A recent analysis confirms a key driver in EV adoption: charging an EV is consistently cheaper than fueling a gas-powered vehicle in every U.S. state. This cost advantage is crucial when planning your charging investments and presents a compelling opportunity for EV charging companies.

Understanding the varying price differences between gasoline and EV charging in each state enables you to have a competitive advantage when it comes to planning your deployments. This is because regions that offer substantial savings for drivers could see faster EV adoption in the future. It also presents a golden opportunity for station owners who are looking for higher profit margins to fuel the expansion of their charging networks.

Gasoline Prices Compared to Electricity

Gasoline prices are notoriously volatile. In June 2022, they reached record highs of over $5.00 per gallon. While they've dropped to around $3.40 as of August 2024, they remain significantly higher than electricity. Based on recent analysis, Stable found that the average cost of EV charging in the second quarter of 2024 was equivalent to paying just $1.66 per gallon for gasoline.

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State-by-State Breakdown of Electricity and Gasoline Costs

Both electricity and gasoline prices vary by location. For example, California, even with the highest gasoline prices at around $4.60 in August 2024, still saw an average savings of 47%, even though the state also has substantially higher than average electricity costs.

The savings are noteworthy in other states as well. Stable's Gasoline Price Equivalent Index shows that EV drivers saved an average of 51% compared to gasoline-powered vehicles in the second quarter of 2024. Savings ranged from 33% to 71% depending on the state.

Nebraska stands out with an impressive 71% savings for EV drivers, while Washington and Utah follow with 64%, and North Dakota offers a 63% average discount. On the east coast, Delaware boasts the highest savings, while the New England states have relatively lower savings compared to the rest of the country due to higher electricity costs.

Washington drivers benefit the most, saving an equivalent of $2.70 per gallon due to high gasoline prices coupled with abundant hydropower. Comparatively, Louisiana only sees a savings of $1.04 per gallon equivalent due to its lower gasoline prices and higher electricity costs.

Evaluating Regional Deployment Opportunities

While the savings vary greatly across the U.S., EV charging companies looking to strategically deploy their networks should take a look at regions where drivers stand to save the most. As the sticker price of electric vehicles comes down and more used EVs hit the market, basic economics will start to drive more EV buying decisions.

With 31 states across the U.S. seeing savings greater than 50%, it wouldn't be surprising to see states with the greatest savings growing faster. States that have historically been below the national average on the EV adoption curve, and thus haven't achieved the same level of charging deployment, might begin to catch up.

Additionally, even some of the places that are ahead on the adoption curve, looking at states with greatest savings is potentially a another leading indicator for future adoption. Nevada, with an average savings of 57%, or Colorado where drivers stand to save 53% on average, are well positioned as drivers take a closer look at the economics of EV ownership.

More Chargers are Needed to Meet Demand

While some reports say that EV adoption rates have slowed, demand for EVs is still growing. After being faced with high gasoline prices this summer, more Americans may consider making the switch to an electric vehicle. With charger utilization up and a growing number of lower-cost EVs entering the market, more charging stations are needed to keep up with demand. As more locations are considered for deployment, the need for strategic site selection has never been greater. The stakes have never been higher, and we need to make sure charging stations are built where drivers need them most.

Stable Auto: Your Partner in Profitable EV Charging

Stable empowers you to make smarter business decisions for your EV charging networks. By pinpointing high-traffic locations and forecasting long-term profitability, Stable helps you maximize ROI and stay ahead of the competition.

Investing in charging infrastructure where drivers save more on fuel costs can accelerate adoption rates and provide opportunities for higher margins, positioning your business for long-term success.

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