Electric Car Charging Costs Soar, Threatening Market Growth
Translated & summarized from Ynet by baba
Electric vehicle drivers in Israel face charging costs 250% higher than home electricity rates, with prices potentially rising due to market concentration. A Knesset report reveals three companies control 59% of charging stations, raising concerns about future price hikes. Government subsidies for charging infrastructure have also been underutilized, and a significant shift away from fully electric vehicles to plug-in hybrids is occurring due to high costs and regulatory uncertainty.
The story in 5 lines · by baba
- Electric car charging costs are 250% higher than home electricity rates in Israel.
- Three companies control 59% of Israel's 8,070 EV charging sockets, raising competition concerns.
- Government subsidies for public charging stations have seen only a 69% disbursement rate.
- Sales of fully electric vehicles have dropped significantly in favor of plug-in hybrids.
- Drivers face shortages of fast chargers and often have to wait for availability.
Drivers of electric vehicles (EVs) are paying significantly more for public fast charging than for home charging, with prices potentially set to rise further, according to a new report from the Knesset's Research and Information Center. The report, obtained by ynet and "Mammon," warns that geographic concentration in the charging station sector could lead to a further surge in prices. The average price for a kilowatt-hour (kWh) at public AC charging stations was 1.52 shekels, and at DC fast chargers, it reached 2.24 shekels. This is 250% higher than the regulated home electricity rate of 0.64 shekels per kWh in 2025. Some charging networks charge up to 2.70 shekels per kWh at fast chargers, with some operators implementing peak hour surcharges that further increase costs.
The report highlights market concentration, with three major providers, Apccon (22.4%), EvEdge (19.2%), and Sonol (17.3%), controlling 59% of Israel's 8,070 charging sockets. While the Electricity Authority, which issued operating licenses, claims there are no current issues with concentration or competition, the Knesset report notes that the Antitrust Authority had not yet provided an opinion before licenses were granted. The primary concern is that a single operator could dominate certain areas, allowing them to raise prices without competition or practical alternatives for local drivers. A survey indicated that 64.5% of respondents reported a shortage of fast chargers, with about half having to wait for a vacant station.
Furthermore, government subsidies for public charging stations have seen low utilization. Out of an approved budget of approximately 21.4 million shekels for 2019-2025, only about 14.8 million shekels have been disbursed, a 69% execution rate. A regulatory measure requiring operators to install credit card terminals to reduce reliance on dedicated apps has been delayed; it will only be enforced for new stations in 2027 and existing ones in 2028.
The combination of expensive infrastructure and government taxes on EVs is also impacting sales. While fully electric vehicles constituted 91% of electrified vehicle sales in 2024, their market share dropped to 34% in the first nine months of 2026, with consumers shifting to plug-in hybrids. Factors contributing to this trend include the saturation of home charging installations, deterring drivers without private parking, increased taxes and licensing fees, and uncertainty about future road usage taxes.
