The Cost Savings of Charging an EV or PHEV
When it comes to charging an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV), the general consensus is that it costs less than making a pit stop at a gas station. However, the actual amount of savings greatly depends on the type of gas vehicle you’re switching from. The latest Fact of the Week (FOTW) from Energy.gov sheds light on this matter, revealing that while some gas owners experience substantial savings when going electric, others may see little to no difference.
Fuel cost reductions of 50 percent or more are observed across most vehicle types when switching to an EV or PHEV. Notably, electric pickup trucks and SUVs save the most compared to their gas counterparts, with savings exceeding 50 percent. Electric vans also offer significant savings of around 27 percent. Surprisingly, electrified sports cars come out even with gas models in terms of fuel costs.
It’s important to note that the FOTW lumps together EVs and PHEVs. Plug-in hybrids still rely on fuel and need to be charged to fully reap their benefits. However, the study underlines that the higher the level of electrification, the greater the savings. If the study had focused solely on EVs, the results would likely look significantly different.
Another factor that influences gas savings is location-based gas prices. Drivers in California, for example, experience drastically different fuel savings compared to those in South Carolina. While gas prices play a role in determining overall savings, it’s worth mentioning that electricity pricing also impacts charging costs. Consequently, for some drivers, the cost to charge an EV might not be significantly lower than making fuel stops.
While saving money on fuel is an appealing incentive for going electric, it’s essential to consider that EVs generally come with a higher price tag than their gas-powered counterparts. The time it takes to recoup the additional cost through fuel savings can be significant. Even though some vehicle types boast savings of over 50 percent, this only translates to a few cents per mile.
To put it into perspective, the study conservatively estimates the cost of gasoline at 10 cents per mile and electricity at 4 cents per mile. For instance, let’s compare the base prices of the Hyundai Sonata and the comparable Ioniq 6. The Sonata starts at $27,500, while the Ioniq 6 has a base price of $37,500. Given this price difference, it would take a whopping 166,667 miles to recover the extra $10,000 in fuel savings.
However, as the data above demonstrate, the payout could be faster for larger pickup trucks or SUVs. Therefore, for potential buyers, it’s crucial to do some math and carefully consider their actual savings based on their specific circumstances and vehicle preferences.
In conclusion, charging an EV or PHEV does offer cost savings compared to traditional gas vehicles. However, the extent of these savings varies depending on the vehicle type, level of electrification, location-based gas prices, and electricity rates. While fuel savings can be substantial for certain vehicle types, potential buyers should consider the initial higher purchase price of EVs and calculate how long it would take to recoup those costs through fuel savings. Remember that while going electric has its advantages, it’s essential to make an informed decision based on individual driving habits, needs, and financial considerations.
