While driving, it’s hard not to notice EVs with boastful license plates like “GASLOL.” Why all that boasting? Maybe EV drivers know something we don’t?
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After combing through popular social media platforms like Reddit and TikTok, we found that the cost of EV charging vs. gasoline charging is currently a hotly debated topic.
One Reddit user noted that while they previously spent $330 a month on gas, charging at home now adds $70 to their electricity bill. Some Reddit users disagreed with the actual savings. For example, one critic said public Superchargers are expensive and time-consuming, while another said the cost of installing an EV charger at home would wipe out the savings.
Reducing fuel costs may be the main reason why people interested in EVs consider going all-electric in the first place. In June 2022, gasoline prices hit an all-time high, exceeding $5 per gallon on average nationwide. Although gasoline prices have fallen to about $3.56 as of June 2024, fluctuating gasoline prices are causing many drivers to consider alternatives such as EVs and hybrids.
We asked auto and EV industry experts: Is it cheaper to charge an electric vehicle than to fill up a gasoline car? Based on the US average, the answer is yes, EV charging wins.
Gasoline prices are volatile and expensive in some areas. Electricity prices also fluctuate, but “it’s a lot cheaper than gasoline,” says Anastasia Boutsiovis, solutions product manager at ChargePoint, which operates the world’s largest network of EV charging stations in North America and Europe. That means charging an EV tends to be significantly cheaper than filling up a gasoline-powered vehicle’s tank, too.
“Generally, I believe charging an EV is cheaper than pumping gas, even though my state of California has the second-highest energy prices in the US,” says Antoine Goodwin, a CNET auto and EV expert for 16 years. “Maybe that’s because California has the highest gas prices in the US.”
Let’s use some math to explain how much cheaper it actually is to charge an EV compared to an ICE (internal combustion engine) car.
Doing the math: Charging an EV vs. filling up a gas tank
When comparing the cost of refueling and charging an electric car to a gasoline-powered vehicle, the difference is stark and pretty obvious: EVs run on electricity and use batteries to store that electricity, which then needs to be recharged.
Gasoline-powered cars, or cars with internal combustion engines, run on gasoline and need to have gasoline in the car’s fuel tank in order to operate.
We calculate it using averages from government data sources, and show you a full month’s worth of charging and fuel costs side-by-side.
These calculations use U.S. driving averages for both EVs and ICE vehicles, with data points such as fuel economy, distance traveled, electricity and gasoline costs, and the power required for an average EV. If you drive longer (or shorter) distances, your fuel costs will change accordingly.
EV Charging Costs and Fuel Costs (US Average)
Based on US average using the following data sources:
Using the US average, we found that the monthly cost of charging an EV is $66.66, compared to $182.50 in fuel costs for an ICE vehicle.
Using the same figures as above, here’s a yearly cost comparison:
The average annual cost of fuel for an ICE vehicle is $2,190, while the average annual cost of charging an EV vehicle is $799.92, for a difference of $1,390.08 per year.
Again, gas and electricity prices vary by location, so your actual savings may vary slightly. For example, states like Connecticut, Hawaii, California, Rhode Island, Massachusetts, Maine, New York, and New Hampshire pay between 23 and 43 cents per kWh, far more than the 16 cent figure used in the example calculation above.
The type of car and EV you own will also play a role in cost savings. The Tesla Model 3 and the Ford F-150 Lightning are both EVs, but they are not equally power efficient.
Monthly cost of charging an EV
While the cost of fueling and charging an EV will vary depending on a number of factors, the cheapest option is to charge your EV at home during off-peak hours. In other words, charging your EV overnight at your home charging station is likely the cheapest way to charge, which in some areas could cost as little as $1 or $2, a fraction of the price of a gallon of gasoline.
“Roughly speaking, it costs about half or a third as much to ‘fill up’ a gasoline car as it does with a gasoline car,” Buziovis said.
She says that on average it costs a few dollars to charge an EV, but if you’re using a home charger to charge your EV, the cost ultimately comes down to how much you pay for electricity. “That’s entirely based on local utility rates and varies across the U.S.,” she says.
Your overall charging costs will also depend on whether you have a fixed or variable rate, or how the time-of-day rates are set out in your chosen energy plan.
Cost of home EV charging vs. public EV charging
Another important thing EV owners need to consider is the difference in cost between charging at home and in a public place. If you don’t have a charger or charging facilities at home, you’ll need to charge somewhere else. There are public charging stations in many places, including retail car parks. Here’s a detailed guide on where you can charge for free.
Yes, charging at home tends to be cheaper, but installing an EV charger or upgrading your home’s electrical system can come with upfront costs.
Home charging costs
As mentioned above, the cost of charging at home is determined by the price of electricity, which varies depending on where you live. Hawaii, New England, and California tend to have higher prices, while Western and Midwestern states like North Dakota, Utah, and Washington tend to have lower prices. The national average is about 16 cents per kilowatt-hour.
Another thing to keep in mind is that some states with deregulated energy markets (commonly known as energy choice markets) offer additional incentives for EV drivers. “Some states are offering very attractive plans where you can charge your EV for free,” Boutziouvis says. Or, certain energy providers may offer incentives “like a cell phone plan, where you get unlimited charging for $20 a month,” she says.
Read more: Deregulated markets let you choose your electricity provider
These plans and incentives vary by state: In Texas, for example, TXU Energy and Gexa offer energy plans aimed at attracting EV drivers by offering them free charging periods.
Another is that smartphone apps can be used to schedule EV charging during off-peak hours or when electricity is cheapest (usually at night), potentially saving even more.
Driving an electric vehicle gives you some control over your operating costs, Goodwin said: “You can save money by charging at home, or pay extra for the convenience of fast charging on long trips.”
“Or they could go to the extreme and invest in solar power and home energy storage to give themselves more flexibility and energy independence in the long term – unlike an internal combustion engine car which is solely at the mercy of gasoline prices,” Goodwin said.
Public charging costs
When it comes to public charging, Boutsiovis said, “there are a lot of different ways to price it,” since most public charging stations are independently owned and therefore pricing is up to the owner. One notable example is Tesla, which owns its own fleet of charging stations and charges an “idle fee” of 50 cents per minute on top of the electricity fee, encouraging people to drive by and free up the chargers for other users.
Non-Tesla stations typically charge a flat rate, a consumption-based fee or a fee based on the amount of time an EV driver uses the charger, Buziovis said, which is determined by local electricity rates plus any applicable fees or markups imposed by the charger owner.
But you should also know that there are two “levels” or types of charging: AC and DC, or Level 2 and Level 3 charging (more on that later). In fact, DC charging is much faster, but it’s probably more expensive at public charging stations. “DC charging can cost $10 to $30 per session,” Boutziouvis said, and it takes 20 to 30 minutes to charge a battery from 0 to 80 percent. Conversely, “public AC charging can cost just a few dollars,” she said.
“Within a couple of hours, you’ll have enough range to get back on the road,” Goodwin says. “A full charge at Level 2 takes six to 12 hours, depending on the vehicle and the charging station.” That’s why Goodwin recommends fully charging your EV at home overnight. “This is usually the cheapest and most convenient option,” he says.
In other words, the faster the charger, the more you’ll pay, and some locations may even have free public chargers.
Goodwin says there are other ways to save on the costs of operating an electric vehicle, but it takes some planning: “Taking advantage of off-peak charging at home where possible, taking advantage of free EV charging at work or while shopping, and making the most of local incentives are all great places to start.”
Cost of Level 2 and Level 3 Charging
So the difference between Level 2 (AC) and Level 3 (DC) charging is mainly to do with speed and the amount of electricity that moves through the charger and into the EV’s battery.
Level 2 Charging
Level 2 charging is “like what you’d find at home,” Boutziouvis said, and typically delivers 7 to 11 kilowatts to an EV’s battery. After a few hours of charging, a typical EV could get 30 to 40 miles of range. Given the slow charging speeds, it can cost a few dollars to charge an EV at a Level 2 public charging station; some public EV charging stations are free.
Level 3 Charging
Meanwhile, Level 3, or DC fast charging, delivers between 50 and 350 kilowatts of power in the same time frame. Given that most EV owners charge at home overnight, it’s impractical to install Level 3 charging equipment at home, so these chargers are generally installed in public locations. As Boutziouvis says, because of the faster charging speeds, it can cost between $10 and $30 to charge at a single location.
Cost of home EV charging equipment
Charging an EV at home may be the cheapest way to top off the battery, but there are relatively large costs associated with plugging in the charger.
The cost will depend largely on whether your home’s electrical system can accommodate the addition of a charger. If not, you may need to hire an electrician to replace your electrical panel (your breaker box may be in your basement or garage). Again, this can be costly depending on where you live and other factors.
Assuming no upgrades are needed, installing a charger can cost around $700, Boutziouvis said, and the cost can vary depending on how far the charger is physically from the electrical panel. Longer distances mean higher costs because more materials are needed. If electrical upgrades are needed, a new electrical panel could cost thousands of dollars.
Be aware that there are tax credits and incentives available for the cost of installing a home charger. For example, there is a federal tax credit enacted as part of the Inflation Control Act that allows you to deduct 30% of the hardware and installation cost up to $1,000. You may also be eligible for utility discounts or incentives. For example, Duke Energy offers a one-time credit of over $1,100 per charger in some areas.
A good rule of thumb: If you’re considering buying a charger, check with multiple companies, see if your energy provider offers any credits or rebates, and research all applicable tax incentives to ensure you’re getting the best deal.
Read more: Best home EV chargers
Check it out: Experts vs. AI: Is now the time to buy an EV?
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