British Columbia

EV owners have to drive farther to break even, study suggests

British Columbians pondering a switch to an electric vehicle would need to drive almost double the daily distance of an average motorist to break even, according to a study by University of B.C. researchers.

Other researchers question study's comparisons and findings, which vary between province

A person smiles and plugs a car charging cable into a grey electric car, with buildings in the background.
Researcher Bassam Javed, with the UBC Institute for Resources, Environment and Sustainability, charges up a Hyundai plug-in electric vehicle. (Submitted by Bassam Javed)

British Columbians pondering a switch to an electric vehicle would need to drive almost double the daily distance of an average motorist to break even, according to a study by University of B.C. researchers.

The study, published in the most recent edition of the journal Environmental Research: Infrastructure and Sustainability, set out to determine how long it would take a driver to recoup the higher up-front cost of buying a new electric vehicle (EV).

Its authors concluded that to break even over seven years — roughly the average time they said people own a new vehicle — EV drivers in B.C. would have to drive 64 kilometres daily, nearly double the average 34 kilometres a day a motorist drives, according to Statistics Canada. 

However, some other experts say the study's conclusions are out of sync with other studies that concluded EV buyers can pay off higher up-front costs sooner, especially as vehicle prices drop and gas prices climb.

WATCH | What's cheaper, EV or gas? This scholar crunched the numbers:

What's cheaper, EV or gas? This scholar crunched the numbers

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Duration 2:05
Where you live and how much you drive each day matters when it comes to the cost-effectiveness of an electric vehicle, compared to gas. A new UBC study crunches the numbers.

Co-author Amanda Giang, an assistant professor at UBC's mechanical engineering faculty, told CBC News that the study raises questions about Ottawa's plan to stop manufacturing internal combustion engine (ICE) vehicles after 2035 and how average Canadians can afford EVs, which are generally more expensive.

The study noted the distance of daily drive required to recoup EV costs varies significantly between provinces, taking into account rebates on EV purchases and the price of gas and electricity.

EV owners in Ontario, for example — with no rebates, cheaper gas and pricier electricity — would have to drive 88 kilometres a day to break even. For EV drivers in Alberta, which offers no rebates and has the cheapest gas, researchers found the daily drive would need to be even farther.

"In B.C., we have really clean, cheap electricity ... and it also doesn't hurt that B.C., like Quebec, has additional rebates," Giang said.

The federal government offers a $5,000 rebate on new EVs, while B.C. and Quebec top that up by up to an extra $4,000 and $7,000, respectively.

Quebec has the country's cheapest electricity and most EV purchases, with B.C. in second place for sales and third-cheapest for energy, the study noted.

A chart compares provinces for the daily driving distance needed to break even for the higher average costs of buying a new electric vehicle, compared to what motorists actually drive, and finds Quebec and B.C. are the best for EVs comparatively.
A chart from a study from University of B.C. researchers compares provinces on the daily driving distance needed to break even on the higher cost of buying a new electric vehicle, compared to the distance the average motorist drives. (Submitted by UBC)

Comparisons questioned

The UBC researchers compared prices between electric and gasoline models of what they deemed equivalent vehicles — such as Hyundai's Kona electric SUV at nearly $44,000 versus its gas version at about half that price, and Tesla's Model 3 at roughly $60,000 versus Toyota's Camry LE at under $28,000.

But some of those comparisons, and other assumptions in the study, raised eyebrows among other EV experts.

"Compared to what else is out there in terms of the research and best-in-class practices, this [study] does look like it is an outlier," said Meena Bibra, senior policy advisor at the Simon Fraser University-based think tank Clean Energy Canada, in an interview Monday.

"... We do disagree with some of the model comparisons that were done in the study. So for example, when comparing electric vehicles to their gasoline power equivalents, it's really important to compare like-for-like [vehicles]."

For example, Bibra said a Toyota Camry is a poor comparison to a Tesla, while comparing the Hyundai Kona's EV and ICE versions doesn't account for the EV's luxury trim options. Other studies assumed a 10-year average ownership period, she added.

"With like-for-like models, we were seeing costs break even around a year or less when incorporating provincial and federal incentives," Bibra said.

Both researchers, however, agreed governments should play a bigger role, particularly in increasing rebates and adding more charging infrastructure.

A car sits at a charging station.
An EV charging station in McLeod Lake, B.C., just a handful of fast-charge locations available to drivers in the province north of Prince George. (Andrew Kurjata/CBC)

'Cost of electric vehicles coming down'

On Wednesday, B.C. announced it will spent $30 million to build 500 new public electric vehicle charging stations where there are not enough to meet demand across the province.

Josie Osborne, B.C.'s Minister of Energy, Mines and Low Carbon Innovation said earlier this month that as well as ramping up infrastructure, the province's rebates and legislation are helping more drivers make the switch.

"We're starting to see the cost of electric vehicles coming down," Osborne said March 12. "And one of the reasons why we made amendments to the Zero-Emission Vehicles Act was to incentivize suppliers to bring a healthy supply of electric cars here to British Columbia, so that people have choices.

"There are other benefits of driving an electric vehicle — just knowing that you're not putting more emissions into the atmosphere, cleaner air for our communities." 

A blue electric vehicle charging station with the words 'Powered by water' and the B.C. Hydro logo.
An electric vehicle charging station in Surrey, B.C., pictured in April 2021. (Ben Nelms/CBC)

Giang said she hopes governments will continue to increase rebates for EV vehicles, in particular for non-luxury EVs of a smaller size, and said consumers might consider downsizing their vehicle to save money.

But she also noted that governments need to focus more broadly on improved public transit and other climate measures, too, because EVs likely won't be affordable for many British Columbians anytime soon.

"We need an all-of-the-above approach," she said. "As we're thinking about de-carbonizing, it's also an opportunity to rethink our car-centric model.

"There's an important place for electric vehicles, but not at the expense of other ways of moving people and goods."

ABOUT THE AUTHOR

David P. Ball

Journalist

David P. Ball is a multimedia journalist with CBC News in Vancouver. He has previously reported for the Toronto Star, Agence France-Presse, The Globe & Mail, and The Tyee, and has won awards from the Canadian Association of Journalists and Jack Webster Foundation. Send story tips or ideas to david.ball@cbc.ca, or contact him via social media (@davidpball).

With files from Michelle Morton