The short answer – driving electric costs less than half as much as driving on gasoline

The US Department of Energy has a useful tool called “eGallon” to help drivers compare the cost of driving with electricity to the more familiar gasoline internal combustion engine. On average, it costs less than half as much to drive an electric vehicle. The US average regular gasoline price was $2.87/gallon compared to an electric-equivalent eGallon of $1.15 (eGallon 40% the cost of gasoline). You can look for each state, which will have both different gasoline and electricity prices.

A few popular examples:

• California – $3.60/gallon regular gasoline vs. $1.74/eGallon electricity – 52% cheaper than gasoline
• Colorado – $2.72/gallon regular gasoline vs. $1.07/eGallon electricity – 61% cheaper than gasoline
• Georgia – $2.73/gallon regular gasoline vs. $0.99/eGallon electricity – 64% cheaper than gasoline
• New York – $2.94/gallon regular gasoline vs. $1.65/eGallon electricity – 44% cheaper than gasoline
• Hawaii – $3.17/gallon regular gasoline vs. $2.87/eGallon electricity – 10% cheaper than gasoline (even with the highest electricity prices, driving electric is still cheaper)

What is an eGallon and why use it?

Most Americans measure the daily cost of driving by the price of gasoline. Whether you drive past a gas station or hear about price spikes on the news, we regularly see the price of a gallon of gasoline posted. Plug-in electric vehicles, however, are different. Since the majority of charging is done at home, it’s difficult to compare prices and measure how much it costs to drive an electric vehicle. To help gasoline-powered drivers see how much energy they waste, the Department of Energy developed the “electric gallon” or “eGallon” for short.

The eGallon is measured by multiplying: average comparable passenger car fuel economy [MPG] x average fuel consumption of best-selling electric vehicles [kWh/mile] x average US residential electricity price [$/kWh]

The eGallon represents the cost of driving an electric vehicle the same distance a gasoline-powered vehicle could travel on one gallon of gasoline.

Other considerations besides gallon-eGallon comparison

Convenience and time-savings

Battery electric vehicle owners never have to go to a gas station again. That means no more stops, wasted time, or stress when you’re in a hurry.

Plug-in hybrid owners rarely make a stop at a gas station but do have the ability to do so if needed.

Price volatility

All too often, American consumers forget the volatile price swings that gasoline can have. Hurricanes and natural disasters, financial crises, wars, energy crises, and many other factors can all lead to huge swings in the cost of gasoline.

Electric vehicles are essentially immune to these price swings, given the naturally stable price of electricity. The story gets even better if you produce your own electricity with solar and a power purchase agreement or fixed financing terms.