Switching to an electric vehicle offers significant savings compared to traditional gasoline-powered cars. Their lower fuel and maintenance costs make them a competitive option. Here’s a closer look at the savings potential:
The current national average price for regular gasoline is approximately $3.02 per gallon (AAA, 2024). AAA's research also indicates that average maintenance costs for gas vehicles are between $330-$600. This includes expenses like oil changes, brake replacements, engine repairs, and other maintenance. For a typical gasoline vehicle that travels 12,000 miles a year, with a fuel efficiency of 25 miles per gallon, the cost per mile comes out to 15.7 cents (including fuel and maintenance costs: fuel at 12.1 cents/mile and average maintenance costs of 3.6 cents/mile).
EVs are much more efficient, consuming about 3.33 miles per kilowatt-hour (miles/kWh). With fewer moving parts than gasoline vehicles, EVs require significantly less maintenance. Maintenance costs for EVs are about 50-70% lower than standard gas vehicles (Consumer Reports, September 2020). The cost to charge depends on where you plug it in.
The graphic above compares the annual price of fueling and maintenance for 12,000 miles a year of a typical gasoline vehicle and of an EV utilizing home charging, and an EV utilizing public charging. Curious about the numbers? Here’s the breakdown:
Home Charging:
Cheaper than public charging
Average residential electricity rate in the United States: 16.62 cents per kWh (Compare Power, 2020).
Cost to charge at home: 6.5 cents per mile, or $1.95 to match the energy equivalent of a gallon of gasoline.
Public Charging:
Faster than home charging, full charge within 18 minutes
Averaging 20 cents per kWh (Electrek, June 2020)
Cost to public charge: 7.5 cents per mile, or $2.25 to match the energy equivalent of a gallon of gasoline.
Example: Tesla Model Y vs. a Gas-Powered SUV
Now that we’ve seen the numbers on average, let’s compare a 2020 Tesla Model Y with a 2020 Dodge Journey to understand their respective fuel and maintenance costs.
Gas Prices vs. Electricity Rates
Switching to an EV isn’t just about financial savings; it’s about predictability and peace of mind. Gasoline prices are prone to fluctuations due to macroeconomics, making it difficult to estimate long-term costs. Electricity, by contrast, offers stability, enabling EV owners to forecast their expenses with confidence. Furthermore, with the cost of long-range EVs now lower than the average conventional gas-powered vehicle (Bloomberg, July 2024), owning an EV has never been a more practical choice.
The U.S. Bureau of Labor and Statistics graph below shows the fluctuation of gas prices in the last 20 years (black line), and the blue line which shows the steady price of electricity. Electricity prices have remained flat over this period of time, while fuel prices have seen a day-to-day fluctuation.
Beyond Fuel Costs: The Comprehensive Benefits of EVs
Electric vehicles offer more than just savings at the pump. With fewer moving parts than gasoline vehicles, EVs require significantly less maintenance. You’ll never need an oil change, or an exhaust system repair—factors that traditionally add up for gas-powered cars over time.
In addition, financial incentives make EVs even more competitive. Federal and state programs provide tax credits and rebates, reducing the upfront costs of EVs and making them more accessible than ever. To learn more about these incentives, check out our blog post, “Your Guide to EV Tax Credits and Rebates.”
Disclaimer:
The U.S. Department of Energy (DOE), Triangle Clean Cities Coalition and the National Renewable Energy Laboratory (NREL) do not endorse any companies or products described on this report and or the Vehicle Cost Calculator. Vehicle prices and specifications change frequently. Not all data have been verified by DOE or NREL, which manages the site. Consult a dealer or vehicle manufacturer before making purchasing decisions.
Check out this great resource from the NC Clean Energy Technology Center! Their interactive maps and infographics provide insights on EV charger locations, connector standards, and installation trends across North Carolina. Perfect for road trips, planning sustainable initiatives, or staying informed about clean transportation. Learn more here.
Now is the perfect time to make the leap If you’ve been looking to get an electric vehicle (EV). Here’s a comprehensive guide to all the incentives you can use when purchasing an EV or EV-related equipment. Federal and state programs offer incentives that could help you save thousands of dollars while enjoying the benefits of cutting-edge, quiet, and clean transportation.
Until 2032, federal tax credits are available to consumers, fleets, businesses, and tax-exempt entities investing in new, used, and commercial clean vehicles—including EVs, plug-in hybrid EVs, fuel cell EVs—and EV charging infrastructure through the Inflation Reduction Act of 2022 and implemented by the IRS.
$7,500
Federal Incentives for New Electric Vehicles
The Clean Vehicle Credit, introduced under the Inflation Reduction Act (IRA), offers up to $7,500 in federal tax credits for purchasing a new electric vehicle. To qualify:
- The EV must meet certain assembly and battery material sourcing requirements.
- Your modified adjusted gross income (AGI) cannot exceed $150,000 for single filers, $225,000 for heads of household, or $300,000 for joint filers.
This credit applies directly to your federal tax liability, making new EVs significantly more affordable.
Starting in 2024, this credit can be applied as a point-of-sale discount at dealerships, so you won’t have to wait until tax season to benefit.
$4,000
Federal Incentives for Used Electric Vehicles
The Used Clean Vehicle Credit offers up to $4,000 or 30% of the vehicle’s sale price, whichever is lower. To qualify:
- The vehicle must be at least two years old.
- The sale price must not exceed $25,000.
- Income thresholds are lower than those for new vehicles: $75,000 for single filers, $112,500 for heads of household, and $150,000 for joint filers.
If you are buying in 2024 the used vehicle needs to have been manufactured in 2022. Some dealerships provide the discount at the point-of-sale but are not required to do so for their used vehicles.
Make sure to check if your vehicle would be eligible for the discount or tax credit before purchasing. Follow the next steps:
- Ask your dealership for the VIN (Vehicle Identification Number) number.
- Go to Recurrent and input the VIN number.
- Look at the results to discuss with your dealership.
Note: Triangle Clean Cities does not endorse tools or results provided by private entities. These tools are for educational and informational purposes only.
$40,000
Federal Incentives for Commercial Vehicles
Businesses looking to electrify their fleets can take advantage of the Commercial Clean Vehicle Credit, which offers up to $40,000 per qualifying vehicle. For smaller vehicles, the credit is capped at 30% of the vehicle's price or $7,500—whichever is less.
To qualify:
- The vehicle must be used for business purposes.
- The credit applies to both fully electric and plug-in hybrid vehicles, as well as hydrogen fuel cell vehicles.
This substantial credit can significantly offset the costs of converting your fleet to cleaner energy, making it an attractive option for businesses.
$1,000 for home charging
Federal Incentives for Home Charging Equipment
Installing EV charging stations also comes with financial benefits. The Alternative Fuel Vehicle Refueling Property Credit covers 30% of the cost of EV charging equipment, up to:
- $1,000 for individuals installing a home charging station.
- $100,000 for commercial charging installations.
When combined with the Direct Pay Option, tax-exempt organizations can also benefit from this program to reduce upfront costs for charging infrastructure.
$1,133 for home charging
Local Incentives: Duke Energy's for EV Owners in North Carolina
Duke Energy is offering a unique incentive to help homeowners in North Carolina prepare their properties for electric vehicle (EV) charging. This program can provide a credit of up to $1,133 to cover the cost of installing wiring for a home EV charger.
Eligibility Requirements:
- You must own your home to qualify.
- The EV must be registered at the same address as the home where the installation is taking place.
What the Credit Covers:
- The credit does not cover the cost of the charger itself—you’ll need to purchase that separately.
- It covers the cost of installing the necessary wiring to connect the charger to your home’s electrical system.
No Upfront Costs:
- Duke Energy can pair you with an approved electrician to perform the work, and no out-of-pocket costs will be required.
Application Requirements:
- To complete the application, you’ll need to provide the contractor’s identification number (ID) for the electrician performing the installation.
During Hurricane Helene, an Asheville family relied on their electric vehicle's bidirectional charging to power essential appliances when their home lost electricity for weeks. The car's output provided a lifeline for lighting, refrigeration, and electronics. This experience highlights the critical role EVs can play in emergency preparedness and resilience. Check out the Joint Office of Energy and Transportation's article to learn more!
Want the latest insights on EV sales and charging infrastructure? The Joint Office of Energy and Transportation’s Monthly EV Minute delivers data-driven updates from trusted national sources. Stay informed on the rapidly evolving EV landscape and all things alternative fuels through the Triangle Clean Cities website and check back for more updates!
Did you know the average electric vehicle gets 300 miles per charge and costs less than the average car in the United States? Electric vehicles are now more accessible than ever!
According to a recent study, North Carolina ranked fifth most-improved state for EV infrastructure from 2022-2023. Central Pines Regional Council is poised to help build upon that reputation after being awarded a $3.9 million grant to establish and enhance the growing national EV charging infrastructure.
In February, the automotive research site ISeeCars.com, ranked North Carolina as the fifth most-improved state for electric vehicle (EV) infrastructure. The study found a 26.8% increase in the ratio of charging stations per resident - from 3,403 residents per charger in 2022 to 2,490 residents per charger in 2023.
Central Pines Regional Council (CPRC) and Triangle Clean Cities Coalition are excited to build upon this momentum by announcing a $3.9 million grant to further expand the reliability of the national public EV charging infrastructure.
The grant, part of the U.S. Department of Energy's Ride and Drive program, is funded by the Bipartisan Infrastructure Law to allow CPRC to leverage the National Charging Experience Consortium (ChargeX Consortium) working with the Idaho National Laboratory as the technical lead and 26 Clean Cities Coalitions across 23 states to assess the performance, reliability, and uptime of Level 2 and Direct Current Fast Charging (DCFC) public stations.
These agencies will work together to establish a standardized, user-friendly experience for EV public charging stations, ignite community-based workforce programs that are scalable nationwide, and strengthen charging networks to ensure equitable access.
The outcome of this program will inform and bring key players to establish collaborative, sustainable solutions to expand access to a seamless EV charging infrastructure for the growing nationwide EV adoption, which, according to Drive Electric, accounts for over 4.6 million sold cumulatively in the US by the end of 2023 with Kelly Blue Book forecasts of consistent growth, reaching 10% EV share this year.
"We are elated to have been chosen for this nationally significant grant award," said Lee Worsley, Central Pines Regional Council Executive Director. "This project exemplifies Central Pines Regional Council's commitment to sustainable transportation solutions and environmental resiliency which is a testament to the council's talented staff and our commitment to fostering innovation." In addition, through this grant, CPRC will help further cement North Carolina's reputation as an undisputed leader in electric vehicle technology and solution-oriented innovation.
Worsley noted that the project directly addresses two of CPRC's six defined focus areas: environment & resilience and mobility & transportation.
In addition to public programs, North Carolina continues to bring private investment dollars from the EV industry. Wolfspeed, Vinfast, and Kempower are just some of the many companies that have invested millions of dollars in getting jobs and facilities in central North Carolina.
Central Pines Regional Council (CPRC) is the resource and support hub for local governments, community members, and partners across Chatham, Durham, Johnston, Lee, Moore, Orange, and Wake Counties. To learn more about the six CPRC focus areas, visit centralpinesnc.gov.
Triangle Clean Cities Coalition is a partnership with the US Department of Energy focused on making it easier to adopt alternative fuel vehicles in the region.
For more information contact Jesse Duran at jduran@centralpinesnc.gov and be on the lookout for updates.