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
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
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.
Furthermore, the introduction of Vehicle Excise Duty (VED) for electric cars in April 2025 has pushed up the total cost of EV ownership, reducing the advantage over petrol vehicles from £703 per year in 2024 to just £369 this year.
Despite these caveats, the report suggests electric car registrations hit record highs in September 2025 as motorists took advantage of the government's EV purchase grant, which offers up to £3,750 off the price of some models.
