Yes, you can save money by switching from a diesel car to an electric car—but it is not automatic. The case is strongest when the EV’s purchase or finance cost is competitive, you drive enough miles to recoup any upfront premium, and you can charge mainly at home on a low off-peak tariff. Public charging, charger installation, insurance, depreciation and resale value can change the result. Compare the full cost of owning each car over the same period, not just the fuel bill.
What decides whether switching saves money?
A cheaper energy cost per mile is only one part of the calculation. The UK Department for Transport defines total cost of ownership as including the vehicle’s upfront cost, depreciation, maintenance, fuel or energy, insurance and taxes. Its analysis finds that mileage, depreciation and energy-price assumptions can change which option is cheaper.
Compare similar cars—similar size, age, condition and equipment—and use the same ownership period and financing basis. Include the price you would actually pay, expected resale value and the running costs you expect in your circumstances.
- Purchase or finance cost: A higher EV price or monthly payment can outweigh lower running costs, particularly if you drive relatively few miles or change cars soon.
- Depreciation and resale: What each car may be worth when you sell it affects the cost of ownership, not just the price at purchase.
- Energy: Home electricity can cost less per mile than diesel, but the advantage depends on your tariff and how much you charge publicly.
- Other costs: Include insurance, maintenance and repairs, taxes, and any home charger installation that is needed.
The Department for Transport’s modeled comparisons favor higher-mileage drivers and those using overnight off-peak charging. Lower mileage or reliance on public charging can weaken the EV case.
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How much might charging and fuel cost?
UK government guidance gives an indicative comparison of around 8p per mile for home EV charging versus around 13p to 17p per mile to fuel a diesel or petrol car, using prices as of January 2024. Those figures are dated UK estimates, not a current quote for your car or tariff. The guidance also noted that some overnight tariffs available at the time worked out below 3p per mile.
A separate UK government consumer example estimates £1,420 in annual running-cost savings for an EV versus a petrol car. It assumes 10,000 miles a year, a sample of home off-peak tariffs at 7.5p/kWh in 2025, petrol at 143p/L based on 2025 prices, EV consumption of 18.5kWh/100km and petrol consumption of 8L/100km. Its annual insurance and maintenance estimates are £1,680 for the EV and £1,490 for the petrol car. This is an assumption-based petrol comparison, not a diesel-specific saving, and it excludes home charger installation.
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Fuel and electricity prices change, and fuel can vary by region. The Vehicle Certification Agency recommends comparing vehicle consumption using an average fuel price for a defined period. For a useful personal estimate, use your local diesel price and the electricity rates you can actually access, rather than treating published averages as a forecast.
How to compare your diesel with an EV
- Choose comparable cars and a holding period. Compare specific candidates of similar size, age, condition and equipment, and decide how many years you expect to keep each one.
- Use actual purchase or finance costs. Record each car’s price or the total cost of financing it using the same basis. Do not assume a grant, salary-sacrifice scheme or special tariff unless you have confirmed that you qualify.
- Estimate resale value. Subtract the likely sale value at the end of the period from the amount paid. If resale estimates are uncertain, calculate a range rather than relying on one precise figure.
- Calculate diesel fuel spend. Use your annual mileage, the specific diesel car’s real-world mpg and the current local diesel price. Fuel prices vary, so note the price and date used.
- Calculate EV charging spend. Use the EV’s expected electricity use per mile and the rates available to you. Estimate the share charged at home versus public chargers, including rapid charging if you expect to use it.
- Add the remaining ownership costs. Include insurance, servicing and repairs, taxes and, where applicable, home charger installation. Compare annual running costs and total cost over the full holding period.
Show which assumptions matter most. For example, compare a low-mileage case with a higher-mileage case, or test what happens if more charging must be done at public rates. A transparent range is more useful than a single claimed saving when energy prices or resale values are uncertain.
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What published ownership studies can—and cannot—tell you
The International Energy Agency’s 2026 analysis compares capital, financing, maintenance and fuel costs over five years for popular combustion models and equivalent battery-electric vehicle segments in each country. It varies annual mileage assumptions from 6,500 to 17,500km and offers a structured comparison framework, not a personalized forecast for a particular UK driver.
A BEUC-commissioned EU study dated 25 October 2024 modeled vehicle or leasing costs and energy costs, but excluded maintenance, insurance, and country-specific taxes and subsidies. It found used BEVs to be the lowest-cost option in its modeled buyer cases and projected parity for new medium cars from 2026. These are study findings and projections, not a guarantee about a UK diesel owner’s costs or an actual 2026 transaction. The study also identified access to low-cost charging and first-owner residual values as important factors.
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A UK Parliament answer published on 19 March 2026 says EVs are typically cheaper to own and run than petrol equivalents when bought through salary sacrifice or when using the best home off-peak tariffs. It repeats a possible £1,400 annual running and maintenance saving versus petrol under those conditions. That is not a diesel-specific figure, and it does not establish that every driver can access those arrangements.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When the switch is most likely to pay off
- You can buy or finance a suitable EV at a price close to a comparable diesel.
- You drive enough miles for lower energy and maintenance costs to make a meaningful difference over your ownership period.
- You have convenient home charging and a genuinely low-cost tariff, with limited reliance on expensive public charging.
- Your estimate of EV resale value is strong enough that depreciation does not erase the running-cost advantage.
The economics are less favorable when the EV costs substantially more, your mileage is low, you depend heavily on public rapid charging, or charger installation adds a significant cost. A current like-for-like calculation for your own cars, mileage, charging mix, finance, insurance and resale assumptions is needed to determine which one is cheaper for you.
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