Cars: Electric vs Petrol / Diesel

This has been the topic all over the news, especially after the conclusion of the COP26 Climate Conference in Glasgow and recent massive increases in petrol prices due to the war in Ukraine, but the big question is, while electric vehicles (EVs) have been proven to be great for the environment, how much will they save you compared to conventional (petrol and diesel-powered cars)?

The answer is a lot!

Although they are more expensive than conventional cars, they are far cheaper to both fuel and operate, and the cost saving increases if you have a solar array at home.

Let’s break down the costs.

At present, the initial purchase cost is higher than that of a conventional car, but this difference depends on which country that you live in, as some countries, such as the USA, have subsidies and tax incentives on the upfront costs of EVs.

Here in Australia, we do not currently have these incentives in place at a Federal level (I will not get into politics here, but we will have a Federal election by May this year…), some States are introducing their own incentives.

A good comparison is between a car model that is offered both as a conventional and EV. An example is the Hyundai Kona, with the EV model retailing at around $AUD 62,000, $AUD 25,000 dearer than the petrol-powered model.

Apart from this difference, the operating costs of the EV Kona model are far cheaper than the petrol model. Its battery will cost about $AUD 12.80 to charge overnight, giving a range of about 450km. By comparison, the petrol model will cost about $AUD 75.00 to fill its 50 litre tank, giving a range of about 625km.

This means that for every 100km of travel, the EV model costs about $AUD 2.84 in electricity, whereas the petrol model costs about $10.40 in petrol.

Over a year, if you travel 15,000km, the EV model will cost $AUD 426 in electricity, compared to $1560 in petrol, a saving of about $1100.

How about the running costs?

In 2018, the annual maintenance costs of EVs were estimated to be about $AUD 300 — $400 less than petrol-powered cars, because they have far fewer moving parts than their petrol counterparts — no spark plugs, fuel filter, head gasket repairs/replacements and no oil changes. The biggest cost is their battery, at present $USD 8000 in a Nissan Leaf, but this is estimated to come down to approximately $USD 2800 in 2030. At present most EV manufacturers offer a 10-year or 160,000km warranty on batteries.

My family is looking to purchase an EV in the future, and I like to compare the cost of our annual trip from where we live, in Adelaide, to visit my father, who lives in Melbourne, 704km away.

If we had the above Hyundai Kona, the petrol (at $AUD 1.50 per litre) would be about $AUD 74.00, whereas if we had the EV model, the electricity cost would be about $20.00. That difference is the cost of a meal and family munchies along the way!

A factor is the time taken to charge an EV. Home-based chargers take about 6–8 hours to fully charge it, public chargers take 3 hours and rapid chargers take 10 minutes and can add 300km of range to an EV’s battery. This would easily get us to Melbourne, before a recharge is required. The charging technology is rapidly advancing, reducing charging time.

I hope that this sheds some light on EVs, which are both great for the environment (and the climate change equation), and the bank accounts of their purchasers.

Sources:

Energysage.com: Electric vehicles & the environment - https://www.energysage.com/electric-vehicles/advantages-of-evs/evs-environmental-impact/

Electric Vehicle Council: Save money and reduce carbon emissions - https://electricvehiclecouncil.com.au/about-ev/cost-calculator/

Energysage.com: Electric car tax credits & incentives - https://www.energysage.com/electric-vehicles/costs-and-benefits-evs/ev-tax-credits/

Budget Direct: How much does it cost to run an electric car? - https://www.budgetdirect.com.au/car-insurance/guides/car-buying/how-much-does-it-cost-to-run-an-electric-car.html

Chasing Cars: ACT government to give new EV buyers two years of free registration - https://www.chasingcars.com.au/news/electric-vehicles/act-government-to-give-new-ev-buyers-two-years-of-free-registration/

Electric Vehicle Council: About Electric Vehicles - Mythbusting - https://electricvehiclecouncil.com.au/about-ev/myth-busting/