With gas prices climbing across Canada, Clean Energy Canada says Canadians can avoid the pain at the pumps by switching to an electric vehicle (EV), with the help of a federal incentive and affordable Chinese models set to enter the market.

In a report released Thursday morning titled Back in the Race, the Vancouver-based think tank said the math for owning an EV has only improved since February, when conflict in the Middle East led to soaring fossil fuel prices.

Clean Energy Canada compared the proposition for the Chevrolet Equinox EV to its gas-powered counterpart, for example. In January, the EV SUV would have saved drivers $22,200 over a decade of ownership. With the $5,000 federal EV rebate and rising gas costs in March, the savings rose to $34,100 over 10 years — almost $12,000 more.

The report also looks into the value of home electrification — swapping gas-powered home heating and cooling for a heat pump, for example, further disconnecting from fossil fuels. Some households could save hundreds of dollars per month and significantly reduce their carbon emissions, it suggests.

“This new government put its stamp on EVs earlier this year, and we hope to see an approach toward home heating and energy efficiency that likewise opens the door for more Canadians,” the report states.

EVs save money over ownership period 

Clean Energy Canada focused its analysis on popular middle-class car models that were targeted in the federal rebate across economy sedan, premium, SUV and truck sizes.

It compared the 10-year ownership cost of various EVs to gas-powered counterparts. The think tank found drivers can save between $23,000 to $32,000 over the period with an EV, mostly from fuel costs.

For the economy option, the 2026 Kia EV4 Light was compared to the 2026 Kia K4 Sedan EX. The EV4 ended up with a total ownership cost of $63,260, compared to the $86,505 in total ownership cost for the K4 Sedan EX.

For SUVs, ranging from small to large sizes, the comparative saving on ownership costs ranged from over $23,000 to more than $30,000.

The 2026 Chevrolet Silverado EV truck was compared to the 2026 Chevrolet Silverado. While not eligible for the federal incentive, the Silverado EV was said to offer over $32,000 in total ownership savings against its gas-powered equivalent.

EVs also beat hybrids in savings, Clean Energy Canada found. When it compared the popular Toyota RAV4 plug-in to the all-electric Toyota bZ, its closest EV on the market, the bZ offered an additional $16,599 to $14,198 in savings to the gas-powered RAV4.

With fuel prices on the rise, a federal incentive in place and Chinese EVs expected to join the Canadian auto market adding further pressure to lower costs, Rates.ca has found more Canadians interested in getting behind the wheel of an electric car. The insurance quoter found searches for EV models rose by 40 per cent in March compared to the same time last year.

Home electrification

On top of switching from a gas-powered car to an EV, Clean Energy Canada examined how much more a household could save on money and carbon emissions by embarking on total electrification in their home, such as installing a heat pump and swapping gas-powered appliances for electric equivalents.

A household in a single-detached house with one economy car and one medium SUV which electrified their home and two cars could save hundreds of dollars per month, Clean Energy Canada says, mostly from the EV.

The carbon emission reductions could be steep, all the way up to complete decarbonization depending on the province.

While the home savings could be almost $300 per month in Atlantic Canada, the value proposition was weaker in Quebec and British Columbia where it was under $100. Home electrification incurred higher costs in Ontario and amounted to “a clear cost in the Prairies.”

The loss of federal and provincial incentives for home electrification and the end of the consumer carbon price weakened the math, Clean Energy Canada said.