Yahoo Finance Electric vehicle charging costs vary widely in Canada. Here’s a breakdown
Among the major reasons some Canadians buy an electric vehicle are the savings on fuel costs, but those savings vary significantly across the country due to differences in gas prices and electricity rates.
In Quebec, where electricity rates are lowest, the annual cost of charging an average EV on a home charger, assuming 20,000 kilometres driven, could be a little more than $300. In Alberta, where electricity rates are considerably higher, the cost could be around $1,000.
But in spite of that large difference, the cost of recharging an EV for a year remains far cheaper than paying for gas to drive the same distance no matter where you live. In an interview with Yahoo Finance Canada, Meena Bibra, a senior policy advisor for Clean Energy Canada, said this means the total ownership cost equation will very quickly favour EVs.
“A lot of the electric models that we have looked at, we're actually breaking even” versus the total cost of purchasing and operating a gas-powered car “in a year or less,” Bibra said. “And a lot of that contribution is really from the very low fuelling costs for electricity and pretty much almost non-existent maintenance cost.”
For the purposes of comparison, Yahoo Finance Canada used public data to model recharging costs in each province and territory.
The numbers are a way to compare rough relative costs. For these calculations, assumed EV battery efficiency is 20 kWh per 100 kilometres, a widely-used average. The calculation also assumes an annual total distance driven of 20,000 kilometres and 100 per cent home charging — but public charging, when necessary, can cost more. The average electricity rates, furthermore, do not reflect the range of rate plans offered in many places.
When compared to gas-powered vehicle fuel costs, the annual savings for charging are significant across the country, but with a wide variance. In major cities in Quebec and British Columbia, the savings could be above $2,500 per year. In Calgary and Edmonton, the savings could be less than $1,400 annually.
The model for annual savings versus a gas-powered vehicle assumes an average fuel efficiency of 8.9 litres per 100 kilometres, based on an International Energy Agency ranking, and using average gas prices for Canada’s major cities in 2023.
EV charging savings accrue over time, which Bibra noted requires “a different way of looking at car purchasing than the way that we've done beforehand.”
Clean Energy Canada research shows that EVs end up cheaper over 10 years versus comparable gas-powered vehicles, even in provinces that don't offer subsidies.
“One of the key things that people tend to do primarily is look at the upfront sticker price and that is being used to make purchasing decisions,” she said. “And so it doesn't take into consideration the lower fuelling costs and the lower maintenance costs, which help Canadians break even.”
John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf. Download the Yahoo Finance app, available for Apple and Android.
