The Cost of Owning an Electric Vehicle in the UK: Is driving electric an economical option?
Explore the cost breakdown of owning an EV in the UK. From charging to maintenance, insurance, and more.
The transition to electric vehicles (EVs) is gaining momentum in the UK, driven by the government's commitment to reducing harmful emissions and achieving net-zero carbon by 2050. This guide provides an in-depth look at the costs associated with owning an EV in the UK, including purchase price, running costs, and the financial incentives available to EV owners.
Purchase Price of Electric Vehicles
The initial purchase price of an electric vehicle can be higher than that of a conventional petrol or diesel car. However, the gap is closing as technology improves and economies of scale come into play. In 2023, the average price of a new EV in the UK is around £40,000, compared to £30,000 for a petrol or diesel car(1).
Running Costs: Electricity vs Petrol/Diesel
One of the main advantages of EVs is their lower running costs. The cost of electricity for charging an EV is significantly less than the cost of petrol or diesel. On average, it costs around £8.40 to fully charge an EV with a 60kWh battery at home, which can give a range of around 200 miles. In contrast, covering the same distance in a petrol car would cost around £28, based on an average fuel efficiency of 50 miles per gallon and a petrol price of £1.40 per litre(2)(3).
Maintenance and Insurance Costs
Maintenance costs for EVs are also generally lower than for petrol or diesel cars. This is because EVs have fewer moving parts and don't require oil changes. On average, the annual maintenance cost for an EV in the UK is around £235, compared to £400 for a petrol or diesel car(4). However, insurance costs for EVs can be higher, with the average annual premium for an EV in 2023 being around £1,020, compared to £740 for a petrol or diesel car(5).
Government Incentives and Grants
The UK government offers several incentives and grants to encourage the uptake of EVs. These include the Electric Vehicle Homecharge Scheme, which provides financial support to landlords to buy and install EV charge points at residential or commercial properties. Landlords can receive up to 75% of the cost towards purchasing and installing a charge point socket, limited to £350 per grant(6).
Local authorities can also apply for funding under the On-Street Residential Chargepoint Scheme (ORCS) to increase the availability of plug-in vehicle charging infrastructure for residents who lack access to off-street parking. The scheme offers funding for 60% of the capital costs involved in procuring and installing on-street electric car charge points and dedicated parking bays, up to a value of £7,500(6).
Businesses can benefit from the Workplace Charging Scheme (WCS), which provides financial support towards the cost of purchasing and installing workplace charge points. The scheme allows for up to £350 per charging socket (maximum of 40 sockets) up to a value of £14,000(6).
Conclusion
While the initial purchase price of an EV can be higher than a petrol or diesel car, the lower running and maintenance costs, combined with government incentives, can make EVs a more cost-effective choice in the long run. As the UK continues to invest in EV infrastructure and technology, the cost of owning an EV is expected to become even more competitive.
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