Running costs of EVs: How much it costs to buy, charge and run an electric car
By Celia Topping Friday 13 November 2020
The buzz around electric vehicles (EVs) is getting louder all the time. With no Vehicle Excise Duty (VED) (often known as Road Tax) to pay, no petrol or diesel costs, and guaranteed zero tailpipe emissions1, the greenest car on the street is also one of the most covetable.
In Autumn this year, sales of new EVs overtook sales of new diesel cars for the first time ever! That’s great news for the environment, as the transport sector produces around a third of the UK’s carbon emissions. The government has now pledged to ban the sale of new petrol and diesel cars by 2030. It’s all part of their proposal to produce almost zero emissions by 2050, in line with the Paris Agreement.
A Battery Electric Vehicle (BEV) runs on, yes, you guessed it, a battery. This means there’s no engine burning dirty fossil fuels, and thus, no nasty carbon emissions. So driving a BEV instead of a petrol or diesel car can cut an estimated 2 to 3 tonnes of CO23 per year! Nice one BEV!
Hybrid cars (that use both a petrol/diesel engine and a rechargeable battery) still have lower carbon footprints than normal cars, despite increased emissions created during their production. So as more people wake up to the benefits of electric cars, there’s no better time to seriously consider getting rid of that gas-guzzler sitting outside your home. Get on trend and go electric!
Read on to find out everything you need to know about owning and running an electric car.
Costs of running an electric car vs a petrol car
The price tag of an EV is undeniably higher than an equivalent conventional car. But research already shows that over a vehicle’s lifetime, you could be financially better off with an EV.
You might not be rushing to get on the list for the much-anticipated second generation Tesla Roadster – which would set you back an eye-watering £189,000. Gulp. But, happily, BEVs are becoming more and more affordable and competitive for potential buyers.
At the less expensive end of the scale are the Nissan Leaf at around £27,000, the Renault Zoe, which starts at £30,000, and the Volkswagen ID3, starting at about £32,000. And you can pick up a hybrid Renault Clio E-tech for just under £20,000. Sure, the original outlay may be more – but it’s important to remember that EVs are cheaper to run in many ways:
There’s also a government plug-in car grant for new EV buyers, which is worth £3,000.
Running costs are much lower for BEVs – so no more expensive trips to the petrol station. BEVs are also very cheap to charge.
EV owners have access to free parking spaces around the country, as well as free charging stations in many car parks.
Living in London? EVs avoid the £15 daily congestion charge for inner city driving. And there’ll be no charging issues in the Ultra Low Emission Zone (vehicles must meet the ULEZ emission standards or pay a daily charge).
Get the full picture on electric vs hybrid vs petrol, in our bumper (no pun intended) guide to the pros and cons of electric, hybrid and conventional cars.
How much does an EV cost in ‘fuel’?
Possibly the key benefit to owning a BEV or hybrid vehicle, is how much it costs to actually run on the road.
Direct Line Insurance4 did the maths on an average traditional petrol-fuelled car and its EV equivalent. Annually, the petrol car cost £824 to run, but the EV a mere £343 to charge. Hybrids can save money on fuel costs too, as they use around 30% less fuel per mile than conventional cars5.
Of course, depending on where you live, fuel and electricity might be more or less expensive. For example, if you use an off-peak overnight electricity tariff, the savings are even better. Check here for more specific car price comparisons. Fuel-wise, it’s a total win for EVs.
Are you considering buying an electric car? Check OVO’s new EV tariff that comes with 100% renewable energy, free Polar Plus membership and £100 off your home car charger.
How much does it cost to tax a Battery Electric Vehicle?
That’s an easy one: absolutely nothing. As of April 2020, all BEVs are exempt from paying tax. But, as VED (road tax) is based around CO2 tailpipe emissions, the average cost for petrol and diesel cars is £1666. And if your car’s purchase price was over £40,000, there’s a £310 supplement.
That’s another tick in the box for EVs. Plus, even for a hybrid car, you’ll only pay a flat tax rate of £140 a year.
Do EVs lose value in the same way as traditional cars?
All new cars lose value, or depreciate, as soon as they leave the forecourt. A big consideration when you’re buying a new car is how quickly the car depreciates – especially if you’re buying on finance.
Generally, after 3 years or 30,000 miles, most cars tend to be worth around 40% of their new purchase price. That’s a big drop. But, some cars depreciate faster than others. This depends on several factors, including:
How desirable and popular the model is
How dependable the car is
How much mileage is clocked up
How well the car has been looked after
When the first generation EVs (like the Citroen C-zero or Reva’s G-Wiz) came on the market almost 20 years ago(!), they depreciated really quickly. This was because the public’s general understanding of the EV market was low. Plus, unfortunately, the tech wasn’t quite there yet, and these particular models got terrible reviews.
Nowadays, the reverse is true. EVs are more in demand because of their green credentials, high-tech appeal, money-saving potential and other benefits.
Plus, with so many more makes and models on the market, the public’s general understanding of the market is far better than 20 years ago. For that reason, some EVs are not depreciating as much as their petrol or diesel counterparts.
It’s also worth remembering that hybrids like the sensationally-popular Toyota Prius have been highly desirable since their introduction onto the market.
How much does it cost to insure an electric car?
Unfortunately, this is one area where EVs fall down. Electric cars are pushed into a higher insurance bracket for a number of reasons:
The initial purchase price of a new EV is higher than their fossil fuel equivalent
EVs, especially the high-end cars, tend to use more expensive and advanced lightweight materials, which are costly to replace in case of an accident.
Even after a fairly minor collision, most manufacturers insist on the battery being replaced. This is due to concern that the lithium ion battery’s fuse could have been triggered and possibly catch fire at a later date. For a Mercedes, for example, that’s a £12,000 job.
Specialist technical knowledge is needed to fix an EV’s electrical systems, and not all mechanics have this skill set yet. Generally, it’s only the more expensive main dealer workshops that have the know-how.
The good news is that as EVs become increasingly mainstream, more insurance companies will give policies, and prices will drop. In the meantime, it’s worth shopping around and not just auto-renewing at the end of your existing policy.
Is it expensive to maintain an electric vehicle?
EV’s may have a high-tech image, but in reality, there are far fewer moving parts in an EV than in petrol and diesel vehicles. This means there are fewer things to go wrong and replace.
Electric car batteries and motors actually require very little routine maintenance. Besides that, an EV’s clever regenerative braking system spares the car’s brake pads and discs, which are usually a major expense in traditional cars.
On the other hand, electric car tyres can be more expensive, as they’re less common. And, when electric cars do go wrong, the advanced technical knowledge needed to repair them can’t be found everywhere. So you’ll probably end up paying a premium for a main dealer to take a look.
Bearing these points in mind, it’s worth noting that most electric car servicing plans are cheaper than traditional vehicles. So we can chalk up another win for EVs!
Find out more about the various connector and plug options for charging your EV, with our how-to guide.
How much does it cost to charge an electric car?
Just as with a regular petrol or diesel car, the cost to ‘refuel’ or charge an EV depends on various factors:
The make and model of the car, and the size of its battery
Where the charging post is – at home, at work, or in a public space
Which speed you choose to charge the car – slow, fast or rapid
If charging at home, which tariff you’re on
If charging in a public space, which network is being used, and whether you need subscription
Confused? Let’s break it down:
Cost of charging electric cars at public stations
Public charging stations aren’t the main charging option for EV owners – but if you’re caught short on a longer journey they’re invaluable. And a 40 to 50 minute boost while doing the weekly shop could add around 100 miles to the battery.
Public charge points can be found on the street, in carparks, at supermarkets, service-stations, hotels and many other locations. And there are literally dozens of UK public charging networks providing them. The major ones, like Polar, GeniePoint, Ecotricity, Shell Recharge and ChargeYourCar mainly require subscription, but some offer a PAYG service as well.
Polar is the UK’s largest public charging network, with over 7,000 charge points, and counting. They charge £7.85 a month for membership, which includes some free charging stations, while others have a 12p/kWh tariff. As with the other providers, access to the network is with a smartphone app, easy-to-use RFID (radio-frequency identification) card, or key fob.
To find out more information about slow, fast and rapid charging, plus charging at home and away, see our detailed article on costs of EV charging.
How many public charging stations are there?
‘Range anxiety’ is a very real concern for potential buyers. Just how far will an EV go on a full battery, and what if it runs flat? After all, it’s no use in keeping a spare can of petrol in the boot!
But, fear not, because new public charging points are being added to the network daily. In fact, there are now more electric charging points than fuel stations in the UK7. That works out at 12,690 locations, with a total of 35,146 connectors (November 2020)8. Puts your mind at rest, doesn’t it?
Cost of charging an electric car at home
Home-charging is the most convenient way for EV owners to charge their car. EVs plug into the mains electricity supply – so It’s crucial to find the best home energy tariff to keep costs down.
How much does a home charger cost?
Installing an electric vehicle charger at home costs between £300 and £1,000, depending on:
The model of car (and size of battery)
The type of charging station
The location of the charging station (accessibility)
Who installs it
This sounds like a lot to pay up front. But if you use an Office for Low Emission Vehicles (OLEV)-approved supplier, you could be eligible for a grant from the government worth up to £350 towards installation.
Besides that, considering the amount you stand to save in fossil-fuel costs, your charging station costs would be paid off within a few weeks.
Plus, we’ve just launched a £100 off smart car chargers offer for all OVO members. That’s in addition to OLEV’s £350 grant. Meaning you could be £450 closer to having your own EV home charger. Tempted?
What kind of tariff do I need to charge my EV at home?
Generally speaking, electric cars are usually charged slowly at night, when you’re sleeping. So it’s a good idea to find a tariff that offers a cheaper off-peak price. At OVO, we offer our EV owner members the EV Everywhere tariff, which includes:
Low-cost overnight charging with Economy 7
2 years of fixed energy prices to protect members from energy price hikes
Free Polar Plus network membership (including free charging at 80% of their 100% renewable energy charging stations)
100% renewable energy9 at home
A tree planted every year for every member10
This tariff means members use 100% renewable energy both at home and on the go. It also means that simply by joining OVO, you can cut your carbon footprint at home by about one tonne a year11.
If you’ve read this far, you probably already know that finances aren’t necessarily the deal-breaker when it comes to buying an electric car. You’re interested in the positive environmental impact of EVs too.
There are plenty of other benefits to endear you to our climate-conscious 4-wheeled friends. But knowing how much you’re saving each and every day you own an EV could make them just too good to pass up, right?.
Switch to OVO’s EV Everywhere tariff today, and start saving while you sleep.
For more information on costs of charging an EV at home, work and on the go, see our handy guide.
Sources and references
9 The renewable electricity we sell is backed by renewable certificates (Renewable Energy Guarantee of Origin certificates (REGOs)). See here for details on REGO certificates and how these work.
10 Each year, OVO plants 1 tree for every member in partnership with the Woodland Trust. Trees absorb carbon dioxide from the atmosphere, so tree-planting helps to slow down climate change.
11 By switching to OVO Energy you could reduce your carbon footprint by up to 1 tonne of carbon per year. This is based on the carbon emissions caused in the production and consumption of the 100% renewable electricity OVO provides as standard, compared to the emissions caused by the production and consumption of UK grid average electricity. Average UK household energy consumption figures were sourced from BEIS (2019). The carbon emissions factors were calculated by the Carbon Trust.
12 The renewable electricity we sell is backed by renewable certificates (Renewable Energy Guarantee of Origin certificates (REGOs). See here for details on REGO certificates and how these work.