How EV Sales and Global Policies Will Impact Your Company
Electric vehicles (EVs) just make sense. They're quiet, efficient, fun to drive and economical, as well as environmentally responsible. See how these benefits are driving more and more people to choose EVs, including your employees.
There are many compelling reasons to drive electric. Some of the most common are to save on fuel and maintenance costs, to reduce greenhouse gas emissions and clear the air, to enjoy fun new technology and to cut commute time by getting in the HOV lane. You probably have employees who fit into each of these buckets and have good reason to choose an EV for their next car even if they haven't gone electric yet.
Because driving electric is appealing for so many different reasons, EV sales have risen consistently over the past several years and are expected to keep growing even faster. Worldwide EV sales are forecast to accelerate from 2 million in 2018 to 4 million by 2020, 10 million in 2025 and 21 million in 2030, according to BNEF and Deloitte. This means that many of your employees likely drive electric already, and many more will probably switch soon.
Automakers have fully committed to electric mobility. More than 50 attractive EV models are already available for purchase, over 50 additional models are slated for global release in 2020. By 2022, 207 electric models will be on the market, according to AlixPartners. The wide variety of EV models available means that there is an appealing option for everyone.
EV range is also advancing: in the U.S., 2019 welcomed four new all-electric models with 230+ miles of range: the Hyundai Kona Electric, Jaguar I-PACE, Kia Niro Electric and Audi e-tron SUV. More range means that EVs can handle the driving needs of more people. Additional long-range U.S. models expected in 2020 include the Ford Mustang Mach-E, Rivian R1T and Tesla Model Y.
Source: Polk
EV Volumes
IEA Global EV Outlook
(Deloitte)
Due to the cost of batteries, EVs have typically had higher prices than similar gas-powered vehicles. Fortunately, advances in battery technology and reduction in cost mean that is about to change. Deloitte expects EVs to reach price parity with gas vehicles by 2022, making them more financially feasible for people at different income levels.
Many encouraging policies support the continued growth of EVs and charging in North America and beyond. Millions of dollars in funding are available for EV charging at workplaces like yours.
If an efficient ride, fuel savings and access to charging at work haven't gotten your employees driving electric, financial incentives might. In the U.S., drivers may be eligible for a $7,500 federal tax credit for buying an EV, and many states offer rebates as well. This year, New Jersey will be launching a $5,000 incentive for EV drivers. Canada offers a $5,000 federal credit and additional incentives may be available locally.
Because greenhouse gas emissions reductions are often a key provision of climate and air quality goals, many states and provinces offer grants and rebates for buying and installing charging stations. The U.S. federal government offers a tax credit covering 30% of the cost of charging infrastructure, up to $30,000 per address. The credit extends through December 31, 2020.
Many states also offer their own financial incentives. For example, the Massachusetts Electric Vehicle Incentive Program has $5.5 million available in incentives to install charging stations at workplaces and other locations in the state. You can even generate revenue from EV charging activity through local Clean Fuels programs, which are established in California, Oregon and British Columbia and coming soon to Canada nationally and to the Puget Sound region.
The Clean Corridors Act of 2019, introduced in the 116th Congress, could pave the way for more EV charging infrastructure in the U.S. Additional promising public-private partnerships are available through Natural Resources Canada (NRCan) and (in the U.S.) the Volkswagen settlement–funded Environmental Mitigation Trust which provides funding to states to set up grant programs for EV charging and for electrifying bus and truck fleets.
Policies in Europe show how mobility is electrifying worldwide.
An initiative is underway in London to support shared urban charging to grow EV adoption, and ChargePoint fast charging spots are part of an effort to gather data to understand urban charging needs. An impressive 20% of London "black cab" drivers now have EVs, showing that the shift is underway in the UK. As more charging becomes available, EV drivers can supplement workplace charging at locations around town.
Organizations are working toward strict emission targets and a zero-emission vehicle (ZEV) mandate across the European Union to supplement similar mandates already in place in the Netherlands, UK, Norway and elsewhere.
Elements of the European Green Deal include a pollution-free Europe, sustainable transport, climate neutrality and clean, reliable and affordable energy.
Germany has published a master plan for charging infrastructure that includes national and regional incentives to spur demand for charging and help fund home EV charging and wiring for charging at businesses. ChargePoint helps customers apply for funding and advises on how to best comply with grid codes, public charging obligations and more.
The EU has established requirements for new buildings to be wired for EV charging and drafted requirements for existing buildings to do the same. Now is the time for EU members to build on these requirements and support more ambitious targets.
No matter where you are located, your employees and your business could benefit from EV charging. Read on to see some ways that EV charging can have a positive impact on your workplace.
