EV Running Costs Explained — What Does It Cost to Run an Electric Car in Australia?

Two factors drive your EV running cost: the vehicle's energy efficiency and the electricity price you pay.

Energy efficiency is measured in kWh per 100 km — how much electricity the vehicle uses to travel 100 kilometres. A typical EV in Australia uses around 16 kWh per 100 km. Smaller, more efficient models may use 12 to 14 kWh per 100 km, while larger SUVs and performance vehicles can use 18 to 22 kWh per 100 km.

The electricity price depends on where and when you charge. Home charging on a standard rate costs around $0.30 per kWh, off peak rates are around $0.20 per kWh, and dedicated EV tariffs can be as low as $0.08 per kWh. Public charging is more expensive, with DC fast charging typically around $0.65 per kWh and ultra rapid DC chargers around $0.80 per kWh.

The formula is straightforward:

EV efficiency (kWh per 100 km) × Electricity price ($ per kWh) = Cost per 100 km

If you select your vehicle and set your electricity rate in the My EV panel, the reference tables throughout this guide and every calculator on the site update automatically to show running costs based on your vehicle's actual efficiency and the rate you pay.

The cost per kilometre is the most practical way to understand EV running cost because it lets you compare directly with petrol vehicles and estimate costs for any distance.

At a standard home rate, the running cost is about 4.8 cents per km. On a dedicated EV tariff, it drops to just 1.3 cents per km. For context, a medium petrol car using 8 litres per 100 km at $2.00 per litre costs 16 cents per km — roughly three to four times more than a home-charged EV.

To estimate your monthly or annual running cost, multiply the cost per 100 km by your driving distance.

EV efficiency × Annual distance ÷ 100 × Electricity price = Annual cost

The electricity price you pay depends on when and where you charge. This makes charging behaviour one of the biggest levers for controlling your EV running cost.

Home charging — cheapest option

Charging at home overnight is usually the cheapest way to run an EV. Most EV owners do the majority of their charging at home, either on a standard residential rate or an off peak tariff. A dedicated EV tariff at $0.08 per kWh makes home charging extremely cheap — under $200 per year for typical driving distances.

Mixed charging — typical scenario

Most EV owners use a mix of home and occasional public charging. If 80% of charging is done at home on a standard rate and 20% on public DC fast chargers, the blended annual cost for 15,000 km would be approximately $888 — still well under half the equivalent petrol cost.

Public charging only — most expensive

Relying exclusively on public DC fast charging at $0.65 per kWh pushes the annual cost to $1,560. Ultra rapid DC charging at $0.80 per kWh would cost $1,920 per year. This is still cheaper than petrol for most vehicles, but the cost advantage is significantly reduced. Drivers without home charging access can reduce costs by using public AC chargers where available, which are typically cheaper per kWh than DC fast chargers.

Regardless of how you charge, an EV is almost always cheaper to run per kilometre than a comparable petrol vehicle. The size of the saving depends on the electricity price and the petrol price.

Even at DC fast charging prices, the EV saves meaningfully per year compared with petrol. At a home standard rate, the saving is substantial. On a dedicated EV tariff, the saving is large enough to make a meaningful impact on the total cost of ownership.

Vehicle size and efficiency affect running cost. Larger, less efficient EVs cost more per kilometre than smaller ones, though they are still cheaper than their petrol equivalents.

EV costs based on home standard rate of $0.30 per kWh. Petrol costs based on $2.00 per litre. Vehicle type fuel use presets from locked calculator values.

Regenerative braking is one of the less obvious cost benefits of driving an EV. When you lift off the accelerator or brake, the electric motor runs in reverse and acts as a generator, converting kinetic energy back into electricity and feeding it into the battery.

Energy recovery

The amount of energy recovered through regenerative braking varies depending on driving conditions. In stop-and-go city driving, regen can recover a meaningful amount of energy — extending range and effectively reducing the amount of electricity you need to buy from the grid. On a long, flat highway it contributes less, but in urban and suburban driving it adds up over time.

Reduced brake wear

Because regenerative braking handles much of the deceleration, the physical brake pads and discs are used far less than in a petrol vehicle. Many EV owners find their brake pads last significantly longer — in some cases lasting the life of the vehicle. This reduces one of the routine maintenance costs that petrol vehicle owners face regularly.

Neither the energy recovery nor the brake savings are dramatic on their own, but combined and compounded over years of ownership they contribute meaningfully to the total cost advantage of an EV.

Having an EV registered to your address can unlock access to electricity plans that are not available to non-EV households. Several Australian electricity retailers offer EV-specific plans with significantly lower rates for overnight charging.

How EV plans work

EV electricity plans vary by retailer and state. Some offer a dedicated EV tariff with rates as low as $0.08 per kWh during overnight hours as part of a time-of-use plan. Others offer discounted off peak rates across your whole household electricity supply when you sign up as an EV owner.

The setup depends on your situation — your electricity distributor, whether you have single or three-phase power, and whether a separate meter is required. It is worth comparing the available EV plans in your area, as the right plan can reduce your charging cost by 50 to 70 percent compared with a standard residential rate.

Finding the right plan

Different plans suit different circumstances. If you have solar panels, a plan with a good feed-in tariff and a low off peak rate may be ideal. If you charge exclusively overnight, a dedicated EV tariff with the lowest possible overnight rate may save the most. Comparing plans through an energy comparison service or checking directly with retailers that offer EV plans is the best starting point.

Owners with rooftop solar can charge their EV using excess solar generation during the day, effectively reducing the cost of charging to near zero for those kilowatt hours.

Solar charging

If your EV is parked at home during daylight hours and your solar system is generating more electricity than the household is using, the excess can go straight into the car instead of being exported to the grid at a low feed-in tariff. This makes the effective cost of that electricity very low — in many cases better than even the cheapest EV tariff.

Solar with battery storage

A home battery storage system takes this a step further. Excess solar generated during the day is stored in the home battery and can be used to charge the EV overnight — even when the sun is not shining. This means you can charge your car from solar energy regardless of when you plug in, further reducing your reliance on grid electricity.

Cost perspective

The upfront cost of a solar and battery system is significant, but it is important to recognise that the investment covers your entire household electricity use — not just the EV. The EV benefits from a system that is already reducing your power bills across lighting, appliances, heating and cooling. In that context, the marginal cost of adding EV charging to an existing solar setup is very low.

For households that already have solar or are considering it, the combination of solar generation, battery storage and an EV creates a compounding cost benefit that grows over time.

Electricity is the main ongoing running cost for an EV, but there are other costs to factor in.

Tyres

EVs tend to be heavier than equivalent petrol vehicles due to the battery, and the instant torque of an electric motor can increase tyre wear. Tyre replacement costs are similar to petrol vehicles, though some EV-specific tyres designed for lower rolling resistance and noise may cost slightly more.

Servicing

EVs have significantly fewer moving parts than petrol vehicles — no engine oil, no spark plugs, no timing belts, no exhaust system. Most EVs also use a single-speed transmission rather than a complex multi-speed gearbox, which means one less mechanical system to maintain or repair. Combined with reduced brake wear from regenerative braking, this means servicing costs are generally noticeably lower than for a petrol vehicle. Routine EV maintenance typically includes brake fluid, cabin air filter, tyre rotation and multi-point checks.

Insurance

Insurance premiums for EVs have been higher than petrol equivalents in some cases, partly due to higher purchase prices and repair costs. This gap has been narrowing as insurers gain more experience with EVs and repair networks expand.

Registration and road user charges

Because EVs do not use petrol, they do not contribute to fuel excise — the federal tax built into the price of petrol that funds road infrastructure. Some states proposed or introduced per-kilometre road user charges for EVs to replace this lost revenue. However, in a landmark 2023 ruling (Vanderstock v Victoria), the High Court of Australia declared Victoria's EV road user charge invalid, finding it was an excise duty that only the federal government can impose under the Constitution. This effectively prevents states from imposing their own EV road user charges.

Whether a national road user charge for EVs will be introduced at the federal level remains an open question. For now, most EV owners in Australia are not paying a per-kilometre road user charge, though this may change as EV adoption grows and fuel excise revenue declines further.

State EV incentives

Several Australian states and territories have offered incentives for electric vehicle registration or upfront rebates, though many programs are winding down. As of early 2025, the Northern Territory offers five years of free registration and stamp duty waivers, South Australia offers three years of free registration, and the ACT offers registration discounts. These incentives reduce the effective ownership cost in the early years, but availability and terms change frequently — check your state or territory government website for the latest position.