A family that ditches natural gas-burning appliances and gas-powered cars would save between $550 and $777 per month, a new report from Clean Energy Canada finds. 

This article was written by Marco Chown Oved and was published in the Toronto Star on October 15, 2024.

Burning fossil fuels is costing Canadians, not only by exacerbating climate change for their kids and grandkids, but also by increasing direct, out-of-pocket expenses now.

This is the conclusion of a new study published by Clean Energy Canada on Wednesday that quantifies just how much cheaper life is for Canadians who switch to non-combusting technologies such as electric vehicles (EVs) and heat pumps.

A family that electrifies all aspects of their home — ditching natural gas-burning appliances and gasoline-powered cars — would save between $550 and $777 per month, depending on where they live, it finds.

“We’re trying to combat some misperceptions about how much things actually cost,” said Rachel Doran, director of policy & strategy at Clean Energy Canada, a Vancouver-based think-tank. 

“Yes, electric vehicles in many cases may cost you more upfront when you just compare the sticker price. But by the time you start looking at the fact that there’s rebates available in most parts of the country and just how much you’re saving fuelling your vehicle and the maintenance, it was clear from our analysis, switching your fossil fuel powered car for an EV saves money in every scenario in every region of the country, even when upfront costs are included.”

The reports’ findings corroborate an investigation published in the Star and Corporate Knights Magazine last year that found people who decarbonize also save significant amounts of money. The customizable calculator published on the Star’s website is still available and allows people to figure out approximately how much money they’ll save by making each of the four low-carbon investments: EV, heat pump, heat pump water heater and induction stove.

These four changes to your home can save you lots of cash. Use our tools to see how much

Clean Energy Canada offers a similar calculator at mycleanbill.ca.

“We often don’t think about the costs of doing things the same way we’ve always done them (i.e.: with fossil fuels). But when you actually add up how much of your income is going toward paying at the gas tank or other pieces, that’s actually a substantial amount of money,” said Doran. “So I do think this is a bit of an educational tool.”

Since the start of the pandemic, fossil fuels have been one of the most volatile expenses for Canadian families and their spike in prices after the Russian invasion of Ukraine has driven inflation in virtually every sector across the economy.

While retail gasoline and natural gas prices ride the international markets when they go up, they’re far slower to go back down when the global price wanes. This underscores the “freedom” aspect of reducing your reliance on fossil fuels. No longer will you be paying for Russia’s aggression every time you fill up.

It also means that switching your car, furnace, hot water heater and stove from fossil fuels to electricity will almost always be cheaper to operate.

The issue is the upfront cost of the switch, with EVs and heat pumps costing more than their fossil-fuel burning equivalents. The Clean Energy Canada study, however, includes that upfront cost spread out over the lifetime of the appliance and shows that even with the higher sticker price included, the electrical appliances are significantly cheaper.

A family with two cars, living in a detached house in Toronto, for example, would spend nearly $2,000 a month in energy bills, gasoline and car/furnace payments. That same family would spend just over $1,400 a month if they switched to electric alternatives, the report found.

At the same time, they would lower their carbon emissions by 94 per cent.

In a condo, the results are similar. A Toronto family with a single car is expected to spend $838 per month on bills and leasing payments. This drops to $613 after electrification.

The results vary by province — where electricity and gas prices are different — and on the size of the rebate. While Quebec tops up the federal $5,000 EV rebate with $7,000 more, Ontario does not. But Ontarians can get $5,000 off the purchase price of a heat pump through the provincial Home Energy Rebate program administered by Enbridge. 

In a section on EVs, the report compared a gas-powered Honda CR-V to the electric SUV Volkswagen ID. 4 and found the Honda would cost 44 per cent more to finance and operate.

It also priced out common road-trips to show how much cheaper charging is than gassing up.

A drive from Toronto to Ottawa, for example, would cost only $16 in electricity but $54 in gas — more than three times more.

The report calls for more government rebates to lower upfront costs that are still the biggest barrier to adoption of green technology — especially for lower-income households.

“Rebates are still really important,” said Doran. “If we can help people access these solutions, they’re going to be saving money over time. So for families that have a harder time paying their energy bills or hydro bills, having those all be reduced over time is going to be really helpful in trying to make ends meet.”

Here is Clean Energy Canada’s Opening the Door, October, 2024 report.