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14 Jul 2025

Electric vs. Gas: Why Your Electric Car Costs Less to Drive

Have you ever wondered why electric cars are cheaper to drive than gas cars? Let's examine the numbers to see how much money you could save by going electric, especially if you live in Nebraska where electricity rates are significantly below the national average.

Energy Costs: The Starting Point

Think of energy like purchasing fuel for your daily activities. You can buy the same amount of energy in different forms, but the price varies depending on the source.

One gallon of gasoline contains approximately the same amount of energy as 33.7 kilowatt-hours (kWh) of electricity. While these are different energy sources, they provide equivalent amounts of power.

In Omaha, Nebraska, here's what that energy costs:

  • Gasoline: $2.99 per gallon
  • Electricity: $3.20 for the equivalent amount of energy (33.7 kWh × 9.5¢/kWh)

So electricity actually costs slightly more for the same amount of raw energy. However, this initial comparison doesn't tell the complete story.

The Key Difference: Efficiency

While electricity costs slightly more per unit of energy than gasoline, the real difference comes down to how efficiently each type of vehicle uses that energy.

Gas Cars:

  • Internal combustion engines only convert about 27% of gasoline's energy into motion
  • The remaining 73% is wasted as heat from the engine and exhaust
  • From one gallon of gas, you get about 9 useful energy units to move the car

Electric Cars:

  • Electric motors convert about 92% of electricity into motion
  • Only 8% is wasted as heat
  • From the same amount of energy, you get about 31 useful energy units

This massive efficiency difference is why electric cars cost so much less to operate, even when electricity costs more per unit than gasoline.

Real-World Example: The Chevy Bolt

Let's look at a real example. A 2022 Chevy Bolt can drive 3.7 miles on just 1 kWh of electricity. Here's what it costs per mile:

Chevy Bolt: 9.5¢ ÷ 3.7 miles = 2.6¢ per mile

Compare that to gas cars:

  • Average gas car (30 mpg): $2.99 ÷ 30 miles = 10.0¢ per mile
  • Efficient gas car (40 mpg): $2.99 ÷ 40 miles = 7.5¢ per mile

The electric car costs about 75% less to drive than a regular gas car!

What About a 100-Mile Trip?

Let's say you want to drive from Omaha to Lincoln, Nebraska (about 100 miles):

  • Chevy Bolt: 100 miles × 2.6¢ = $2.60
  • Gas car (30 mpg): 100 miles × 10.0¢ = $10.00
  • Gas car (40 mpg): 100 miles × 7.5¢ = $7.50

You'd save between $4.90 and $7.40 on just one trip!

Understanding Energy Production

You might wonder about the energy required to produce electricity and gasoline in the first place. This is an important consideration for the complete picture.

Electricity Generation:

  • Power plants burn coal or natural gas to generate electricity
  • Approximately 67% of the primary energy is lost during this conversion process
  • An additional 5% is lost during transmission through power lines
  • Overall, about 33% of the original energy source reaches your vehicle

Gasoline Production:

  • Oil companies extract crude oil and refine it into gasoline
  • About 15-20% of the energy is lost during extraction, refining, and distribution
  • Approximately 80-85% of the original energy makes it to your vehicle

Despite electricity production being less efficient than gasoline production, electric vehicles remain significantly cheaper to operate due to their superior energy utilization.

The Environmental and Economic Advantage: Renewable Energy Growth

The electricity powering your vehicle is becoming cleaner and often cheaper each year as the U.S. power grid rapidly transitions from coal to renewable energy sources.

Current Renewable Energy Statistics:

  • Approximately 21% of U.S. electricity now comes from renewable sources including wind, solar, and hydropower
  • Wind and solar combined provided nearly 27% of all electricity generation in 2024
  • Solar power has experienced dramatic growth, expanding from just 1% of electricity generation in 2015 to over 7% today
  • In 2024, renewables provided more than 20% of electricity on 188 days, including 57 days at 25% or higher

Implications for Electric Vehicle Owners:

When you charge your electric vehicle, you're increasingly using clean energy from renewable sources rather than fossil fuels. This transition makes electric cars even better for the environment and often more economical to operate, as renewable energy costs have decreased substantially.

Regional variations are significant. Iowa now generates almost 60% of its electricity from wind power, while Texas leads the nation in both wind and solar electricity production despite its oil industry heritage.

As renewable energy capacity continues expanding, electric vehicles will become progressively cleaner and potentially more cost-effective to operate—essentially improving their environmental and economic benefits automatically over time.

Why This Matters

Understanding energy costs helps consumers make informed transportation decisions. Even when electricity costs more per unit than gasoline, electric vehicles can provide substantial annual savings due to their superior energy efficiency.

In Nebraska, where electricity rates are approximately 45% below the national average, the savings are particularly significant. A household driving 12,000 miles annually could save approximately $900 per year by switching from a gasoline vehicle to an electric vehicle.

Conclusion

Electric vehicles represent a more efficient use of energy resources compared to gasoline-powered vehicles. While electricity may cost slightly more per unit of energy than gasoline, the dramatic efficiency advantages of electric motors result in significantly lower operating costs per mile driven.

As the electrical grid continues transitioning toward renewable energy sources, electric vehicles will become increasingly cost-effective and environmentally beneficial. This makes electric vehicle adoption not just an environmental choice, but an economically smart decision for many drivers.

References

Note: This article is based on a conversational analysis using web search results. The following sources were referenced during the research process:

  • OPPD (Omaha Public Power District) current electricity rates and tariffs
  • U.S. Energy Information Administration (EIA) - National average electricity rates
  • AAA - Current gasoline prices for Omaha, Nebraska
  • U.S. Energy Information Administration - Renewable energy statistics and electricity generation data
  • Southwest Power Pool - Regional electricity generation and transmission data
  • Various industry sources on power plant efficiency and transmission losses

For the most current rates and statistics, readers should consult the official websites of OPPD, EIA, and other relevant energy authorities.


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