Electric Vehicles

As your Touchstone Energy cooperative, we want to be your source of power and information. Since electric vehicles are rapidly becoming more widely available, we put together this information to help answer questions you might have. Contact us for more information about electric vehicles.

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Overview of Electric Vehicles

Is it smart to rely on such a "new" technology?

Electric powered autos are not a new technology. Although EVs may seem like the latest and greatest invention, in reality the technology has been around for more than a century. In the 1890s, electric cars were more popular than gas-powered autos because of their simplicity, reliability, and low cost of operation. In fact, Henry Ford’s wife drove an EV. For a variety of reasons, EV technology languished with the rise of gas-powered engines, but today, EVs – once again—are charging to the auto transportation forefront. This resurgence is fueled by significant advancements in power electronics and energy storage technologies.

What do the terms mean?

We are most familiar with conventional combustion-engine vehicles, the standard for many years. The market is changing, and it’s hard to keep up with the newest technologies, models, nomenclature and more. For simplicity, this continuum separates the options into four basic types of vehicles. In our listing, the range is from most to least amount of fossil-fuel used in operation.

1. Conventional vehicles have an internal combustion engine; the most common fuels are gasoline and diesel.

2. Hybrid vehicles have both a gasoline engine and an electric motor and battery; both gas and electricity power the wheels. The electric motor and battery are designed to improve fuel economy, so less gasoline is used to operate the vehicle. The battery is charged solely by operating the vehicle; no plug-in is required or possible.

3. Plug-in Hybrid Electric Vehicles (PHEVs) have larger batteries than hybrids and use both gas and electricity to power the wheels of the car. These vehicles vary in their electric range, but shift to gasoline-only operation when battery power is depleted. These vehicles must be plugged in to recharge the battery.

4. Battery Electric Vehicles (BEVs) are powered solely by electricity and are recharged by plugging in the vehicle.

What is the cost to own and operate an electric vehicle vs. gas-powered conventional vehicle?

It’s hard to compare apples to oranges. While battery electric vehicles and plug-in hybrid electric vehicles may have a higher purchase price, that can be at least partially offset by lower operating costs and incentives for battery-containing vehicles.

Touchstone Energy has calculated the annual energy costs and savings for owning electric vehicles vs. gas-powered vehicles. Assumptions include: driving the vehicle 15,000 miles a year, with 225 days of 50 miles each, and 50 days of 75 miles each. EPA fuel economy numbers and average costs of energy as reported by the U.S. Energy Information Agency were used.

Comparison method 1:

Comparing electric vehicles to a hypothetical gas-powered vehicle that gets 25 mpg; this gas-powered vehicle would cost approximately $1,320 for gas per year. In this comparison:

• A typical BEV would save $730 in annual energy costs per year; electricity costs would be less than half the cost fuel for the gas-powered vehicle.

• A typical PHEV would save $600 per year when combining the cost of gas plus the cost of electricity to operate the vehicle.

Comparison method 2:

Several manufacturers produce both gas and electric versions of the same – or similar – vehicle (Ford has BEV and gas versions of the Focus as well as gas, hybrid and PHEV versions of the Fusion; Hyundai has gas, hybrid and PHEV versions of the Sonata; and Nissan has the Leaf and a somewhat comparable Versa). In comparing the gas vehicles with the electric versions, Touchstone Energy makes these comparisons of products by the same manufacturer:

• BEVs offer the lowest annual energy costs (running $570 to $600 per year). That is a savings of $370 to $490 over the conventional gas-powered “sibling.”

• PHEVs offer reduced annual energy costs of $600 to $800 per year. That saves $300 to $370 over the conventional gas-powered “sibling.”

Other considerations to add into the calculations:

• Tax credit. Most BEVs receive a $7,500 credit, while PHEVs generally get somewhat less. The credit is based on the battery size. Note that the battery installed in hybrid vehicles is too small to qualify for a tax credit.

• Other incentives. Some states and cities have additional credits or perks for electric vehicles.

Lower maintenance costs:

Most BEVs have much lower maintenance costs, because of the simplicity of the design and components (fewer moving parts, etc.) PHEVs are more complex, with have both gas and electric components, but some maintenance costs can be lower. For example, regenerative braking leads to less wear on the brake system.

As your Touchstone Energy cooperative, we want to be your source of power and information. Since electric vehicles are rapidly becoming more widely available, we put together this information to help answer questions you might have. Contact us for more information about electric vehicles. Consider this information if you are thinking of purchasing an electric vehicle but aren’t sure if one suits your lifestyle or budget.

Consider the following questions if you are thinking of purchasing an electric vehicle but aren’t sure if one suits your lifestyle or budget.

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Is an Electric Vehicle Right For You?

What are you typical daily driving patterns? (Consider all that apply to your situation.)

• I commute 40 or fewer miles each day.

• I commute more than 40 miles per day.

• I take frequent long trips.

• I rarely take long trips.

To Consider:

The average driver clocks in 40 miles each day commuting to work or running errands. If that aligns with your daily mileage, consider a battery electric vehicle (BEV). Charging overnight should keep it ready for your commute. The stated range of most BEVs is 60-100 miles per charge, with a range of 200 miles per charge or more coming in 2017. However, to ensure your needs are met, assume your range will be somewhat less.

Even if you have frequent longer trips, or have a few longer daily drives, you may consider a BEV as a second vehicle.

If you average more miles per day and/or take frequent long trips, a Plug-in Hybrid Electric Vehicle (PHEV) may meet your needs. PHEVs use a combination of an electric motor and gasoline engine to provide good fuel economy, a longer range and the ability to keep driving after the battery is depleted. They do need to be plugged in to recharge, but you can operate in gas-only mode when necessary. Another option is a hybrid. While hybrids don’t offer some of the benefits of a BEV, you’ll get better fuel mileage than with a conventional vehicle without plugging in.

How will you charge the vehicle?

• I have access to a 120-volt outlet in an area where I can recharge the car (or am willing to add one in a convenient location), and can charge overnight.

• I have access to a 240-volt outlet in an area where I can recharge the car (or am willing to add one in a convenient location).

• My place of employment offers access to a charging station.

• Areas where I shop or spend time (public buildings, malls, etc.) offer access to a charging station.

• I prefer a vehicle that does not require battery charging.

To Consider:

Battery electric vehicles operate solely on electric power, and you must recharge the vehicle. The battery in Plug-in Hybrid Electric Vehicles must be recharged also, but the vehicle can operate on gas if the charge runs out. Hybrid vehicles do not need charging; the smaller battery is recharged during driving.

A 120-volt outlet in your garage or driveway will handle overnight charging if you are driving only about 40 miles per day and have a full 8 hours overnight to recharge the battery. If you drive more and charge less, you may not be able to get a full charge.

If you want more rapid charging, you will need a 240-volt outlet.

How much do you plan to spend on a vehicle?

• I plan to purchase a new vehicle

• I plan to lease a vehicle

To Consider:

Purchase price for electric vehicles may be somewhat higher than a standard vehicle. In 2016, base prices for a BEV ranged from $22,000 at the low end to $125,000 for a top-end vehicle. The most popular brands ranged from $26,000 to $32,000.

Leases for electric vehicles in early 2016 could be obtained below $200 per month for some vehicles and situations.

With electric vehicles, the premium paid to purchase the vehicle is offset by the lower cost to operate and maintain,

You may receive a federal tax credit for BEVs and PHEVs.

How much will you spend on maintenance and operation of an electric vehicle vs. a gas-powered vehicle?

The purchase price does not tell the entire story. With the purchase of any type of vehicle, operating cost and maintenance expenses should be calculated into the total cost of owning the vehicle. Maintenance and operating costs are generally less for electric vehicles than for gasoline powered cars. Start with what your current vehicle is costing you in operating and maintenance; then compare it to alternatives.

• I know how many miles I drive per year and how much I spend on maintenance.

• I am curious if I will save money using electricity rather than gas.

• I am concerned that electric vehicles cost more to maintain.

To Consider:

Energy costs to operate a typical BEV run $590 a year, and PHEVs cost about $720 a year in energy costs. (For details, see Overview of Electric Vehicles in this series.)

Maintenance costs will be far less in a BEV, as there are few moving parts and the design is less complex than other vehicles. PHEVs do have both electric and combustion components, but they may still have lower maintenance costs than a conventional vehicle. That’s because some components, such as the brakes, get less wear than those on conventional gas-powered vehicles. Hybrids are similar, with both combustion and electric components.

And don’t forget a federal tax credit of up to $7,500 may be available. The amount depends on the battery size installed in the car. You may also qualify for additional “perks” offered in your area, such as a lower rate from your cooperative for charging overnight, free parking in some communities and access to special commuter lanes on some highways.

For drivers with long commutes or those who take frequent long trips, a battery electric vehicle (BEV) may not provide the desired range. Plug-in hybrid electric vehicles (PHEVs) offer an alternative. PHEVs use both an electric motor and a battery to save on fuel and lower emissions. They also have a gas-powered engine to boost range.

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Plug-In Hybrid Electric Vehicles

What are the advantages of PHEVs?

• These vehicles offer the benefits of electric power; the gasoline engine can help out when needed.

• They offer better fuel economy (less gas burned) and lower fuel costs (because electricity is a cheaper “fuel” than gasoline).

• Because less gas is burned, PHEVs reduce our dependence on oil and also emit fewer greenhouse gases than conventional gas vehicles.

• PHEVs may qualify for a federal tax credit for a new vehicle purchase; the amount (up to $7,500) depends on the size of the vehicle battery size. There may be some additional benefits offered by state and local areas, such as special parking spots and driving lanes.

What are the disadvantages of PHEVs?

• Because they have both electric and gasoline components, these vehicles have a more complicated design than all-electric vehicles.

• Maintenance is required on both systems. Gas engines require oil changes and the same checks that conventional gas engines require. And while the electrical components (battery, electric motor and electronics) require less maintenance than gas-powered engines, some maintenance is required.

• Having both a combustion engine and a battery pack takes up space and adds weight.

How are PHEVs charged?

• Just as with a Battery Electric Vehicle (BEV), it’s necessary to recharge the electric battery. There are several levels of charging. How you charge and how often you charge depend on how far you drive your vehicle and charging method.

• A standard 120-volt home receptacle on a dedicated electric circuit (five to eight miles of driving range for every hour of charging).

• A 240-volt connection, installed by an electrician who understands BEVs (12 to 75 miles of range for every hour of charging).

• Some public areas and workplaces offer charging stations.

• Note, DC fast charging, available in some public stations, can be used by some BEVs, but this type of charging is typically not compatible with most PHEVs.

What is next?

Since technology is improving rapidly, the future of all types of electric vehicles is bright. Look for:

• Batteries that provide an extended driving range. This should decrease the amount of gas required for PHEVs.

• Faster and better charging stations in more locations, including workplaces, shopping areas and even grocery stores.

• More competition between auto manufacturers to produce more and better models, possibly at a lower price.

How safe is charging electric vehicles?

There are safety features built into electric vehicles and into charging equipment. The charging cable is not live while you handle it, only when the cable is connected to the vehicle. The charger senses that the connection is properly made before the electric current is turned on. Also, the charger has a ground-fault interrupter (GFI). To prevent shocks, charging stops immediately if leakage of even a few milli-amps of current occurs.

Is a battery electric vehicle (BEV ) more expensive than a gas-powered vehicle? The answer is both “yes” and “no.” The purchase price of a BEV or hybrid may be somewhat higher than a standard vehicle. But operating costs may be considerably less. Maintenance and energy costs are lower for BEVs, and there may be tax advantages and other incentives available.

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Battery Electric Vehicles

Is a battery electric vehicle (BEV ) more expensive than a gas-powered vehicle?

The answer is both “yes” and “no.” The purchase price of a BEV or hybrid may be somewhat higher than a standard vehicle. But operating costs may be considerably less. Maintenance and energy costs are lower for BEVs, and there may be tax advantages and other incentives available.

What are the operating cost advantages of BEVs?

• BEVs cost less to operate than gas-fueled autos because electricity costs are equivalent to approximately $1 per gallon gasoline. The savings depend on current gas prices and your driving habits. Using an average cost of about 13 cents per kilowatt hour, a BEV using 95 cents of electricity will take you as far as one gallon of gasoline in a gas-powered car that gets 25 mpg.

• Electricity prices are far more stable than fossil fuel prices, and because the U.S. electric supply does not rely on imported petroleum, the long-term outlook for pricing is better.

What are the energy efficiency advantages of BEVs?

• BEVs are energy efficient, converting 80% of their energy input into moving the car. In contrast, gas-powered cars are only about 20% energy efficient; the remaining 80% of the energy input is wasted in tailpipe emissions, heat and noise.

• Most BEVs have a regenerative braking system that captures energy and restores it to the battery when you stop.

• Recharging an electric vehicle at home is not a huge power drain. A BEV driven 10,000 miles a year may use between 2,500 and 3,000 kWh to recharge; that is between $325 and $390 per year assuming an average residential cost of electricity of 13 cents. In comparison, this is approximately the same amount of energy used to operate an electric water heater for a family of four.

What are the “green” advantages of BEVs?

• A reduced dependence on fossil fuels is a key benefit in owning and operating BEVs.

• EVs have less negative environmental impact than gas-powered vehicles because of higher efficiency, lower energy consumption and no tailpipe emissions.

• Electricity is not a “fuel” in the same way coal or oil are. Cooperatives and other utilities produce energy from many sources, including hydro, nuclear, and increasingly, wind and solar generation, in addition to coal and natural gas. As the source of electricity gets greener, so does the vehicle.

What incentives are available when purchasing or operating a BEV?

• A federal tax credit with a top rate of $7,500; the amount is tied to battery size.

• Some states and cities offer incentives, including accessto High-Occupancy Vehicle (HOV) lanes and specialparking spots.

• Some cooperatives offer special electric rates for charging, usually at night or during off-peak times.

• Some states cities, or utilities offer incentive programs to offset the purchase and installation of a charging unit.

• To find incentives in your region, visit goelectricdrive.com.