Key Takeaways
- EVs still save typical drivers about $23,000 to $32,000 over 10 years of ownership.
- The return of a $5,000 federal EV rebate combined with higher, war- driven gasoline prices improved the cost calculus for EVs by around $12,000 almost overnight.
- Chinese EVs don’t need federal rebates to be cost competitive (they don’t qualify for them either), while helping Canadians access new European EVs (which would qualify) could add appealing options for consumers.
- Even with the carbon price and key incentives gone, heat pumps are still cost-savers when switching from conventional electric and oil heating—but only in certain cases when switching from natural gas. They also offer benefits beyond cost worth considering.
- Entirely electrifying a household (home and vehicles) results in significant emission reductions compared to using conventional technologies in Vancouver (a 97% reduction), Toronto (93%), and Montreal (99%).
Executive Summary
Canada is back in the EV race. Following a sluggish year for EV sales nationally, 2026 will almost certainly bring a stark reversal to that trend.
The main reason: Canada now has an auto plan that aligns with the world outside of the U.S., where 30% of new car sales are expected to be electric this year. Even more striking is just how quickly the math around buying an EV shifted in the weeks between February and March, when the new $5,000 federal EV rebate went live and the war in Iran drove up gas prices. Just weeks apart, the savings from switching to a popular model like the Chevrolet Equinox EV jumped from roughly $22,200 to $34,100 over 10 years, while the payback period on its higher upfront cost fell from five years to just over two.
At the same time, Canada’s relatively uncompetitive EV market is also turning around. Automakers are already dropping prices to meet the new federal incentive’s $50,000 cap, while Chinese automakers prepare to bring in more choice and competition. Opening the door to more European models—an idea supported by a number of major car dealerships—would further strengthen this trend.
This report, the latest in our My Clean Bill series and updated for the first time since fall 2024, once again compares the ownership costs of various EVs against their gas equivalents alongside the lifetime costs of other household clean technologies, such as heat pumps, induction stoves, and efficient hot water systems.
Across these technologies, EVs remain the greatest driver of cost savings, with the potential to save Canadian households hundreds of dollars a month. For example, a typical two-vehicle household—with one economy car and one standard SUV—can save upwards of $350 a month in every province, rising to $507 a month in Quebec, from swapping out their gas vehicles with electric equivalents.
The picture for heat pumps is more complicated. While heat pumps still save money in many scenarios across Canada, especially compared to oil and conventional electric heating, in provinces where we compared it to natural gas, they range from cost-competitive in B.C. and comparable in Ontario to a clear cost in the Prairies.
The report further breaks down the cost comparisons across provinces and vehicle models (including hypothetical European and Chinese EVs), while our interactive tool lets households explore their own savings. Head to mycleanbill.ca to calculate your potential savings.
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