Best of both: How Volvo’s plug-in hybrids drive down fuel costs

Volvo Cars’ data shows that its plug-in hybrid electric vehicle models are, on average, covering about half of all kilometres travelled in electric mode – especially in urban areas. Which means Volvo PHEV drivers are buying and burning significantly less petrol.

For drivers covering 15,000 a year, particularly those living in metro areas where fuel prices are usually more expensive, those savings can add up.

The math

For example, a Volvo XC60 B5 Mild Hybrid has an official combined fuel consumption of 7.6 litres per 100km. Volvo Cars recommends not using a lower octane fuel than 95 RON. Taking the average 95 RON unleaded petrol price in Sydney on 19 October – $2.16 per litre – equates to a total annual petrol bill of $2462.4.

The XC60 T8 PHEV has an official (WLTP) fuel economy of 1.6 litres per 100km. While real world conditions tend to vary, even halving that 15,000 km fuel bill equates to savings of more than $100 per month.

Though there is the cost of electricity to consider.

The XC60 PHEV consumes 26.2 kWh/100km when operating in electric mode. For 7,500 km of electric driving annually, this requires approximately 1,965 kWh of electricity. At an off-peak rate of 20 cents per kWh, that equates to an electricity cost of $393 per annum, or a potential fuel bill saving of $838.2.

For households with excess rooftop solar power, the effective charging rate is almost zero, though it’s not always be possible to charge ‘off grid’ from solar, such as night time. The cost of the PV panels must also be taken into account.

Some energy suppliers offer direct exposure to wholesale prices – which can be negative if there is too much power being generated and not enough demand.

(Between October and December last year, negative prices occurred for 23 per cent of the time, according to the Australian Electricity Market Operator.)

Theoretically, that means PHEV and EV drivers can occasionally get paid to charge their vehicle.

Either way, given the XC60 PHEV has a maximum electric range of up to 89km*, many drivers covering shorter daily distances may be able to cover the bulk of their kilometres in electric mode and make more substantial savings – provided they keep it charged.

Win-win

Calculating emissions reductions from maximising electric mode is harder, in part because it must factor-in the carbon intensity of the electricity grid at any given time, which fluctuates depending on how much wind or solar power is feeding into the energy system, versus coal and gas.

But charging PHEVs (and EVs) at off-peak times helps balance Australia’s power grid – which means less energy is curtailed (i.e. wasted), lowering the balancing costs added to everybody’s utilities bills, and helping to keep the power system stable as more renewable power comes on-stream.

Which is definitely a win-win.

See Volvo Car Australia’s range of win-win luxury PHEVs here.

*The figures are preliminary and derive from estimates and calculations performed by Volvo Cars for XC60 which is not carried out on every individual vehicle sold by Volvo and these outcomes are not guaranteed. The driving range and energy consumption under real conditions vary depending on factors including but not limited to driving style, road and traffic conditions, environmental influences, vehicle condition and accessories fitted, which means in the real world the range you experience can differ from that advertised. Advertised figures are meant for comparison purposes. Vehicle certification pending.