If you are considering purchasing a new car and are looking at an electric vehicle (EV) as a serious option, it is important to understand how an electric vehicle can lead to different sources of spending and saving when compared to conventional gas engines.
The decision is getting easier to make every year. Between operational cost savings and the fact you can install a personal, at-home charging station, owning an EV means no more trips to the mechanic or gas station. Government rebates on the purchase of a new EV can help sweeten the deal.
Choosing to go elecric-powered instead of gas-powered can lead to significant long-term savings. A 2018 study from the University of Michigan’s Transportation Research Institute found that electric vehicles cost less than half as much to operate as gas-powered cars. The average cost to operate an EV in the United States is $485 per year, while the average for a gasoline-powered vehicle is $1,117. The exact price difference would depend on current gas and electric rates, as well as the type of car you drive.
TWEC has two different rates available to members. Our storage rate is a very low cost per kWh, but charging can only take place in a limited window. While our time-of-use rate allows charging at any time, certain times of day are more expensive than others. See the charts below and the example usage patterns for a year of driving.
TWEC Electric Vehicle Rates Compared
The average driver puts on approximately 15,000 miles a year, which would require approximately 4,500 kWh’s of charging. Using our Storage Rate, which only allows charging from 11 p.m. to 7 a.m. for 4.3¢/kWh, you would spend an estimated amount of $193 annually. On our Time-of-Use Rate, assuming 10% charging on-peak at 30¢/kWh, with the remainder charging off-peak at 6.95¢/kWh, you would spend an estimated amount of $416 annually.
15,000 Miles a Year = 4,500/kWh
Annual usage charging only 11 p.m. to 7 a.m. comes to an estimated amount of $193/year.
Annual usage assuming 10% charging on-peak comes to an estimated amount of $416/year.