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Prices of E-Bikes: Why They’re Expensive, And When the Price Will Fall

Electric bikes have seen a significant gain in popularity over the years. More and more people are looking into this mode of transportation and are shocked by the initial price tag. Why are e-bikes so expensive, and when will the price fall?

E-Bike cost is driven up by the electronic components: batteries, motors, and controllers. Good quality E-Bikes are around the $1,000 price point, while a quality E-Bike conversion kit can be had for half that. If used regularly, they’re definitely worth the price.

Electric bikes are a more affordable form of transportation, a good source of exercise, and an incredibly environmentally friendly option. With all these benefits, it’s easy to see why they garner such a hefty price tag. With the rise in popularity and demand, we can expect to decrease the cost in the coming years.

Why are Electric Bikes More Expensive Than Conventional Bikes?

Black electric bike wide angle view isolated with clipping path

Electric bikes don’t come cheap. The additional power and components like motors, batteries, controllers, and sometimes touch screens all add up and can increase the price range.

Entry-level conventional bicycles can range from $300 to $1,000, while the same entry-level e-bike will nearly always range in the low thousands. This price difference is mainly due to the extra components and power you get with an e-bike.

Electric bikes come with motors, batteries, controllers, battery chargers, and sometimes more. Not to mention, e-bikes have to be waterproof, seeing as they’re electric. These additional components increase the upfront investment as well as the cost of maintenance and upgrades.

Upgrading some of these components can add hundreds of dollars over the long run. If you include after-market products such as battery racks, extra chargers, or bags, you run the risk of doubling your initial budget.

How Much Does it Cost to Convert a Conventional Bike to Electric?

Converting your traditional bike to electric is a budget-friendly option to dip your toes into the hobby. In general, conversion kits are going to range from $300 to $900. Check out our article for all the details you need to convert your conventional bike to electric!

When researching e-bikes, you might just be wondering why not upgrade your conventional bike. Conversion kits are the fastest and most budget-friendly option when getting into the hobby. You’ll find conversion kits ranging anywhere from $300 to $900.

This medium-tier conversion kit by Bafang (on Amazon) comes out at a very competitive price, making a reasonable estimate of the quality and price range you can expect. While you can purchase kits like this 48V 1000W one (on Amazon) for much cheaper, although you may suffer from less quality and power.

If you decide to go with a conversion kit, you should factor in tools and time into your budget as well. You may need tools like adjustable wrenches, screwdrivers, bike tools, and crank arms.

If you don’t have some of these tools, it can add extra dollars to your expenses. That’s if you go with the DIY route; if you can’t be bothered with the installation time, going to the bike shop can add another bill to your budget.

Are E-Bikes Worth the Price?

Electric bicycle on the background of nature Norway

We believe electric bikes are definitely worth the investment. Check out our full article on all the reasons e-bikes can be worth it for you!

When buying an electric bike, you’re not just paying for the power and components, but the benefits that come with these. Here’s a list of the benefits you can expect when switching to an electric bike:

Affordable Transportation – After the initial investment, electric bikes become one of the most affordable options of transportation. The average American spends $250 on gas each month. If you were to cut out even one-third of your gas expense using an electric bike, you could save upwards of $1,000 per year!

Better For The Environment – One of the main reasons electric bikes have soared in popularity is for environmental benefits. Electric bikes reduce your carbon footprint by not using gasoline. E-bikes can create 2.5 to 5 grams of carbon dioxide per mile, significantly under the 150 grams an electric car produces. This number is drastically under the average vehicle, which comes in at 411 grams per mile.

Good Source Of Exercise – Although you’ll have motor and pedal assistance, electric bikes can be a great source of exercise. You’ll need to do a fair bit of pedaling when going up hills, traversing rough terrain, and coming out of complete stops. Over time, this extra exercise will add up and help you live a more active and healthy lifestyle.

Allows Farther Travel – With electric bikes, you can travel much further than you would be able to on a conventional bicycle. Entry-level e-bikes can have a range of 25-35 miles per charge. With additional pedaling, you can easily add 5 to 10 miles to this range if you needed to.

Allows Faster Travel – Compared to conventional bikes, you’ll travel much faster with an electric option. The laws vary by state, but you can ride an electric bike legally in the bike lane at 20-25mph in most cases. At a moderate pace, the average cyclist travels 10 to 12 miles per hour on a bicycle. Electric bikes can cover the same ground like a conventional bike in half the time.

Will Electric Bikes Come Down in Price?

It’s hard to say for sure whether or not electric bike prices will come down. That being said, there are some indicators that prices are likely to drop in the future.

Due to Moore’s Law basically stating that the speed and capability of our computers will increase every few years with the price going down, we can assume this applies to electric bikes as well.

If Moore’s Law holds true, electric bikes’ software and computing components have gone down and will continue to go down while getting better and better.

Lithium batteries have also become more efficient and dropped in price over the years. Between 2010 and 2019, battery prices fell by 87%. It’s also predicted prices will drop another 50 percent by 2023. This drop in price will surely benefit electric bikes and their production.

Since electric bikes are still relatively new and gaining popularity, it’s beneficial to look at other trends in the electric vehicle market. Tesla’s first electric vehicle in 2006 cost over $100,000 by today’s standards. Compare that to Tesla’s Model 3, which has a starting MSRP of $39,990. As you can see, the electric vehicle market is steadily dropping.

If you’re considering waiting for the prices to drop for electric bikes, you may not notice significant gains for quite some time. In the next two to five years we could see a higher rate of production and drop in cost, but it’s hard to say by how much. That being said, it is safe to say electric bikes and other electric vehicles are gaining popularity and steadily dropping in price.

How Much is a Good EBike?

Entry-level electric bikes can range anywhere from $700 to $1,500. Mid-range e-bikes are going to range upwards of $3,000. Luxury and enthusiast options can reach over $10,000 in some cases.

We have an entire article on the best electric bikes under $1,000 you can check out for the complete picture. However, you can get a great entry-level bike in this range that doesn’t skimp out on quality or reliability. Some of our top picks are:

Best Overall: Our top pick actually comes out to just above $1,000. If you can find a few extra hundred in your budget, the Pace 350 (by Aventon) will deliver quality and accessibility. This model comes with a 350watt rear-hub motor, an average range of 35 miles, a 5-level pedal-assist system, and ease of access for any rider.

Runner-up: The Roadster V2 (by Ride1Up) is an equally sufficient bike compared to our top pick. The V2 comes with a similar 350watt motor and 36volt battery. It’s lightweight, accessible, and quiet, making it an excellent choice for any city commuter.

These are some of our recommendations. The bike you choose will be based on goals, preferences, needs, and budget. That being said, the best e-bike is the one you enjoy riding!