With the rising cost of living and a growing focus on sustainability, many Irish drivers are looking at electric vehicles (EVs) as a serious alternative to petrol and diesel. EVs are often marketed as cheaper to run, more efficient, and kinder to the planet, but how much can you actually save in Ireland, and is the long-term benefit worth the initial investment? To find out, we need to look beyond the showroom price and dig into the real-world running costs.

Upfront costs

The first thing most people notice is that electric vehicles generally come with a higher purchase price than their combustion-engine equivalents. Even with government supports, such as the SEAI grant of up to €3,500 and VRT relief of up to €5,000, they’ve historically cost more. However, that’s starting to change. Models like the Dacia Spring (€15,990), Hyundai INSTER (€19,595), and the new Citroen e-C4 (€23,400) are making electric motoring more affordable than ever.

Electricity vs Petrol

Fuel savings are where EVs really shine. Electricity is far cheaper per kilometre than petrol or diesel. If you cover around 15,000km annually, a petrol car could cost about €2,100 a year in fuel (depending on efficiency and prices). An EV, charged mainly at home on a night-rate tariff, might cost as little as €300–€400 to cover the same distance. Even if you mix in some pricier public charging, you’re still likely looking at under €700 per year. That’s a potential saving of over €1,000 annually, money that stays in your pocket instead of going into the pump.

Servicing & Maintenance

Electric vehicles also win when it comes to maintenance. With fewer moving parts, no timing belt, no exhaust system, no clutch, no oil changes, there’s less to go wrong. Regenerative braking even extends the life of your brake pads. Over the years, these savings can easily reach €500 or more annually, especially as the vehicle gets older.

Incentives

Charging at home is now easier than ever thanks to Ireland’s expanding infrastructure. Installing a home charger typically costs around €1,200, but the SEAI grant can cover €300 of that. Pairing your charger with a night-time electricity tariff is the best way to maximise savings. Company car drivers also benefit, BIK (Benefit-in-Kind) rates for electric vehicles are significantly lower than for petrol or diesel, potentially saving thousands in tax over a lease term.

Road Tax

Fully electric vehicles enjoy the lowest motor tax rate in Ireland, just €120 per year. Compare that to the €200–€600 range for many mid-sized petrol or diesel cars, and over five years, you’re saving several hundred euro without even thinking about it.

Resale Values

Resale values for EVs are proving stronger than many predicted, thanks to rising demand and ongoing advances in technology. Worries about battery degradation are also easing, most modern EVs deliver reliable performance for many years, especially when well maintained. In Ireland, lithium-ion EV batteries typically lose just 1–2% of capacity per year, with most retaining over 80% even after a decade of use. Many manufacturers back this up with eight-year or 160,000km battery warranties, giving buyers added peace of mind.

Final Thoughts

When you factor in grants, fuel savings, lower servicing costs, reduced motor tax, and possible tax incentives, driving an EV in Ireland can realistically save the average motorist between €1,500 and €2,500 per year compared to petrol or diesel. The exact figure depends on your driving habits, electricity rates, and access to home charging, but the financial case is stronger than ever.

At Nevo, we believe the upfront cost is no longer the barrier it once was. For drivers who travel regularly and can charge at home, the total cost of ownership over five to ten years clearly tips in favour of electric. Combine that with the environmental benefits and insulation against rising fossil fuel prices, and going electric isn’t just a sustainable choice, it’s a smart financial one too.

Thinking about making the switch? Explore our EV Education section and discover everything you need to know for a smooth transition.