Does an Electric Vehicle Raise Your Electric Bill

Electric vehicles (EVs) are like smartphones on wheels: sleek, powerful, and always needing a charge.

As more Coloradans make the switch from gas to electric, one of the biggest questions we hear at The Electricians is: “How much does an electric vehicle raise your electric bill?”

Great question. Let us break it down.

Yes, Your Electric Bill Will Go Up (But It’s Manageable)

To get straight to the point: yes, owning an EV will increase your electric bill. However, the increase is typically manageable and nothing to panic about. In fact, the more you understand what contributes to that increase, the easier it is to plan for and minimize.

On average, charging an electric vehicle at home adds $30 to $60 per month to your electric bill. That number can vary depending on your driving habits, electricity rates, and the model of your vehicle (Tesla Model S owners, take note).

If you drive about 1,000 miles per month, and your EV consumes approximately 30 kilowatt hours (kWh) per 100 miles, you will use around 300 kWh monthly. Multiply that by Colorado’s average electricity rate (about 13 cents per kWh), and the result is roughly $39 per month in charging costs.

Compared to gasoline expenses, this is significantly lower. Considering the national average cost of gasoline continues to rise, EV owners are in a much better position to control their monthly transportation costs.

Quick Comparison: Gas vs. Electric Costs

Vehicle Type	Estimated Monthly Fuel Cost
🚗 Gasoline (25 MPG, $3.50/gal)	~$140
⚡ Electric (30 kWh/100 mi, $0.13/kWh)	~$39

Savings: Approximately $100 per month, or $1,200 per year, by switching to electric.

And that’s just on fuel. Don’t forget that EVs have far fewer moving parts than traditional gas-powered vehicles, meaning less maintenance, fewer oil changes, and more peace of mind.

How Does EV Charging Work?

When plugged in at home, the onboard charger in an EV converts alternating current (AC) from your household outlet into direct current (DC) that charges the battery. This process is highly efficient and designed for safety and long-term performance.

Two common home charging methods include:

• Level 1 Charging: Standard 120V outlet. Slower charging. Adds about 3–5 miles of range per hour. Best for plug-in hybrids or very light daily driving.
• Level 2 Charging: 240V outlet. Significantly faster and more efficient. Adds about 25–30 miles of range per hour. Ideal for most EV owners charging overnight.

Public charging stations may offer Level 2 or DC Fast Charging, but for most EV owners, charging at home provides the most convenience and cost efficiency.

How Much Will a Tesla Increase Your Electric Bill?

Tesla models vary in energy consumption. Here are general estimates based on national averages and driving 1,000 miles per month:

• Tesla Model 3: ~26 kWh/100 miles → ~$33.80/month
• Tesla Model Y: ~28 kWh/100 miles → ~$36.40/month
• Tesla Model S/X: ~30–35 kWh/100 miles → ~$39–45/month

Of course, costs may fluctuate depending on where and how you charge. Some Tesla owners leverage Tesla’s Supercharger network for road trips, but rely on charging at home for daily commuting.

Regenerative braking, energy-efficient driving, and off-peak charging hours can further reduce monthly electricity expenses. For Tesla owners using solar power at home, some report virtually zero charging costs over time.

Why Is There an “Electric Vehicle Charge” on the Electric Bill?

Some utility companies display an “Electric Vehicle Surcharge” related to Time-of-Use (TOU) rates or specific EV billing plans. This is not necessarily a penalty but often a way to apply discounted rates for off-peak charging periods.

This line item can be part of a broader EV-friendly plan designed to encourage smart, energy-efficient charging. For instance, Xcel Energy’s EV rate plans help EV owners save by charging late at night when grid demand is low.

In Colorado, Xcel Energy and similar providers offer incentives that can offset part or the entirety of these additional costs. Some programs even provide rebates for home charger installation or offer monthly bill credits.

Factors That Influence EV Charging Costs

1. Battery Size

Larger battery capacities require more electricity to fully charge. Vehicles with longer range capabilities will typically consume more energy per charge, although they may also need to charge less frequently.

2. Electricity Rates

Rates vary based on region and time of day. Time-of-Use pricing often offers reduced rates at night. Understanding your local utility’s rate structure can go a long way in cutting down your monthly EV charging costs.

3. Charging Efficiency

Some energy is lost during charging, especially with older chargers or higher ambient temperatures. Using a modern, well-maintained Level 2 charger improves efficiency.

4. Driving Habits

Aggressive acceleration, frequent stops, and hilly terrain can increase energy use and charging frequency. Gentle driving and strategic route planning lead to better energy performance.

5. Climate and Weather

Cold weather can affect battery performance and require more frequent charging. Preconditioning the vehicle while plugged in and parking indoors during winter can help mitigate these impacts.

Strategies to Reduce EV Charging Costs

1. Charge During Off-Peak Hours

Time-of-Use plans can provide significant savings. Most EVs and smart chargers support scheduled charging, allowing you to charge when electricity is cheapest.

2. Install a Level 2 Charger

A Level 2 charger offers faster, more efficient home charging. It also helps take advantage of off-peak pricing more easily. Learn about our EV charger installation services.

3. Use Smart Charging Features

Optimize charging schedules and monitor usage with apps that support your EV or charger. Many EV owners find that using a smart charger gives them more control and insight into their energy consumption.

4. Pair with Solar Panels

Combining solar panels with EV charging helps minimize utility costs and promotes sustainable energy use. By generating your own clean electricity, you can potentially eliminate your EV charging expenses entirely.

For system upgrades, explore our guide on Smart Electrical Panels.

5. Focus on Energy Efficiency

Efficient driving habits, planned routes, and well-maintained tires contribute to better energy performance and reduced charging needs. Even small changes—like using eco-driving modes—can make a measurable difference.

Incentives & Rebates to Offset Charging Costs

Several programs help reduce EV-related expenses:

• Federal EV Charger Credit: Covers 30% of installation costs, up to $1,000.
• Colorado EV Tax Credit: Up to $5,000 for new EVs, plus incentives for charger installations.
• Xcel Energy Rebates: Includes off-peak pricing and equipment rebates.

Additional support may be available for rural or low-income households. These incentives make EV ownership even more appealing, especially when bundled with long-term energy savings.

FAQs

Do electric cars make your electric bill go up?

Yes, typically by $30–$60 per month, depending on usage and rates.

How much does an electric car add to your monthly electric bill?

Expect an increase of $30 to $70 per month, with average costs around $40.

How much will a Tesla increase my electric bill?

Estimated increase is between $30 and $45 per month, based on the model and mileage.

What are the hidden costs of owning an electric car?

These include home charger installation, electrical upgrades, and peak-hour electricity charges.

Why is there an electric vehicle charge on my electric bill?

It is often part of a utility billing plan to track EV charging and may include discounted rates for specific times.

Final Thoughts

Electric vehicles do increase your home electricity usage, but the overall cost is often offset by substantial fuel and maintenance savings. The increase is predictable, manageable, and far less than what most people spend on gasoline.

In fact, for many EV owners, the peace of mind that comes from knowing exactly how much you’re spending on energy—rather than being at the mercy of gas price swings—is worth its weight in kilowatt hours.

If you’re ready to install an EV charger or upgrade your electrical panel, contact us today. At The Electricians, we provide expert, code-compliant installations throughout Colorado.

Get in touch now or learn more about our EV services.