Electric cars have gained significant popularity worldwide as environmentally friendly alternatives to traditional gasoline-powered vehicles. But Are Electric Cars Cheaper to Run in South Africa? The certainly can be much cheaper if you have all the correct things in place.
One of the key factors driving this shift is the potential cost savings associated with electric vehicles (EVs). In South Africa, where energy costs play a vital role in household budgets, understanding the financial implications of owning an electric car is essential.
This article explores whether electric cars are cheaper to run in South Africa, considering factors such as electricity prices, government incentives, and the overall economic landscape.
Electricity vs. Petrol Prices:
South Africa has historically had relatively low electricity prices compared to petrol prices. The cost per kilometer for electric vehicles is generally lower due to the higher energy efficiency of electric motors and the lower cost of electricity per unit compared to petrol.
To illustrate this we will compare the consumption of the BMW X3 versus the BMW iX3. The reason we have chosen these two is because they are the same car with the difference being that one is a petrol car and the other is an electric car. This will allow us to compare apples with apples.
BMW X3 fuel consumption
- 5.6l per 100km
BMW iX3 energy consumption
- 18.9 kWh/100 km.
Based on the petrol price of R23.18 (at the time of writing) per litre of 95 Unleaded petrol, the BMW X3 costs about R129 per kilometre.
For the BMW iX3, how much the power will cost you will depend on where you are charging and perhaps where that electricity is coming from.
For our illustration we will use 3 scenarios
- Home (off-grid) – R0.00 per kWh
- Home (Eskom Prepaid) – R4.00 per kWh
- Charging Station (DC) – R7.35 per kWh
There are other scenarios and different pricing models within Eskom Tariffs and charging stations (e.g. prices differ for AC vs DC) but for simplicity’s sake , we have limited it to the three above and rounded the numbers off.
Cost Per 100km
If you are running your home completely off-grid, then the cost for running your car is essentially zero.
For charging from home using Eskom power, the cost is R4.00 price per kilowatt hour multiplied by 18.9kWh consumption, which adds up to approximately R76 per kilometre,
For charging at charging stations the cost is R7.00 price per kilowatt hour multiplied by 18.9kWh consumption, which adds up to approximately R132,3 per kilometre,
- Home (off-grid) – R0.00 per 100km
- Home (Eskom Prepaid) – R76.00 per 100km
- Charging Station – R133.00 per 100km
As of now, this cost advantage makes electric cars an attractive option for budget-conscious consumers.
Government Incentives: In countries where EVs are experiencing increased adoption, government incentives play a crucial role in promoting electric vehicle adoption. These include as tax rebates, subsidies, and reduced import duties on EVs. These incentives significantly reduce the initial purchase price of electric cars, making them more affordable for consumers.
In South Africa, however, we have the opposite in place. The government has imposed a
various incentives, such as tax rebates, subsidies, and reduced import duties on EVs, have been introduced to encourage the transition to electric mobility.
Maintenance and Operating Costs: Electric vehicles have fewer moving parts than traditional gasoline cars, leading to lower maintenance costs over the vehicle’s lifetime. EVs do not require oil changes and have fewer components that can wear out, resulting in decreased servicing expenses. Additionally, the cost of electricity for charging an EV is generally stable, whereas gasoline prices can fluctuate, providing consumers with more predictable long-term costs.
Charging Infrastructure: The growth of electric vehicles relies heavily on the availability and accessibility of charging infrastructure. In South Africa, efforts have been made to expand the charging network, making it increasingly convenient for EV owners to charge their vehicles. As the charging infrastructure continues to improve, the practicality of owning an electric car becomes more feasible for consumers across the country.
Consideration of Driving Patterns: An individual’s driving patterns greatly influence the cost-effectiveness of owning an electric car. Those who primarily drive within the city or have a relatively short daily commute can benefit significantly from an electric vehicle’s lower operating costs. Long-distance travelers, on the other hand, might find charging infrastructure limitations to be a hurdle, affecting the overall cost savings.
Conclusion: In conclusion, electric cars are becoming increasingly cost-effective in South Africa, thanks to their lower operating costs, government incentives, and the country’s relatively low electricity prices. As the charging infrastructure continues to expand and technology advances, electric vehicles are likely to become even more affordable and practical for consumers across various driving patterns. As always, prospective buyers should carefully consider their specific needs, driving habits, and available incentives to determine whether an electric car is the right choice for them. With ongoing developments and support from the government, the future of electric mobility in South Africa appears promising and economically viable.