a year on fuel costs. These savings add up to a range of $6,000 to $10,000 EV drivers will realize over the lifespan of their EV. Your usage patterns and driving habits will determine how much you&#;re saving, how often you need to charge your EV, and whether public or home charging makes the most sense for your needs. You should consider how much you drive in a day, how far away from home you need to drive, and what kind of traffic you&#;re likely to encounter.
With the average American driving roughly 36 miles per day, prioritizing at-home charging makes sense for the majority of EV owners and it&#;s no surprise that 80% of EV drivers prefer the convenience of at-home EV charging. However, leveraging the public charging infrastructure can add to your range, allowing you to take trips that last several days and give you access to fast charging if you&#;re in a hurry.
Since EVs have fewer moving parts, maintenance and repairs are typically cheaper. Over the years, saving on maintenance makes up for the slightly higher initial purchase price of these vehicles. You may only have to pay for new wipers, tire rotations, and brake pads. The total cost of maintenance is around $4,200 for five years, and repairs typically cost $1,700 over the same time frame.
A gas-powered vehicle costs an average of $4,500 in maintenance over a five-year timeframe, but this pricing difference could become even more important as the cost of repairs keeps increasing.
It&#;s worth noting that your charging habits can make maintenance costs fluctuate. For instance, living in a warm climate or relying on Fast DC charging can accelerate battery degradation and cause a battery capacity loss of 3 to 9% over 50,000 miles driven. Replacing a battery is a major expense, which is why prioritizing Level 2 charging can contribute to a lower cost of ownership for EVs.
The total cost of ownership can also vary based on federal and local programs designed to support EV adoption. For instance, new owners can qualify for a federal tax credit of up to $7,500 on some EV models, and many states, utilities, and municipalities offer additional incentives to make EV ownership and charging more affordable.
The cost of EV ownership can vary, but there are significant cost savings compared to owning a gas-powered vehicle. EV owners who rely on at-home charging tend to save even more since electricity rates can be as much as three times cheaper compared to public charging stations.
If you&#;re looking into EV ownership, you can calculate the cost of charging your vehicle with this formula:
Charging Cost ($) = Electric Vehicle Battery Size (kWh) x Electricity Rate ($ per kWh)
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Link to EraCharge
So, you&#;re considering installing an EV (electric vehicle) charger at your home or business. You&#;ll have many factors to consider, but chief among them: how much will it cost to have one installed?
The national average cost for EV charging station installation is between $1,000 and $2,500. Still, this cost varies based on your region, the type of station you buy, and whether it is portable or hardwired into your home. If you&#;re planning to buy an EV charger to service your own vehicle, keep in mind that many EVs come with a Level 1 charger that you can easily plug into a typical 120-volt outlet. However, you can upgrade to a faster charging station, too.
So with that in mind, let&#;s break down the factors that will influence how much installing your EV charging station will cost.
(Photo by dcbel on Unsplash)
First, let&#;s break down the difference between Level 1 and Level 2 EV chargers. Level 1 EV chargers use your home&#;s existing electrical outlets and are typically much more affordable than Level 2 chargers. They can take up to 10 hours for a full charge, so they&#;re great for overnight charging.
Level 2 EV chargers require professional installation and are hardwired into your home or business. They provide faster charging times, usually around four to eight hours. However, they also have a higher price tag than Level 1 chargers.
Prices for Level 1 home EV chargers range from $300 to more than $1,000, not including installation costs. Prices for Level 2 chargers range from $700 to more than $1,800 for homes and up to $12,000+ for commercial installation. These prices depend on various factors, including the need for adaptors, wi-fi connectivity, weather protection, and energy needs.
(Photo by Steve Johnson on Unsplash)
If you decide to go with a Level 2 charger, you&#;ll need to determine if it will be hardwired or plug-in. If you opt for a plug-in unit, the only installation costs associated with the charger would be for the electrician to run power from your home&#;s breaker box to the outlet where the charger will be plugged in. In this case, you&#;ll most likely need access to a 240-volt electrical outlet.
On the other hand, a hardwired unit requires a more extensive installation and is generally more expensive. In addition to running power from your home&#;s breaker box, an electrician must attach the charger to your home or business&#;s wiring system, which may require additional hours of labor and materials for installation.
Other accessories for operating your EV charging station could contribute to your upfront costs, including surge protectors, extension cords, mounting brackets, and other supplies. Depending on the state of your home or business&#;s existing electric system, you may also need to install additional wiring or outlets to accommodate installing your EV charger.
(Photo by Gabriel Alenius on Unsplash)
Electricians may charge by the hour or at a flat rate. Your region&#;s laws will determine whether permits are necessary for EV charger installation, and the cost of these permits can vary greatly depending on your locality. It is generally wise to contact a licensed electrician for an estimate before installing your charging station to ensure you get the best deal.
Depending on your jurisdiction, you may also need to consider the cost of permits, which could add a few hundred dollars to the project cost.
(Photo by &#;&#;&#;&#;&#; &#;&#;&#;&#;&#;&#;&#;&#; on Unsplash)
Owning an EV charging unit also involves some ongoing costs. Some manufacturers charge a small monthly fee to use their cloud-based systems, while others levy fees if you want to share your charger with the public.
Most wall units have a warranty and require minimal or no ongoing maintenance. You may have to pay for repairs if your charger malfunctions or needs an upgrade, so it&#;s a good idea to check the warranty included with your unit.
You will also have to pay for your EV charger&#;s electricity unless you use solar panels or other renewable energy sources. The cost of electricity varies depending on where you live and how much you drive, but it can be a significant expense to consider when budgeting for your EV charging setup.
Finally, it&#;s important to remember that even the best-maintained EV chargers will eventually need replacing. As the EV industry continues to evolve, newer charging units will likely become available with more features and better performance. If you plan to keep your EV for a long time, consider how much the cost of replacing your charger may change over its lifetime.
You may reduce the cost of installing your EV charger by taking advantage of applicable tax credits or rebates. Many states and utility companies offer rebates and incentives to install a home charger. Check your state and local government websites for more information. You may also qualify for federal tax credits that reduce the overall cost of installation.
Additionally, you can save money if you shop around and compare different models and quotes. Many suppliers offer discounts for purchasing multiple charging units at once, so if you plan to install more than one station, look for deals to help lower the installation cost.
Regardless of upfront costs, it&#;s important to remember that purchasing an EV charger for your home or business will likely become a profitable long-term investment. Installing an EV charger can help you save money in the long run by reducing your reliance on expensive fuel. If you make your charger publicly available, you&#;ll find plenty of ways to monetize your charging station. With proper research and planning, you can be sure that your charging station will be a great addition to your home or business for years to come!
Are you interested in learning more about EV charging infrastructure? Join us at the upcoming EV Charging Summit and Expo.