Understanding Variances in U.S. EV Charging Costs State-by-State

So you‘re considering an electric vehicle (EV)? With more models hitting the market offering longer ranges and appealing tech features, over 200% growth in U.S. EV sales since 2016 makes sense [1]. But before visiting the dealership, an important question remains — how much will it cost to charge up in your area?

Unlike gassing up a traditional car, charging an EV exposes you to fluctuations in electricity rates set state-by-state. To help you avoid pricing surprises down the road, we analyzed residential charging costs for three top-selling EVs across all 50 states. Read on to discover the most and least expensive areas ranked, along with pro tips to reduce your monthly charging bill.

Why Regional Charging Cost Differences Matter

First, let‘s level-set on the rising prominence of EVs nationwide:

• Over 1.8 million EVs have been sold in the U.S. to-date, up from just 300,000 in 2016 [2]
• 17% of 2022 U.S. automobile sales are forecasted to be EVs, rising to 32% by 2030 [3]
• 70 all-electric models are expected to launch globally in 2022, up from just 45 models available in 2021 [4]

As consumer appetite for EVs accelerates thanks to expanding model availability, reduced prices, and favorable regulatory conditions, understanding regional differences in charging costs grows in importance.

Table 1: Charging cost estimate assumptions for analyzed EV models

As illustrated in the above table, a Tesla Model 3 takes about 60 kWh to charge from empty based on its battery size. With the U.S. average electricity rate being $0.117 per kWh for residential charging, that puts the national estimated "full tank" cost at around $7. Across states, rates range from $0.083 per kWh (Louisiana) up to $0.336 per kWh (Hawaii).

You can see how geography translates to a potential 300-400% swing in charging costs for the same vehicle! Now let‘s examine which states fall on the higher and lower ends of the pricing spectrum.

10 Most Expensive States for EV Charging

Using residential electricity rates from the U.S. Energy Information Administration, we calculated the theoretical cost to charge our EV models from 0% to 100% state-by-state [5]. The following 10 states have the highestcharging costs:

1. Hawaii: Up to $21.35 above average ($9.78 more per full charge for a Model 3)
2. California: Up to $17.83 above average ($8.17 more per full charge for a Model 3)
3. Alaska: Up to $11.23 above average ($5.14 more per full charge for a Model 3)
4. Connecticut: Up to $10.32 above average ($4.73 more per full charge for a Model 3)
5. Rhode Island: Up to $9.55 above average ($4.37 more per full charge for a Model 3)
6. Massachusetts: Up to $9.09 above average ($4.16 more per full charge for a Model 3)
7. New Hampshire: Up to $7.05 above average ($3.23 more per full charge for a Model 3)
8. Vermont: Up to $6.65 above average ($3.05 more per full charge for a Model 3)
9. New York: Up to $4.74 above average ($2.17 more per full charge for a Model 3)
10. New Jersey: Up to $3.12 above average ($1.43 more per full charge for a Model 3)

Hawaii heads up the leaderboard given its island location and reliance on imported fuels leading to electricity rates over 30¢ per kWh. Cold northeast states face elevated grid delivery fees that push costs higher, while California‘s early EV adoption boom has strained power generation infrastructure.

Most Expensive States for EV Charging (Credit: Jp Valery, Unplash)

Utilities apply complex rate calculations, so actual costs may vary based on charging schedules and other factors. But in general these 10 states make owning an EV a more "pricey" proposition.

10 Least Expensive States for EV Charging

In contrast, EV drivers will encounter some supremely affordable rates for topping up their vehicles across middle America:

1. Louisiana: Saves up to $4.90 vs. average ($-2.24 less per full charge for a Model 3)
2. Oklahoma: Saves up to $4.74 vs. average ($-2.17 less per full charge for a Model 3)
3. Idaho: Saves up to $4.27 vs. average ($-1.96 less per full charge for a Model 3)
4. Utah & Wyoming: Save up to $3.90 vs. average ($-1.79 less per full charge for a Model 3)
5. Arkansas: Saves up to $3.84 vs. average ($-1.76 less per full charge for a Model 3)
6. Nevada & Washington: Save up to $3.80 vs. average ($-1.75 less per full charge for a Model 3)
7. Texas: Saves up to $3.70 vs. average ($-1.73 less per full charge for a Model 3)
8. North Dakota: Saves up to $3.56 vs. average ($-1.63 less per full charge for a Model 3)
9. Kentucky: Saves up to $3.50 vs. average ($-1.60 less per full charge for a Model 3)
10. West Virginia: Saves up to $3.28 vs. average ($-1.50 less per full charge for a Model 3)

Abundant coal and hydroelectric generation means Wyoming, Louisiana, and others land on the cheap side for electrons. However, as the nation moves steadily towards renewables and storage, relative rate positions may shift over the coming decade [6].

4 Ways to Save Money Charging Your EV

Given the extreme variability in charging costs geographically, savvy EV owners have options to minimize expenses:

Table 2: Overview of TOU Terminology

1. Leverage Time-of-Use pricing: Electricity rates can swing 50% or more depending on when you charge. Programming an overnight charging window through your vehicle and avoiding peak evening slots will optimize savings. California and Hawaii have mandatory TOU pricing plans.

2. Install a home charger: Paying residential electricity rates of around 11¢ per kWh makes overnight charging at home an affordable option. Costs for purchase and installation of a wall-mounted Level 2 charger start from $500 to $1,500 depending on amperage needs and existing electrical panel capacity [7].

3. Find free public charging: Retailers like Target, IKEA, and Walmart offer free charging stations to attract shoppers. Also tap into free charging minutes from your EV automaker – Hyundai provides 1,000 miles annually for new owners during the first three years.

4. Compare electricity plans annually: Rates and time-window definitions can shift year to year. Shopping competitive offers through EnergySage or PowerToChoose (Texas) may secure savings over your default utility.

Employing the above cost optimization levers, Illinois EV owner Jean T. shared:

"Getting on a fixed overnight EV plan plus charging at the grocery store easily keeps my monthly electricity bill under $30. That‘s the beauty of driving electric!"

The Charging Cost Equation Can Vastly Differ by Geography

In this analysis we‘ve explored a wide delta between most-expensive Hawaii at $0.34 per kWh and cheapest Louisiana at $0.08 per kWh set strictly by state electricity rate conditions. With a difference over 300%, your charging cost equation shifts drastically based on your garage location.

As Gina C., senior director of West Coast Clean Transportation at Duke Energy explains:

"When gasoline prices rise, all drivers feel the pain universally. But EV owners experience electricity fuel costs in a much more isolated, fragmented way on the utility grid. We have to improve transparency around charging expenses so more consumers feel confident going electric."

So as you evaluate the EV proposition, ensure you understand your local charging economics – projections could make or break projected fuel savings in your case. Reach out to regional EV associations and your utility for specifics. Only by optimizing installation, technology and behavior for your particular electron pricing can this exciting new generation of transportation unlock mass adoption potential.

[1] Global EV Outlook 2022 – IEA Report

[2] EV Adoption and Statistics – EVAdoption

[3] Update on electric vehicle adoption across U.S. cities (ICCT Report, April 2022)

[4] E&Y Global Electric Vehicle Trends 2022

[5] EIA Electricity Data Browser

[6] EIA Annual Energy Outlook 2022

[7] EnergySage – Buy an EV Charging Station