Will I save money with an electric car?
There are a few key motivators that drive many to make the switch to EVs, from environmental and practical considerations to financial savings. EVs tend to be more expensive than comparable petrol/diesel vehicles, but do you save more money with electric cars over time?
Here are a few ways that owning and driving an EV can save you money.
Lower fuel costs
An EV costing considerably less to charge than fuelling a petrol/diesel alternative was one of the main incentives that caused EVs to become more common on the roads.
Electricity is generally cheaper than fossil fuels on a per-mile basis, and electricity tends to be more stable than fuel prices, providing more cost predictability for EV owners. Even when electricity costs do rise (as seen over the past few years), it has remained cheaper to charge an EV at home than filling a petrol/diesel tank.
Home charging opportunities are a great way to save additional charging costs with your EV. You can take advantage of off-peak electricity rates, further reducing the cost of charging your vehicle.
The electric motor in an EV tends to convert a higher percentage of the energy from its fuel source into forward motion compared to petrol/diesel alternatives, meaning you can get more distance out of an EV’s battery than a full tank of fuel (in comparable models of vehicle). This efficiency results in fewer energy losses and, therefore, lower operating costs.
Many EVs have regenerative braking systems that capture and store energy whenever pressure is removed from the accelerator pedal. This captured energy can be used to recharge the battery, effectively extending your driving range further.
Reduced maintenance costs
EVs have fewer moving parts than traditional petrol/diesel vehicles, which means there is a lower chance of components wearing out and requiring maintenance. Over the vehicle’s lifespan, this can result in lower repair and maintenance costs.
Most EV models drive slightly differently from traditional alternatives, automatically braking whenever pressure on the accelerator pedal is reduced. Many EV drivers will rarely use the brake pedal unless they require a quick stop, reducing wear and tear on the traditional brake.
Many models of EVs are eligible for a government grant that reduces the upfront cost. This grant is automatically applied by the dealership, so you do not need to apply for it.
There are also certain government grants that make installing a chargepoint at home more affordable. As mentioned above, having a home chargepoint can save further charging costs, so it’s a worthy investment when trying to save the most money with your EV. You must have an OZEV-approved chargepoint installed by an OZEV-approved installer to utilise these grants. Check your eligibility for the grants with our quick online quiz.
Savings on tax, fees and charges
As EVs produce no tailpipe emissions, drivers can benefit from emissions-related savings. Areas covered by ULEZ (Ultra Low Emissions Zone) charge drivers a set daily fee when travelling within them. EVs are exempt from these fees, so if you live in or around London you can save a fair amount of money. Road tax is also currently free for EVs.
Although this isn’t technically a saving, EVs can generate income for their owners, offsetting some of the upfront costs and the ongoing price of insurance.
EV and chargepoint models that are V2G-compatible (Vehicle-to-Grid) can generate income by allowing the user to sell excess energy back to the grid. By plugging the vehicle in at night when energy tends to be both cheaper and greener, energy can be stored in the battery, then released at peak times and sold back to the grid. It’s estimated that EV owners utilising this perk could save up to £840 a year compared to those using unscheduled charging.
Another method of generating income from your EV is renting out your home chargepoint. Apps such as CoCharger allow you to list your home chargepoint for other EV drivers to rent and use for a fee whenever you don’t need it – yet another benefit of having a home chargepoint installed!
It’s important to note that the extent to which you can save money with an electric vehicle may vary depending on factors like your driving habits, local electricity rates, available government incentives, and the specific EV model you choose. Of course, the upfront cost of purchasing an EV will likely be a consideration for many buyers, but the potential for savings over time can offset this initial investment.
If you own an EV and are looking to install a home chargepoint for further savings, contact our expert team today.