Installing a Level 2 electric vehicle (EV) charger at home typically costs between $1,150 and $2,750. This price includes the charger itself (typically $400–$700) and labor costs, which vary depending on the distance from your electrical panel and any additional electrical upgrades needed, such as panel upgrades or rewiring. Here’s a more detailed breakdown of the costs and potential savings with federal tax incentives.
Cost Breakdown for Level 2 Charger Installation
Expense |
Average Cost |
|---|---|
Level 2 Charger Unit |
$400 – $700 |
Labor and Installation |
$750 – $2,000+ |
Electrical Panel Upgrade |
$500 – $1,500+ (if needed) |
- Labor Costs: Labor is a significant part of the cost, especially if your electrical panel is far from your parking area or requires an upgrade.
- Additional Equipment: Outdoor installations may require weatherproofing, adding to the cost.
Federal and State Tax Credits
The Alternative Fuel Vehicle Refueling Property Credit allows individuals to claim a federal tax credit for 30% of the cost of purchasing and installing an EV charger, capped at $1,000. To qualify, you’ll need to install the charger in a home located in a low-income or rural area. This credit is available through 2032, so homeowners who meet the criteria can reduce their costs significantly. You can claim this credit by filing IRS Form 8911 with your tax return (Environment America, IRS).
Additional Savings from State and Utility Programs
Beyond the federal tax credit, some states and utility companies also offer rebates and incentives. For example, some utilities provide rebates up to $500 – $1,000 to offset installation costs. You can explore available incentives specific to your area through resources like the Database of State Incentives for Renewables & Efficiency (DSIRE) or check directly with your local utility provider (EnergySage, Electrek).
Final Cost After Tax Credit and Rebates
With the federal tax credit and any state or utility incentives, the out-of-pocket cost to install a Level 2 charger can drop significantly. For example, with a 30% federal tax credit, an installation that costs $2,500 could be reduced by $750, bringing the total to around $1,750 before other potential rebates.