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It’s cheaper to drive an EV in the UK than in Germany

KANIKA SINGH RATHORE, 04/12/202504/12/2025

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British electric car drivers are saving significantly more money than their German counterparts, according to new analysis from the Energy and Climate Intelligence Unit (ECIU). The study found that UK EV owners are saving an average of more than £1,500 per year instead of driving an electric car. petrol One – around £540 more than EV drivers Germany,

With electric vehicles expected to account for one in five new car sales in the UK by now in 2025, the report highlights a clear financial benefit for drivers switching to electric power. The ECIU compared the costs of owning and running a range of electric and petrol cars popular in the two countries.

The results showed that while it is cheaper to drive an EV than petrol cars in both the UK and Germany, the savings are much greater in the UK. German drivers can expect to save around £970 per year, but for British EV owners, this figure rises to more than £1,500 annually – making the UK one of the best value EV markets in Europe.

Entry level Volkswagen ID.4 now more than £1,000 cheaper than petrol Volkswagen Tiguan

Entry level Volkswagen ID.4 now more than £1,000 cheaper than petrol Volkswagen Tiguan ,volkswagen,

The ECIU says the main reason is how British households use smart meters and flexible electricity rates. While petrol prices are broadly similar in the two countries, UK electric car drivers can charge their cars overnight using cheap, surplus electricity at rates as low as 7p per kilowatt-hour (kWh). This means an EV can be driven for less than 2p per mile, compared to around 15p per mile for a petrol or diesel car.

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However, in Germany, the limited rollout of smart meters means that these flexible tariffs are not widely available. German EV owners charging at home typically pay around 29p per kWh, or a little more than 7p per mile – still cheaper than petrol or diesel, but significantly higher than in the UK.

Colin Walker, head of transport at the Energy and Climate Intelligence Unit, said: “We are ahead of Germany in terms of market share for new EVs, which means a huge proportion of British drivers are taking advantage of the hundreds of pounds that could be saved by switching from petrol to electric driving. Thank you electric cars UK motoring bills are going down. And thanks to smart net zero technology most drivers can charge with cheap electricity overnight while they sleep, saving them hundreds of pounds more per year than the average German EV driver.

He added: “The majority of UK drivers have access to off-street parking, but even those who rely on regular public chargers can still make savings on petrol or diesel. With sticker prices falling and the second-hand EV market booming, more regular households are making these savings. But with the UK government weakening its policy on EVs there is a risk that more people will be talked into buying a hybrid, which recent research has shown is generally But it’s even more polluting and expensive to run than before.”

The analysis also found that the cost gap between petrol and electric cars is narrowing rapidly, especially with the government’s electric car grants coming into effect.

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For example, new Renault 5 E-Tech Electric Prices start from just £21,495 after government subsidies, with the cheapest hybrid Renault Clio model costing £400 more. and starting price of germany Volkswagen ID.4 Or ID.5 Electric SUVs are now as much as £1,085 cheaper than the entry-level Volkswagen Tiguan.

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From a German perspective, Adrian Pagano, head of transport at the Initiative ClimateNeutral Germany (IKND), said: “This analysis highlights how much German drivers are missing out because our energy system has been too slow to modernize. While electric vehicles are already much cheaper to run than petrol or diesel cars, the lack of smart meters and flexible tariffs in Germany means drivers still cannot take full advantage of affordable and clean electricity. – something that is already standard in the UK.”

He said: “If we want to boost sales of electric cars, we need to not only expand charging infrastructure, but also unlock the benefits of smart charging and dynamic electricity pricing. These technologies can reduce costs for consumers and make better use of renewable energy, which is beneficial to drivers and the energy transition.”

The UK’s lead in smart charging is now delivering tangible benefits – putting more money back in drivers’ pockets and helping to accelerate the switch to zero-emission motoring, the ECIU says.

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