Total cost of ownership for battery electric vehicles: The role of energy prices

Johannes Bauer, Peter Letmathe and Richard Woeste

Applied Energy, 2025, vol. 389, issue C, No S0306261925004945

Abstract: The wide usage of battery electric vehicles (BEVs) is one of the most promising pathways to reduce greenhouse gas emissions in the mobility sector. The German target of having 15 million BEVs registered by 2030 is an ambitious challenge, as the market share of these vehicles is only growing slowly. This can be attributed to a variety of cost factors that are related to their purchase and operation. Therefore, this study analyzes the total cost of ownership (TCO) for privately owned vehicles. To assess future energy price developments, a break-even model is developed and applied to the TCO results. Further sensitivity analyses consider the effects of subsidies and charging profiles. The results reveal that the optimal vehicle drive technology depends strongly on the vehicle segment considered. The implementation of reasonable measures to make BEVs economically advantageous for consumers would enable Germany's transition to electric mobility.

Keywords: Electric vehicles; Total cost of ownership (TCO); Energy price; Subsidy; Economic analysis; Break-even analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1016/j.apenergy.2025.125764

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