The future of electric vehicles - Is this a consumer adoption inflection point?

The growth of electric vehicle adoption has been fun to watch over the past two years. What began as something of a niche product favored by those consumers who were environmentally-aware and/or tech-savvy is now a mainstream, mass-market vehicle choice based upon comfort, convenience, and cost savings. In short, a “better mousetrap” has been created and consumers are flocking to it. Plus, the timing couldn’t be better given the recent price shock in the cost of gasoline ($4.15/gallon is the Cincinnati area) coupled with the fact that there will be close to 100 new electric vehicle model choices available in the market in 2022-2023.

Isn’t it odd that, at least in part, it took a war-waging Russian autocrat to get Americans to finally reach this inflection point?

Which leads me to a recent question that I received pertaining to the previously-mentioned increase in gasoline prices: If gas is now approx. $4.15 per gallon, what is the equivalent “cost per gallon” to “fill up” an EV battery with an electric charge?

The answer that I came up with is $0.74/gallon, and here’s how I got there:

  • Assumed, average fuel efficiency for an internal combustion engine (ICE) is 24.7 miles per gallon (mpg).

  • Assumed efficiency for an EV is 0.25 kilowatt hours (kWh) per mile

  • Fuel unit prices are $4.15 per gallon of gasoline, and $0.12/kWh - a standard residential electric rate in the Cincinnati area (commercial and industrial rates are actually less)

  • To get 300 miles of range, one would therefore need 12.15 gallons of gasoline (=300/24.7) or 75 kwh of electricity (=300/0.25)

  • With this information we can begin to calculate an “apples to apples” cost comparison: At $4.15/gallon, 12.15 gallons of gasoline would cost $50.40; at $0.12.kWh, 75 KWh would cost just $9.00 - that’s 5.6X less than the equivalent cost of gasoline.

  • So, if we apply this same ratio (5.6X) to the current cost per gallon of gasoline ($4.15), we arrive at an equivalent (electric) cost/gallon of just $0.74.

Assuming you agree with my math (which admittedly does not include the installed cost of an electric charger if you are charging at home, or any cost premiums to use public charging infrastructure), what would you prefer to be paying presently to fuel your vehicle: $4.15/gallon, or $0.74/gallon?

Is your organization ready to attract and support this growing electric vehicle population? Contact us to learn how to make your organization can become a destination for these employees, residents, and customers.

About Donovan Energy

Donovan Energy is a clean energy advisory, solution implementation, and finance company headquartered in Cincinnati, OH. Our fastest growing service is assisting organizations with their plans to develop and implement EV charging solutions. We have deep experience in delivering EV charging solutions nationally, and across a wide variety of property types from (retail, mixed use, hotels, airports, office, industrial, educational institutions, and government). If you are interested in learning more about EV charging for your organization, our EV Roadmap is the place to start. An EV Roadmap will provide the insights necessary to determine and implement the right solution to address both current and future needs. If you are considering an EV charging project, we’d love to help.