Understanding costs of charging electric cars in the UK

As more taxi drivers switch to electric vehicles (EVs), understanding how much it costs to charge an electric car has become essential. Charging expenses vary based on electricity rates, charging location, and vehicle efficiency.

In this guide, we’ll break down the factors that influence EV charging costs, compare home vs. public charging rates, and explore strategies to save money on charging your electric car in the UK.

Average Cost per Kilowatt-Hour (kWh) in the UK

What Is a Kilowatt-Hour (kWh) in Electric Vehicles?

A kilowatt-hour (kWh) measures energy consumption over time. In electric vehicles (EVs), it quantifies how much electricity a car uses to travel a specific distance. For example, if an EV has an efficiency of 4 miles per kWh, it can drive four miles using 1 kWh of electricity. Understanding this metric allows for accurate cost calculations when charging an EV.

Current kWh Pricing in the UK

Electricity prices vary across regions and suppliers, but recent data from Ofgem, the UK’s energy regulator, provides a clear benchmark. As of early 2024, the average electricity price for households stands at 24 pence per kWh. This price fluctuates based on market conditions, energy tariffs, and government policies.

Home charging rates: Typically 24p per kWh on a standard tariff, though Economy 7 or off-peak plans can reduce costs significantly.
Public charging stations: Prices vary widely. Depending on provider and location, rapid and ultra-rapid chargers often range between 40p and 80p per kWh.
Subscription-based services: Some networks offer reduced per-kWh rates for subscribers, lowering overall charging costs.

Charging TypeCost per kWh (£)Home Charging (Standard Tariff)0.24Home Charging (Economy 7 Off-Peak)0.075Public Charging (Fast Chargers)0.3Public Charging (Rapid & Ultra-Rapid Chargers)0.5

Comparing these rates with petrol or diesel costs highlights the financial benefits of EV ownership. On a standard home tariff, charging a 60 kWh battery costs around £14.40, offering around 200 miles of range.

In contrast, driving a petrol vehicle the same distance at an average 40 miles per gallon would cost significantly more, assuming a fuel price of £1.50 per litre or higher.

Types of Charging Stations and Their Costs

Electric vehicle (EV) charging stations fall into three main categories: Level 1, Level 2, and DC Fast Charging. Each offers different charging speeds and costs, catering to various driving needs and locations.

Level 1 Charging: The slowest option, using a standard 230V household outlet. It adds around 3-6 miles of range per hour.
Level 2 Charging: Requires a dedicated charging unit with a 7kW to 22kW output. It delivers 12-75 miles of range per hour.
DC Fast Charging: Found at motorway service stations and urban hubs, delivering power at 50kW to 350kW. It can charge a battery from 10% to 80% in 20-40 minutes.

Individual Costs of Using Level 1, Level 2, and DC Fast Charging

Charging costs depend on energy rates and station type. Home charging tends to be the cheapest, while rapid public charging involves higher rates.

Level 1 Charging: Costs align with residential electricity rates, averaging £0.28 per kWh in the UK. Fully charging a 60kWh battery at home would cost around £16.80.
Level 2 Charging: Public Level 2 chargers typically cost between £0.30 and £0.40 per kWh. Charging a 60kWh battery might range from £18 to £24.
DC Fast Charging: Faster convenience comes at a premium. Prices range between £0.45 and £0.85 per kWh, meaning a 60kWh charge could cost £27 to £51.

Some providers such as Ionity and BP Pulse offer subscription plans that lower per-kWh costs, benefiting regular users.

Availability of Charging Stations in the UK

Charge point accessibility continues to expand, with over 50,000 public connectors across the UK as of 2024. London's charging network leads in density, while major motorway services ensure long-distance travel viability.

Urban Areas: A mix of slow and fast chargers installed in public car parks, supermarkets, and office buildings.
Motorway Service Stations: High-power chargers from providers like Gridserve, Tesla Supercharger, and Ionity support long journeys.
Residential Streets: Councils and private networks are installing more lamp post and curbside chargers.

Finding a public charging station is increasingly convenient, with real-time availability maps provided by services like Zap-Map and PlugShare.

Time of Use Electricity Rates and Off-Peak Charging Benefits

How Time of Use Rates Work in the UK

The price you pay for electricity in the UK depends on the time of day you use it. Energy suppliers offer Time of Use (ToU) tariffs, which charge different rates depending on demand. These tariffs typically have three periods: peak, off-peak, and sometimes a super off-peak window.

During peak hours, usually between 4 pm and 7 pm, electricity costs the most because demand is highest. Off-peak rates apply late at night and early in the morning when fewer people use electricity. Some suppliers, like Octopus Energy and EDF, provide lower rates for EV charging during these off-peak hours.

For example, Octopus Go offers an off-peak rate of around 7.5p per kWh between 12:30 am and 4:30 am, compared to a peak rate of approximately 30p per kWh. Scheduling charging sessions during these discounted periods significantly cuts costs.

Strategies for Cost-Effective Charging During Off-Peak Hours

Reducing EV charging expenses involves timing energy consumption wisely. Smart charging technology and flexible utility plans make this easier.

Use a Smart Charger: Many home chargers integrate with mobile apps that allow users to schedule charging during low-rate periods.
Switch to an EV-Friendly Tariff: Some energy providers offer specific tariffs for EV owners, such as Intelligent Octopus, which adapts charging sessions based on grid conditions.
Leverage Solar Energy: Homeowners with solar panels can maximize self-generated electricity during daylight hours and reserve cheaper grid electricity for nighttime charging.
Monitor Energy Prices: Dynamic tariffs, such as Agile Octopus, adjust rates every half hour based on wholesale electricity prices. Charging when prices drop further optimizes costs.
Utilize Vehicle-to-Grid (V2G) Technology: Some EVs support V2G, allowing users to store electricity during off-peak hours and sell excess power back during peak demand.

Home Charging Station Installation Costs

Upfront Costs of a Home Charging Unit

Installing a home electric vehicle (EV) charging station involves two primary costs: the price of the charging unit itself and the installation expenses. A standard 7kW home charger, which offers a good balance of speed and affordability, typically costs between £500 and £1,000. Higher power units, such as 22kW models, can exceed** £1,500**, but these require a three-phase electrical supply, which most UK homes do not have.

Beyond the charger cost, installation expenses vary depending on the electrical setup of the house. A basic installation where minimal wiring modifications are required costs around £300 to £600. However, if the installation needs extensive wiring upgrades, a new consumer unit, or a trench for external cabling, the cost can climb above** £1,500**.

DIY vs. Professional Installation

Some EV owners consider installing a charging unit themselves to save money, but this approach comes with risks and potential legal complications. Home EV chargers connect directly to the main electrical supply, meaning UK electrical regulations require the installation to comply with the BS 7671 Wiring Regulations. Hiring a certified electrician ensures safety and compliance, which is crucial for insurance coverage and property value.

DIY Installation: Possible for those with electrical expertise, but still requires final inspection and certification from a qualified electrician. Mistakes can lead to safety hazards and may void warranties.
Professional Installation: Provides assurance of safety and regulatory compliance. Installers registered under the Office for Zero Emission Vehicles (OZEV) scheme can access the EV chargepoint grant, reducing costs by up to £350.

Public Charging Network Fees

Cost of Using Public Charging Networks in the UK

Public charging networks in the UK set prices based on location, speed, and provider. Rapid chargers, typically found at motorway service stations, cost more than destination chargers in shopping centres or car parks. Prices vary among networks, with some charging per kilowatt-hour (kWh) and others applying connection or time-based fees.

Slow Charging (3-7 kW): Typically £0.25 – £0.35 per kWh.
Fast Charging (7-22 kW): Ranges from £0.30 – £0.45 per kWh.
Rapid Charging (50-150 kW): Costs between £0.50 – £0.79 per kWh.

Some public chargers also apply flat connection fees, typically £0.50 to £1.00, regardless of usage. Free charging remains available at some supermarkets, hotels, and workplaces, though access often requires registration.

Subscription-Based vs. Pay-Per-Charge Networks

Public charging providers use two main pricing structures: subscription-based and pay-per-charge.

Subscription-Based Networks: Membership models offer reduced rates for frequent users. Companies like bp pulse and Osprey provide plans ranging from £7.85 per month, reducing per-kWh costs by £0.05 to £0.10.
Pay-Per-Charge Networks: No commitment is required, but rates often remain higher. Instavolt, for example, charges £0.75 per kWh with contactless payments.

Some providers, such as Tesla Superchargers, offer dynamic pricing based on demand. Users pay higher rates during peak hours, while off-peak sessions cost less.

Factors Affecting Charging Cost

Regional Differences in Electricity Pricing Across the UK

Electricity prices vary significantly across the UK due to factors like local supply costs, grid infrastructure, and regional demand. Data from Ofgem indicates that electricity charges differ across distribution networks, with areas such as the South West and Merseyside often paying higher rates than regions like Yorkshire and Northern Scotland.

The average cost per kilowatt-hour (kWh) in London tends to be higher than in northern regions due to increased grid congestion and operational expenses. In contrast, Scotland benefits from a higher share of renewable energy sources, which can contribute to relatively stable pricing in some areas.

Variation of Charging Costs Based on Different Utility Providers

Utility providers set different tariffs based on factors such as wholesale electricity prices, government levies, and network fees. For example, major suppliers like Octopus Energy, British Gas, and EDF Energy offer distinct pricing structures, some with off-peak discounts that significantly reduce overnight charging costs.

Standard Variable Tariffs: Prices fluctuate based on market conditions, impacting charging costs unpredictably.
Fixed-Rate Plans: These provide consistent per-kWh costs but may not offer the lowest off-peak rates.
Time-of-Use Tariffs: Plans such as Octopus Go or Intelligent Octopus allow electric vehicle owners to charge at lower rates during specified hours, often below 10p per kWh.

Subscription-Based and Pay-Per-Charge Models

Pros and Cons of Subscription Plans for EV Charging

Subscription-based charging models offer drivers the option to pay a fixed monthly fee for access to specific networks. Providers such as bp pulse, Osprey, and Pod Point offer varying plans, impacting overall charging costs.

Predictable Costs: Monthly payments ensure stable expenses, making budgeting easier.
Discounted Charging Rates: Subscribers often pay lower per-kWh rates compared to pay-as-you-go users. For instance, bp pulse members can access rates as low as 45p per kWh, while non-members pay 55p per kWh.
Access to Exclusive Stations: Some networks reserve high-speed chargers exclusively for members.
Fixed Cost Commitment: Those driving less per month may find subscriptions costlier than occasional pay-as-you-go charging.
Network Limitations: Subscription plans often apply to a specific provider, restricting charging options.

Cost Implications of Pay-Per-Charge Models

Pay-as-you-go charging allows EV owners to pay only when they use a station, typically at higher rates per kWh than subscription users.

Flexibility: No monthly commitments, making it ideal for those with irregular charging needs.
Higher Per-kWh Costs: Public chargers often charge between 45p and 79p per kWh, depending on speed and provider.
Pricing Variability: Different networks and locations have different rates, with ultrafast chargers (150kW+) costing significantly more.

For example, Ionity charges around 69p per kWh for non-members, whereas a £16 monthly subscription reduces rates to 35p per kWh. Drivers covering long distances frequently can benefit from such plans, while occasional users may find pay-per-charge more economical.

Life Cycle Cost Analysis of Charging an Electric Car

Total Cost of Ownership Over a Vehicle's Lifetime

Electric vehicle (EV) ownership costs extend beyond the initial purchase price. Charging expenses, maintenance, insurance, and depreciation all factor into the total cost of ownership (TCO). A comprehensive analysis considers these variables over an average vehicle lifespan of 10 to 15 years.

Electricity costs for charging depend on usage patterns, energy tariffs, and charging locations. For an EV with an average efficiency of 4 miles per kilowatt-hour (kWh), a UK driver covering 10,000 miles per year consumes approximately 2,500 kWh annually. At an average UK electricity price of £0.30 per kWh (as of 2024), home charging costs £750 per year. Public fast charging raises this expense due to higher tariffs, sometimes reaching £0.70 per kWh.

Battery longevity plays a significant role in EV economics. Most manufacturers offer battery warranties covering eight years or 100,000 miles, but degradation eventually affects capacity. Replacement costs vary, but as battery production scales up, prices continue to decline.

Comparing EV and Internal Combustion Engine Vehicle Costs

Internal combustion engine (ICE) vehicles require regular fueling, leading to significant lifetime fuel costs. A petrol car with an efficiency of 40 miles per gallon (mpg) consumes roughly 250 gallons (1,135 litres) for 10,000 miles. At a fuel price of £1.50 per litre, this results in £1,700 annually—more than double the estimated EV charging cost.

Maintenance expenses also widen the gap. EVs contain fewer moving parts than ICE vehicles, reducing servicing frequency and costs. No oil changes, exhaust system repairs, or transmission-related expenses contribute to overall savings. According to the UK government’s Transport Decarbonisation Plan, EV maintenance costs can be 20-30% lower than those of petrol or diesel cars.

Depreciation trends favor EVs in markets with strong demand and government incentives. Initial depreciation rates were higher, but advancements in battery technology and expanded charging infrastructure are improving resale values.

Lifetime Cost Savings with Electric Vehicles

Fuel and Charging Cost Differential: An ICE vehicle owner may spend £17,000 on fuel over a decade, whereas an EV owner charging mostly at home might spend £7,500.
Maintenance Savings: Over 10 years, EV owners could save £2,000 to £4,000 in repair and servicing costs.
Government Incentives: Purchase grants, reduced road tax, and exemptions from congestion charges further reduce TCO.
Battery Replacement Considerations: While some owners may face battery replacement costs, longevity improvements and second-life applications mitigate depreciation concerns.