How does having an electric vehicle impact your energy bill?

In 2030, every new car sold should be an electric one (source: NRC).
The next few years we expect an increase in tax and policy incentives for zero-emission transportation. For an increasing number of households, having a plug-in EV is becoming a viable option.

We know that charging a car with electricity is cheaper than filling it up with gas. But what does owning an EV and charging it at home mean for your energy bill? How does its consumption compare to your homes electricity usage?

Home charging

A big advantage of having an electric car is that it can be charged from your house. This is slower than fast-charging in specific public charging stations, but charging your car at home is convenient and relatively cheap. Do you get ennoyed when one of the family members forgets to turn the light off? Well, chances are that your car will become the number 1 energy consumer!

Placing a fast-charging installation at home is not possible yet. Home electricity circuits do not have the capacity that is necessary for fast-charging. If you want to charge your electric vehicle at home, it will take a few hours. When using a regular power plug, charging a car battery will take approximately 6 hours (depending on the type of battery and the ampere of the circuit).

How does having an electric car impact your energy bill?

Regularly charging your electric vehicle at home will have a substantial impact on your energy bill. Here’s an example: An electric car with a 24kWh capacity battery and an average consumption of 0,2 kWh/km has an operating range of 120 km. With electricity prices being 20ct/kWh, charging this battery will cost €4,80. This equals 4 eurocent per kilometer. This is, at the time of writing, less than half of what a kilometer would cost in a gas-fuelled car. Let’s say that a person drives 20.000 kilometers per year. This would mean an increase of €800 on the energy bill.

In the Netherlands, the average family energy bill was €1.750 in 2018 (source: Milieucentraal)

Combined with the calculation of the average electricity costs per year for at-home charging, a household with a medium sized EV would end up having to pay €2550 on energy costs (gas and electricity). That would mean that the electric car would be responsible for a third of the total energy budget. If you’d drive more than the average 20.000 per year, or if you’d have a heavier EV, this number will increase further.

 

An electric car in Aurums energy app

One of the Aurum employees purchased an electric car recently: a Fiat 500 electric with 23 kWh. The app shows us that his home electricity usage went from an average 130 kWh per month to almost 500 kWh per month. This is a substantial increase in electricity consumption.

screenshot of Aurums energy app

In the combined energy bill (including heating) of this app-user we see that the EV accounts for 30% of the total energy bill.

Our team member is very interested in monitoring the costs of charging his EV. So far, it has been far less than what he used to pay for driving his previous gas-fuelled car. He now averages 7 km per Kwh. That is really efficient.

When you choose to charge your car at a public charging station, tariffs are higher. Electricity at a charging station currently costs around 35 cents per kWh.

These electricity costs are directly paid for and naturally don’t show on your homes’ energy invoice. If you opt for always charging at public charging stations your domestic energy bill won’t be affected.

 

The future

In Aurums eyes, the developments in electric transportation will give way to some interesting new shifts:

  • Double rates will become relevant again. Switching on your laundry machine at night (at discount rate) isn’t going to do much. However, charging your car battery could be significant given the capacity.
  • Monitoring for-work and private usage. If you use your EV strictly for work it makes sense to add a separate fuse box in your home. That will allow you to separate the electricity you use for mobility, and for living. This is required in the Dutch tax forms.

We expect an increase in demand for monitoring domestic energy currents. Also: dynamic control of electric appliances – with the car being the main consumer – will become very relevant. Aurum is proud to play a role in this development.

Take note: energy prices fluctuate. It is expected that energy rates will decrease the next few years. However, tariffs and distribution taxes will increase. It remains difficult to predict whether the calculation in this article still is accurate next year.

 

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