Why This Comparison Is Worth Doing With Actual Numbers
The EV cost conversation in Texas gets distorted from both sides. Automakers present fuel savings as a core selling point without specifying which electricity rate or which gas price they used. Skeptics dismiss EVs as expensive without accounting for the efficiency difference between an internal combustion engine and an electric motor. Neither framing gives a driver enough to make a decision.
This post builds the comparison from the inputs up: electricity rates, gasoline prices, vehicle efficiency, and annual mileage. The math is transparent so you can substitute your own numbers.
The Core Formula: Cost Per Mile
Cost per mile is the right unit. It neutralizes differences in tank size, battery capacity, and how often you fill up or plug in.
For a gas vehicle:
Cost per mile = Gas price per gallon divided by MPG
A vehicle getting 30 MPG with gas at $3.20 per gallon costs $0.107 per mile.
For an electric vehicle:
Cost per mile = (kWh per mile) multiplied by (electricity rate in cents per kWh), then divided by 100
Or equivalently:
Cost per mile = Electricity rate (dollars per kWh) multiplied by kWh per mile
A vehicle consuming 0.30 kWh per mile with electricity at $0.13 per kWh costs $0.039 per mile.
That comparison, $0.107 vs $0.039, represents a 64 percent reduction in per-mile fuel cost. But those inputs shift depending on your specific situation. The sections below walk through each variable for Texas conditions.
Texas Electricity Rates: What Home Charging Actually Costs
Texas runs a deregulated electricity market in most metro areas, which means the rate you pay for home charging depends entirely on which retail electricity provider (REP) you chose and which plan you signed.
Typical residential rate ranges in Texas
The statewide average residential rate has hovered between $0.12 and $0.15 per kWh for standard fixed-rate plans in recent years, though it moves with the wholesale market and with when you locked in. Time-of-use (TOU) plans, which charge less during overnight hours (typically 9 p.m. to 6 a.m.), can push the effective charging rate down to $0.08 to $0.10 per kWh for drivers who schedule their charging session overnight.
Free nights plans — offered by several Texas REPs — advertise zero cost for electricity between roughly 9 p.m. and 6 a.m. The actual math on those plans is more complicated. The daytime rate on free-nights plans typically runs $0.16 to $0.19 per kWh, which is meaningfully above a plain fixed-rate plan. A household that uses significant daytime electricity (home office, always-on appliances, air conditioning in a Texas summer) may pay more on net under a free-nights plan than under a standard fixed-rate plan, even after accounting for free overnight EV charging.
LightCompanies reviews EFL documents in-house for the plans it tracks. Of the 11 plan reviews published as of August 2026, 10 were flagged as high-gimmick, meaning the advertised rate requires specific usage conditions to materialize. Free-nights plans frequently appear in that group. The scope of that data is limited to plans LightCompanies actively covers, not every plan available in Texas.
How to read your own rate
Your Electricity Facts Label (EFL) lists three usage-based average prices: at 500 kWh, 1,000 kWh, and 2,000 kWh per month. The 1,000 kWh figure is the one most commonly quoted in comparisons. Adding an EV typically adds 200 to 400 kWh per month depending on mileage driven, which can move you into a higher or lower rate tier depending on how your plan is structured. Run the math at your new projected usage level, not the usage you had before you owned an EV.
Texas Gas Prices: The Comparison Baseline
Texas gas prices track Gulf Coast wholesale markets and tend to run slightly below the national average. Over the 12 months ending mid-2026, regular unleaded in Texas traded in a band roughly between $2.90 and $3.50 per gallon, with the median near $3.15. That range is the reasonable baseline for this comparison.
For planning purposes, $3.00 and $3.50 per gallon serve as a low and high scenario. Gas prices are volatile in ways that electricity prices, especially on a locked fixed-rate plan, are not. That volatility itself has value: an EV driver who locked in a 12-month fixed electricity rate knows their per-mile cost for the duration of the contract. A gas driver does not.
Vehicle Efficiency: The Other Input That Changes Everything
Not all EVs are equally efficient, and not all gas vehicles are equally inefficient.
EV efficiency is measured in kWh per 100 miles (or its inverse, miles per kWh). The EPA publishes combined ratings. A sampling of common EVs:
- Compact crossover category (e.g., Chevy Equinox EV): approximately 3.0 to 3.4 miles per kWh (0.29 to 0.33 kWh per mile)
- Mid-size crossover category (e.g., Tesla Model Y, Ford Mustang Mach-E): approximately 3.0 to 3.7 miles per kWh (0.27 to 0.33 kWh per mile)
- Full-size truck category (e.g., Ford F-150 Lightning, Rivian R1T): approximately 1.8 to 2.4 miles per kWh (0.42 to 0.56 kWh per mile)
Gas vehicle efficiency varies just as widely. A compact sedan at 36 MPG has a very different cost profile than a full-size truck at 17 MPG.
The comparison only makes sense vehicle-to-vehicle, not category-to-category.
The Full Comparison Matrix: Four Scenarios
The table below runs realistic Texas scenarios. Electricity rate of $0.13 per kWh represents a plain fixed-rate plan at the 1,000 kWh tier. The $0.09 rate represents a TOU or overnight-optimized plan.
Scenario A: Compact crossover EV vs compact crossover gas
- EV efficiency: 0.30 kWh per mile
- Gas vehicle MPG: 32
- Gas price: $3.15 per gallon
| Rate | EV cost per mile | Gas cost per mile | Savings per mile | Annual savings (12,000 mi) |
|---|---|---|---|---|
| $0.13/kWh | $0.039 | $0.098 | $0.059 | $708 |
| $0.09/kWh | $0.027 | $0.098 | $0.071 | $852 |
Scenario B: Full-size EV pickup vs full-size gas pickup
- EV efficiency: 0.50 kWh per mile (F-150 Lightning, mid-range)
- Gas vehicle MPG: 19 (F-150 V8, mid-range)
- Gas price: $3.15 per gallon
| Rate | EV cost per mile | Gas cost per mile | Savings per mile | Annual savings (12,000 mi) |
|---|---|---|---|---|
| $0.13/kWh | $0.065 | $0.166 | $0.101 | $1,212 |
| $0.09/kWh | $0.045 | $0.166 | $0.121 | $1,452 |
Scenario C: Compact EV vs compact gas, high electricity rate
This scenario tests a driver who is on a poor rate or who charges heavily during daytime peak hours.
- EV efficiency: 0.30 kWh per mile
- Gas vehicle MPG: 32
- Gas price: $3.15 per gallon
- Electricity rate: $0.17/kWh (daytime rate on a free-nights plan, or an unfavorable fixed plan)
| EV cost per mile | Gas cost per mile | Savings per mile | Annual savings (12,000 mi) |
|---|---|---|---|
| $0.051 | $0.098 | $0.047 | $564 |
Even at $0.17 per kWh, the EV still wins on per-mile cost. The advantage shrinks but does not disappear.
Scenario D: Crossover EV vs high-MPG hybrid
Hybrids narrow the gap significantly.
- EV efficiency: 0.30 kWh per mile, rate $0.13/kWh
- Hybrid MPG: 43 (Toyota RAV4 Hybrid, combined)
- Gas price: $3.15 per gallon
| EV cost per mile | Hybrid cost per mile | Savings per mile | Annual savings (12,000 mi) |
|---|---|---|---|
| $0.039 | $0.073 | $0.034 | $408 |
At $408 per year in fuel savings versus a hybrid, the EV case rests more heavily on purchase price, incentives, and non-fuel operating costs (no oil changes, fewer brake jobs). Fuel cost alone no longer makes a decisive argument.
Public Charging: Where the Math Can Flip
Home charging is the baseline assumption in every scenario above. Public Level 2 and DC fast charging (DCFC) change the numbers.
DC fast charging networks in Texas (the major ones being Tesla Supercharger, Electrify America, and EVgo) typically price by the kWh for most members, at rates ranging from $0.28 to $0.48 per kWh as of mid-2026. At $0.35 per kWh, the compact crossover EV from Scenario A costs $0.105 per mile, which is essentially equal to the gas vehicle at $3.15 per gallon. At $0.45 per kWh, the EV is more expensive per mile.
This matters if you regularly use fast chargers rather than charging at home. Drivers without home charging access, apartment renters who rely on workplace or public chargers, face a structurally different cost picture than drivers who plug in overnight.
Annual Fuel Cost: Putting It Together
For a driver covering 15,000 miles per year in a mid-size EV crossover, consuming 0.30 kWh per mile, on a $0.13/kWh home rate:
- Annual electricity for driving: 15,000 x 0.30 = 4,500 kWh
- Annual charging cost: 4,500 x $0.13 = $585
The comparable gas crossover at 30 MPG and $3.15 per gallon:
- Annual gas consumption: 15,000 / 30 = 500 gallons
- Annual fuel cost: 500 x $3.15 = $1,575
Difference: $990 per year in the EV driver’s favor, without any optimization of the charging rate.
What This Means for Choosing an Electricity Plan
For Texas drivers who own or are buying an EV, electricity plan selection is now a fuel cost decision. The spread between a well-chosen plan and a poorly chosen plan can be $300 to $500 per year in charging costs alone at average mileage.
Specific factors worth evaluating:
TOU plans. If you can set a charging schedule (most EVs and home chargers support this), a time-of-use plan with a low overnight rate is worth calculating. Run the math on your full household bill at the new usage level, not just the overnight rate in the advertisement.
Free-nights plans. These require scrutiny of the daytime rate and the base charge. LightCompanies flags the gimmick structure on plans that bury the true cost in peak-hour pricing. Review the EFL at your projected total monthly kWh, including the EV load.
Fixed-rate plans. A plain fixed-rate plan at a competitive rate provides cost predictability. For a driver adding 300 kWh per month in EV charging, the difference between $0.11/kWh and $0.14/kWh is $108 per year. That is worth spending 20 minutes on the EFL comparison.
Contract length. Locking in a low rate for 24 months while gas prices remain uncertain has real value. It is not infinite value, because electricity markets can also produce bill spikes (February 2021 is instructive for Texas specifically), but a standard fixed-rate plan with a reasonable early termination fee limits exposure.
The Bottom Line
EV charging cost vs gas in Texas: electricity wins on per-mile cost under nearly all realistic combinations of rate and vehicle type, with the partial exception of high-MPG hybrids and the clear exception of drivers who charge primarily at DC fast-charge prices.
The per-mile advantage ranges from approximately $0.03 to $0.12 depending on vehicle type, electricity rate, and gas price scenario. Truck drivers and high-mileage drivers capture the largest savings in absolute dollars. The advantage compresses, but does not disappear, even at unfavorable electricity rates.
For Texas EV owners, the actionable step is treating electricity plan selection with the same attention usually given to car shopping. The rate you pay per kWh is your new gas price. It is negotiable, it is switchable, and in a deregulated market, the difference between providers is real.