Electric vehicles are 'Â£350 a year' cheaper to run than petrol cars - but only if you can charge at home

Electric vehicles (EVs) offer big savings. You could save £350 each year. This is compared to owning a petrol car. However, there is a catch. This saving largely depends on charging your EV at home.

New data shows this difference clearly. The RAC released its “Charge Watch” report. This report covers the end of 2023. It reveals current running costs for EVs.

Home Charging: Your Key to Big Savings

Charging your electric car at home costs less. It averages around 8p per mile. This low cost helps drivers save a lot. It makes EV ownership much cheaper. This is where the £350 annual saving comes from. Many drivers find this very appealing. It is a big reason to switch to an EV.

Public Charging Costs More: A Growing Problem

Public rapid charging is far more expensive. It costs about 23p per mile. This is nearly three times more than home charging. Petrol cars average 18p per mile. So, public charging is even pricier than petrol. This creates a big hurdle for some drivers.

About one-third of UK households cannot charge at home. These drivers rely on public chargers. They face much higher running costs. This group misses out on the big savings. It discourages them from buying an EV.

The RAC is urging the government. They want VAT cut on public charging. Currently, public charging has 20% VAT. Home charging only has 5% VAT. Equalizing this VAT could help many drivers. It would make public charging cheaper. This change could boost EV adoption for all. You can read more about these calls for change at RAC’s official site.

Why This Matters Now for Drivers

This news is important for you right now. Are you thinking about an EV? Consider your charging options first. Home charging brings real financial benefits. Public charging could still cost you more. Knowing this helps you make smart choices.

The cost difference affects who buys EVs. People with driveways save money. People in flats might not. This creates a two-tier system. The energy price cap also impacts costs. It shapes what you pay at home. For more insights on current energy market trends, check out BBC News’ coverage.