The Hidden EV Charging Tax: Is Level 2 Worth It?
The Hidden EV Charging Tax: Is Level 2 Worth It?
If you own an electric vehicle and rely on a standard wall outlet to charge (Level 1), you might be paying a hidden tax without even knowing it. It’s not a government tax—it’s an efficiency tax. And depending on how much you drive and how expensive your electricity is, it could be costing you more than you think.
What Is the EV Efficiency Tax?
When you charge an EV, not all the electricity you pull from your wall actually makes it into your car's battery. Some of it gets lost as heat and resistance in the charging process. And the efficiency of this process depends on whether you’re charging at Level 1 or Level 2.
A study from 2014 looked at the charging efficiency of Nissan Leafs and Chevy Volts and found:
- Level 2 charging: ~89% efficient
- Level 1 charging: ~84% efficient
For shorter charging sessions, the gap widened even more:
- Level 2: ~87%
- Level 1: ~74%
And before you dismiss that as outdated info, newer cars show similar patterns.
Time vs Energy Efficiency
Let’s say you want to add 10 kilowatt-hours (kWh) to your battery.
- On Level 1 (12 amps), that’ll take ~7 hours.
- On Level 2 (32 amps), it’ll take about 1 hour and 15 minutes.
Obviously, Level 2 is way faster. But how much of that power actually ends up in your battery?
- Level 1 (75–85% efficiency): ~7.5–8.5 kWh delivered
- Level 2 (85–95% efficiency): ~8.5–9.5 kWh delivered
In other words, Level 2 doesn’t just save you time—it also gets more juice into your battery for every kWh you pull from the grid.
What Does That Cost You?
Let’s say you drive 10,000 miles per year, and your EV gets 3 miles per kWh. That’s 3,333 kWh annually.
If electricity costs $0.10 per kWh:
- Level 2 (90% efficient): ~$370/year
- Level 1 (80% efficient): ~$417/year
- Difference: $47/year
So financially, Level 2 only saves about $47 per year in this scenario. That’s not enough to justify a charger upgrade by itself—especially if installation costs are high.
If you pay $0.30 per kWh (hello, California):
- Level 2: ~$1,111/year
- Level 1: ~$1,250/year
- Difference: $139/year
Now we're talking. That $139/year could justify a $400–$700 investment over time, especially if installation costs are reasonable.
Time-of-Use Rates and Peak Hours
If you live in a state with time-of-use electricity rates, this efficiency tax becomes even more annoying. With Level 1’s slow speeds, you may not be able to finish charging during cheap off-peak hours.
Example:
- Need to add 50 kWh?
- Level 1 = ~35 hours
- Level 2 = < 7 hours
If your off-peak window is, say, midnight to 3pm, it might be tough to squeeze in 35 hours across multiple days. That could push you into expensive peak rates of $0.60+/kWh—and suddenly your “cheap” EV becomes more expensive to fuel than a gas car.
So... Is Level 2 Charging Worth It?
Here’s the verdict:
- Financial savings? Minimal if your electricity is cheap. Worth it if you pay more per kWh or drive a lot.
- Time savings? Huge. Level 2 adds ~20 miles/hour vs ~3–4 miles/hour with Level 1.
- Convenience? Game-changing—especially for squeezing charging into off-peak hours.
- Cost of setup? A Level 2 charger costs ~$400–$700 (after rebates), and installation can add $600–$2,000 depending on your home’s wiring.
If you’re retired and only drive to the grocery store twice a week? Level 1 is probably fine. But if you commute, take trips, or just hate waiting around, Level 2 can make EV ownership much smoother—and potentially cheaper over time.
Final Thoughts
Level 2 charging isn’t just about speed. It’s about energy efficiency, avoiding peak electricity rates, and making your EV experience a lot more convenient. If your time is valuable, your electricity is expensive, or you need reliable daily range—then yes, Level 2 is worth it.
