The electric vehicle (EV) market has been booming in the past few years. In 2010, there were approximately 17,000 electric vehicles on the road, and now there are more than 7 million around the world. EVs were created to fill the need for fuel-efficient, low emission vehicles that would reduce pollution created from the transportation sector. To intrigue buyers to switch to an electric car, carmakers are introducing plug-in hybrid and all-electric versions of existing car models. Over time, manufacturers hope to increase the roll-out of electric vehicles that are more affordable and environmentally friendly.
Big Plans Under the New Presidency
President Joe Biden has introduced extensive plans to reduce vehicle emissions in the United States, including an initiative to replace the entire federal government vehicle fleet with EVs. With over 645,000 government vehicles in the U.S., this is a significant task that will take years to put into place. In 2019 alone, federal vehicles were driven 4.5 billion miles and consumed 375 million gallons of gasoline and diesel fuel. The fleet change is estimated to create one million new jobs in the U.S. auto industry and will significantly impact federal emissions. (U.S. News)
Biden has also announced a plan called “Cash for Clunkers,” which will provide incentives and rebates for consumers that trade in less efficient, gasoline-powered cars for EVs. In addition to these incentives, the current federal tax credit for purchasing a new EV ranges from $1,875 to $7,500. An important caveat of the federal tax credit is that each manufacturer is allocated 200,000 tax credits. Due to the popularity of Tesla and GM EVs, buyers of either manufacturer’s vehicles are no longer eligible for the credit. However, Democrats in the House of Representatives have reintroduced a new iteration of the GREEN Act, which, if passed, would allow GM and Tesla buyers to receive tax credits once again.
Solving Range Anxiety
With a large influx of new EVs entering the market, there needs to be additional charging capacity, especially on major interstates. Biden plans to add at least 500,000 charging stations across the United States, reducing consumer apprehension about “range anxiety.” The President hopes to reduce this fear by installing chargers along interstates, parking garages, and restaurants and shopping centers consumers regularly visit. This plan is estimated to cost $5 billion, with the chargers installed by 2030.
What Will the Future Hold for EVs?
The future is looking bright for the electric vehicle market, especially with new legislation in the works promoting EVs’ rapid adoption. Electric vehicles still command a significant premium over traditional gas vehicles, but as technology advances, that premium is set to shrink. The EV industry will look to continue to climb, improving the transportation sector’s impact on the environment and public health.
Interested in adding EV charging stations to your property? Contact the EEP team for more information.
Parker Berry is a spring intern at Evolution Energy Partners. Parker is a senior at Widener University studying marketing with a focus on sales.