Electric cars are on track to dominate the car industry soon. Due to environmental worries and the push for eco-friendly transportation, a growing number of individuals are favoring electric cars instead of conventional gas-powered ones.
Yet, a major worry for electric car owners is the accessibility of charging stations. As the demand for these stations rises, so does the expense of setting up and maintaining the infrastructure. This calls for examining how the increasing demand for charging stations is affecting the total costs. To be proactive, try using an effective Electric Car Charging Cost Calculator.
The Expense of Charging Electric Vehicles
Charging an electric vehicle comes with varying costs, dependent on the location and charging station provider. Home charging stands out as the most cost-effective and convenient option, allowing users to charge overnight while asleep. However, for on-the-go drivers, public charging stations become the primary choice.
Public charging stations fall into two categories: Level 2 and DC Fast Charging. Level 2 EV charging stations, being the most widespread, offer a charging rate of up to 25 miles per hour. Conversely, DC Fast Charging provides a much faster rate of up to 100 miles of range per hour, though it comes with a higher price tag.
Charging an electric car using Level 2 stations can cost anywhere from 8 to 60 cents per kilowatt-hour (kWh). For instance, with a 60 kWh battery pack, charging from empty to full could range from $36 to $80.
The Rising Need for Electric Vehicle Charging Stations
As the number of electric vehicles (EVs) continues to grow, the demand for more charging stations is increasing and is expected to keep rising. BloombergNEF’s report predicts that global electric vehicle sales will hit 54 million by 2040. In the United States, electric vehicle sales surged by 81% in 2018, according to the Electric Drive Transportation Association.
The Insufficient Number of Charging Stations
The surge in demand for EV charging stations is creating challenges for EV owners in finding available charging spots. Data from the US Department of Energy reveals that as of March 2021, there are only about 68,800 charging stations with a total of 125,000 outlets in the US, compared to over 150,000 gas stations. This scarcity of charging stations poses difficulties, particularly for EV owners residing in high-rise apartments or with limited access to charging points. Additionally, the shortage of charging infrastructure acts as a deterrent for potential EV buyers.
Statistics on the Demand for EV Charging Stations
● The anticipated global market size for EV charging stations will be USD 39.2 billion by 2027.
● In 2020, there were more than 1.3 million electric cars on US roads.
● California leads in the number of EV charging stations in the US, boasting over 7,700 stations.
The Influence of High Demand on Costs
The escalating demand for EV charging stations is causing a rise in installation and infrastructure expenses. This is mainly due to the substantial investment required to establish and maintain EV charging stations. The higher cost of electricity compared to gas also contributes to the overall financial burden. Furthermore, the intricacies of the charging station installation process can further elevate installation costs.
● The typical cost range for a Level 2 charging station is between $400 and $1,200.
● The average cost of a DC Fast Charging Station is approximately $50,000.
● The installation cost for a Level 2 charging station can vary from $600 to $2,000, depending on the installation’s complexity.
Advantages of the Growing Demand for Vehicle Charging Stations
Despite the impact on costs, the increasing demand for EV charging stations brings some positive aspects:
● Growing demand reduces concerns about the financial feasibility of installing charging stations for stakeholders in the charging infrastructure business.
● Collaboration between automakers and premium tech companies often involves incentives, investing in EV infrastructure a more straightforward decision.
● The expanding infrastructure creates substantial business opportunities within the charging station industry.
● Find specialized assistance with our list of electric charging station installation contractors.
Expanded venture could prompt a quicker EV charging station establishment period, fundamentally upgrading the unwavering quality and comfort of the charging foundation.
Impact of Recent Energy Price Increases on Electric Vehicles
Recent surges in energy prices have posed a new challenge for electric vehicles (EVs), impacting one of their key advantages—their operational costs. Various factors, such as the Russo-Ukraine war, the COVID pandemic, and inflation, have contributed to the overall rise in prices, significantly affecting both gas and electric prices.
The price of petrol at pumps can change rapidly, reflecting market fluctuations. Buyers often experience immediate effects, as drops in oil prices lead to corresponding decreases in petrol prices within weeks or days. This dynamic nature means petrol purchasers are subject to quick market changes, feeling the impact of sudden increases in oil prices promptly.
Conversely, electricity and gas prices are less immediately affected by rapid market changes. The surge in energy costs has more than tripled average electric bills and concurrently increased the cost of charging an EV. EVs are now more expensive to run per mile than petrol vehicles when not charged at home.
It’s essential to clarify that, despite these challenges, EVs remain more cost-effective than their internal combustion engine (ICE) counterparts—provided they are charged at home during off-peak times.
Committing to the Future
Even with the increasing cost of charging stations, it remains crucial for governments and private companies to persist in their investments. The growing popularity of electric vehicles is inevitable, and lacking the requisite infrastructure to accommodate them could impede their widespread adoption. Investing in charging stations is not only vital for environmental reasons but can also generate employment opportunities and stimulate local economies. It stands as a chance for individuals and companies to invest in the future and ensure a sustainable world for future generations.
The Bottom Line
Everything comes with a little bit of problems. What we have to focus on is whether the option we are going for has more pros than cons or not. In this case, EVs are still a better option for our environment.
For your electric car charging cost calculator needs or anything else, reach out to Clean Calcs.
