The benefits of the electric car are becoming less and less. From January 1, the government imposed a value-added tax of 25 percent on prices over NOK 500,000 for electric vehicles. In addition, a weight tax of NOK 12.50 for each kilogram exceeding NOK 500 was imposed on all cars. Since electric cars, with their heavy batteries, weigh much more than fossil cars, this hits them hard.
This means that it becomes a little more expensive to buy a new electric car, but once you get it home in the yard, it is much cheaper to use than a gasoline or diesel car. What makes it particularly favorable are the fuel costs.
VAT-free range winners
charging at home
– You get the biggest advantage if you can charge the car at home, says Nils Sudal, senior communications adviser at NAF.
He calculated the fuel costs of an electric car, versus a fossil car, over the course of a year. The conclusion is that you quickly save NOK 10,000-12,000 per year by using an electric car on fuel only.
12,000 per year: With VAT and weight tax, it’s more expensive to buy a new electric car, but cheaper to own. Photo: Merva Kaku
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Provides you with energy support
– The biggest advantage electric vehicle owners have now is something the government never introduced as an electric vehicle advantage, namely fuel costs. If you can charge your electric car at home, it’s much cheaper than filling it up with petrol or diesel, Soudal assures.
We have long enjoyed the advantage of low electricity prices in Norway. After skyrocketing prices, the electricity subsidy provides for charging electric vehicles at home.
Petrol and diesel drops
Saves 12,000
– At an immediate price of NOK 1.50 per kilowatt-hour (kWh) over a year, charging an electric car with a range of 12,000 km and an average consumption of 19 kWh per 100 km would cost about NOK 5,800 per year without electricity subsidy. With electricity subsidized, it will cost around NOK 3,800, including VAT and online rent, Sødal explains.
NAF calculations show that the fuel costs of a diesel car with the same mileage, average consumption of 0.65 liters per mile and a liter price of NOK 20 would be around NOK 15,600 per year.
Biggest advantage: – Nils Sudal at NAF says the biggest advantage electric vehicle owners now have is something the government never introduced as an electric vehicle advantage, namely fuel costs. Photo: NAF
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Cheap regardless of the price of electricity
– If the average spot price for electricity is five kronor per kWh, then charging an electric car would be slightly more expensive than filling up a diesel car, were it not for the electricity subsidy. With electricity subsidized, the cost of charging will not be higher than NOK 4,800, according to Soudal.
Million queue for this
More benefits
Although the benefits of electric cars are becoming less, they still have incalculable benefits for the wallet. The government has raised the cap on toll payments to a maximum of 70 percent of what other cars pay, but electric cars still run much cheaper on most tolls. Electric cars pay up to half the price on ferries.
In many places, electric cars have cheaper parking in municipal parking lots. With some exceptions, electric cars can drive on public transit lanes. In addition, servicing an electric car is cheaper than servicing a fossil car.
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