Summary
– Savings from charging an EV in major cities in Quebec and British Columbia could be over $2,500 per year compared to fueling a gas-powered car
– Electricity rates significantly impact the cost of charging an EV, with Quebec having the lowest rates and Alberta the highest
– Recharging an EV is cheaper than paying for gas no matter where you live, favoring EVs in terms of total ownership cost
– Annual savings for charging vary across the country, with major cities in Quebec and British Columbia seeing the highest savings
– EVs end up being cheaper over 10 years compared to gas-powered vehicles, even without subsidies, due to lower fueling and maintenance costs
Article
In major cities in Quebec and British Columbia, savings from charging an EV instead of fueling a gas-powered car could be above $2,500 per year. The primary reason some Canadians opt for electric vehicles is the cost savings on fuel, but these savings vary significantly across the country due to differences in gas prices and electricity rates. In Quebec, where electricity rates are lowest, the annual cost of charging an average EV on a home charger, assuming 20,000 kilometers driven, could be a little over $300, while in Alberta, with higher electricity rates, the cost could be around $1,000. However, regardless of location, recharging an EV for a year remains far cheaper than paying for gas to drive the same distance.
Meena Bibra, a senior policy analyst for Clean Energy Canada, explains that the total ownership cost equation quickly favors EVs as a lot of the electric models break even compared to gas-powered cars in a year or less. This is due to the very low fueling costs for electricity and almost non-existent maintenance costs. Yahoo Finance Canada used public data to model recharging costs in each province and territory for comparison purposes. The calculations assumed an EV battery efficiency of 20 kWh per 100 kilometers, an annual distance driven of 20,000 kilometers, and 100% home charging, with public charging costing more when needed. However, the average electricity rates used do not reflect the range of rate plans available in many areas.
The annual savings from charging an EV versus a gas-powered vehicle are substantial across the country, with significant differences. In major cities in Quebec and British Columbia, the savings could exceed $2,500 per year, while in Calgary and Edmonton, the savings could be less than $1,400 annually. The model for annual savings assumes an average fuel efficiency of 8.9 liters per 100 kilometers and uses average gas prices for Canada’s major cities in 2023. Bibra points out that EV charging savings accumulate over time, requiring a different approach to car purchasing than before.
Clean Energy Canada research shows that EVs end up being cheaper over 10 years compared to comparable gas-powered vehicles, even in provinces that do not offer subsidies. Bibra notes that many people primarily focus on the upfront sticker price when making purchasing decisions, without considering the lower fueling costs and maintenance costs that help Canadians break even. This highlights the need for a shift in perspective when evaluating the overall cost savings and benefits of electric vehicles over traditional gas-powered cars in the long term.
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