Is EV Charging Cheaper Than Gasoline? Here's What the Math and Experts Say (2024)

It's hard not to notice those vanity license plates like "GASLOL" on EVs while driving around. Why so braggy? Do EV drivers know something we don't?

We combed through popular social media platforms likeRedditandTikTokand found that the cost of EV charging versus gasoline is a hot debate right now.

OneReddit user saidthey now spend $70 more on their electricity bill from at-home charging compared with $330 a month in gas previously. Some Reddit users argued against the actual savings. One naysayer, for example, said they think public supercharging is expensive and time-consuming, and another said the cost of installing theirhome EV chargernegated any savings.

Lowering their fuel costs may be the main reason the EV-curious think about going all-electric in the first place. In June 2022,gas priceshit a record high, averaging more than $5 a gallon nationwide, and although gas prices have fallen to around $3.56, as of June 2024, gas price volatility has many drivers looking at alternatives, such as EVs orhybrids.

We asked auto and EV industry experts this question: Is it cheaper to charge an electric vehicle versus fueling a gas-powered car? The verdict is, based on US averages, EV charging wins out.

The price of gasoline is volatile and, in some areas, expensive.Electricity also varies in price, but "it's significantly cheaper" than gasoline, saidAnastasia Boutziouvis, solution product manager at ChargePoint, a company that operates the world's largest network of EV charging stations in North America and Europe. That means recharging an EV likewise tends to be significantly less expensive than topping off a gas-powered car's fuel tank.

"Generally, I find that charging an EV is less expensive than filling up a gas-powered car even in my neck of the woods, California, where we have the second-highest energy rates in the US," said CNET's 16-year auto and EV expert,Antuan Goodwin. "That's probably because California also has the highest gas prices in the US, as well."

We'll show you -- using math -- how much cheaper charging an EV actually is compared to an ICE (internal combustion engine) car.

We do the math: Comparing EV charging to filling a gas tank

When considering the costs of fueling or charging an electric car versus a gas car, the differences are stark and fairly obvious. EVs are propelled by electricity that is stored in batteries, which need to be recharged.

Gas-powered cars, or those outfitted with internal combustion engines, are fueled by gasoline, and drivers need to have gas in the vehicle's fuel tank to drive.

Using averages from government data sources, we do the math and map out for you all the charging and fueling costs side by side in a month's time.

These calculations use US driving averages for both EVs and ICE cars in data points such as fuel economy, miles driven, cost of electricity and gasoline, power needed for the average EV and more. You could drive a lot more (or less), and accordingly, see your fuel costs vary as well.

EV charging costs vs. fuel costs (US averages)

Using US averages, we found the monthly cost of charging an EV to be $66.66 versus $182.50 to fuel an ICE car.

Using the same figures above, here's a yearly costs comparison:

• $2,190 yearly average cost to fuel an ICE car
• $799.92 yearly average cost to charge an EV
• That's a yearly difference of $1,390.08

Again, prices for gasoline and electric vary by location -- so your actual savings may be more or less. For example, states like Connecticut, Hawaii, California, Rhode Island, Massachusetts, Maine, New York and New Hampshire are paying between 23 cents to 43 cents per kWh which is way above the 16 cents figure we used in our math example above.

The type of car or EV you have also plays a factor in cost-savings. A Tesla Model 3 and a Ford F-150 Lightning -- while both EVs -- won't have the same power efficiency.

Monthly cost of charging an EV

The cost to fuel or charge an EV depends on several factors, but the cheapest way to do it is to charge your EV at home, during off-peak hours. In other words, charging your EV overnight with an at-home charging setup is likely the least costly way to recharge, and in some areas, may only cost a buck or two -- a fraction of the price of a gallon of gas.

Boutziouvis said that "at a high level, what we're seeing is that the costs are about one-half or one-third of the costs of a gas-powered car" in terms of getting a "full tank," so to speak.

It can, she said, cost a few dollars, on average, to recharge an EV. Assuming, though, that you're charging your EV at home using your own charger, the price of doing so really boils down to what you pay for electricity. "It's totally based on local utility rates, and those vary across the US," she said.

Overall charging cost may also depend on whether you have a fixed-rate or variable electric rate or how your chosen energy plan outlinesits time-of-use rates throughout the day.

The cost of EV charging at home vs. public EV charging

Another critical thing that EV owners need to consider is the difference in costs between charging at home versus charging in public. If you don't have a charger or the ability to charge your EV at home, you'll need to do it somewhere else. There are public charging stations in many places such as retail parking lots -- here's an in-depth guide to where you can charge for free.

Yes, at-home charging tends to be cheaper, although there can be upfront costs when installing an EV charger and possibly upgrading your home's electrical system.

Home charging costs

The costs of charging at home will, as noted, depend on what you pay for electricity, which will vary depending on where you live. Electricity tends to be more expensive in Hawaii, New England and California and less expensive in western and Midwestern states, such as North Dakota, Utah and Washington. The nationwide average is around 16 cents per kilowatt hour.

Another thing to keep in mind is that some states with deregulated energy markets -- more commonly known as energy choice markets -- may have additional incentives available to EV drivers. Some states "offer really cool plans where they'll give you [EV] charging for free," said Boutziouvis. Or, she said, certain energy providers may offer incentives that are "almost like a cellphone plan, with unlimited charging for $20 per month" or something similar.

Read more:You Can Choose Your Electricity Provider in These States With Deregulated Markets

Those plans or incentives vary from state to state. In Texas, for example, TXU Energy and Gexa offer energy plans designed to entice EV drivers with free charging periods.

One other thing is that you may be able to use smartphone apps to schedule EV charging during off-peak hours, or when electricity rates are the cheapest (usually overnight), to save more money.

Driving electric can give you a degree of control over your operating costs, said Goodwin. "I can save money by charging at home or pay more for the convenience of fast charging on longer trips"

"Or you go to the extreme of investing in solar or home energy storage for even more flexibility and energy independence in the long run -- versus combustion cars where I'm simply at the mercy of gas prices," said Goodwin.

Public charging costs

As for public charging, Boutziouvis said there are "different ways to price it," as most public charging stations are independently owned and pricing is, thus, up to the owner. Tesla is a notable example. It has its own fleet of charging stations, and in addition to the cost of electricity, itcharges 50 cents per minutein "idle fees" to encourage you to drive away and free up chargers for other users.

Aside from Tesla chargers, other stations typically charge either a flat rate, a fee based on consumption or a fee based on the amount of time an EV driver uses the charger, Boutziouvis said. The costs are determined by local electricity rates plus any applicable fees or markup that the charger's owner implements.

But there are also two "levels" or types of charging to know about, too, which are AC and DC, or level 2 and level 3 charging (more on this below). Effectively, DC charging is much faster, and likely more expensive at a public charging station. "DC charging could be $10 to $30 per session," Boutziouvis said, and takes 20 or 30 minutes to recharge a battery from 0% to 80%. Conversely, "AC public charging could be a couple of bucks," she said.

"Two to three hours gets you enough range to get back on the road," said Goodwin. "A true full charge at Level 2 could take 6 to 12 hours depending on your car and the charging station." This is why Goodwin recommends the practice of fully charging your EV overnight at home. "That's usually the cheapest, most convenient option," he said.

Put another way: The faster the charger, the more expensive it's going to be. You could also find free public charging at some locations.

There are more ways to save on on electric driving costs that require some planning, says Goodwin. "Taking advantage of off-peak charging at home if you're able, capitalizing onfree EV charging at work or while shopping and maximizing local incentives are great starting points."

The cost of level 2 vs. level 3 charging

So the difference between level 2 (AC) and level 3 (DC) charging mostly involves speed, and how much electricity is moving through a charger and into an EV's battery.

Level 2 charging

Level 2 charging "is what you'd find in your house," said Boutziouvis, and usually delivers between 7 and 11 kilowatts to an EV's battery. That might get the typical EV 30 or 40 miles of range if they charge for a couple of hours. Given that the charging is slower, it may cost a few dollars to charge your EV at a level 2 public charging station. Some public EV charging stations are even free.

Level 3 charging

Level 3 or DC fast-charging, on the other hand, delivers between 50 and 350 kilowatts within the same time frame. Given that many, if not most, EV homeowners charge at home and overnight, it's typically not practical to have a level 3 charging setup at home, so these chargers are generally found in public locations. Given that they're faster, it may cost between $10 and $30 to charge at one, as Boutziouvis mentions.

The costs of EV home charging equipment

Charging your EV at home may be the cheapest way to refill the battery, but getting a charger hooked up can be a relatively big expense.

The cost really hinges on whether your at-home electrical setup can handle the addition of a charger. If not, you may need an electrician to replace your electrical panel (the breaker box is likely located in your basem*nt or garage). That can be expensive, again, depending on where you live and other factors.

Assuming you don't need an upgrade, Boutziouvis said a charger installation could cost around $700, and the costs may vary depending on how physically far away from your electrical panel the charger is. More distance means higher costs, as more materials are required. If you do need an upgraded electrical setup, a new electrical panel can cost a few thousand dollars.

Note that there are tax credits and incentives available for home-charging installation costs. For instance, there's a federal tax credit of 30% of hardware and installation costs up to $1,000, which was put into effect as a part of the Inflation Reduction Act. There may be some utility discounts and incentives, too. Duke Energy, for instance, provides a one-time credit of more than $1,100 per charger in some areas.

A good rule of thumb: If you plan on shopping around for a charger, check with multiple companies, check with your utility for credits and rebates and explore all applicable tax incentives to ensure you get the best deal.

Read more: Best Home EV Chargers

Watch this: Expert vs. AI: Is Now the Time to Buy an EV?

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