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In this article, we’ll explore the dynamic landscape of the electric vehicle (EV) market from a business perspective, addressing nine of the most frequently asked questions concerning EVs. Whether you’re a company looking to integrate electric vehicles into your operations, an investor evaluating opportunities in the EV sector, or a supplier seeking to meet the evolving needs of businesses in this space, you’ve come to the right place. Here, we’ll answer 9 of the most common questions concerning the EV market, providing you with essential insights and information to make informed decisions.
That question very much depends on who you ask. National Grid states that if all UK car owners switch to EVs simultaneously, it is unlikely to overpower the UK’s energy grid. This, they claim, would only increase demand by around 10%. But not everyone accepts this answer.
An article in Which EV offers another explanation: In its current form, the UK grid could not cope with the nation charging EVs at once at 7kW (the typical home charger rate). They would need 230GW – three times the UK grid capacity.
To be safe, the UK Government has introduced Electric Vehicle Smart Charge Points Regulations. This ensures the smart functionality of EV charge points, allowing the car to pause charging during times when grid demand is highest and energy most expensive.
The same conjecture exists in the US. One study, highlighted in the Washington Post, states that to meet its 2030 climate goals, the nation will need to invest as much as $125 billion in the grid to allow it to handle electric vehicles. Business Insider argues that at 2030 estimates, some 5.6 million electric cars, trucks, and vans would only comprise 4% of peak loads.
To meet demand, the UK and US are ramping up renewable energy-powered charging via solar and wind. With hydrogen and wave energy (a potentially tremendous natural resource, potentially capable of producing 64% of last year’s total utility-scale electricity generation in the U.S), it seems evident that invention and ingenuity regarding renewable energy will accomodate the increased electricity demand for EVs.
There are several immediate obstacles. These include:
• The cost of installation and electric infrastructure costs for DC fast chargers
• Finding the space for stations with multiple rather than singular connectors and cheaper wall-mounted rather than freestanding charging stations
• Aligning the energy providers’ and network operator’s investment plans with the municipalities’ EV infrastructure needs
• Coordinating the support from the property and private landowners to upgrade and build EV charging infrastructure.
The cost of installation and electric infrastructure costs for DC fast chargers
Renewable energy, primarily through solar and wind, is the easiest way for EV charging stations to obtain additional power. Battery storage facilities will allow the power to be stored and utilized when needed. Intelligent EV charging points that communicate with the grid and minimize the demand will also be beneficial. Intelligent off-grid power generation sources such as GenCell’s hydrogen and ammonia charging solution offers EV station owners a resilient, reliable source of additional power.
The Inflation Reduction Act creates tax incentives to encourage the purchase of electric cars. These include:
• A $7,500 tax credit for consumers with certain restrictions (tied to annual income, battery mineral sourcing and retail price).
• A $40,000 commercial clean vehicle tax credit which doesn’t carry any requirements.
This should incentivize individuals and businesses alike to embrace electric vehicles at a faster pace than ever before.
Yes, the EU’s EU750 billion stimulus package includes the following:
• EU20billion to boost the sales of clean vehicles• 1 million electric and hydrogen vehicle charging stations to be installed by 2025.
In addition, the Clean Energy Package includes updated building regulations intended to accelerate EV home charging.
If all cars in the US went electric motorbiscuit.com states that the country would need “14 billion kWh of energy to charge them all.” A study by McKinsey concludes, “as the number of EVs on the road increases, annual demand for electricity to charge them would surge from 11 billion kilowatt-hours (kWh) now to 230 billion kWh in 2030.”
According to TransportandEnvironment.org, a medium-sized EV emits about 70% less CO2 than a petrol-powered equivalent. At a best case scenario it is around 80% less CO2 than diesel and petrol. This is especially true in countries such as Sweden, which gets most of its energy from renewable sources, and France which derives its energy mainly from nuclear.
It’s important to note that the calculation of CO2 savings from the vehicle depends on the level of CO2 emitted in the generation and transport of the electricity the vehicle uses. Therefore, using an EV charged with fossil fuel-sourced electricity is less effective for reducing CO2 emissions.
In the UK, the number is closer to 30% savings, according to a study in Nature Sustainability published in the Guardian. These numbers will improve as green charging (solar and wind) takes hold and EV technology improves.
Multiple tax benefits and subsidies are available for companies subsidizing their fleets. These include:
US:
• Qualified Plug-In Electric Vehicle Tax Credit: This provides between $2,500 and $7,500 in credit for each vehicle purchased but this mainly applies to consumers and households. Small businesses could also claim personal vehicles for business use.
• Alternative fuel source tax credit: This tax incentive applies to companies that install alternative fuel sources, including electric vehicle charging stations. This credit covers 30% of the cost of the station up to $30,000.
• Electric bus and truck fleet tax credits: Business owners can get up to $40,000 in tax credits for new vehicles purchased on or after Jan. 1, 2023. It’s available for 10 years, through the end of 2032.
• Multiple states incentives: As of July 2021, at least 47 states and the District of Columbia offer incentives to support deployment of EVs or alternative fuel vehicles and supporting infrastructure.
UK:
• EV charger grant for workplaces: the Workplace Chargepoint Grant is voucher-based and provides the upfront costs for purchasing and installing EV charging equipment and places of work.
• Tax Benefits: Businesses installing charging infrastructure can receive a 100% first-year allowance (FYA) for expenditures incurred.
• Additional incentives: There are also 20% subsidies on purchasing an EV van or truck (up to a maximum of £8,000)
• Businesses that buy EVs can write down 100% of the purchase price against their corporation tax liability. This only applies if the vehicle emits no more than 50g/km CO2
• Multiple regional incentives are also available throughout the UK.