How owning an electric vehicle affects home energy costs

Written by Jordan Smith

Edited by Caitlin Ritchie

Last updated 10/14/2022


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The market for electric vehicles (EVs) is growing rapidly in many U.S. cities. More affordable prices, a larger variety of vehicle models, and the growth of a nationwide network of EV charging stations are a few causes for these vehicles’ boost in popularity, with companies such as Tesla leading the way. In addition, many customers want to support the green energy transition to reduce our reliance on fossil fuels.

According to theInternational Energy Agency, global EV sales jumped from 4.11% of all car sales in 2020 to 8.57%A in 2021. If you’re considering joining the growing number of drivers getting behind the wheel of an EV, one of your biggest concerns could be the impact of owning an EV on your electric bill.

How will an EV affect my energy bill?

Although you can charge your EV at thousands of stations across the United States, the vast majority of charging will likely take place at home. Charging your EV battery at home will add additional demand and cost to your electricity bill. However, considering the money you’ll save on gas, you may find that you can save money overall.

The type of EV charger you have will also impact your energy bill differently. A standard 120-volt plug is known as a Level 1 charger. Level 1 chargers take longer to recharge a battery, usually between 40-50 hours if charging from empty. 

Level 2 EV charging involves a 240-volt outlet. The benefit of a Level 2 charger is that it charges your EV at a quicker rate. You can fully charge an average EV in 8 to 12 hours.

However, Level 2 chargers require more energy when they’re in use. If keeping yourenergy costs low is a top priority and you live in an area with a Time-of-Use (TOU) electricity plan, you should plan to use your Level 2 charger when power prices are at their cheapest.

Peak demand times can vary depending on where you live. Typically, they occur in the evening when people return home from work. States that experience hot summers also have peak demand during the afternoon due to the widespread use of air conditioning.

Level 3 chargers, also called superchargers, can recharge an EV battery in about half an hour. However, Level 3 chargers require a higher voltage, which most homes are not equipped to handle.

What is the best energy plan for EV charging?

The right energy plan for charging your EV will depend on your energy habits. The time of day you plan to charge your EV can also be a factor in choosing the right energy plan

Fixed-rate plan

Charging your EV while on a fixed-rate energy plan will let you avoid the risk of energy price spikes. With a fixed-rate plan, you get a guaranteed price for every kilowatt-hour of energy you use. Some providers, such as Pulse Power, have fixed-rate plans with free nights or weekends. These plans can shield you from higher costs during peak demand. 

Variable-rate plan

Another electricity plan option worth considering is a variable-rate plan. The rate for a variable-rate plan changes depending on energy demand. In Texas, Payless Power offers variable-rate plans. These prepaid electricity plans do not require a credit check or a deposit. 

Variable-rate plan rates are typically lower in Spring and Fall, which could result in lower electricity prices during those seasons. However, variable-rate plans also leave you vulnerable to unexpected price hikes if energy demand spikes. 

What steps can I take to figure out how much it will cost to charge my EV?

Your energy consumption and electricity plan determine your energy bill. Residents pay different rates per kilowatt-hour depending on where they live in the United States. Check out the average price for energy in your state. Customers in deregulated energy markets, such as Texas, have the power to choose among various energy providers that offer competitive electricity rates. 

The cost to fuel your EV is also known as eGallons. An eGallon lets you compare the electricity cost to the cost of a gasoline-powered car. The typical EV can drive between 3 to 4 miles for every kilowatt-hour of charging it receives, according to KBB. Keep in mind that this figure varies depending on the type of vehicle you drive. For instance, an electric truck will achieve fewer miles of driving per kilowatt-hour than a compact car because the truck needs more energy to travel.

To determine how much you pay per kilowatt-hour, look at your most recent electricity bill. You will see your rate per kWh, plus any additional fees and taxes. Multiply your electricity rate by three to get a rough estimate of the cost per mile for your EV.

Once you know how much each mile of driving adds to your electricity bill, multiply it by the average number of miles you drive each month. The result will be your monthly cost to run your EV.

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