Electric vehicle charging infrastructure and incentive design best practices

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1 Electric vehicle charging infrastructure and incentive design best practices Dale Hall, Peter Slowik April 12, 2018 Trenton, New Jersey

2 U.S. metropolitan area electric vehicle uptake EV uptake across 50 metro areas: from 0.2% up to 13% of new vehicle sales What s driving U.S. city EV uptake? (local/state policy, incentives, charging, etc) Slowik & Lutsey (2017). Expanding the electric vehicle market in U,S. cities 2

3 Electric vehicles and public charging have grown together At end of 2016: About 2 million electric cars and 300,000 public charge points 3

4 Results: EV uptake and public charging infrastructure Electric vehicle uptake is linked with public charging infrastructure No global benchmark, but trends emerge within markets EVs/charger in leading US metro areas Slowik & Lutsey (2017). Expanding the electric vehicle market in U,S. cities 4

5 Challenges (and solutions) for charging Engage utilities Rate-based charging station buildout: Massachusetts, California, Washington Incentives: Utah, Georgia, many others Support multi-unit dwellings EV-ready building codes: California, Denver, many cities Curbside stations: Seattle, Philadelphia Plan for grid stability Time-of-use rates (PSE&G) Careful siting of fast charging (PG&E California tool) Charging addresses convenience issues, but full suite of policy needed to address other barriers (cost, model availability) and spur EV growth 5

6 Electric vehicle incentive design Incentives are important in driving EV sales in major auto markets Although there are of course many other key factors (e.g., charging infrastructure, consumer awareness, regulations, etc.) Incentive design elements: Magnitude (e.g., $100s up to $10,000+ per vehicle) Timing (e.g., point of sale tax exemption/rebate vs. end of year credit) Eligibility by technology type (e.g., BEV, PHEV; by range or battery size) Eligibility by ownership type (e.g., owning/leasing, fleets) Complexity (clarity on incentive value for dealers, consumers) Durability (reliable availability of incentive for multiple years) Yang, et al (2016). Principles for effective electric vehicle incentive design. 6

7 Substantial BEV Substantial PHEV Upfront Lease Company Private Durable Simple Results: Effective EV incentive design Markets with highest EV sales and EV shares have generally adopted most of the principles for effective incentive design Electric vehicle uptake Incentive design principles Market Electric vehicle sales Electric vehicle share California X X / X X X X X Japan X X / X X X X / Norway X X X X X X X / Netherlands X X / X X / / / United Kingdom X X X X X / X X France / X X X X X / / Beijing X / X X X X / X Sweden / / / X X X / X Washington X X X X X X X / Denmark X X X X / X / / Notes: X denotes principle is generally met; / denotes principle partially met Source: Yang, et al (2016). Principles for effective electric vehicle incentive design. 7

8 Findings on incentives Incentive design matters Incentives are important in making electric vehicle prices competitive Well-designed incentives are driving electric vehicle sales in major auto markets Optimal incentive design Move incentives up front to the vehicle purchase and make their value visible and clear Ensure the incentives are available to the mainstream (lower cost vehicles) Set incentive eligibility based on ability to displace more fuel (less incentive for PHEVs) Commit to durable incentives that allow manufacturers, dealers, public outreach campaigns, and consumers to rely on them for at least several years Yang, et al (2016). Principles for effective electric vehicle incentive design. 8

9 Concluding reflections Actions by many players prime the market Cities, states, utilities, partnerships, non-profit consumer groups Top markets show the keys to address barriers, grow market Model availability: CO 2 regulations plus ZEV requirements Convenience: Charging infrastructure Cost: Consumer incentives Awareness: Ride-and-drive events, fleets, car-sharing Access: HOV lane, city parking/charging Slowik & Lutsey (2017). Expanding the electric vehicle market in U,S. cities 9

10 Contact Dale Hall: Peter Slowik: ICCT U.S. city electric vehicle report: ICCT charging infrastructure practices: ICCT incentive design best practices: Acknowledgements Supported by The 11th Hour Project of the Schmidt Family Foundation and the governments of the International Zero Emission Vehicle Alliance

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