Cities can save their constituents who use a car to get to work upwards of $200 per year by switching to an EV. These savings could spur spending and stimulate economic growth by keeping more money in a city’s economy.

A key driver of consumer interest in EVs has been the potential to save drivers money on transportation costs. A tool on the U.S. Department of Energy website shows electric fuel costs considerably less on average than gasoline, even with gas prices below $2.50 per gallon. A 2015 survey by the National Renewable Energy Laboratory found saving “money on fuel costs” was the number reason consumers would consider purchasing an EV.

More recently in August of 2018, the Crescent Electric Supply Company crunched the numbers on commuting costs and found drivers could save hundreds of dollars a year by switching to an EV. The company analyzed annual commuting for gas and electric vehicles across 52 major U.S. cities and found switching to an EV saves between $100 and $200 per year in fuel costs. The detailed results are in the table below and demonstrate how local conditions can drive the story; some cities benefit from low electricity costs while longer commutes drive the savings in other cities.

Cost Analysis of Electric Cars vs. Gasoline Cars

City Daily Commute (miles) Electricity Cost (kWh) Gasoline Cost (gallon) Annual Commute Savings with an EV

Atlanta, GA

12.8

$0.12

$2.84

$184.39

Austin, TX

8.6

$0.10

$2.70

$122.72

Baltimore, MD

8.6

$0.11

$2.85

$132.49

Birmingham, AL

10.1

$0.12

$2.61

$125.20

Boston, MA

8.9

$0.15

$2.96

$111.75

Buffalo, NY

6.5

$0.12

$2.95

$98.82

Charlotte, NC

9.7

$0.10

$2.73

$142.42

Chicago, IL

10

$0.10

$3.29

$197.23

Cincinnati, OH

8.7

$0.08

$2.87

$153.15

Cleveland, OH

7.8

$0.11

$2.77

$109.62

Columbus, OH

8.6

$0.13

$2.86

$117.15

Dallas, TX

12.2

$0.11

$2.81

$179.27

Denver, CO

8.5

$0.11

$2.80

$123.86

Detroit, MI

10.4

$0.11

$3.02

$174.22

Grand Rapids, MI

7.2

$0.14

$3.01

$100.64

Hartford, CT

7.3

$0.13

$3.06

$112.33

Houston, TX

12.2

$0.11

$2.71

$169.42

Indianapolis, IN

9.2

$0.09

$2.82

$151.35

Jacksonville, FL

9.1

$0.12

$2.72

$115.05

Kansas City, MO

8.9

$0.11

$2.77

$128.39

Las Vegas, NV

7.2

$0.12

$3.30

$129.73

Los Angeles, CA

8.8

$0.13

$3.73

$184.20

Louisville, KY

7.6

$0.09

$2.96

$134.88

Memphis, TN

8.9

$0.10

$2.69

$129.87

Miami, FL

8.6

$0.10

$2.89

$136.64

Milwaukee, WI

7.4

$0.14

$2.95

$98.57

Minneapolis, MN

9.5

$0.11

$2.82

$136.55

Nashville, TN

11

$0.10

$2.74

$162.27

New Orleans, LA

6.2

$0.10

$2.55

$83.25

New York, NY

7.7

$0.23

$3.17

$55.00

Oklahoma City, OK

8.6

$0.10

$2.53

$114.66

Orlando, FL

9.1

$0.11

$2.71

$124.68

Philadelphia, PA

7.8

$0.13

$3.11

$121.75

Phoenix, AZ

11.4

$0.12

$3.12

$188.15

Pittsburgh, PA

8.1

$0.11

$3.15

$140.11

Portland, OR

7.1

$0.11

$3.36

$139.88

Raleigh, NC

8.5

$0.10

$2.78

$126.76

Richmond, VA

8.7

$0.11

$2.71

$119.66

Riverside, CA

9.1

$0.16

$3.67

$160.78

Rochester, NY

7.4

$0.11

$3.00

$122.74

Sacramento, CA

8

$0.12

$3.60

$162.74

Salt Lake City, UT

6.5

$0.10

$3.11

$116.34

San Antonio, TX

8.8

$0.09

$2.65

$131.04

San Diego, CA

8.5

$0.16

$3.74

$153.02

San Francisco, CA

8

$0.15

$3.85

$159.41

San Jose, CA

6.4

$0.16

$3.76

$120.65

Seattle, WA

9

$0.08

$3.50

$212.87

St. Louis, MO

10

$0.10

$2.74

$152.22

Tampa, FL

8.5

$0.11

$2.72

$115.38

Tucson, AZ

7.3

$0.10

$2.80

$111.82

Virginia Beach, VA

7.6

$0.11

$2.72

$105.46

Washington, DC

9.1

$0.13

$3.03

$137.98

Source: Crescent Electric Supply Company, August 2018

Saving money every day by switching to an EV is powerful message to city residents. These savings could be pocketed by residents and pumped back into the city economy, boosting local businesses. For a city staffer trying to craft the message, data on the EV Hub can help.

The EV Hub Indicators Dashboard has the all the data you need to run a similar analysis as the Crescent Electric Supply Company on the top 50 metro regions in the United States, including electricity prices, gas prices, mean commute times, median household income, and population.

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U.S. Department of Energy eGallon
The eGallon price is calculated using the most recently available state by state residential electricity prices. The state gasoline price above is either the statewide average retail price or a multi-state regional average price reported by EIA. The latest gasoline pricing data is available on EIA’s webpage.

 

NREL Transportation-Related Consumer Preference Data
Consumer preference data related to alternative fuel and advanced vehicle technologies assists in the research needed for the development and implementation of these technologies.

 

Crescent Electric Supply Company

Electrical industry knowledge from Crescent Electric Supply Company.

About the author: Nick Nigro