Auto industry experts at BloombergNEF estimate that by the year 2040 around 70% of new cars will be electric vehicles (EVs). It’s a change that isn’t just transforming the way we drive. It’s also changing energy demands at home.
Today the question isn’t whether electric vehicles are the future. The question is, how are we going to power all those electric vehicles?
If you’re in the market for an EV one of the first things that probably crossed your mind was how much it would cost to charge the car at home. Sure, you won’t be spending money at the gas pump, but what’s going to happen to your electric bill?
Let’s take a look at what affects the cost of charging an EV at home and how to estimate what you’ll end up paying to power your electric vehicle.
The Biggest Factor – Your Price Per kWh Rate
The single biggest factor for how much it will cost to charge an EV at home is right there on your electric bill. The kWh rate is going to be the determining factor in how much you ultimately pay to charge up your battery.
Something to factor in here is whether or not the rate fluctuates. Time-of-use plans base the kWh rate on the time of day. With this type of electricity plan you could strategically plan when the EV is charged to minimize the cost. Of course, that also means if you need to charge up during the peak demand hours you’ll end up paying a premium price to fill up your battery.
How Much You Drive
The next biggest factor is how much you drive. It’s the same exact concept as a gas-powered vehicle. The more you drive, the more you’re going to have to fill up. In the case of an EV, you’re filling up the battery with electricity.
Size and Efficiency of the EV’s Battery
Last but not least is the size of the electric vehicle’s battery. In other words, how many kilowatt-hours is a full battery. This is also related to the number of miles you get when the battery is fully charged. These details determine how much electricity an electric vehicle uses.
Few drivers are aware of how wide a range there is in EV battery size. The battery can be as small as the Smart EQ Fortwo’s 17.6 kWh power supply or as big as the new Hummer EV’s 200 kWh battery.
Calculating the Cost to Fill an EV Battery
Let’s say you plan to purchase a Tesla Model 3. It has a 75 kWh battery with a range of 310 miles. You drive approximately 1,200 miles a month. That means you need 3.87 full battery charges, which works out to be 290.32 kWh. Your current rate is 12 cents per kWh.
1,200 miles / 310 mile range = 3.87 full charges
75 kWh battery capacity x 3.87 full charges = 290.32 kWh of power
290.32 kWh x 12 cents per kWh = $34.84 electricity/mo
You’ll definitely notice a difference in your electric bill, but you’ll also see a difference in your monthly budget since the gas bill will be gone. For instance, if you bought the Tesla to replace a 2015 Camry with a combined 30 miles per gallon you’d need 40 gallons a month to go 1,200 miles. If gas is $3.19 a gallon you’ll pay $127.60 at the gas pump.
You’ll pay for the increase in electricity use, but it’s a lot less than what’s paid in gas every month. Another thing to consider is that electricity prices have remained more stable over the years than gasoline.
No matter what time of day you charge your EV you can count on Provider Power to provide a reliable supply of electricity across the North East. Our plans are made for the energy needs of modern families today, tomorrow and well into the future. See what Provider Power energy plans are available in your area.