Last reviewed: July 2026
TL;DR
EVs now cost more to buy but less to fuel and service than equivalent petrol cars. The 5-year total cost of ownership is broadly comparable at current electricity prices, but the maths depends heavily on your charging access. From April 2025 EVs pay VED (road tax) for the first time. The Plug-in Car Grant ended in 2022. BEVs took 24% of new car sales in 2025.
- Charging at home (7kW): ~3-4p/mile at off-peak rates vs 14-16p/mile for petrol.
- Public rapid charging: 20-35p/kWh - comparable to or more expensive than petrol per mile.
- VED from April 2025: EVs now pay £195/year standard rate (or £620 for cars over £40k in years 2-6).
- Real-world range: Typically 15-20% less than WLTP official figure. Check real-world data at Eco Movement.
- Battery warranty: Most manufacturers offer 8 years/100,000 miles on the battery pack.
EV vs petrol: 5-year total cost of ownership
Illustrative comparison based on typical 50,000 miles over 5 years. EV assumes home charging at off-peak rate. Petrol assumes average UK fuel price. Individual costs vary significantly by model, usage and electricity tariff. Sources: SMMT, OZEV, Zap-Map, OVO Energy 2026 EV cost data.
UK EV market growth 2020-2025
Battery electric vehicles reached 24% of new car sales in 2025. The ZEV mandate requires 80% of new car sales to be zero-emission by 2030. Source: SMMT New Car Registration Statistics 2020-2025.
Key stats: buying an EV in 2026
5 checks before you buy an electric car
| Check | Why it matters |
|---|---|
| Home charging access | The EV cost case depends almost entirely on home charging. If you cannot install a home charger (flat, rented property without landlord permission, no off-street parking), your charging cost will be 5-8x higher using public rapid chargers, wiping out the fuel saving. Check your eligibility for the OZEV EV Chargepoint Grant (up to £350 for home installation). |
| Real-world range vs your usage | WLTP official range is typically 15-20% higher than real-world range, and cold weather reduces range by a further 20-30%. Check real-world range data at Eco Movement or EV Database before buying. EV road tax UK 2026. |
| VED and total tax cost | From April 2025 EVs pay VED: £10 first year, then £195/year standard rate. If the list price exceeds £40,000, the expensive car supplement adds £620/year for years 2-6. EV tax changes explained. |
| Battery health (used EVs) | For used EVs, request the battery health report (state of health %). Most manufacturers provide this via their app. Below 80% SoH can significantly reduce range. Battery replacement costs £5,000-£15,000 and is rarely covered after warranty expires. |
| Insurance cost | EV insurance currently runs 10-25% higher than equivalent petrol cars due to higher repair costs and specialist parts. Get an insurance quote before you commit to buying. Electric car insurance UK. |
Charging explained: home vs public
| Charger type | Power | Cost | Charge time (typical 60kWh) |
|---|---|---|---|
| Home 3-pin (slow) | 2.3kW | ~24p/kWh (off-peak) | 26+ hours (not recommended) |
| Home wallbox (7kW) | 7kW | ~7-15p/kWh (overnight) | 8-10 hours (overnight) |
| Public AC (22kW) | 22kW | 30-50p/kWh | 3-4 hours |
| Public rapid (50-150kW) | 50-150kW | 60-85p/kWh | 20-60 minutes (to 80%) |
Public rapid charging at 60-85p/kWh is comparable to or more expensive than petrol per mile for most cars. The EV fuel saving case only works if you can charge primarily at home on an overnight off-peak tariff. Full EV charging cost guide.
Grants and incentives available in 2026
| Grant | Value | Status |
|---|---|---|
| Plug-in Car Grant | Ended 2022 | No longer available for cars |
| EV Chargepoint Grant (home) | Up to £350 | LIVE - apply via OZEV |
| Workplace Charging Scheme | Up to £350/socket (max 40) | LIVE - for employers |
| Company car BiK rate (BEV) | 2% 2024-2025, rising to 5% by 2027/28 | Significant saving vs petrol (20-37%) |
| Salary sacrifice scheme | Saves NI + income tax on lease cost | Available via employer - check HR |
Source: OZEV, HMRC company car tax tables 2024-2026. EV tax benefits and BiK rates.
Frequently asked questions
Should I buy an electric car in 2026?
An EV makes financial sense in 2026 if: you can charge at home on an overnight off-peak tariff, you drive more than 8,000 miles a year (to recoup the higher purchase cost through fuel savings), and you stay within the real-world range of your chosen model on typical journeys. If you rely on public rapid charging, the fuel saving largely disappears. If you drive under 5,000 miles a year, the purchase price premium is hard to justify.
How much does it cost to charge an electric car?
Home charging on an overnight off-peak tariff costs 7-15p/kWh, equating to roughly 3-4p/mile. Public rapid charging costs 60-85p/kWh, equating to 18-28p/mile - comparable to or more expensive than petrol. A full charge at home on a 60kWh battery costs £4-£9 off-peak. Full charging cost breakdown.
Do electric cars pay road tax in 2026?
Yes - from April 2025 all EVs pay VED. In the first year: £10. From year 2: £195/year standard rate. If the car's list price exceeds £40,000, an expensive car supplement of £620/year applies for years 2-6. This significantly increases the annual running cost for premium EVs. Full EV VED guide.
How long do electric car batteries last?
Most EV manufacturers warrant the battery for 8 years or 100,000 miles, guaranteeing at least 70% of original capacity within this period. In practice, real-world data shows most EV batteries retain 80-90% capacity after 100,000 miles. Battery degradation is gradual, not sudden. Cold weather temporarily reduces range but does not damage the battery.
What is a hybrid car and should I buy one instead?
A hybrid car uses both a petrol engine and an electric motor. A mild hybrid uses the motor only to assist the engine (no plug-in). A full hybrid (like Toyota Prius) can run short distances on electric only. A plug-in hybrid (PHEV) has a larger battery you charge externally and can do 20-50 miles electric-only. Hybrids suit drivers who need long range and cannot charge at home, but do not get the full fuel saving of a BEV. They also lose most company car BiK tax advantages. Cheapest EVs UK 2026.
Sources: SMMT New Car Registration Statistics 2020-2025; OZEV EV grant eligibility 2026; HMRC company car BiK rates 2024-2028; Zap-Map public charging cost data July 2026; DVLA VED rates April 2025.
