How Much Does It Cost to Charge an Electric Car?

Confronted with high prices at the pump, you may find yourself tuning into the growing buzz around electric cars. After all, how much could it cost to charge a battery?

Against this backdrop, the electric car/electric vehicle (EV) market is heating up. Aside from saving on fuel costs, there are increasingly lower-cost EVs arriving to market, and improved battery technologies have the potential to drive down prices further in the coming years. Currently, there is also the added sweetener of the Clean Car Discount, encompassing rebates for both new and used (new to NZ) EVs and plug-in hybrid electric vehicles (PHEVs).

Of course, you’ll need to crunch the numbers before making a decision. Cutting out fuel may not be enough to outweigh some of the other costs or drawbacks. Or you may find choosing the plug over the pump is just one benefit of many.

In the following guide, we take a look at:

Electric cars vs petrol cars: initial costs
What is the Clean Car Discount?
How much does it cost to charge an EV?
Electric vehicle power plans
How long does an EVs battery last?
What other benefits are there to an electric car?
What about hybrids?

Electric cars vs petrol cars: initial costs

New EVs are more expensive than their petrol equivalents. Not to say you can’t get an electric car for cheaper than a petrol car. But an electric version of the same car will cost far more than the petrol one. However, there is the potential for this price gap to significantly narrow as the market evolves in the coming years. Some reports are predicting that by as early as 2026, sedan and SUV EVs will be cheaper to manufacture than petrol models. But, as it stands, the initial cost difference will be enough to give most consumers pause for thought. Or even rule some out entirely.

The Clean Car Discount, covers some of this gap (more details below). But even so, the initial costs of a new petrol vehicle remain significantly less for the time being.

To provide further insight into these costs we’ve run the numbers on the top three selling EVs and petrol vehicles in New Zealand for 2023 so far.

Top three selling EVs

Top three selling cars

As you can see above, the top three electric cars are around twice the price of the top three selling petrol cars. Which is a significant cost. Even when you factor in the Clean Car Discount. 

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What is the Clean Car Discount?

The Clean Car Discount is a government initiative, originally introduced in July 2021. Initially, it provided fixed cashback rebates for consumers that purchased electric (BEV) and hybrid (PHEV) vehicles. The rebates as of July 2023 are:

EV: New car: $7015 | Used car: $3507.50.

PHEV: New car: $4025 | Used import $2012.50.

As electric and hybrid vehicles are typically costlier than internal combustion engine (ICE) vehicles, the initiative was designed to encourage Kiwis to opt for carbon-friendly vehicles by making them more affordable.

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As you can see from the above graph, any vehicles below the zero band receive a rebate. The more environmentally friendly the vehicle, the larger the rebate. As a part of the changes, a feebate is now applied to high emission vehicles in the same way as the rebate. Any vehicle that falls above the zero band will incur a fee. The higher a vehicle’s emissions, the larger the fee.

How do I receive the discount?

To qualify for the discount your vehicle must:

• Cost less than $80,000 including GST and on-road costs
• Be new or new to New Zealand (used-import) registered for the first time
• Have a safety rating of 3-stars or more on the RightCar website at the time of registration

Following the purchase of an eligible vehicle you (the registered person) will need to apply for the rebate online (providing the sale agreement, plates number and your bank account). Waka Kotahi will then transfer the rebate to your account.

For more details on the Clean Car Discount, click here.

How much does it cost to charge an Electric car?

An electric car costs more upfront, but this isn’t where saving are made. Most people that are interested in electric cars are interested for one main reason: no more fuel.

Cutting out petrol isn’t just good for the planet, but with the price of 95 hitting $3 in parts of the country, and 91 not far behind, Kiwis are keener than ever to go green over gas.

The following table details the cost per 100km for last year’s top three EVs, and based on a national average electricity price of 33c per kWh. Keep in mind that electricity prices vary, so check your individual plan to find your cost per kWh:

Keep in mind that if you are using a public charging station (the EV equivalent of a petrol station) and not your own home’s power supply, the costs may be significantly different. Vector currently offers free charging sites across Auckland.

How does this compare to petrol costs?

By way of comparison, fuel economy is measured as litres used per 100km, with the following table detailing the cost per 100km for this year’s top three selling vehicles (based on a price of $2.9 per l).

The cost per 100km difference between EVs and petrol vehicles is stark. Taking the EV average from the above ($5.53) and the petrol vehicle average ($18.27), it works out to a difference of $12.74 per 100 km.

Based on a travel distance of 14,000 km per year, the above averages work out to total yearly costs of $774.20 for EVs and $2557.80 for petrol vehicles. Over the course of the year, this is a difference of $1783.60. Even if you were to assume that every charge you did was at a public fast-charging network (and you were paying $10 per 100km), that’s still a little over $1000 less than the estimated petrol costs above. And realistically speaking, most your charging should be done at home, anyway.

Of course, these figures serve as an initial guide. Real-world conditions could see more or less petrol or kWh being used. But it highlights the fact that fueling a car will almost certainly cost more than charging one. If you take advantage of EV power plans you could save even more on charging costs.

It’s important to note that as of March 31, 2024, EV owners will no longer be exempt from paying road user charges. This will seriously impact the feasibility of buying an EV to save on costs. More information here.

EV power plans

These types of plans typically employ a day/night tariff structure, allowing for EV charging at night (usually between 9pm and 7am) when electricity rates are cheaper. This means you can simply plug in your EV at night and wake up to a full charge. Running your household appliances during the cheaper night tariff hours can also help cut costs. Keep in mind that higher rates will apply during the day.

If you do employ this strategy, the estimated savings could be even greater than listed above.

For example, on Contact Energy’s Good Nights Plan, you get free power from 9pm-midnight, every night. So charging your electric car during these hours will be like having a free to use petrol pump in your own backyard! It can virtually eliminate fuelling costs (although the EA levy still applies on free power so there will still be some cost for the power being used).

This is just one of several EV power plans available, so to check out some other power plans for electric vehicles, click here.

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How long do electric car batteries last?

Another key consideration for potential EV buyers will be how long EV batteries last. As with all batteries, EV batteries have a set lifespan, degrading over time as they go through the cycle of being used, losing charge, and then being recharged.

Most new EVs have a battery warranty that guarantees the battery for a certain length of time or distance (for instance 5-8 years or 100,000 km).

The following table details the battery warranties for this year’s top three selling EVs:

It’s important to note that it’s unlikely your battery will hit the eight-year mark, see it’s warranty lapse, and then die. Battery replacements are, overall, rare. Rather, batteries gradually lose their capacity. It’s likely a replacement, if needed, will be due not to your battery dying, but to the battery capacity getting too low.

But with modern EVs having excellent range, that simply means eight years down the track you may have a 300km, not 400km range. Or you need to charge your car twice a week, not once. Even 70% or 80% battery capacity is probably plenty, and won’t warrant a battery change.

In fact a 2019 study by Geotab found EVs lose, on average, just 2.3% capacity annually. Assuming this, after eight years, your battery would still be operating at 81.6%. On a Tesla Model 3 with a staggering 491km range, that’s still a range of about 400km after eight years.

How much does it cost to replace an electric car battery?

There have been plenty of horror stories about battery replacement costs, with people spending tens of thousands to replace the battery in their car. And in the past, this has been somewhat true (if you were unlucky enough to have your battery die after the warranty lapsed).

And while there is no guarantee around battery replacement costs, what we do know is that the EV market is moving quickly and costs are coming down. And some countries already have battery recycling schemes, which reduce costs by offering trade-ins for old batteries in return for refurbished ones.

If you are concerned about the lifespan of an EV battery, there are proactive steps you can take to keep it in top shape.

The following steps can help to maintain capacity:

• Only recharge when needed – for many owners this will be every few days
• Limit extreme heat/cold exposure – in weather over 30°C, park and charge in the shade or in a garage. In freezing temperatures, follow manual battery care instructions
• Fast charging – frequent fast charging may over time decrease battery capacity (depending on the EV model and climate). Refer to the manual/manufacturer for details
• Servicing – should always be undertaken by a qualified technician
• Storing – if you’re not planning on using your EV for a long time don’t store it with a fully charged battery. Refer to the manual battery care instructions.

What other benefits are there to an electric car?

Some of the key benefits to buying an electric car are:

• Lower operating costs – electricity costs on charging an electric car are significantly cheaper than petrol prices
• Environmentally friendly –  the total emissions per mile for battery-powered cars are lower than comparable cars with internal combustion engines. Especially in NZ where much of our energy comes from renewable sources
• Clean car discount – EVs and plug-in hybrids qualify for a government rebate
• They’re smooth and quiet – there’s no engine noise and with no gears to work through, an EV is able to apply full power as soon as you touch the accelerator
• Exempt from road user charges – until March 2024
• Added safety – the weighty battery pack gives your EV a lower centre of gravity, so it’s less likely to roll. The lack of petrol or diesel also reduces the likelihood of it catching fire in a crash
• NZ’s climate is ideal for electric cars – extreme heat and cold can impact an electric car’s battery life. Thankfully, many parts of NZ has an ideal temperate climate

Should I choose a plug-in hybrid over an electric car?

The future is electric, that much is clear. And while an electric car can realistically be your go-to for city trips and weekends away, not everyone is convinced. If you don’t like the idea of stopping at a public charging network for a half-hour mid-drive, or you live or visit truly remote areas that have limited charging stations, a plug-in hybrid (PHEV) may be a good option.

You may even just find an EV is out of your price range and a hybrid is your only option.

PHEVs allow you to primarily use the electric battery for shorter trips, while giving the convenience and assurance of a petrol engine to fall back on. If this sounds good to you, a plug-in hybrid could be a good option.

Some things to consider about PHEVs are:

• The price of a plug-in hybrid tends to be lower than that of an EV
• The battery range is significantly less than with a full EV, often only 40-60km.
• PHEVs are eligible for a clean-car discount, but not as significant as that of a full EV

→Related article: Should You Buy a Hybrid? The Best Hybrid Cars in New Zealand

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About the author of this page

This report was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.