Impact of Home Electric Car Charging Stations on Electricity Bills

With the increasing popularity of electric vehicles (EVs) and the advancements in charging technology, many homeowners are now considering installing charging stations at home. This raises the question: how does the installation of an electric car charging station impact your electricity bill?

Current Situation and Savings

Let's take a closer look at an individual who has recently expanded their electric vehicle fleet from two to three cars. Their electricity bill at home is on a time-of-use (TOU) tariff, making it easier to track electricity usage. Last month, they spent approximately ￡100 on electricity for the house, with about ￡50 of that specifically allocated to charging the cars. This equates to an average of ￡45 spent on charging the cars during nighttime, which amounts to roughly 1500 to 2000 miles per month. Considering the cost of charging the EVs, it comes down to about 3p per mile.

Two years ago, before the rise in petrol prices, the same individual was spending around ￡350 per month on petrol. Currently, with two electric cars, their home electricity bill has increased by approximately ￡50 per month. However, they no longer spend ￡400 to ￡500 a month on petrol. This shift in energy expenditure has been significant, with the total monthly savings on fuel being substantial.

Future Outlook and Energy Efficiency

The individual also holds shares in a wind farm that will become operational next month. From next month, they should see a 90% discount on their home electricity bill. Interestingly, they have observed that some shareholding members of earlier wind farm projects have reported their energy bills as negative, indicating a financial benefit.

In Fairfield Connecticut, a home dedicated to an all-electric 2022 Hyundai Ioniq 5, the cost of electricity is approximately 23 pence per kilowatt-hour (p/kWh). For a conservative scenario of driving 25,000 miles annually, the yearly expenditure on electricity would be approximately ￡150. If using an internal combustion engine (ICE) vehicle, the corresponding cost in gasoline could range from ￡3,000 to ￡4,000, assuming a fuel efficiency of 25 miles per gallon.

This individual has had the foresight to invest in solar power more than a decade ago, in 2012. They realized the potential savings when a friend discussed the benefits of solar installations with them. At the time, they required funding for their children's college education, which cost ￡40,000 per year each, totaling ￡160,000. They made the investment in solar power, and within seven years, the returns started to outweigh the initial investment. Starting from 2020, they have experienced approximately zero electricity bills, with their rooftop solar panels producing around 7,000 kWh of electricity per year. This has translated to a significant reduction in their EV charging costs, effectively costing them zero for fuel.

Conclusion

The installation of an electric car charging station at home can indeed affect your electricity bill. However, with careful planning and the integration of renewable energy sources like solar power, the overall cost of maintaining your electric vehicles can be substantially reduced. Understanding time-of-use tariffs and taking advantage of these savings can help offset the increased electricity costs associated with charging.