Study: EV ownership costs now on par with ICE vehicles
New study says the average household could save thousands in running costs by switching to an electric vehicleLifecycle ownership costs of electric vehicles are now competitive with equivalent internal combustion-engined (ICE) vehicles, according to new research by Plenti and Accenture.
The Solar-charged EVs in Australia study found there is now only a three per cent difference between the lifetime (15 years) cost of a mid-range ICE vehicle and a comparable EV, with most of latter’s cost accounted for the battery-powered vehicle’s typically higher asking price.
That said, the base price of the Polestar 2 ($59,900) and Australia’s most popular EV, the Tesla Model 3 (now $63,900) already undercuts those of equivalent mid-size luxury sedans like the BMW 3 Series ($69,900).
However, exclusively comparing running costs between ICE and EV models yields a major advantage to the latter, with the study finding that most households will save around $1000 per year in running costs by switching to an EV. Yes, you will pay more for electricity, but you won’t have any fuel bills.
The EV running cost savings are substantially more when electric vehicles are charged at home in conjunction with a home solar-battery system, with the data suggesting such a set-up will save around $12,000 in power bills over a 15-year period and potentially reduce their carbon emissions by more than 80 per cent.
Of course, this excludes the up-front cost of a home solar-battery system, but also the ability for some EVs to deliver further savings via vehicle-to-load (VTL) and vehicle-to-home (V2H) functionality.
Broken down further, the study claims that an EV powered by a home solar-battery arrangement could reduce the average household’s $1892 annual electricity bill (without an EV or solar) down to around $230.
“This is a game-changer for Australian households and our economy at large,” Plenti CEO Daniel Foggo said.
“As both petrol and energy costs continue to rise, the benefits of solar-charged EVs are now clearer than ever.
“According to our study, most people believe EVs are more expensive over their lifecycle than internal combustion vehicles – especially if they’ll be charging their EV from the grid.
“This perception remains a key reason why many people are yet to make the switch to electric.”
The other key barriers identified by the study were logistical issues like access to charging infrastructure and slim pickings in terms of affordable electric models.
According to Accenture managing director Shaun Chau, many of these logistical challenges will be mitigated by the end of the year as more EVs come to market and more chargers are installed around the country.
“With petrol and diesel prices soaring across Australia, EVs offer an increasingly competitive value proposition when compared to combustion engine vehicles,” he said.
“Pent-up demand for EVs is high in Australia. However, the biggest barrier to EV adoption is upfront affordability.
“Australians are paying premium prices for EVs. This is due to a lack of subsidies, supply and range of available models when compared to countries with high EV uptake.”
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