Do Solar Panels and Electric Cars Work Together?

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solar panels and electric cars work together energy sage

Contrary to popular belief, electric cars and solar panels are complimentary goods, not substitutes. Going green is that much easier when you have both!

Shopping for a new car? If you’re looking for one that makes the most financial sense, you should definitely consider an electric car. With high and volatile gas prices, many car shoppers are exploring alternative fuel vehicles such as hybrid or electric cars.

On first blush, these cars may seem more expensive, but if you conduct a full “cost of ownership” analysis, the gap narrows considerably and electric cars may even come out ahead. What’s really amazing, though, is what happens to the cost of owning and operating an electric car when the electricity you use to fuel it is produced by a solar panel system installed at your home or business.  When you add solar panels to the mix, the electric car becomes incredibly economical. Here’s how it works:

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To illustrate, we looked at three compact car options, comparing the costs of buying, maintaining and operating a traditional gasoline fueled car (e.g., Honda Civic), an electric car (e.g., Nissan Leaf or BMW i3) and a hybrid car (e.g., Toyota Prius). If you look only at purchase price, the gas-powered cars are the cheapest, while the electric cars are quite a bit more expensive. Once you factor in the $7,500 federal tax credit for electric cars, however, the difference narrows substantially.

But purchase price can’t be your only financial consideration. Over the course of your ownership, you will incur other costs such as fuel, maintenance, insurance, and other expenses related to running and maintaining your vehicle. We totaled up the costs for a 10 year period and this is what we found: the electric car is the cheapest to own and operate at about $48,500, while the gasoline powered car is the most expensive to own and operate at about $63,500. That’s a $15,000 difference in favor of the electric car.

Interestingly, hybrids came in at about the same cost as their gasoline powered counterparts. The table below shows how we did the math. While the table outlines the actual costs incurred, it doesn’t capture some of the softer costs related to your time and effort in maintaining the car. On this front, it’s important to note that the electric cars are a lot less hassle to maintain – no oil changes, no filter changes, no replacing timing belts, no need to replace exhaust systems (there is no exhaust!), no tune-ups needed…even the brakes wear out less frequently since the car uses regenerative braking to recharge the batteries. The only additional cost (and it’s a minor one) is the purchase and installation of an electric car charger, which will run you a few hundred dollars.

Now for the fun part! Let’s add solar panel systems to the mix. There are numerous financial benefits associated with solar power. Even though you need to spend some money to install the solar power system, you’ll save even more because your “fuel” costs will now be zero. And, if you live in a state with a solar renewable energy credit (SREC) program, you actually will generate additional income that will offset your costs even further. When you factor in all of this, the cost to own and operate your electric car over ten years is closer to $46,670! In addition to the financial benefits, you also gain in your ability to manage your expenses. For the next 20-30 years, you will know exactly what the cost to fuel your car will be: nothing ($0/kWh), whereas your peers with gasoline fueled vehicles will be subject to changing fuel costs on an almost daily basis. They’ll also be subject to increasing gas taxes that, of course, will no longer apply to you.

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The cheapest car option: driving on solar power

Looking at the long-term, full cost of ownership numbers, the cheapest option is to power an electric car with solar panels. Surprising? Yes, at first – but combining solar panels with an electric car makes perfect sense. And, not only is it a great financial decision, but it also delivers significant environmental and social benefits as well. The electric car produces less carbon emissions vs. the traditional gas fueled car and the hybrid, whether it’s powered by solar or not. If it is powered by solar, it has the added benefit of also eliminating the carbon emissions associated with your utility’s electricity production. Finally, producing your own fuel will benefit your fellow citizens, too, as it will contribute to our nation’s energy independence.

This analysis was done in the abstract, but if you’d like to see how this plays out in a real-life situation, check out our blog about Neeraj Aggarwal, an EnergySager who is powering his home and fueling his BMW electric car with his own solar panel system.


For those of you interested in understanding the math behind our calculations, here is how the details work out. We used to get the information about prices, and costs for fuel, insurance, and other maintenance costs.

Combining Solar Panels and Electric Cars Makes Perfect Financial Sense

Combining Solar Panels and Electric Cars Makes Perfect Financial Sense

If you want to see how home solar panels and an electric car worked for one EnergySage couple, check out our blog about their experience.

Note: This post contains affiliate links. We only link to products that we think are great.

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