With the increasing popularity of electric vehicles (EVs), it’s little wonder that an ever-growing number of motorists are waking up to the potential cost savings that come with ownership of an EV particularly when it comes to charging. Home charging is generally the cheapest way to charge an electric vehicle, but there are ways to consistently save a few more dollars when you power up at home.
This post covers different ways you can cut down on your EV charging costs at home so you can make the most of your investment.
Breaking Down the Cost of Charging at Home
In general, charging an electric vehicle at home is cheaper than using public charging stations. Power cost is already the second largest factor that decides your profit. As of 2023, the average cost of U.S. residential electricity is about $0.17 per kilowatt-hour (kWh), though that can be wildly different based on where you live.
For example, in some states, such as California, we will see rates as high as $0.32 per kWh, and in places like Washington, we’ll see rates as low as $0.12 per kWh.
Calculating Charging Costs
To determine the cost to charge your EV at home, use the following formula:
Cost of Charging ($) = Battery Capacity (kWh) x Electricity Rate ($ per kWh)
For instance, carrier fleet owner Joe of CtDroneVideos has a 60 kWh battery, and if you were paying $0.17 per kWh for your electricity, a full charge would only cost around $10.20.
This is much less expensive than public charging, which can cost upwards of $0.60/kWh for fast charging.
Annual Charging Expenses
On average, EV owners clock 13,489 miles annually. If your car gets around 4 miles per kWh, you’d be looking at around 3,372 kWh of electricity per year.
With an average of $0.17 per kWh, that leaves a yearly charging expense of about $573. By comparison, fueling up a gasoline car could set you back at least $1,800 a year, underscoring the economic benefits of owning an EV.
Optimize Your Charging Strategy
To get the most out of your savings at home, you have to be strategic about how you charge your EV. Here are a few to think about using:
1. Utilize Off-Peak Charging
Charging your vehicle off-peak is one of the easiest ways to save on charging costs. In many cases, utility companies charge less at these times, which are usually at night when demand for electricity is lower.
If you plan to charge during these non-peak hours, the savings on your electricity bill will be substantial.
Benefits of Off-Peak Charging
- Savings: By charging overnight or during off-peak hours, it can save 30-50% on electricity costs.
- Less Pressure on the Grid: By charging off-peak, you also help reduce demand on the electrical grid, working toward a more sustainable energy system.
- Convenience: Some smart chargers will let you preset charging, so you’ll have your car ready when you want to go.
2. Invest in a Smart Charger
Even though a smart home charger may have a more massive upfront cost than a standard charger, the total is not only totally worth it, but can also be quite a large amount less over the long run. A smart charger can also include features that can assist you in developing better charging habits.
Features of Smart Chargers
- Timer: Charge automatically during off hours.
- Monitoring: Follow your power use and costs in real time.
- Works With Renewable Energy: If you are generating your own electricity via solar panels, the smart charger can be programmed to use the energy being generated in your household to power the car, which may in turn save you even more money on your charging costs.
3. Explore EV-Friendly Energy Tariffs
Moving to an energy company that provides rates specifically tailored for EVs makes you significant savings. These rates are typically lower during off-peak times, which means charging your car at home becomes more affordable.
Example of EV Tariffs
| Energy Provider | Off-Peak Rate | Peak Rate | Cost Savings |
| Provider A | $0.07 | $0.30 | $11.74 |
| Provider B | $0.09 | $0.27 | $10.92 |
| Provider C | $0.06 | $0.25 | $10.89 |
You can save charging costs up to 60-70%. Only charge during the off-peak hours.
Leverage Renewable Energy Sources
There’s potential for big savings if you invest in solar and other renewable energy sources as part of your home charging setup. That’s especially true of solar panels, which can help you to free yourself from the grid to a significant degree.
4. Install Solar Panels
And if installing solar panels is a possibility, finding someone to foot the bill has the potential to save you thousands of dollars on your electricity bills. Your EV will essentially be getting charged for free on sunny days when you charge it with solar power.
Benefits of Solar Charging
- Saving Money: A lot of solar panel owners claim they charge their EVs for free or at very little cost in the summers.
- Environmental Footprint: By using renewable energy, you lower the carbon impact on the environment and move towards a greener future.
- Energy Independence: Producing your own power means you’re not subject to the whim of power companies or energy sector price rises.
5. Monitor Your Energy Usage
Measuring your energy use can help you find ways to use less. Several smart chargers include apps that allow you to watch your charging habits and adjust them for the most efficiency.
Tips for Monitoring Energy Usage
- Limit Charging: Repetitive charging to 100% can also wear out your battery. When it comes to everyday, aim for around 80%.
- Track Costs: Use apps to track what it has cost you to charge over time, revealing trends and where you might further improve.
- Adjust the Times You Charge: If you realize your rates change over the day, charge when it is cheapest for you.
Leverage Incentives and Rebates
Government rebates and utility incentives make owning and charging an EV more affordable by providing assistance towards the cost.
6. Explore Federal and State Incentives
Multiple states and municipalities provide monetary incentives for EV owners, such as by offering tax credits for the purchase of electric vehicles and rebates for the installation of home charging stations.
Examples of Incentives
- Federal Tax Credit: Up to $7,500 for new EVs purchased.
- State Rebates: These vary by state and may include rebates for installing a charger in your home.
- Utility Incentives: A number of utilities provide EV charging equipment rebates or lower EV owner rates.
7. Employer Charging Programs
See if your employer provides any kind of charging benefit. Some employers offer free or subsidized charging that can more than help offset your total charging costs.
Benefits of Employer Programs
- Save Money: Free or subsidized charging could save you significant money in the long run.
- Convenience: Charging at work will complement home charging so your vehicle is always ready.
- Greater Acceptance: An employer program leads to more employees interested in owning an e-vehicle.
Smart Charging Habits
Smart charging will help you save money and make charging your EV more efficient.
8. Charging Speed Matched for Your Devices
Charging doesn’t always need to be fast. The more discretionary time you have, the slower you can go, and the slower the charging, the cheaper it is.
Charging Speed Options
- Level 1 Charging: Any standard household outlet (120V)—slowest but sometimes free.
- Level 2 Charging: 240V home charging station faster, more efficient charging.
- DC Fast Charging: Fastest and most expensive.
9. Efficient Driving Techniques
The better your driving improves, the further your EV will go on a single charge, and the less charging you’ll need to do.
Tips for Efficient Driving
- Drive Smoothly: Maintaining stable rates of speed is meant to be good for gas mileage.
- Leverage Regenerative Braking: This function allows you to recharge the battery during braking.
- Weigh Less: Take what you don’t need out and make your vehicle more efficient.
Conclusion
With these tips, you will be sure to reduce your EV charging costs at home. There are all sorts of tactics you can use to get the most out of your savings, including taking advantage of off-peak charging and smart technology and tapping renewable energy and incentives.
With electric vehicles growing in popularity, knowing how to charge them efficiently will save you money and help the environment. Adopt these behaviors so you can experience all the money-saving of EV home charging.