EV Charging vs Gasoline: When Will Cutting the Cord Be Worth It?

Electric vehicles (EVs) continue to gain popularity as more consumers and businesses seek sustainable options. One of the key questions surrounding EV adoption is when charging an electric vehicle will either cost the same or be more expensive than purchasing gasoline for a traditional internal combustion engine (ICE) vehicle. Let's dive into some real-world comparisons to provide clarity.

The Cost Efficiency of EV Charging

The truth is, the cost of drilling, manufacturing, shipping, and storing gasoline is significantly higher than the cost of producing and supplying electricity. What this means is that in most places, charging an electric vehicle remains more cost-effective than refueling an ICE vehicle. To illustrate, let's compare the cost of charging a Tesla Model 3 against the cost of refueling a Honda Civic.

Comparing the Tesla Model 3 and the Honda Civic

Let's compare the two vehicles based on their respective fuel sources:

The Tesla Model 3 uses a 70 kWh battery. The Honda Civic runs on a 12.4 gallon fuel tank.

The cost of gas in the area where the comparison is being made is $2.76 per gallon for regular. The cost of charging is $1 per connection plus $0.56 per kWh. Here's a breakdown of how much it would cost to fill each car from 90% empty to 100% full:

Cost Breakdown

For the Tesla Model 3:

63 kWh energy is needed to achieve 63 kWh in the battery. Due to the 85% charging efficiency, the actual energy required is 74 kWh. Cost: 0.56 x 74 $42.50.

For the Honda Civic:

11.15 gallons of gas are needed. Cost: 2.76 x 11.15 $30.77.

Therefore, in Denver, a Honda Civic would still be more cost-effective for refueling from 10% empty to 100% full.

The Cost of Charging at Home

For many EV owners, the majority of their charging is done at home. Using an example: My home electricity rate is about 0.12/kWh, and my car has an 82 kWh battery. Recharging from 20% to 80% adds 49.2 kWh of energy, costing $5.90. This increases the car's range estimate by about 180 miles. If I had solar at home, charging would be 'free' assuming no cost for the solar panels.

Realistically, however, note that many EVs are charged at public fast-charging stations. Here's an analysis of how these costs compare to a conventional vehicle:

Charging at a Public Fast Charger

A local fast charger's posted rates are $0.48/kWh. If the charger was free, it would cost $23.62 to recharge at that public charger. Even at this rate, this is still cheaper than my Internal Combustion Engine (ICE) SUV's cost to charge, but not by an order of magnitude.

Comparing with a Honda Civic

For a Honda Civic, which uses regular gas and gets 40 miles per gallon (mpg), if regular gas costs $3.85 per gallon, it would cost $17.33 to go 180 miles. This is significantly cheaper than using a public charger to recharge your EV.

The Home Charging Advantage

For the vast majority of EV owners (around 90%), charging at home is the norm. Considering home charging rates, it is clear that EV charging will never cost more than refueling a gas car. Any occasional road trip cost would be offset by the inexpensive home charging rates.

The Issue with Public Charging

The challenge arises for individuals who don't have access to home charging such as those with on-street parking. Until options exist for them to charge at reasonable rates in a convenient location, it may not make financial sense for them to own an EV.

Conclusion

With the majority of EV use cases, charging costs are more favorable than refueling gasoline-powered cars. Home charging remains the most cost-effective method for most EV owners. While public charging may cost more, the cost comparison still favors electric vehicles for most daily driving needs. However, for those who don't have home charging, the cost of transitioning may be prohibitive until public charging infrastructure improves.