EV Cost Stability Index

EVs aren’t just a sustainable alternative to combustion-engine vehicles, they can also be an affordable one. As fuel prices continue to fluctuate, many drivers are turning to electric cars to take advantage of more predictable costs.

To find out more about how much money an EV could potentially save you, the energy plan comparison experts at Compare the Market AU have put together a cost index to highlight fuel prices. Our data compares US and Australian states to show how much drivers can save by switching from traditional fuel to EV charging, as well as the volatility of each method’s costs. Read on to see where your area ranks on our list:

Best Australian states for EV savings

1. Australian Capital Territory

The ACT is the state that offers the biggest potential savings for EV drivers, with residents being able to save 84.7% by switching from a combustion-engine vehicle. Annual EV charging costs in the territory average just $426.75 AUD, while the cost of traditional petrol or diesel can add up to $2,788.28 AUD, for savings of more than $2,000 AUD!

2. Northern Territory

The Northern Territory follows closely behind as the second-best Australian state for EV savings. While a year of fuel costs $2,747.09 AUD, a year of EV charging is just $493.45 AUD, meaning residents could save 82% on monthly fees.

3. Tasmania

Tasmania ranks third in our list of the best Australian states for annual EV costs. A year of recharging adds up to $506.98 AUD, compared to $2,780.22 AUD per year for traditional fuel. That means that drivers in the state can save 81.8% on their car’s running costs.

4. Victoria

In Victoria, drivers can save up to 81.5% on their vehicle’s monthly running costs by switching to an electric vehicle. A year of diesel in the state costs an average of $2,765.89 AUD, while the annual cost of charging an EV is just $512.93 AUD.

5. Queensland

Finally, Queensland wraps up our list with total savings of 80.4% for drivers who switch to an EV. Each year, charging an electric car in the state costs just $544.66 AUD, compared to $2,782.90 AUD for traditional fuels.

Best US states for EV savings

Now that we’ve covered the best regions of Australia for fuel savings, which US states have the best rates for EV drivers? Here’s our top five:

1. Washington

Washington tops our list of the US states with the biggest savings for EV drivers, as a year’s worth of charge costs just $400.47 USD, compared to $2,593.58 USD  for fuelling combustion-engine vehicles. That means you could save 84.6% on your monthly running costs.

2. Idaho

In Idaho, EV drivers can save 83.1% on their vehicle’s monthly costs compared to petrol vehicles. While a year of EV charge costs just $350.11 USD, a year’s worth of petrol can cost as much as $2,070.11 USD, meaning you could save thousands per month.

3. Nevada

Continuing the trend of Western states sweeping our top five, Nevada finishes in third place. Like in Idaho, EV drivers can save 83.1% on their running costs, with a year of petrol costing $2,392.25 USD compared to a year of electric charge costing $405.40 USD.

4. Oregon

Oregon ranks fourth on our EV cost index, with average annual charging costs of $425.12 USD . By comparison, a year’s worth of combustion-engine fuel in the state costs $2,393.22 USD , meaning EV drivers could save 83.1% on monthly running costs.

5. Utah

Rounding out our top five is Utah, where drivers can save 81.7% on their monthly vehicle fuel costs by switching to an EV. While combustion-engine vehicles cost $2,037.12 USD to fuel each year in the state, a year of EV charging is just $373.50 USD.

How does fuel price volatility affect savings?

Fuel prices can fluctuate over time, making it difficult to assess the long-term value of petrol relative to electricity, which has a more stable price. Swings in petrol prices can vary by region, too, so where you choose to refuel can affect your vehicle’s monthly running costs.

In Australia, the Northern Territory experiences the biggest gap in volatility between EV charging and standard fuel. The price of diesel can vary by as much as 82.4%, while the typical cost of electricity changes just 8.5% on average, for a 74% difference in volatility. Victoria ranks second, with a 55% difference in volatility, while Tasmania (50.2%) ranks third.

Meanwhile, in the US, EV charging costs in Nebraska have the largest step-down in volatility compared to traditional fuels. The price of petrol in the region can swing by 86%, compared to just 7.7% for electricity costs. Utah follows closely behind, with a 77.7% difference in volatility. Wyoming rounds out the top three at 76.1%.

More homes across the US and Australia are also installing solar panels, which can be used to power at-home EV charging stations. South Australia has seen the widest adoption of solar panels in the country, with 64.9% of households installing them. It’s followed by Queensland (62.5%) and Western Australia (58.3%).

Meanwhile, in the US, Hawaii is leading the charge for solar panel adoption. With 21.1% of households installing panels, the decrease in interest is notable compared to Australia. California ranks second, with 15.9% of households using solar power, while Nevada (11.5%) places third.