The Real Cost of Owning an Electric Car: Your Electric Bill

In 2024, Americans bought over 1.2 million electric vehicles, more than ever before. Yet behind the wheel of progress lurks a question that haunts potential EV buyers: "What will this thing do to my electric bill?"

I've spent years helping drivers navigate the transition to electric vehicles, and I'll tell you this: The answer isn't simple. Your electric bill will absolutely change after bringing an EV home. But by how much? That's what we're diving into today.

What an EV Will Add to Your Monthly Bill

Let's cut to the chase. The average EV owner who charges primarily at home will see their monthly electric bill increase by approximately $56. This translates to about $675 annually.

But averages can be misleading. Your actual costs could be significantly higher or lower depending on several critical factors we'll explore throughout this article.

Understanding EV Electricity Consumption

Before we can calculate the impact on your electric bill, you need to understand how EVs consume electricity.

The average electric vehicle uses approximately 0.32 kilowatt-hours (kWh) per mile. This means:

• Economy models might use just 0.25 kWh per mile
• Mid-size crossovers typically use 0.30-0.35 kWh per mile
• Larger electric SUVs and trucks can consume 0.40-0.60+ kWh per mile

To put this in perspective, if you drive the U.S. average of 37 miles per day (or about 1,124 miles monthly), your EV would consume roughly:

1. Economy EV: 281 kWh per month
2. Mid-size EV: 393 kWh per month
3. Large electric truck: 562+ kWh per month

The efficiency difference between models is substantial! A Hyundai Ioniq 6 in Louisiana costs just $2.68 to charge for 100 miles of range, while a GMC Hummer EV in Hawaii costs a whopping $28.84 for the same distance.

Home Charging Costs Breakdown

For most owners, home charging will be your primary electricity source. Here's how to calculate what it will cost you:

1. Find your electric rate on your utility bill (the national average is about 16.88 cents per kWh)
2. Multiply your vehicle's efficiency (kWh per mile) by your monthly mileage
3. Multiply that total by your electric rate

For example, using national averages:

• Average EV efficiency: 0.32 kWh per mile
• Average monthly driving: 1,124 miles
• Average electricity rate: 16.88 cents per kWh

Calculation: 0.32 kWh/mile × 1,124 miles × $0.1688/kWh = $60.63 per month

Most EV owners will find their actual monthly electricity costs fall between $40 - $80, aligning with AAA's finding that the electricity required to drive 15,000 miles in a year costs an average of $546 annually.

Regional Variations: Why Location Matters

Your location dramatically affects your EV charging costs. Take these real-world examples:

1. In Louisiana, charging a Hyundai Ioniq 6 for 100 miles of range costs just $2.68 at home due to electricity rates under $0.12/kWh
2. In California, with residential rates around $0.26/kWh, the same charging would cost about $5.80
3. In Hawaii, with rates reaching $0.42/kWh, home charging costs skyrocket to nearly three times the national average

This regional variation can create annual differences of hundreds or even thousands of dollars in electricity costs.

The Time-of-Use Advantage: When You Charge Matters

One of the most effective ways to reduce your EV charging costs is to take advantage of time-of-use (TOU) electricity rates. These variable pricing plans charge different rates based on when you use electricity.

For example, PECO customers in Pennsylvania pay:

• $0.20 per kWh during on-peak hours (2 PM to 6 PM)
• $0.06 per kWh during off-peak hours (6 AM to 2 PM and 6 PM to midnight)
• $0.04 per kWh during super off-peak hours (midnight to 6 AM)

By simply scheduling your EV to charge during super off-peak hours, you could reduce your charging costs by up to 80% compared to peak rates.

This isn't just theoretical. I've worked with dozens of EV owners who've cut their charging costs in half by switching to TOU plans and scheduling overnight charging.

Home vs. Public Charging: A Cost Comparison

While most EV owners primarily charge at home, public charging stations are vital for long trips and for those without home charging access. But the cost difference is substantial:

Public charging costs have been rising sharply. Between 2021 and 2024, Electrify America prices increased by 30%, while Tesla Supercharger rates jumped between 38% and 112%.

The upshot? If you rely primarily on public charging, your "fuel" costs will be significantly higher than home charging, sometimes approaching or exceeding gasoline costs for comparable vehicles.

The Hidden Electricity Costs of EV Ownership

Beyond the basic cost per kWh, there are several hidden electricity-related costs of EV ownership to consider:

Home Charging Equipment and Installation

Most EVs come with a Level 1 charger that plugs into a standard outlet, but this charges at an excruciatingly slow 2-5 miles of range per hour. For practical daily use, most owners install a Level 2 charger, which provides 10-60 miles of range per hour.

The costs include:

• Level 2 charger unit: $200 - $1,000
• Professional installation: $400 - $3,400
• Potential electrical panel upgrades: $1,000 - $4,000 if your home's electrical service is insufficient

These one-time costs, amortized over several years, add to your true electricity expenditure [Kelley Blue Book](https://www.kbb.com/car-advice/hidden-costs-owning-electric-vehicle/).

Electricity Rate Increases

Electricity rates have been climbing. According to Kelley Blue Book, some regions have seen increases of up to 57% between 2021 and 2023. As more EVs connect to the grid, peak demand charges in some areas may increase further, impacting all electricity consumers.

"Deadhead" Miles for Public Charging

The Anderson Economic Group study identified "deadhead miles", the extra distance driven to reach public charging stations, as a hidden cost that most analyses miss. This is especially significant for drivers without home charging access.

The Complete Picture: EV Electricity Costs vs. Gasoline

When comparing electricity costs to gasoline, the results vary dramatically by vehicle segment and charging behavior:

• For luxury vehicles charged primarily at home, EVs typically cost less to fuel than comparable gas vehicles
• For mid-priced vehicles, gasoline still edges out electricity in most regions, particularly when commercial charging is factored in
• For pickup trucks, the electricity costs are substantially higher, largely due to lower efficiency and greater reliance on commercial charging

In California, for example, driving a Tesla Model 3 for 300 miles costs approximately $19.50 when charged at home, while a comparable gasoline vehicle would require about $58 worth of fuel at $4.84 per gallon.

7 Practical Tips to Minimize Your EV Electricity Costs

Based on years of working with EV owners, here are my most effective strategies to keep your electric bill in check:

1. Switch to a time-of-use electricity plan if available from your utility. Scheduling charging during off-peak hours can slash your costs by 50-75%.
2. Install a smart Level 2 charger that allows scheduling. Products like the ChargePoint Home Flex or JuiceBox can automatically start charging when rates drop.
3. Consider solar panels if you own your home. While the upfront investment is significant, pairing solar with an EV can dramatically reduce long-term electricity costs.
4. Optimize your driving habits for efficiency. Aggressive acceleration and high speeds can reduce your EV's efficiency by 25% or more.
5. Precondition your vehicle while plugged in. Using grid power rather than battery power to heat or cool your car before driving preserves range.
6. Check for utility incentives. Many electric companies offer rebates for EV charger installation or special EV charging rates.
7. Use free public charging when available. Many workplaces, shopping centers, and municipal parking lots offer free Level 2 charging.

Real-World Case Study

Last year, I helped John transition from a Toyota Camry to a Kia EV6. He was concerned about his electric bill, so we tracked his costs meticulously.

Before the EV, John's monthly electric bill averaged $125. After installing a Level 2 charger and switching to his utility's EV time-of-use rate, his bill increased to an average of $174, a $49 monthly increase.

Meanwhile, his gasoline expenses dropped from $210 to zero, resulting in net monthly savings of $161. Over the year, John saved nearly $2,000 on fuel alone.

Additionally, John received:

• $7,500 federal tax credit
• $1,000 utility rebate for the Level 2 charger
• 30% tax credit on charger installation

His total first-year savings exceeded $10,000, making the increased electric bill seem insignificant in comparison.

Is an EV Right for Your Electric Bill?

After reviewing the data and working with countless EV owners, I can confidently say that while your electric bill will increase with an EV, the total operating costs are typically lower than gasoline vehicles for most drivers.

The ideal candidate for EV ownership from an electricity cost perspective has:

• Access to home charging
• A utility offering time-of-use rates
• Average daily driving of 20-100 miles
• A moderately efficient EV model

If you rely exclusively on public charging or drive an extremely inefficient electric vehicle, your "fuel" costs may approach or exceed those of gasoline vehicles.

Final Thoughts

While this article focuses on the direct impact on your electric bill, it's worth noting that the total cost equation includes many other factors: reduced maintenance, potential battery replacement, and the environmental impact of your energy choices.

For most drivers, the $50-60 monthly increase in their electric bill is more than offset by eliminated gasoline expenses. But your experience will depend on your specific vehicle, driving habits, electricity rates, and charging patterns.

The electric revolution isn't one-size-fits-all, but armed with this knowledge, you can now make an informed decision about whether an EV is right for your lifestyle, and your electric bill.

Have you made the switch to an electric vehicle? I'd love to hear how it's impacted your electricity costs in the comments below!

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