Electric Car Travel Costs
The debate on electric car travel costs is ongoing, with opinions varying widely. You’ll often hear people with strong opinions on the costs of running an EV, from those who think they cost a fortune to those who pay pennies. With the amount of variables at play, the effect for 2 individuals can be very different. Let’s look at 4 scenarios to get an idea of the costs you can expect should you make the move.
The Commuter: Steve
Meet Steve. He lives in a house with a driveway and has installed a charge point for his Kia. Steve drives 10,000 miles a year, commuting 20 miles to work, and only undertakes trips exceeding 200 miles a few times a year. How much does it cost for him to run his EV?
For Steve, the news is excellent. By opting for an electric car tariff from providers like Eon, he typically spends less than £5 for his 200-mile weekly usage. On the rare occasions he needs to use public fast chargers, he spends around £45. Annually, his total ‘fuel’ bill amounts to just £330, equivalent to only two months’ worth of diesel expenses for a similar-sized car!
The City Slicker: Sarah
Next is Sarah. She lives in an apartment in the city and uses her car primarily for weekend outings with friends and sightseeing, relying on public transport for her daily commute. Sarah’s main challenge is that she cannot charge her EV at home and drives about 6,000 miles a year.
Since Sarah must rely on public charging, she benefits from nearby on-street charging stations, where she pays 50p per kWh. She’s among the fortunate third of people with this flexibility. By charging overnight at these stations, Sarah spends just under £30 for 200 miles each month. While this cost is comparable to petrol or diesel, she enjoys significantly lower running costs, avoids clean air charges, and benefits from cheaper parking permits.
The High-Mileage Driver: Dilip
Dilip lives in a rural area and commutes to his office, 30 miles away, driving 18,000 miles a year. Once a month, he embarks on trips exceeding 300 miles, requiring public charging.
At home, Dilip charges his EV for 1,200 miles each month, costing him £30 on a dedicated EV tariff. For his monthly 300-mile trips, he uses public chargers that cost 79p per kWh, totalling about £45 for a 200-mile charge. He may need an additional charge on his way back, adding another £35. Therefore, his monthly public charging expenses reach approximately £80.
Despite the higher costs of fast public charging, Dilip saves significantly when charging at home, with a total monthly spend of £110 compared to £200 for petrol or diesel.
The Essential Business User: Avril
Avril drives 24,000 miles annually, with 18,000 miles dedicated to company business. While her personal use incurs minimal costs, she is concerned about her business mileage. Her salary sacrifice car allows her to claim only 9p per mile from her employer.
Charging at home on a specialist tariff, Avril pays about 5p per kWh, translating to roughly 2 pence per mile. This is well below her reimbursement rate of 9p per mile. However, if she’s on a standard rate tariff paying 30p per kWh, her cost equals the reimbursement rate, meaning no financial gain.
For longer business trips exceeding 200 miles, Avril must use public charging, costing approximately 23p per mile. This makes her out of pocket, leading to frustration.
What solutions are available for Avril?
One option is to switch to an EV tariff, offering significant savings. Employers could also increase the cash allowance, acknowledging the savings on fuel reimbursements for employees driving 10,000 miles per annum. Alternatively, funding a charge card subscription could lower public charging rates, or employers could cover all public charging costs. The most accurate option is to record all miles and all costs from both public and private charging. This allows an HMRC-compliant, accurate reimbursement rate to be calculated; It can be complex and demands a modern home charge point. She could also charge at her workplace if this is offered by her employer; with grants available to aid this, we see no reason this can’t be an option.
Conclusion
The cost of travelling with an electric car varies significantly based on individual circumstances, including driving habits, charging options, and tariffs. While some may face higher costs due to reliance on public charging, many drivers can enjoy substantial savings by charging at home on specialized tariffs. Understanding your specific needs and exploring available options can help you maximize the financial benefits of owning an electric vehicle.
Ultimately, the best solution depends on individual priorities and usage patterns. For personalised advice, reach out!
FAQs
How much does it cost to charge an electric car at home?
Charging costs at home vary based on your electricity tariff. On average, a dedicated EV tariff can reduce costs significantly, often as low as 5p per kWh, translating to around £5 for a full charge.
Is public charging more expensive than home charging?
Yes, public charging tends to be more expensive, especially fast chargers, which can cost up to 79p per kWh. However, slower public chargers can be more affordable and sometimes even free, depending on the location.
Can I save money by switching to an EV tariff?
Absolutely. EV tariffs are designed to offer lower rates during off-peak hours, making them an economical choice for EV owners who charge their vehicles overnight.
Are there any government incentives for EV owners?
Many governments offer incentives such as grants for home charging point installations, tax benefits, and rebates on the purchase of electric vehicles to encourage the transition to cleaner energy.
What is the average cost per mile for an electric car?
The cost per mile for an electric car varies but generally ranges between 2 to 5 pence when charged at home on an EV tariff. Public charging can increase this cost, especially with fast chargers.