Electric car running costs UK (2026)

EV vs petrol running costs at a glance

Charging costs explained

Your charging bill is miles × efficiency × price per kWh. Efficiency varies by model: small EVs might use 25–30 kWh per 100 miles; large SUVs can use 40 kWh or more, and everything uses more in cold weather.

• Home, standard tariff: from 1 October to 31 December 2026 the Ofgem price cap averages 26.32p per kWh for Direct Debit customers (rates vary by region). Ofgem notes VAT has been removed from electricity bills from 1 October 2026 to 31 March 2027.
• Home, EV or off-peak tariff: many suppliers offer a cheaper overnight rate for EV owners. This is usually the lowest cost per mile.
• Public charging: prices are set by each network and rapid chargers often cost more than double the home rate. Check the app or charger before you plug in.

Worked example: 10,000 miles a year

A family hatchback using 30 kWh per 100 miles needs about 3,000 kWh for 10,000 miles. All home charging at 26.32p comes to about £790 a year. If a fifth of that energy came from public chargers at 70p per kWh, the cost would rise to roughly £1,050. A petrol car doing 45 mpg at 145p a litre would spend around £1,460 on fuel over the same distance. Both pay the same £200 standard VED, so the difference is mostly energy and servicing.

The more you drive, the bigger the potential saving. Lower-mileage drivers may find the higher purchase price harder to recover from running costs alone. See the 15,000 miles example for a high-mileage case.

EV road tax: what changed

Electric cars used to be exempt from VED. Since 1 April 2025 they pay vehicle tax, and from 1 April 2026 the standard rate is £200 a year. New EVs registered on or after 1 April 2025 pay £10 for the first year. If an electric car registered on or after 1 April 2025 had a list price over £50,000, you also pay the £440 expensive car supplement each year for five years from the second year of tax, making £640 a year. For petrol and diesel cars the supplement threshold remains £40,000. Rates change each April, so check GOV.UK.

Servicing, tyres and insurance

EVs have fewer moving parts, so routine servicing is often cheaper, but they are heavier, which can mean faster tyre wear. Insurance depends on the model; some EVs cost more to insure because of repair costs. Get an insurance quote for the exact car before you sign a finance agreement.

Affording the switch

Lower running costs do not automatically mean an EV fits your budget. Use the car affordability calculator to set a monthly payment you can afford, then add charging, insurance and VED. Leasing is common for EVs, so see leasing affordability, or compare typical monthly figures in average car payment UK.

Electric car running costs – FAQs

What are the main running costs of an electric car in the UK?

Electricity for charging, vehicle tax (VED), insurance, servicing and tyres. Charging is the biggest variable: home charging is usually far cheaper per mile than petrol, while relying on public rapid chargers can narrow or wipe out the saving.

How much does it cost to charge an electric car per year?

Multiply your annual miles by the car’s efficiency and your electricity price. A car using 30 kWh per 100 miles over 8,000 miles uses about 2,400 kWh. At the Ofgem price cap average of 26.32p per kWh (Direct Debit, 1 October to 31 December 2026) that is about £630 a year if you charge entirely at home on a standard tariff. A cheaper off-peak EV tariff lowers this; public charging raises it.

Do electric cars pay road tax in the UK?

Yes, since 1 April 2025. From 1 April 2026 most electric cars pay the £200 standard rate. A new electric car registered on or after 1 April 2025 pays £10 in its first year, then the standard rate. Electric cars registered on or after 1 April 2025 with a list price over £50,000 also pay the £440 expensive car supplement for five years from the second year of tax. Check GOV.UK for the current rates.

Are EV servicing costs lower than petrol?

Often. EVs have no oil changes, exhaust, clutch or spark plugs, so routine servicing can be cheaper. Tyres can wear faster because EVs are heavier and brakes, suspension and coolant still need attention. Check the manufacturer’s service schedule for the model you are considering.

Is insurance more expensive for an electric car?

It can be, depending on the model. Repair costs, parts availability and the car’s value all affect the premium. Get insurance quotes for the exact model before you commit to a finance deal, because it can change the overall running-cost picture.

Does the price cap apply if I am on an EV tariff?

The Ofgem price cap limits unit rates and standing charges on default (standard variable) tariffs. Fixed and specialist EV tariffs are priced by the supplier instead. Many EV tariffs offer a cheaper overnight rate, which is why home charging overnight usually gives the lowest cost per mile.

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