Tennessee EV vs gas · Gas October 12, 2026 · Electricity rates 2025
Yes, by a lot. On MLGW's average home rate, charging an EV costs the same per mile as gas at $1.07 a gallon. Gas in the Memphis area averaged $4.02 on October 12, 2026, so 1,000 miles a month costs about $40 to charge versus $149 in gas: roughly $109 a month back.
What you pay for power sets what charging costs. Here are the numbers for Memphis.
Serves Memphis and Shelby County
Average home rate 13.2 cents per kWh (2025). Charging costs the same per mile as gas at $1.07 a gallon: about $40 for 1,000 miles versus $149 in gas.
We found no current EV rebate or charging credit from MLGW in our latest review of Tennessee programs.
Gas prices jumped in 2026 when the war with Iran disrupted oil shipping through the Strait of Hormuz. Home electricity is priced by utilities under state regulators and moves far more slowly, so the gap tends to widen when gas spikes. For a 27 mpg car to cost less per mile than charging at home in Memphis, gas would have to fall below $1.07 a gallon.
Why an EV opts you out of gas spikes · Is an EV cheaper than gas right now? Every state
Tennessee charges EV owners an extra $200/yr → $274/yr in 2027 at registration ($100/yr for plug-in hybrids). Even after that, charging on MLGW leaves about $1,112 a year in your favor at 12,000 miles.
No Tennessee EV rebate. Middle Tennessee Electric gives a $50 wiring credit. The EV fee is $200/yr now and jumps to $274/yr for renewals from January 2027.
Tennessee EV incentives · EV fees by state
We assume 1,000 miles a month, a typical new EV that uses 30 kWh per 100 miles, a 27 mpg gas car, and home charging at each utility's average residential rate, which includes its fixed monthly charges. An overnight or EV rate is often cheaper than that average, and public fast charging costs much more. Treat this as the honest average, not your bill.
Sources: EIA Form 861, 2025 (each utility’s residential revenue divided by residential sales), AAA metro gas price averages (regular unleaded), October 12, 2026
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Yes. Charging at home on MLGW (13.2 cents per kWh, 2025) costs about $40 per 1,000 miles. The same miles in a 27 mpg car cost about $149 at the $4.02 Memphis gas average on October 12, 2026. Tennessee's $200/yr → $274/yr in 2027 EV fee still leaves about $1,112 a year in your favor.
About $1.07 a gallon. That is what a 27 mpg car would need to pay to match the cost per mile of charging at home on MLGW.
At home, about $40 per 1,000 miles on MLGW (13.2 cents per kWh), for a typical EV that uses 30 kWh per 100 miles. Public fast charging costs much more per kWh than home charging, so these numbers assume you charge at home most of the time.
Tennessee has no state EV purchase rebate right now, and we found no utility EV rebate for Memphis in our latest review. Check your utility's site for charger offers.
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