Costs and savings

The following is a real world analysis (with some assumptions) based on Simon’s three years use of a Tesla Model 3. We have excluded the free electricity from solar PV.

The purchase price of the Tesla at the time was a scary £43kEV (currently £39k)

---

Annual electricity consumption

• Total: 2473 kWh (compared with total home use of: 2226 kWh)
• Public charging (5%): 123 kWh
• Other (friends etc): 123 kWh

Cost:

• Home: 2473 *£0.09=£223
• Public charging (5%): £48
• Other (friends, work etc): £0

Annual EV fuel cost: £270
Cost per mile: 270/11000= 2.5p (actually, with solar it was 1.6p)

Car tax and servicing: effectively £0

Total: £270

---

Petrol car equivalent

Let’s do the maths for a typical mid-range petrol car, averaging 40mpg (so not as comfortable or fun car as the Tesla).

• Annual fuel consumption (miles/miles per gallon): 11,000/40= 275 gallons
• Annual petrol cost at £1.50/litre = £1,856
• Cost per mile = 17p
• Car tax and servicing add (£180 +£150) ~£330 per year

Total: £2186

---

EV savings

• Annual fuel saving of the EV = £1,586
• Car tax and servicing saving = £330
• Total annual saving is about £2200 per year (£180 per month) savings.

Total annual saving is about £2200 per year (£180 per month) savings.

A typical mid spec petrol car costs £27500 new. An MG4 costs the same. New EVs are starting to arrive at lower prices.

Of course, most people can’t afford a brand new car. However teh savings on second hand ones are about the same and there are lots beginning to appear now at under £20k.

Conclusion

If you are in a position to buy a new car and can home charge, you can save almost £2000 a year buying a decent EV, or use the savings to pay for an even better one for increased range and/or higher performance.

For example, if you keep a car for 5 years, that £10k saving would be enough to buy a Tesla Model 3 instead of a £30k mid-range ordinary car.

The second hand EV market is becoming exciting, with good EVs at ‘reasonable’ prices; less than £20k. With the massive uptake of EVs as company cars/fleet cars, the second hand market will soon have even more reasonably priced vehicles, but it might be a year or two before you can buy an EV ‘banger’!

Meanwhile prices are dropping. In 2024 we expect to see lots of exciting, more affordable, more sensibly sized EVs. Two that come to mind are the Renault 5 and Kia EV3, both the same price as a typical petrol car.