SHOPSMART AUTOS – CUSTOMER INFORMATION – JUNE 27, 2021 (PT.1)
THE CHARGING PROBLEM BIDEN WILL NEED AT LEAST $35 BILLION MORE IF HE IS TO MEET HIS GOAL Installing EV chargers can be expensive, depending on the level of charging that’s being offered. The higher the level, the quicker the charge and the more expensive it is to install. A public Level 2 charger might cost $2,000 out of the box, but a DC fast charger of 150kW or more can cost between $100,000 and $250,000, Nelder said. The federal government could intervene in making those costs cheaper, but it won’t be easy. That would require sitting down with utility companies and regulatory commissions in all 50 states, as well as the private EV charging companies, to bring down the capital investments for charging stations through “make ready” programs. These are programs in which public utilities and local governments identify sites that are intended for EV charging and allow companies to submit bids for installation. There is no federal “make ready” program, though, and only a few states employ this method of fast-tracking EV charger installation. The Biden administration could make things a lot easier by creating a national system for states to use. Another looming problem is utilization and how utilities charge for the electricity they provide. Most EV charging stations sit unoccupied because EVs still only make up a tiny fraction of the overall car market. That means the business case for building more chargers is very difficult to make. “It’s that first few years where you want me to put a quarter million into a station, and then I can’t get better than 5 percent utilization,” said Henry Lee, director of the Harvard Kennedy School’s environmental and natural resource program. “I lose my shirt in the first three or four years, but by year seven or eight, I could be making money on it.” “I LOSE MY SHIRT IN THE FIRST THREE OR FOUR YEARS, BUT BY YEAR SEVEN OR EIGHT, I COULD BE MAKING MONEY ON IT.” Lee noted that the cost of electricity is another problem for EV charging companies. Demand charges from utility companies tend to dominate charging companies’ operating costs, further complicating the business case for building more charging stations. The total cost of electricity is higher based on the level of charging they provide. These calculations need to be rethought if the government wants to incentivize the EV charging industry. “How you restructure this formula for these kinds of stations is something that we haven’t quite figured out,” Lee said.Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
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