What is the real cost of an EV? It may be lower than you think

February 1, 2023

I read with interest a recent article in the Globe and Mail with the same title and cover image, which inspired me to share our experience as recent electric vehicle (EV) owners, albeit a plug-in hybrid electric vehicle or PHEV.

After close to a two year wait, we received a call this past spring from Saint John Toyota that we would be able to take delivery of a 2022 Toyota RAV4 Prime. I must say, it felt like we had won the lottery, given the delay in getting the vehicle (and the dealer’s growing wait list and even longer wait times). Even the dealer seemed excited given the on-going challenges in seeing EVs delivered outside of Quebec and British Columbia, in large part because they have rules penalizing automakers for selling gas-powered cars.

This may change – in late 2022 Ottawa released draft regulations for a national zero-emission vehicle (ZEV) mandate that will require 20 per cent of new cars, SUVs and pickup trucks for sale in Canada to be a battery-electric vehicle (BEV), a plug-in hybrid electric vehicle (PHEV) or a hydrogen fuel cell vehicle by 2026. That will increase to 60 per cent by 2030 and 100 per cent by 2035. Hopefully, a nationally regulated ZEV mandate will increase the flow of EVs to smaller provinces such as New Brunswick.

Well, after close to 9 months of ownership and 16,000 km, I thought we should weigh with the transition process and experience as EV (or officially PHEV) owners.

Interestingly enough, I calculated our cost of electricity to be 2.4 cents per kilometer, significantly lower that the 5.5 cents per kilometer calculated from the Globe and Mail article. The Globe and Mail article is based on an EV vehicle owner in Toronto primarily using public charging stations based on a 7.2 kilowatt-hour public charger priced at $2 an hour. I installed a Level 2 high-speed charger at home and charge directly off the Saint John Energy distribution system. I suspect this accounts in large part for the difference.

The RAV4 Prime had a range of over 90 km per charge this summer, which has dropped to the 55 – 60 km range in January – we were a bit surprised by the cold weather decline, but the vehicle is also not kept in a heated garage, which could make a significant difference. The range, even in the winter, is ideal for multiple daily trips in and around Saint John (i.e., work, school, shopping, Y), and the vehicle has quickly become our primary vehicle (to the point that we are often competing for its use).

We have used the vehicle on longer trips where it seamlessly transitions from EV mode to hybrid / gasoline mode (it has a 2.5 litre, 4-cylinder engine with a hybrid synergy drive and CVT transmission). On a small tank (55 litres) and full charge, we have travelled over 900 km on a single fill-up during an extended trip to Nova Scotia. Overall, we are currently operating at an amazing 2.2 litres per 100 km, which is quite remarkable for an AWD SUV vehicle. This translates to a miserly 107 US miles per gallon (mpg), or 128 Imperial mpg based on our driving patterns.

The performance of the vehicle in EV mode is also extremely impressive – the RAV4 Prime has a combined 302 net horsepower with incredibly smooth acceleration and braking.

Without a doubt, we paid a premium to purchase the vehicle, but we also benefited from a Federal Government EV rebate of $5,000 (right off the purchase price), and received an additional Provincial Government rebate of $5,000, which we had to apply for through NB Power. We received an additional rebate of approximately $750 towards our high-speed charger through NB Power, which we had to apply for separately. Our home charger will charge the RAV4 Prime’s car battery in 2.5 hours or less (from empty), but it does require a 240V outlet / circuit.

The Globe and Mail article references saving approximately $780 in annual gasoline costs based on approximately 10,000 km of driving. I estimate that we will be driving our vehicle approximately 24,000 km per year, with an estimated saving of $2,500 to $3,000 per year based on current gas prices. This compares to the gasoline consumption of our two most recent vehicles (a Honda CRV and Toyota Highlander). Insurance and registration costs appear to be similar.

Over a 10-year period, the fuel savings definitely help offset the higher purchase price. I believe we drove the RAV4 Prime around town for close to two months before filling it up the first time (the extended timeline became a bit of a badge of honour). We now use the vehicle on the full spectrum of trips – short, medium (i.e., runs up Sussex) and longer, and regularly run the vehicle in pure EV mode (the front electric motor is capable of 179 hp while the rear can pump out 53 hp), HV mode (the Hybrid-Vehicle mode uses both the electric motors and gasoline engine in tandem) and an Auto mode that chooses the best driving mode for the current conditions.

Clearly, the positives far outweigh the negatives (price and a reduced winter EV range) and the only other issue that we noted is the fact that the vehicle is harder to warm up in pure EV mode, although the gasoline engine can kick-in on really cold days. Given the safety features and technology embedded in the vehicle, your new best friend will likely be YouTube (as experienced in Digby, NS while trying to unlock the vehicle from a public charging station after a breakfast stop at Tim Hortons). I also quickly learned that there are different types of public charging stations, and that the RAV4 can only use certain types of charging technologies.

I do believe that we made the right decision in purchasing a plug-in hybrid electric vehicle vs. transitioning directly to a pure battery electric vehicle. On longer trips, we do not have battery anxiety, and are comforted in knowing that we can seamlessly transition to a hybrid / gasoline mode with superior fuel efficiency. I also see the vehicle as a hedge against volatile or rising gasoline prices and another step in our family’s on-going decarbonization efforts – we have made significant renovations to our home and migrated to an all-home (ducted) electric heat pump system a few years ago.

A final observation in researching this blog – I noticed that Toronto Hydro has tiered residential electricity rates:

Off-peak: Weekdays from 7 p.m. to 7 a.m. and all-day weekends and holidays – 7.4¢ per kWh
Mid-peak: Weekdays from 11 a.m. to 5 p.m. – 10.2¢ per kWh
On-peak: Weekdays from 7 a.m. to 11 a.m. and 5 p.m. to 7 p.m. – 15.1¢ per kWh

This compares to Saint John Energy’s current residential rate of 10.67¢ per kWh and NB Power’s rate of 11.61¢ per kWh. Here in New Brunswick, we pay the same residential electricity rate, no matter the time or day.

If the Federal Government’s EV aspirations materialize at the pace and scale anticipated and given our existing seasonal and daily electricity demand peaks, New Brunswick will also need to shift to time of use electricity rates.

Our home high speed charger is manufactured by a Canadian company (flo) and comes with an App that tracks energy consumption and charging details, as well as the location of charging stations while travelling. The App will also allow us to schedule off-peak charging times, which would tie in nicely with Saint John Energy and NB Power’s smart grid aspirations.

The Globe and Mail follows EV developments quite closely here in Canada – check out their What is the real cost of an EV? It may be lower than you think article. Based on our personal experience, it is definitely an accurate headline!