The newly launched consumer rebates for electric vehicles aim to help make the purchase more affordable — but how does the cost of powering one compare with a gas vehicle?
Customers can now get up to $5,000 for a fully electric vehicle, and $2,500 for a plug-in hybrid for qualifying vehicles priced up to $50,000. That price limit doesn’t apply if the vehicle is made in Canada.
The rebates can also be processed at the point of sale, like at a dealership, to reduce extra steps for the consumer.
Ottawa kick-started the new incentive program on Feb. 16 as one of the five pillars of the federal government’s plan to “transform” the Canadian auto sector.
“The electric vehicle still tends to be a slight premium over gasoline vehicles. This may simply disappear over time and it’s better than it used to be, but $5,000 at the time of purchase of the vehicle is not an insignificant amount,” says Mark Marmer, a master electrician and owner and founder at Signature Electric.
There are also plans to build 8,000 new charging stations on highways and roads across the country, and Prime Minister Mark Carney suggested details will come shortly about efforts to double the country’s electricity capacity to meet the expected rise in demand and improve affordability.
So what does the full cost picture look like?
Experts say even with the up-front costs, having an at-home charging system is the most economical and convenient way to support an electric vehicle.
“A charger installation in a home costs somewhere between $1,000 and $2,000 and sort of just depends on the complexity. There’s a few deals and things out there for chargers that are available in the marketplace, and you’ll have an extremely reliable and economical way to charge your car,” Marmer says.
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Marmer says the $1,000-$2,000 price range includes the price of a typical charging unit and materials, labour, and necessary inspections and permits. He also says the price can vary by region, and if a homeowner lives in a house or a multi-unit dwelling with shared parking.
Experts also say it’s important to factor in all the costs of ownership when deciding whether to switch from a gas-powered vehicle to electric.
“It is what we call ‘total cost of ownership’ because oftentimes when you get to a dealership, they’ll talk to you about monthly payment, but beyond that, you have to look at gas, you have to look at maintenance, you have to look at insurance,” says Daniel Breton, CEO of Electric Mobility Canada.
“When you calculate how much it costs on gas versus how much it costs in electricity, depending on where you are in the country, you can save between 50 per cent to 80 per cent on energy costs.”
Breton also says that with electric vehicles, there is much less required maintenance compared with a gas-powered vehicle, which means consumers may wind up paying less over the long term.
Public or commercial charging stations are available if consumers don’t want to purchase an at-home system, but they aren’t always free or convenient for users.
What variables are there?
How much Canadians will end up paying to charge an electric car can vary, depending on factors like battery capacity and range, driving conditions and habits, passenger and cargo loads, and traffic.
“For most EV owners, charging is done at home using a standard wall outlet or an installed Level 2 charger, both of which draw power from your home’s electricity. The additional cost of charging at home will be reflected in your electricity bill,” the federal government says on its website.
“However, since electricity costs are generally lower than the current price of gas, the annual energy costs for driving an electric vehicle will be substantially lower.”
According to CAA National, the cost of purchasing an EV versus a gas vehicle is usually higher at the point of purchase, and before any rebates are applied.
After this, the CAA notes, electric vehicles usually wind up costing consumers less over the long term because they require less maintenance, there are reduced fuel costs, and some insurance providers will also offer better rates depending on the policy.
“It’s almost hard to compare that to putting fuel in the car. I think almost no matter what you do, it’s going to be probably anywhere from a fifth to a 10th of the cost that you’re paying to put fuel in a car,” Marmer says.
The government of Canada has estimates of the annual cost to fuel or charge specific vehicles, with an online vehicle search tool to compare models side by side.
Using a 2026 Honda Civic with a gas-powered engine as one example, and a 2026 Tesla Model 3 as that of an electric vehicle of roughly the same size, the gas model costs about $2,000 in annual fuel costs, while the electric option costs roughly $660.
The cost of electricity also varies greatly depending on the province or territory, and the time of day when the vehicle is being charged.
“If you live, let’s say, in Yukon or Northwest Territories, the price of electricity there is much higher, but so is price of gas,” Breton says.
“Even if we have cheap gas in Alberta and other provinces, even if the price of electricity can be more expensive in some provinces, it still is cheaper when you charge at home.”
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