The shift to electric vehicles (EVs) in the UK is accelerating, and with the government's push for all new cars and vans sold to be fully electric by 2035, many are wondering: "How much does it really cost to run an electric car in the UK in 2025?" At waEV-charge, we're here to demystify the figures and show you how embracing an EV can be a smart financial move. While the landscape of EV costs is constantly evolving, with some incentives changing and electricity prices fluctuating, owning an electric car still generally presents a more economical option compared to traditional petrol or diesel vehicles, particularly if you can leverage the power of home charging. Let's dive into a comprehensive breakdown of the running costs you can expect in 2025.
1. Charging Costs: Home vs. Public – The Biggest Factor
This is where the most significant savings can be made for EV owners.
Home Charging:
- Average Cost: Charging at home is by far the most cost-effective method. As of early 2025, the average electricity price for households in the UK sits around £0.27 - £0.30 per kWh. However, with a dedicated EV tariff and smart charging, you can often access significantly lower off-peak rates, sometimes as low as £0.05 - £0.07 per kWh for household electricity prices.
- Cost per Mile: An EV with an efficiency of 4 miles per kWh would cost approximately 2p - 9p per milewhen charged at home, depending on your tariff, for a typical electric car.
- Annual Cost: For a typical driver covering 10,000 miles a year, home charging on a dedicated EV tariff could cost as little as £115 - £174 annually to power your EV.
Public Charging:
- Average Cost: Public charging is considerably more expensive than home charging. Slow chargers (3-7 kW) can range from £0.25 - £0.35 per kWh, fast chargers (7-22 kW) from £0.30 - £0.45 per kWh, and rapid/ultra-rapid chargers (50-150 kW+) can be anywhere from £0.50 - £0.85 per kWh for public charging rates.
- Cost per Mile: Using public ultra-rapid chargers could see you paying 25p per mile or even more, which can sometimes be more expensive than refuelling a comparable petrol or diesel car when using rapidchargers.
- Subscription vs. Pay-Per-Charge: Some public networks offer subscription plans that reduce the per-kWh cost for frequent users (e.g., bp pulse, Osprey), while others like Instavolt operate on a pay-per-charge basis with no commitment for public charging options.
waEV-charge Insight: Investing in a smart home charger from waEV-charge is key to unlocking the lowest running costs. Our chargers allow you to take advantage of off-peak electricity tariffs, automatically charging your car when power is cheapest and greenest.
2. Vehicle Excise Duty (VED) / Road Tax
This is a notable change for 2025. Previously exempt, electric vehicles are now subject to VED.
- New EVs (registered on or after 1 April 2025): Will pay the lowest first-year rate of £10.
- From the second year onwards: All electric cars will pay the standard rate of £195 per year.
- Expensive Car Supplement: New electric cars with a list price exceeding £40,000 registered on or after 1 April 2025 will also be subject to the Expensive Car Supplement, currently £425 a year, for the first five years. This means these vehicles will pay a total of £620 per year for VED rates on electric vehicles.
3. Maintenance and Servicing
EVs generally boast lower maintenance costs due to fewer moving parts.
- Savings: Electric cars typically incur approximately half the servicing, repair, and maintenance expenses of petrol vehicles, potentially saving drivers between £600 to £1,200 annually on maintenance costs.
- Average Costs: The average annual servicing cost for an EV is around £165, compared to £205 for a petrol car. Over five years, EVs are around 29% cheaper to service compared to petrol cars.
- Key Maintenance: While there's no need for oil changes or spark plug replacements, regular maintenance for EVs includes tyre rotations (due to the heavier battery, which can accelerate tyre wear), brake checks, and cabin filter changes for EV maintenance specifics.
4. Insurance
Historically, EV insurance has been higher, but prices are becoming more competitive.
- Average Cost: The average cost of EV car insurance for popular models in the UK is around £654 per year for typical EV insurance costs.
- Factors Affecting Cost: Premiums are influenced by the make, model, trim level, your age, and driving history. More expensive EVs generally have higher insurance costs due to the higher repair/replacement costs of components like batteries affecting EV insurance premiums.
- Downward Trend: Industry experts predict a downward trend in EV insurance premiums as insurers gain more experience with real-world EV claims on future EV insurance trends. Some insurers also offer specific EV benefits, such as recovery if you run out of charge and cover for charging cables/wall boxes for EV insurance benefits.
5. Other Potential Costs & Savings
Upfront Purchase Price: EVs still generally have a higher initial purchase price than comparable petrol models, though this gap is narrowing between EV and petrol car prices.
Government Grants (2025):
- New EV Grant: Buyers of approved new fully electric cars can now receive up to £4,500 off the purchase price (up from £3,000 in 2024). This is processed directly by dealerships.
- EV Charge Point Grant (for flats/rentals): If you live in a flat or rental property, you could still be eligible for up to £350 towards the cost of installing a home charge point.
- Workplace Charging Scheme: Businesses can get grants of up to £350 per socket for installing EV charge points at their premises.
- London Congestion Charge & ULEZ: Electric vehicles remain exempt from the London Congestion Charge (until 25th December 2025) and the Ultra Low Emission Zone (ULEZ) daily fees, offering significant savings for city drivers in London.
- Benefit-in-Kind (BiK) Tax: For company car drivers, EVs continue to offer significantly lower BiK tax rates compared to petrol and diesel vehicles, providing substantial savings for company cars.
- Depreciation: While some sources suggest EVs can depreciate faster due to rapid technological advancements, modern EVs with longer ranges are showing better depreciation rates than many petrol vehicles, retaining more of their value over time on EV depreciation.
The waEV-charge Advantage
As you can see, while there are some evolving costs, the financial benefits of running an electric car in the UK in 2025 remain strong, particularly when you can charge at home.
At waEV-charge, we provide smart, reliable, and user-friendly home EV chargers designed to seamlessly integrate with off-peak tariffs. By choosing waEV-charge, you're not just getting a charger; you're investing in maximum convenience and significant long-term savings on your electric vehicle running costs. Ready to make the switch and reduce your carbon footprint and your running costs? Explore our range of waEV-charge home chargers today and take control of your EV charging expenses.
