Charging your electric vehicle (EV) at home with electricity produced by rooftop solar panels significantly reduces your environmental impact. But lowering your carbon footprint isn’t the only benefit of installing a solar EV charging system. The financial savings from using solar power to charge your EV can be substantial and long-lasting—especially since most solar panels come with warranties that last up to 25 years.

While the initial expense of setting up solar power at home may be high, there are many rebate and incentive programs available to reduce these costs. Over time, the savings from using solar energy instead of electricity from the grid will help offset this upfront investment.

In this article by EVBox on whether solar EV charging can help save money, we look at the concerns EV drivers have when investing in solar panels. We also explore whether solar charging is more economical than using grid power, how to minimize the costs of solar charging, and what the potential return on investment is for installing a solar EV charging system at home.

Are solar panels worth it?

Using solar power to charge an EV at home can significantly cut down on the use of grid electricity, leading to lower utility bills and a smaller carbon footprint. However, the amount of money you’ll save depends on several factors, including the type of EV you drive. To determine if solar EV charging will lower your utility bills, you’ll need to do a few calculations.

How to calculate charging costs

The first step in figuring out how much money you can save with solar panels is to calculate how much it currently costs to charge your EV using grid electricity.

Start by calculating your average daily mileage and compare that to your EV’s energy consumption, measured in miles per kilowatt-hour (kWh). For example, the average daily driving distance in the U.S. is about 37 miles, or roughly 60 kilometers, and the energy consumption of a Tesla Model 3 is around 0.147 kWh per kilometer.

In this scenario, driving the U.S. average of 60 kilometers would require about 8.75 kWh of electricity. That means you’d need to pay for 8.75 kWh of grid electricity to recharge your Tesla at the end of the day.

Next, find out the price of grid electricity in your area. Keep in mind that electricity costs vary widely depending on location, provider, and even the time of day. Check your latest utility bill for the price per kWh. If this figure isn’t listed directly, you can calculate it using this formula:

Total annual (or monthly) electricity bill / Total number of kWh consumed

For example:

$1,000 / 6,700 kWh = $0.1492 per kWh (14.92 cents)

With this figure, you can calculate how much it costs to charge your EV. Using our example, the cost would be:

$0.1492 per kWh x 8.75 kWh = $1.31

So, for the average American driving 60 kilometers per day, it would cost about $1.31 to charge their Tesla Model 3 using only grid electricity. Over the course of a year, that would add up to $478.15 in charging costs. If you take longer trips that require more charging, your savings potential would increase.

Cost analysis of solar charging

After you’ve calculated the cost of charging your EV from the grid, you can estimate the savings from switching to solar power. At first glance, it might seem like the savings would equal the total cost of grid electricity—$478.15 in this case.

However, while solar energy itself is free, installing a solar power system isn’t. You’ll need to compare the savings on utility bills to the cost of purchasing, maintaining, and installing the solar panels. Several factors influence the overall cost:

• The number of solar panels needed for EV charging
• Installation fees from your contractor
• Whether you add battery storage to your system
• The type of solar panels (monocrystalline panels are more expensive than polycrystalline)
• The cost of a home charging station
• Whether you optimize your system with smart charging features

After determining the total cost of your solar EV charging system, you can compare this to your potential savings. According to a report from SolarReviews, the cost of solar electricity averages less than $0.11 per kWh.

Referring back to our Tesla example, switching to solar power would reduce the annual charging cost to $351.31, compared to $478.15 using grid electricity—saving over $125 a year.s

It’s important to note that grid electricity prices can be much higher in other countries, which means the savings from solar power could be greater elsewhere. Additionally, many homes use solar panels to power household appliances as well as EVs, which can further reduce utility bills. However, this article focuses solely on solar EV charging.

Factors affecting solar EV charging cost savings

The amount you save by charging your EV with solar power depends on several factors.

Size and output of the solar system

One of the most important factors is the size and efficiency of your solar panel system. The more electricity your panels produce, the more you can offset your reliance on grid electricity, resulting in lower utility bills. The size, efficiency, and quality of your solar panels will impact how much electricity they generate and how quickly they can recharge your EV.

Cost savings from system optimization

You can also reduce charging costs by optimizing your solar system. Components like home energy management systems, smart EV charging software, and battery storage can improve energy production and lower costs by allowing for smart scheduling and load balancing.

Location

Your geographical location plays a crucial role in determining the savings from solar charging. Areas with more sunlight will require smaller solar arrays and will generate more electricity compared to areas with less sun. Electricity prices also vary significantly by location; in some regions, electricity from the grid is much more expensive than in others, which increases the potential savings from solar charging.

Utility rates and time-of-use plans

Electricity rates vary based on time of day and location. Many utility providers offer time-of-use (ToU) plans, where electricity costs less during off-peak hours. In some areas, grid electricity can cost as much as $0.60 per kWh during peak times and as little as $0.25 per kWh overnight.

If you’re on a ToU plan, it’s important to consider when you charge your EV. You can schedule your charging to occur when rates are lowest to save on costs. Solar panel owners can also use solar power during peak hours and switch to grid electricity overnight, maximizing savings.

Comparing savings from solar charging around the world

If you already have solar panels installed, the savings from charging your EV with solar power depend on your system’s current output. Factors like location, energy consumption, and utility rates will determine how much you save compared to grid charging.

Electric Vehicle Charging with Solar Power: A Financial Overview

When considering the financial benefits of charging your electric vehicle (EV) with solar energy, several factors come into play:

• Type of Electric Vehicle: This includes details like battery capacity and average mileage per kilowatt-hour (kWh).
• Cost of Electricity:The average cost of grid electricity for charging your EV in your area.
• Sunlight Exposure: The average daily sunlight your rooftop solar panels receive.

Below, we present a comprehensive table demonstrating potential annual savings from solar charging in various global locations. These examples utilize a 1.5kW solar system consisting of five 300W panels. We analyze several popular electric vehicles (EVs) to showcase different potential savings, assuming a 30% daily battery recharge. Each city features two columns: one reflects the daily energy production of our example solar system, and the other details the cost to recharge the EV based on local grid electricity prices. All currency values have been standardized to USD for easier comparison.

Electric Vehicle Types and Locations:

Type of EV	Location	London	Los Angeles	Paris	Berlin	New York
Solar Output	5 kWh	5 kWh	10 kWh	5.1 kWh	5 kWh	7.8 kWh
Grid Cost	$0.34	$0.29	$0.23	$0.37	$0.21
Tesla Model 3 Long Range Dual Motor (24.6 kWh)	$6.66/day	$8.36/day	$4.23/day	$7.13/day	$4.49/day
Audi e-tron 55 quattro (28.5 kWh)	$7.99/day	$9.69/day	$5.37/day	$8.27/day	$5.38/day
Fiat 500e Hatchback (12.6 kWh)	$2.54/day	$4.28/day	$0.75/day	$3.65/day	$1.73/day
Ford Mustang Mach-E GT (29.61 kWh)	$8.37/day	$10.07/day	$5.69/day	$8.59/day	$5.64/day
Mini Cooper SE (9.78 kWh)	$1.63/day	$3.33/day	$0.00/day	$2.84/day	$1.08/day
Dacia Spring Electric (8.04 kWh)	$1.03/day	$2.73/day	$0.00/day	$2.33/day	$0.68/day
Average Annual Savings		$620.50 saved with solar per year	$1,058.50 saved with solar per year	$427.05 saved with solar per year	$675.25 saved with solar per year	$598.60 saved with solar per year

Annual Savings:

• $620.50 saved with solar power per year in London
• $1,058.50 saved in Los Angeles
• $427.05 saved in Paris
• $675.25 saved in Berlin
• $598.60 saved in New York

Long-Term Financial Benefits of Solar EV Charging

The savings generated from charging your EV using solar energy can vary based on your specific situation, but one aspect remains consistent: the electricity generated by your solar panels is entirely free to utilize. This leads to cumulative savings over time with minimal ongoing costs.

Over the lifespan of solar panels, typically around 25 years, your savings are likely to increase as grid electricity prices rise.

Calculating Long-Term Savings and ROI

The return on investment (ROI) for installing a solar EV charging system is closely linked to the initial cost of the system. A basic 1.75kW solar charging setup may cost approximately $6,500, while a more advanced system with smart charging capabilities can exceed $20,000. The former would recoup costs more rapidly than the latter.

Some estimates suggest that a basic solar system can yield savings of over $16,250 throughout its lifetime. Based on the annual savings shown in our table ($675.98 per year) and the average cost of a mid-range solar EV charging system ($12,000), it would take about 17 years to break even.

However, this estimate might be too conservative, as it focuses solely on EV charging without considering the savings from powering other household appliances.

According to consultancy firm LCP Delta, a more realistic payback period for a solar rooftop system typically ranges from 5 to 14 years, depending on individual circumstances and location.

Conclusion

So, is switching to solar energy for EV charging cost-effective? Ultimately, the answer depends on your particular setup, your electric vehicle's charging requirements, and your geographical location. However, it is evident that using solar power for EV charging can significantly reduce your electricity bills.

The primary consideration in deciding whether to invest in solar energy will be the initial costs compared to potential savings and the time frame for recovering your investment. Even a straightforward, budget-friendly solar EV charging system can lower the electricity cost per kWh to approximately $0.11 when material and installation expenses are spread out over its lifespan.

On average, the savings achieved through solar rooftop energy can cover the cost of a typical solar system within about ten years, leaving roughly 15 years to enjoy pure profit. In summary, solar EV charging is not only a convenient and eco-friendly solution but also a dependable method to decrease your household expenses.

For further information on powering your electric vehicle with solar energy, explore our extensive range of insightful resources on the EVBox blog.