- More than a fifth of new cars in the UK in 2025 so far have been EVs
- The UK is ahead of Germany in terms of market share for new EVs
- German drivers can save £970 a year from owning and running an EV over a petrol car
British EV drivers are on average saving more than £540 compared to electric vehicle (EV) drivers in Germany, thanks to using smart meters to charge their cars at night, according to new analysis from the Energy & Climate Intelligence Unit (ECIU).
More than a fifth of new cars in the UK in 2025 so far have been EVs and sales in the UK are now outpacing those in Germany.
Colin Walker, head of transport, ECIU, said that while EVs can be “significantly cheaper” to own and run than petrol cars in both the UK and Germany, the savings on offer for UK EV drivers are more than one-and-a-half times those for EV drivers in Germany.
The analysis compared EVs with its petrol equivalents using a selection of vehicles that are popular in both countries. It was found that German drivers can save £970 a year from owning and running an EV over a petrol car. However, those savings jump to more than £1,500 a year for British EV drivers.
“Part of the reason behind this is that, while petrol prices in the UK and Germany are broadly similar, British EV drivers are able to use smart meters to charge their EVs using cheap, surplus power at night when electricity is lower,” Walker said.
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These ‘flexible’ tariffs allow EVs to be charged for 7p/kWh, Walker said, meaning EVs can be run for less than 2p per mile, compared to around 15p per mile for a petrol or diesel car.
Walker added that in Germany the limited adoption of smart meters means such tariffs are not readily available, resulting in EV owners that charge their vehicles at home having to do so for 29p per kWh, equivalent to more than 7p per mile.
Walker added that the UK is ahead of Germany in terms of market share for new EVs, which means a greater proportion of British drivers are taking advantage of the hundreds of pounds that can be saved by switching from petrol to electric driving.
“Thanks to EVs, the UK’s motoring bills are falling,” Walker said. “And thanks to smart net-zero technology, most drivers can charge on cheap electricity overnight while they’re asleep, allowing them to save hundreds of pounds a year more than the average German EV driver.
However, Walker warned that there is a risk that consumers could be convinced to buy a hybrid vehicle instead of an EV because the government is “weakening its policy on EVs”. This would mean more people are buying vehicles that are more expensive and “even more polluting than previously thought,” according to Walker.
The ECIU also said that EV savings are growing, thanks to a narrowing in the gap between the upfront costs of EVs and petrol cars in the UK.
The think tank said the electric Renault 5 is now £1,400 more expensive to purchase than the petrol VW Polo – an extra cost that is paid off in little more than a year through the 5’s significantly cheaper fueling costs.
“VW’s electric ID.4 is actually £550 cheaper than a petrol VW Tiguan, meaning that ID.4 owners can start enjoying savings the moment they buy the vehicle,” Walker added.
Adrien Pagano, head of transport, Initiative Climateneutral Germany (IKND) praised the analysis and said German consumers are missing out because energy systems in the country have been too slow to modernise.
“While EVs are already much cheaper to run than petrol or diesel cars, the lack of smart meters and flexible tariffs in Germany means that drivers cannot yet take full advantage of cheap and clean power – something that is already standard in the UK,” he said.
“The potential is there, but policy and regulation have to move faster if we want to make e-mobility truly affordable for everyone.”
A challenge to adoption in Germany is the inability to charge at home, according to a IKND survey. It found that if Germany wants to boost the sales of EVs, it must not only expand its charging infrastructure, but also unlock the benefits of smart charging and dynamic electricity pricing.
“These technologies can reduce costs for consumers and make better use of renewable power, a win-win for drivers and the energy transition,” Pagano said.
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