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    Home ยป How Much Money Do You Really Save by Owning an Electric Car in California?

    How Much Money Do You Really Save by Owning an Electric Car in California?

    autoexpresscarBy autoexpresscarJune 16, 2025No Comments3 Mins Read
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    The Rise of Electric Cars in California

    California has been at the forefront of the electric vehicle (EV) revolution, with about 1 in 6 new vehicles registered in the state being fully battery-powered electric. The state government has been actively promoting the adoption of EVs through various incentives and policies, including a phase-out of gas-powered vehicles by 2035.

    Benefits of Electric Cars

    One of the primary benefits of EVs is their positive impact on the environment. EVs produce zero tailpipe emissions, making them an attractive option for those looking to reduce their carbon footprint. According to the EPA, EVs are objectively better for the environment than gas-powered cars, even when accounting for the electricity used for charging.

    A row of Nissan Leaf electric vehicles at the Jim Bone Nissan dealership in Santa Rosa in 2018.
    A row of Nissan Leaf electric vehicles at the Jim Bone Nissan dealership in Santa Rosa in 2018.

    Cost Analysis

    While EVs offer several benefits, their higher sticker price can be a significant deterrent for many potential buyers. The average transaction price for a new electric car in the US was approximately $59,200 in March 2025, compared to $47,500 for a gas-powered car. However, EVs can offer significant savings in the long run through lower maintenance and fueling costs.

    Maintenance Costs

    EVs require less maintenance than gas-powered cars, as they have fewer moving parts and don’t need oil changes. Regenerative brakes also reduce the need for frequent brake replacements. According to Scott Moura, a professor of civil and environmental engineering at UC Berkeley, EVs can save owners money on maintenance costs.

    Fueling Costs

    Charging an EV in California costs about 40% less than fueling a gas-powered car. The equivalent cost of a ‘gallon of gas’ for an EV is approximately $2.90. However, the cost of electricity varies depending on the provider, plan, and time of use.

    A Chevrolet Volt hybrid car recharges at a ChargePoint station at a parking garage in Los Angeles.
    A Chevrolet Volt hybrid car recharges at a ChargePoint station at a parking garage in Los Angeles.

    Incentives and Rebates

    Both the federal and state governments offer incentives to encourage the adoption of EVs. The federal Inflation Reduction Act provides a tax credit of up to $7,500 for new electric and plug-in hybrid cars, while the state of California offers up to $2,000 in incentives for vehicle retirement. Additionally, some utilities, such as Pacific Gas and Electric Co., offer rebates for installing charging equipment.

    Challenges and Limitations

    While EVs offer several benefits, there are also some challenges and limitations to consider. Range anxiety, or the fear of running out of power before reaching a charging station, can be a concern for some drivers. Additionally, the higher upfront cost of EVs can be a barrier for many potential buyers.

    Conclusion

    Owning an electric car in California can offer significant savings and benefits, both for the environment and for one’s wallet. While there are some challenges and limitations to consider, the incentives and rebates available can help offset the higher upfront cost. As the state continues to promote the adoption of EVs, it’s likely that we’ll see even more benefits and cost savings in the future.

    A close-up of a home circuit breaker box with a newly added circuit for an electric vehicle charging station is shown in Lafayette in 2023.
    A close-up of a home circuit breaker box with a newly added circuit for an electric vehicle charging station is shown in Lafayette in 2023.
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