How much can UK EV owners save on running costs compared to petrol cars?

Electric car owners in the UK can save £350 per year on average running costs compared to petrol car drivers, according to a new report.

What's the catch for EV owners to get the full £350 savings?

The £350 annual savings only apply to EV owners who have the ability to charge their cars at home. Drivers without access to off-street parking face public charging costs that are 2-3 times higher, negating the cost advantages.

How has the introduction of EV car tax in 2025 impacted the cost benefits?

The report states that the introduction of Vehicle Excise Duty (VED) for electric cars in April 2025 has reduced the total cost of ownership advantage of EVs from £703 per year in 2024 to just £369 this year.

Home / Business and Economy / EV Owners Save £350 Annually, But Only If They Can Charge at Home

EV Owners Save £350 Annually, But Only If They Can Charge at Home

12 Oct

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Summary

Electric car owners save £350 per year on running costs compared to petrol cars
Savings only apply if drivers can charge EVs at home, not with public charging
35% of UK households lack off-street parking, negating EV cost advantages

EV Owners Save £350 Annually, But Only If They Can Charge at Home

As of October 2025, electric car owners in the UK are spending £350 less per year to run their vehicles compared to drivers of petrol models. However, this significant cost saving only applies to EV owners who have the ability to charge their cars at home.

Analysis by Compare the Market shows the average annual running costs, including insurance, tax, and charging, for an electric car is £1,351. In contrast, the average petrol car driver forks out £1,720 per year. This £369 difference highlights the potential financial benefits of switching to an EV.

But the report cautions that not all drivers will see the full reward of this cost gap. That's because the charging cost figures are based on domestic electricity prices using a home wallbox charger. For the 35% of UK households without access to off-street parking, public charging can be two to three times more expensive, instantly diluting the savings.