The cost of charging an electric vehicle versus filling your tank with gas is an important consideration when shopping for an EV. Sure, you want to make the right choice for the environment, but you have to ensure it’s the right choice for your household, too. Buying an EV carries upfront costs, such as a higher price tag and potentially installing a Level 2 charging station, and you need to make sure those expenses are worth it.
The good news is that, in a lot of circumstances, charging an electric vehicle is going to be cheaper than fueling a fossil fuel-powered car.
Here, we break it down for you so that you can make the right decision for your household. Let’s compare EV charging costs with the cost of gas and ways you can reduce your charging fees.
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How Much Does it Cost to Charge an Electric Vehicle at Home?
Unfortunately, the cost of charging an EV at home doesn’t come down to one number. It depends on various factors. The most important elements include your battery size and the cost of electricity in your area.
You can estimate roughly how much you’ll spend to charge your EV with some simple math. Take the average price of electricity in your state and multiply it by the size of your EV battery, measured in kilowatt-hours. So, if you live in California, where the average cost of electricity is 32.99 cents per kWh, and your EV battery capacity is 80 kWh, then you can expect to pay $26.39 to fully charge. However, if you charge the same car in Utah, where the average price of electricity is 11.5 cents per kWh, you can expect to pay $9.20 to fully charge.
The battery size of available electric vehicles ranges from 21.3 kWh to 123 kWh, and the average cost of electricity per kWh goes from 12.57 cents to 42.45 cents, leaving a potential at-home charging price range of $2.68 to $52.21.
Monthly charging costs
Conservative estimates indicate that EVs get about 3-4 miles per kWh.
To calculate the monthly charge, divide total miles you drive each month by 3 to get the kWh you utilize. Multiply that number by your price per kWh, and you’ll have a pretty good estimate of what it will cost to charge your EV monthly at your place of residence.
Say you drive 13,476 miles annually, the average for US motorists, according to the 2024 survey by the Federal Highway Administration. That's 1,123 miles a month.
Dividing by 3 miles per kWh, you get the number of kWh used per month, approximately 374 kWh.
Multiplying the 374 kWh used by the average rate of 16.41 cents per kWh, it would cost about $61.37 per month to charge your EV, if your efficiency falls at the low end of the range.
Charger expenses
While the above equation will provide an adequate cost estimate, it’s important to note that there are other cost considerations when charging your EV battery at home. For example, Level 1 chargers are less efficient than Level 2 chargers, and they take much longer to charge (about 20-30 hours compared to 4-5 hours with a Level 2 charger), so you may need to install a Level 2 charging station at your home, which can cost anywhere between $600 and $2000.
On the other hand, EV owners can receive tax benefits that offset the cost of vehicles and Level 2 charging stations, bringing down the overall cost.
Charging at Home vs. Public Charging
Charging an EV at home is almost always the least expensive way to fill up, but public charging is sometimes necessary, especially on long journeys.
The number of public and private electric vehicle chargers in the US. Credit: Department of Energy
Public charging rates are typically higher than residential ones—sometimes even two or three times more expensive. It can also be difficult to estimate costs because the prices at different stations vary. You must also consider which type of charger that you need. Level 2 chargers are less expensive to use, but they can take hours to fully charge. Meanwhile, Level 3 chargers only take minutes but are more spendy.
Luckily, there are apps and subscription services available to help EV owners make the most economical charging decisions. These services will provide maps identifying different charging areas, their services, and their prices. In general, you should expect to pay somewhere between $10-$30 for a public charge.
As EVs become more popular, so do free charging services. Workplaces and businesses are starting to offer EV charging stations as part of their benefits. We talk more about this below.
Another, non-monetary perk of charging at home is the convenience. Recharging your EV overnight while you sleep takes a task off your to-do list. And for anyone that’s ever fueled up in freezing, rainy weather, you know it’s hard to put a monetary value on such a perk.
Charging at Home vs. Buying Gas
Using the national gas average provided by AAA, we can find out the average price of gas in the United States. As of September 16, 2024, AAA reports that the national gas average is $3.208 per gallon, which should take you 24 miles, if you get the gas mileage of the average American car. If you’re driving the same 1,207 miles per month as you would in your EV from the above example, you’ll pay about $160 a month in gas. (At 24 miles per gallon, you’d need about 50 gallons of fuel in a month. At $3.208, that’s about $160.)
Again, comparing the price of charging at home versus buying gas depends on a myriad of factors, including the cost of gas in your area, the fuel efficiency of the equivalent gas-powered vehicle, the average mile per kWh of your EV, and the cost of electricity in your state. You’ll have to crunch the numbers to determine which option is the most effective in your case.
The price of gas in the US over time. Credit: Department of Energy
The Washington Post already did some math for us and found that, in pretty much all cases, charging at home is less expensive than buying gas. In states like Washington and California, the savings can be significant, while in areas like New Hampshire or Mississippi, average savings are less. Still, making the switch to an electric vehicle can save Americans at least $14 per fill-up.
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How to Save When Charging an EV
A major benefit of electric vehicles is that you have more space to create savings compared to a gas vehicle; although you can save one or two cents on the gallon by choosing a different gas station, you’re pretty much beholden to current gas prices. With electric vehicles, you can lower EV charging costs with some creativity. Here are some ways that people are reducing their EV costs.
- Charging at off-peak times: Electricity prices can change hour by hour. If you’re on a time-of-use rate with your utility and you charge during off-peak hours (typically at night), it will be reflected in your energy bill.
- Use smart charge technology: Smart charging uses data to optimize your charging period. Your charger will essentially communicate between your vehicle and the utility company to control how your vehicle is charging. This not only helps to alleviate pressure on the power grid, but it can also save you money.
- Use bi-directional charging: Some EVs have the capacity for bi-directional charging, which means that the vehicle can be used as an energy source. Utilized effectively, you can choose the cheapest energy source to use as power.
- Use a Level 1 or Level 2 charger: If you have time to fully charge your EV using a Level 1 charger, this may be the most cost-effective. If you drive frequently, however, installing a Level 2 charger could be worth it. Either way, it will be cheaper than charging at public Level 3 chargers.
- Find free charging stations: As EVs become more popular, hotels, restaurants, and shopping outlets offer free charging stations to encourage customers to come and patronize their businesses.
- Switch to solar power: Installing solar panels in your home offers some savings opportunities, especially if you own an electric vehicle.
Solar Panels and EV Charging
Investing in solar power can greatly alleviate or eliminate your EV charging costs. Like the other cost considerations of EV charging, the amount that you might save by using solar panels relies on various factors. Depending on your solar panel system design and net metering policy, you could mitigate the entire cost of EV charging. Or, your solar panels could simply cover a portion of your charging needs. Regardless, using solar panels will offset at least a portion of the cost of charging your electric vehicle.
Learn more: Solar Panel Payback Period (Guide)
Besides the federal solar tax credit, some states offer tax credits for solar panels, and these, combined with potential tax credits for your electric vehicle, could result in some real savings.
To gain a more concrete estimate of what you can save by installing solar panels, use our solar savings calculator.
Not only can solar power make financial sense, but it makes environmental sense, too. By pairing solar and an EV, you can be sure you’re avoiding fossil fuels at the gas pump, and any fossil fuels used to generate the electricity on the grid.
FAQs
Is it cheaper to charge an EV than fill a gas tank?
According to 2023 data from the Washington Post, EV owners saw savings of $14 - $80 per fill-up compared to gas.
Do I need to install a charger at home if I get an EV?
Although installing a charger isn’t necessary (most electric vehicles come with a Level 1 charger, which can plug into a standard wall outlet), it might make sense for you, especially if you drive a lot every day and need to fully charge your EV battery overnight. Level 1 chargers can take days to fully charge a vehicle, while a Level 2 charger only takes a few hours. Level 3 chargers can fully charge your EV battery within 15 - 30 minutes, but they’re only recommended for public charging due to their price.
Can I charge my car for free?
Some offices, hotels, restaurants, and shopping outlets offer free EV charging. Or, if you invest in solar panels, the cost of your EV charge will be alleviated.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
