California’s high electricity costs impact EV savings by narrowing the price difference between charging and gasoline, but the overall savings remain substantial due to EVs’ efficiency advantages. Here’s a breakdown:
Cost Comparison
- Electricity costs: Average residential price reached 31.87¢/kWh (January 2025), more than double the US average of 15.60¢/kWh.
- EV charging costs:
- Typical EV (3-4 miles/kWh): ~10.6-12.7¢/mile at current rates.
- Gasoline equivalent: Requires ~30¢/mile (assuming $4.50/gallon and 15 MPG SUV) or ~15¢/mile (30 MPG sedan).
Savings Factors
- Efficiency advantage: EVs maintain a 40-70% operating cost edge over gas vehicles despite high electricity rates.
- New fixed charges: A $24/month flat fee (effective late 2025/early 2026) adds ~$288 annually but simplifies tiered pricing.
- Home solar synergy: Pairing EVs with rooftop solar can reduce per-mile costs to 2-5¢/mile, offsetting grid electricity rates.
Regional Variations
Coastal residents with lower usage (milder climate) see better savings than inland users facing both higher consumption and rate tiers. Lower-income households on discounted rates (CARE/FERA programs) retain stronger savings.
While California’s electricity prices reduce EV savings compared to states with cheaper power, drivers still save $500-$1,500+ annually over comparable gas vehicles depending on mileage and rate plan. The $14.1 billion excess California households pay annually for electricity underscores the importance of rate optimization for EV owners.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-cost-of-electricity-in-california-affect-the-savings-of-driving-an-ev/
