Last Updated on May 24, 2022 by Aqsa Rana
Energy costs for EVs are lower than costs for conventional vehicles, that much is clear to everyone. However, the main argument why EVs aren’t sustainable is the fact that their purchase prices can be way higher.
The good news is that the costs are going down all the time and are predicted to equalize with the prices of conventional vehicles as production is yet to gain its full potential, and battery technologies keep getting better.
1. Incentives for Buying EVs
To top it off, there are federal tax credits ($2,500 to $7,500) and state and utility incentives available.
Federal Tax Credits
Internal Revenue Code Section 30D (IRC 30D) provides a credit for qualified plug-in electric drive motor vehicles (passenger vehicles and light trucks).
For vehicles purchased after December 31, 2009, the credit equals $2,500 plus, for a vehicle that draws propulsion energy from a battery with at least 5-kilowatt hours of capacity, $417, plus an additional $417 for each kilowatt-hour of battery capacity in excess of 5-kilowatt hours. The total amount of the credit is limited to $7,500.
The credit only applies to the first 200,000 vehicles a manufacturer sells (determined on a cumulative basis for sales after December 31, 2009), which means that Tesla and General Motors EVs don’t apply. If you are a US citizen living abroad, check this article to learn more about paying your federal taxes.
EVs available for tax credits are:
AMP EVs, Audi EVs, Bentle’s 2020–21 Bentayga Hybrid, BMW EVs, BYD Motor’ 2012–17 e6 Electric Vehicle, BYD Motors’ 2017–22 Pacifica Plug-in Hybrid, CODA Automotive’s 2010, 2012 CODA Sedan, ELMS’ 2022 ELMS Urban Delivery, Electric Mobile Cars EVs, Ferrari’s 2020–21 SF90 Stradale, Fiat’s 2013–19 500e, Fisker’s 2012 Karma Sedan, Ford EVs, Ford/Azure Dynamics’ 2011–12 Transit Connect EV, Honda EVs, Hyundai EVs, Jaguar EVs, Jeep EVs, Kandi EVs, Karma’s 2018–20 Karma Revero, Kia EVs, Lexus’ 2022 NX Plug-In Hybrid, Lincoln EVs, Lucid EVs, Mazda’s 2022 MX-30, McLaren’s 2022 Artura, Mercedes-Benz EVs, MINI EVs, Mitsubishi EVs, Nissan’s 2011–22 Leaf, Polestar Automotive EVs, Porsche EVs, Rivian EVs, Smart USA EVs, Subaru’s 2019–21 Crosstrek Hybrid, Think’s 2011 Think City EV, Toyota EVs, VIA Motors EVs, Volkswagen EVs, Volvo EVs, Wheego’s 2011 LiFe, Zenith Motors EVs.Also, you can prefer zappi ev charging that provide a customisable and intelligent charger that can reduce your environmental impact even further.
To be eligible for the credit, the vehicle must meet the following criteria:
- Must be made by a manufacturer
- Count as a motor vehicle for purposes of Title II of the Clean Air Act
- Must have a GVWR of up to 14,000 lbs
- Must be propelled by an electric motor which draws electricity from a battery which:
- Has a capacity of at least 4 kilowatt hours
- Can be recharged from an external source of electricity
- Must be a new vehicle
- Is acquired for use/lease by the taxpayer, and is not to be re-sold (the credit is available to the original buyer only)
- Is used mostly in the U.S.
- Must be placed in service during or after the 2010 calendar year
State and Utility Incentives
Different states offer different incentives for EVs. Notably, look for the benefits in states that have joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast (DC Fast) charging stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members ensure efficient fast charging deployment plans that enable long-distance EV travel, avoid duplication among coalition utilities, and complement existing corridor DC fast-charging sites.
2. BEVs, PHEVs and HEVs: Each Has Its Own Advantages
On the matter of the actual type of EV, there are three, as follows:
- Battery Electric Vehicles (BEVs) are powered solely by an electric battery, with no gas engine parts. The majority of BEVs are capable of fast charging and L2 charging.
- Plug-in Hybrid Electric Vehicles (PHEVs) are powered by a larger battery and electric motor. These vehicles have a gas tank and a charging port. Can be charged by using L2 chargers.
- Hybrid Electric Vehicles (HEVs) are low-emission vehicles that use an electric motor to assist gas-powered engines. All energy comes from gasoline. Cannot be charged with EVgo.
Which one you will choose depends on your plans and finances. However, when calculating the costs, remember to compare the fuel costs of a conventional vehicle to get an idea of how much you can save by using an EV.
3. EV Fuel Economy Can Save You Loads of Money
HEVs typically have lower fuel costs than similar conventional vehicles. All three types of EVs can reduce fuel costs considerably due to them having electric-drive components. Because they rely solely or mostly on electric power, their fuel economy is measured differently: in miles per gallon of gasoline-equivalent (MPGe) and kilowatt-hours (kWh) per 100 miles.
The fuel economy of medium- and heavy-duty PHEVs and HEVs depends on the duty cycle and the load carried, but they generally maintain a strong fuel-to-cost advantage over gas-powered vehicles.
4. EV Batteries Are Advantageous and Long-Lasting
The advanced batteries in plug-in EVs have an extended life. Many manufacturers offer 8-year/100,000-mile battery warranties. Predictive Modeling by the National Renewable Energy Laboratory shows that the batteries currently in use may last 12 to 15 years in moderate climates and 8 to 12 years in extreme climates.
When you’re choosing an EV, check with your dealer whether extended warranty programs are available. Battery prices are likely to decline for the same reasons EV prices will.
5. Emission Benefits of EVs
Hybrid and plug-in EVs have significant emissions benefits over gas-powered vehicles. EVs produce zero emissions, and PHEVs produce no emissions when in all-electric mode.
The life cycle emissions of an EV depend on the sources of electricity used to charge it, but they all offer advantages over similar gas-powered vehicles.
Cheaper Maintenance Costs
EVs have significantly lower operating expenses compared to gas-fueled vehicles. EV owners spend ca. 60% less on fuel, depending on the EV type. Further out, EVs have fewer parts, so maintenance costs are also lower.
Everything considered, EVs are likely to eventually replace conventional vehicles, and prices will only be getting lower.
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