EV Charging Costs Explained

Home vs public charging, time-of-use rates, and how to minimize your electricity bill.

The Real Cost of Charging an EV

Electric vehicles are cheaper to "fuel" than gas cars. But charging costs vary dramatically based on where and when you charge.

The range:

• Home charging (off-peak): $0.03-$0.05 per mile
• Home charging (standard rates): $0.04-$0.08 per mile
• Public Level 2: $0.06-$0.12 per mile
• DC Fast Charging: $0.10-$0.25 per mile

Understanding these differences can save you $500-$1,500 per year.

Charging Levels Explained

Level 1: Standard Outlet (120V)

Speed: 3-5 miles of range per hour

Cost: Your home electricity rate (typically $0.10-$0.20/kWh)

Best for: Plug-in hybrids, overnight charging for low-mileage drivers

Reality check: For most EVs, Level 1 is too slow. Charging from 20% to 80% takes 20+ hours.

Level 2: Dedicated Charger (240V)

Speed: 20-30 miles of range per hour

Cost: Home rate ($0.10-$0.20/kWh) or public rates ($0.20-$0.40/kWh)

Best for: Daily home charging, workplace charging, destination charging

Typical overnight charge: 8 hours adds 160-240 miles of range

Level 3: DC Fast Charging

Speed: 100-250+ miles of range in 30 minutes

Cost: $0.30-$0.60/kWh (sometimes more)

Best for: Road trips, emergency charging

Cost comparison: DC fast charging often costs as much as gas per mile

Home Charging: The Cheapest Option

90% of EV charging happens at home. This is where you save money.

The Math

Compare to gas: 12,000 miles at 30 MPG and $3.50/gallon = $1,400/year

Savings: $920/year just by driving electric

Level 2 Home Charger Installation

Equipment cost: $300-$700 for the charger

Installation cost: $500-$2,000 (depends on electrical panel and distance)

Total investment: $800-$2,700

Payback period: The $920 annual savings pays for installation in 1-3 years

Rebates: Many utilities and states offer $200-$1,000 rebates for home charger installation

Time-of-Use Rates

Most utilities offer special EV rates with cheaper overnight electricity.

How it works:

• Peak hours (4pm-9pm): $0.25-$0.50/kWh
• Off-peak hours (9pm-6am): $0.08-$0.15/kWh

Savings potential: 40-60% lower charging costs

Example:

• Standard rate: $0.14/kWh = $480/year
• Off-peak rate: $0.09/kWh = $309/year
• Savings: $171/year

How to get it:

1. Contact your utility
2. Ask about EV time-of-use rates
3. May require a separate meter or smart charger
4. Set your car to charge only during off-peak hours

Smart Charging Features

Most EVs let you schedule charging for off-peak hours:

In-car settings:

• Departure time scheduling
• Charging time limits
• Rate-aware charging (some models)

Smart charger features:

• Utility rate integration
• Solar integration
• Load balancing
• Remote monitoring

Public Charging Costs

Charging Networks and Pricing

Membership Programs

Electrify America Pass+

• Cost: $4/month
• Benefit: ~$0.12/kWh discount
• Break-even: ~35 kWh/month (one road trip)

EVgo Plus

• Cost: $6.99/month
• Benefit: Reduced per-kWh rates
• Break-even: Frequent DC fast charging users

Free Charging Opportunities

Workplace charging: Many employers offer free Level 2 charging

Destination charging: Hotels, shopping centers, restaurants often provide free charging

Dealership charging: Some dealerships offer free charging to customers

Municipal charging: Some cities offer free or low-cost public charging

Referral programs: Tesla and others offer free Supercharging credits for referrals

Cost Per Mile Comparison

*Assumes 3.5 miles/kWh efficiency **Assumes 30 MPG at $3.50/gallon

Maximizing Your Savings

Strategy 1: Charge at Home Whenever Possible

Home charging is 2-5x cheaper than public charging. Even if you have access to free workplace charging, home off-peak rates are often competitive.

Strategy 2: Use Off-Peak Rates

Set your car to charge between 9pm and 6am. This single change can cut charging costs by 40-60%.

Strategy 3: Take Advantage of Free Charging

Map out free charging locations along your regular routes: workplace, grocery stores, shopping centers.

Strategy 4: Get Charging Network Memberships for Road Trips

If you take 3+ road trips per year, an Electrify America Pass+ ($4/month) pays for itself.

Strategy 5: Consider Solar

Solar panels + EV = nearly free driving. A typical solar system generates enough excess power to charge an EV for 8-12 years.

Special Considerations

Apartment and Condo Dwellers

No home charging? Your options:

1. Workplace charging: Many employers now offer this
2. Destination charging: Charge while shopping/dining
3. Public Level 2: Cheaper than DC fast charging
4. Request installation: Ask your landlord/HOA about installing chargers

Cost reality: Without home charging, EV fueling costs are still usually lower than gas, but the savings gap narrows.

Cold Weather Impact

Cold temperatures reduce EV efficiency and increase charging costs:

• Battery efficiency: Drops 10-30% in cold weather
• Heating the cabin: Uses significant energy
• Charging speed: Slower when battery is cold

Mitigation:

• Precondition the car while plugged in
• Use seat heaters instead of cabin heat
• Park in a garage when possible

The Bottom Line

Compared to gasoline: Most EV drivers save $600-$1,200/year on fuel costs, even with electricity prices rising.

The key is maximizing home charging at off-peak rates. That's where the real savings live.

Last updated: January 2025