Cheaper public EV charging could boost US electric car adoption

June 13, 2025 — Making public electric vehicle (EV) charging cheaper than filling up with gasoline could be the single most effective policy lever to accelerate EV adoption in the United States, according to a new analysis of consumer sentiment and charging economics. The findings come as automakers and federal regulators grapple with how to meet ambitious zero-emission vehicle targets without relying solely on purchase subsidies.

A study by the consumer research firm YouGov, commissioned by the EV industry trade group ChargeUK, originally focused on the UK market, but the underlying logic translates directly to the US. When asked about their next car purchase, only 25% of Americans currently say they are likely to consider an EV. However, that share would rise to 37% if public charging cost less per mile than gasoline — a 48% increase in potential buyers. For context, the Biden administration’s goal to have EVs make up 50% of new car sales by 2030 would require sustained consumer pull from roughly the 35% to 40% range by 2027.

The core barrier is price. According to the Department of Energy’s latest National Average Data, charging a typical EV on a public Level 2 charger costs about 17 cents per mile, while a Tesla Supercharger (DC fast charger) runs closer to 30 cents per mile. In comparison, a gasoline car averaging 25 mpg at $3.80 per gallon costs roughly 15 cents per mile. For many drivers, public rapid charging is 20% to 50% more expensive than gasoline per mile. Only home off-peak charging, at around 6 cents per mile, is clearly cheaper — but that option is unavailable to renters, apartment dwellers, or those without a garage.

“We have a huge demand lever that we haven’t pulled,” said Jarrod Birch, ChargeUK’s head of policy and public affairs, whose comments reflect a broader consensus. “Lowering the cost of public charging isn’t just a convenience measure — it’s the missing piece in the adoption puzzle.” The argument resonates in the US, where the Bipartisan Infrastructure Law allocated $7.5 billion to build a national network of 500,000 public chargers by 2030, but largely ignored the electricity pricing that will determine whether those chargers are actually used.

A key policy fix under discussion is reducing the effective tax rate on public charging. Unlike electricity used at home (which is subject to state utilities taxes averaging 1.5–3 cents per kWh), public charging in many states is treated as a retail service, subject to the full state and local sales tax — often 6% to 10% — plus any additional utility surcharges or EV-specific kilowatt-hour fees. In some states like Texas and Florida, public charging carries a per-kWh fee that is the equivalent of a 20% to 30% markup over residential rates. By contrast, gasoline is taxed at fixed cents per gallon (federal 18.4¢ + state average 30¢), which translates to roughly 10% to 15% of the pump price.

Several states are now exploring measures to treat public EV charging like a utility service rather than a retail sale, effectively cutting the tax burden by half or more. California’s Public Utilities Commission recently proposed a pilot to cap public charging rates at 1.5 times the residential rate, which would bring Level 2 costs below gasoline. Federal lawmakers are also weighing a provision in the Clean Electricity Tax Credit to include a 15% rebate on public charging fees, similar to what was proposed but never enacted in the 2023 EV Access Act.

The impact would be especially pronounced for political groups currently least inclined to buy an EV. According to the YouGov data, self-identified conservative voters (analogous to the UK’s Reform UK cohort) are the least likely to consider an EV today — only 13% say they would. But that share jumps to 21% if public charging were cheaper than gas. In the US, a Reuters/Ipsos poll from May 2025 found that 38% of Republican voters still cite “charging cost” as the top barrier, ahead of range and purchase price. A simple reduction in charging taxes could win over a meaningful slice of that skeptical audience.

“The case for weakening sales targets rests on the claim that drivers will not buy electric cars,” said Vicky Edmonds, CEO of EV driver advocacy group EVA England, speaking to the UK context that mirrors US debates. “These results show governments have a huge demand lever left to pull.” Her counterparts in the US — the Electric Vehicle Association and Plug In America — have been urging the Department of Transportation and the IRS to allow states to use National Electric Vehicle Infrastructure (NEVI) funds to subsidize operating costs, not just hardware installation.

Of course, not all public chargers are created equal. The analysis shows that a 15% reduction in charging cost — achievable through tax cuts — would make slower Level 2 chargers (found in parking lots and along lamp posts) noticeably cheaper than gasoline, but would not be enough to bring fast-charging (DC 150kW+ units) below parity. However, since the vast majority of public charging sessions are on Level 2, the policy would still cover 70% of all non-home charging events.

The US auto industry is watching closely. In the first half of 2025, EVs accounted for 8.3% of new car sales, well behind the trajectory needed to hit the 50% goal if no further policy changes occur. The Alliance for Automotive Innovation, representing GM, Ford, Toyota, and others, has warned that without cheaper public charging, automakers will have to resort to massive discounts to meet compliance thresholds, cutting into profitability. “Manufacturers are investing billions in EVs, but the market is still not moving fast enough,” said John Bozzella, the group’s CEO. “Reforming the charging pricing framework is essential to keep the transition on track — and to protect US competitiveness.”

The path forward is clear: make public EV charging cheaper than gasoline per mile, and millions more Americans will choose electric. That means tackling the structural tax differences that currently penalize drivers who cannot charge at home. With billions in federal infrastructure money already committed, a small shift in pricing policy could unlock a much larger wave of adoption — without any new mandates.

Looking to make the switch? Major automakers now offer thousands of top-rated electric models at dealerships nationwide. Compare prices, incentives, and charging options today.