How Much Does Your Electric Bill Go Up With A Tesla?

As of February 2023, the average residential electricity rate in the U.S. is about 23 cents per kilowatt-hour (kWh).

Switching to an EV means charging your car at home, naturally increasing household electricity usage. Understanding this cost is crucial for financial planning and compares favorably to the ongoing costs of gasoline.

A Tesla’s battery capacity and your driving habits are key factors that dictate the increase in your electricity expenses.

The cost of charging an electric car can be estimated by examining the size of its battery and the cost per kilowatt-hour (kWh) of electricity in your area.

For instance, the Tesla Model X’s 100 kWh battery will cost a certain amount to charge from empty to full based on local electricity rates.

Your electric bill increase is not just about the cost to charge but also about the efficiency of the vehicle. Teslas are known for their energy efficiency, meaning more miles per kWh than other electric cars.

This translates to a lower overall cost per mile, affecting how much your electric bill will rise due to your new Tesla.

Comparing Tesla Models by Cost to Own

When assessing the monthly cost of ownership consider both the initial price and the long-term charging costs.

The Tesla Model 3, being the most affordable option, starts with a lower price tag compared to the more premium Tesla Model S and the spacious Tesla Model X. Here’s a quick look at their battery capacities and potential charging expenses:

Tesla Model 3: Approx. 50-82 kWh battery capacity, average cost to charge ≈ $11-$18
Tesla Model S: Approx. 100 kWh battery capacity, average cost to charge ≈ $23
Tesla Model X: Approx. 100 kWh battery capacity, ideal for those needing an SUV, similar charging costs to Model S
Tesla Model Y: Falls between Model 3 & X, combines efficiency and space, cost to own similar to Model 3 due to shared components

So if you charge a Model S from empty to full 20 times a month, you are looking at $460 being added to your electricity bill. But in real life, this figure would be lower because of the 20%-80% rule.

⚠️ Your actual costs will vary based on local electricity rates and how often you charge.

Calculating Electricity Usage for Tesla

When considering the cost to charge a Tesla, you’ll need to understand the energy usage based on battery capacity and local electricity rates. This will help you estimate the increase in your electricity bill.

Cost Per Charge Calculation

To calculate the cost per charge for your Tesla, you must consider two main factors: your Tesla’s battery capacity (measured in kilowatt-hours or kWh) and your electricity rate (cost per kWh consumed).

For instance, a Tesla X with a 100kWh battery will cost different amounts based on the per kWh rate set by your electric company. If your electricity rate is $0.23 per kWh, a full charge would cost you [100kWh x $0.23/kWh] = $23.00.

Factors Affecting Charging Costs

Several factors affect charging costs including:

The efficiency of your Tesla model
The type of charger you use, such as a High Power Wall Connector (HPWC) which might use amps ranging from 40 to 80 amps
Weather conditions which can impact your Tesla’s charging efficiency
Electricity usage during peak hours can be more expensive, depending on your electric company’s pricing scheme
The frequency of charges, which depends on your typical mileage

Using energy during off-peak hours could result in savings on your electricity bill.

Comparing Tesla Charging to Gasoline Cost

If you’re driving a gas car with an average of 25 mpg and gas costs $3.50 per gallon, a 100-mile trip would cost you $14.00.

Meanwhile, the same trip in a Tesla could cost less than $5, depending on your local electricity rates and your car’s efficiency.

Impact on the Electric Bill

Upgrading to a Tesla can significantly change your electricity consumption patterns. Understanding how it affects your electric bill is essential for effective budget planning.

Average Increase in Electric Bill

Your electric bill will undoubtedly go up when you start charging a Tesla at home. The exact increase depends on the model of your Tesla, how often you drive, and your local electricity rate.

Charging a Tesla Model X with a 100kWh battery at the national residential average may cost about $23 per full charge. If you charge your Tesla frequently, your monthly electric bill may see a noticeable increase.

Long-Term Cost Efficiency

Despite the initial increase in electricity costs, a Tesla offers long-term savings when compared to vehicles with an internal combustion engine.

Electric vehicles have fewer moving parts, leading to lower maintenance costs, and the cost of electricity is often less volatile than gas prices.

Additionally, the efficiency of electric motors in converting energy into motion is typically higher than that of gasoline engines, which can translate to more miles for your dollar over time.

Budgeting for a Tesla

To effectively budget for a Tesla in your life, you should:

Calculate the expected increase in your electric bill based on your usual mileage and local electricity rates.
Factor in regional variations; some areas have higher rates during peak hours.
Consider residential electricity plans that offer lower rates for electric vehicle charging during off-peak hours to maximize savings.
Remember to include potential tax incentives and rebates for electric vehicle owners, which can offset the increased cost of electricity.

Regional Variations in Electric Bill Impact

Your state of residence is crucial in determining how much your electric bill will increase when you own a Tesla.

Electricity rates can differ drastically from one state to another, impacting the cost of charging.

Remember that the average cost of electricity nationally is around 23 cents per kWh.

Yet this rate might be lower in some states and significantly higher in others, altering the financial impact of ownership.

In Arizona, Tesla drivers experience off-peak rates for electricity that can range between 7.38-7.59 cents per kWh, this being one of the factors making electric bill variations quite noticeable when compared across different regions.

Impact of Weather on Charging

Extreme cold temperatures can lead to your Tesla requiring more energy to maintain battery performance, resulting in a higher electricity bill.

Places with mild weather are more likely to see consistent charging costs, whereas states with harsher seasons may observe fluctuations in their electricity bill due to the additional energy required for climate control and battery management during charging.

Practical Tips for New and Prospective Tesla Owners

You can minimize the impact on your costs by strategically managing when and how you charge your Tesla.

Utilizing Off-Peak Hours

Off-peak hours are when electricity demand is low; consequently, the electricity rate may be cheaper.

Check with your local utility company for off-peak times and charge during these hours.

Not only will charging during off-peak hours lessen the strain on the electrical grid, but it can also save you a significant amount of money on your electric bill if your utility offers time-based rates.

Investment in Home Charging Infrastructure

Investing in a Level 2 home charging station can be cost-efficient in the long term.

Level 2 chargers are faster and more efficient than standard charging options. Though there’s an upfront investment for the charging infrastructure and installation, the convenience and lower charging costs over time can offset the initial expense.

Moreover, some regions offer incentives or rebates for installing charging equipment.

Leveraging Renewable Energy

Pairing your Tesla with renewable energy sources like solar panels can substantially reduce your charging costs.

By generating your own electricity, your reliance on the grid decreases, and this can lead to lower home electric bills.

Remember that while the initial cost of solar installation is considerable, the long-term savings and potential increase in property value are worth considering.

Navigating Tax Incentives and Rebates

Federal, state, and local governments often provide financial incentives for purchasing electric cars:

Federal Tax Credit: Up to $7,500 credit for new EV purchases, though it phases out after a manufacturer hits 200,000 units sold.
State Rebates: These can range widely based on your location, with additional incentives for installing solar panels or home charging stations.

In addition to government savings, Tesla occasionally offers their own promotions, like complimentary Supercharging miles. Ensure to stay updated on Tesla’s website or your local EV programs for the latest information.

As a new or prospective Tesla owner, understanding the cost details associated with various models and the potential financial benefits from tax incentives ensures a more informed decision-making process.