EVs are 1/10th the Cost to 'Fuel' Compared With ICE Vehicles

Under current utility electric vehicle (EV) tariffs, it is always cheaper to recharge an EV than to fuel a conventional gas-powered vehicle, according to a new study released today by Northeast Group, LLC. The study benchmarked and analyzed the first wave of EV-specific tariffs launched by electric utilities across the United States.

"In all scenarios we studied, the costs to recharge an electric vehicle were cheaper than fueling a gasoline-powered car. In the most likely EV charging scenarios, costs were approximately one-tenth to half the costs of fueling a conventional vehicle with gasoline," according to Northeast Group, LLC. The cost analysis looked specifically at "fueling" expenses, and did not consider other operating costs of vehicles.

"Electric utilities in the US are encouraging the adoption of electric vehicles by rolling out EV-specific tariffs to their customers. These tariffs take different forms, ranging from time-of-use (TOU) tariffs to flat rate tariffs. With the TOU tariffs, customers receive cheaper rates when they charge during off-peak times (typically nights and weekends). With the flat rate tariffs – e.g. $40 per month – all charging is typically covered. Utilities are now studying which tariffs will best accommodate the increasing number of electric vehicles on US roads," according to Northeast Group, LLC.

The study, "United States Smart Grid: Utility Electric Vehicle Tariffs," includes a benchmark of the EV tariffs of ten different utilities in six different US states (California, Georgia, Michigan, Nevada, Oregon and Texas). It provides a description of the different EV tariff structures offered across the country, a list of utilities and their specific EV tariffs, and a comparison and analysis of these tariffs. For example, the study includes an analysis of how different tariffs' costs vary for EV owners depending on distance driven and the time of day an EV is recharged.

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