A Clean Energy Canada report finds EVs “by far” provide the single biggest annual cost savings for Canadian households — and there are other wallet-friendly changes too

Switching from gas vehicles to electric can lead to significant annual savings for Canadians, according to a recent report from Clean Energy Canada.

The report, titled “Opening the Door,” provides a breakdown of monthly savings across provinces for switching to decarbonized equipment. These include EVs, heat pumps, electric hot water systems and other clean energy solutions.

“EVs are by far the biggest money-saving option for many households,” the report notes. For instance, choosing an electric Volkswagen ID.4 over a gas-powered Honda CR-V could save drivers around $3,000 annually over the car’s lifetime.

Beyond simply replacing gas cars with equivalent electric ones, the report also suggests lifestyle changes that can help reduce costs even further.

For example, a family switching from a gas-powered SUV and truck to electric alternatives could save an extra $100 a month by choosing an electric sedan instead of a truck.

In Toronto, a family swapping a gas SUV for a public transit pass could save households another $258 per month.

“In short, smaller or fewer cars means more dollars in your pocket,” concludes the report.

Fewer affordable EVs

Despite the clear cost-saving benefits of adopting electric vehicles, significant challenges remain in making the switch.

The report highlights that the upfront cost of EVs are still a major hurdle and it doesn’t help matters when there are a limited number of affordable options in the Canadian market.

“Many of the most affordable and best-selling EVs in Canada have also either increased in price or disappeared,” reads the report.

For example, the 2024 Nissan Leaf is more expensive than its 2023 model, and the production of the Chevrolet Bolt and Kia Soul EV has either been paused or discontinued, leaving fewer choices in the market.

In contrast, European customers can choose from at least 12 electric vehicles priced under $45,000, while Canadians have only three options.

“Put simply, automakers are not delivering lower-priced electric options to the North American market (a fact not likely helped by Canada’s new competition limiting 100 per cent tariff on Chinese EVs),” says CEC.

The report emphasizes purchase incentives and government policies (such as the Electric Vehicle Availability Standard) that push automakers to offer more budget-friendly models are essential.

Alternative cost-saving options

Building on the savings from EVs, depending on the type of home — whether detached, a townhouse, or a condo — nearly every scenario across Canada shows households save thousands of dollars in the long run from adopting more efficient home infrastructure.

For example, a household in Toronto that replaces gas-powered vehicles with equivalent electric versions, installs a heat pump, forgoes natural gas appliances and makes a few other energy efficiency upgrades could save $550 per month. That’s $6,600 per year.

In Vancouver, similar adjustments would save $777 per month ($9,324 per year). Additional savings can come from options like electric bikes, which some governments, such as B.C., offer rebates for.

Meanwhile, the highest savings are seen in the Atlantic provinces, where monthly savings from adopting EVs, heat pumps and ditching gas appliances range from $837 to $921 (or $10,044 to $11,052 per year).

The only province where the savings are minimal is Alberta, where households save just $21 per month (or $252 per year) in a detached home. This is due to the less favourable electricity and gas prices, which power electric and gas absorption heat pumps.

However, even in Alberta, EVs remain a more affordable option in the long run compared to gas-powered cars (despite having no provincial sales rebate) because of lower fuel and maintenance costs.