The Future of Electric Vehicle Charging Costs: How Will Electricity Prices and Technology Impact Us?

As we progress towards a future where over 60% of vehicles on the road are electric, the question of charging costs naturally arises. Will we be paying the same amount we pay now, or will there be significant changes?

Current Factors Influencing Charging Costs

The cost of charging an electric vehicle (EV) primarily depends on electricity prices and battery size. Currently, the cost is not significantly different from what you pay now. However, predicting the exact cost when 60% of vehicles are electric is challenging. Several factors come into play:

Renewable Energy Sources: As renewable energy sources become more prominent, electricity costs could potentially decrease, making EV charging more affordable. Technological Advancements: Improvements in battery technology may enhance efficiency and reduce charging costs over time.

Ultimately, the cost will be determined by your willingness to pay, similar to any other commodity. For instance, home electricity tends to be the cheapest, and public places might offer free charges as part of a deal.

Public Charging Landscape: Competition and Pricing

Currently, there are several major players in the public charging market, each with relatively high prices. In many cases, they are the only options available, leading to higher charges.

A notable situation occurred at a shopping center near the Western edge of the Cascades in Washington State. Two companies installed charging stations within 100 feet of each other, competing on pricing and billing methods. EVgo, which had been there for years, relied on billing by the minute, while Electrify America settled on charging by the kilowatt-hour (kWh).

Understanding the billing methods and evaluating when to use each service can help you optimize your charging costs. For example:

EVgo: Preferred for charging when you are low, as DC charging is fast at lower State of Charge (SOC) and the rate of charge ramps down as the batteries fill up. Charging to 2/3rds capacity can typically average 25–30 cents/kWh, taking 20–30 minutes. Electrify America (EA): Better for smaller battery packs or when you need to make fewer stops, as it can take an hour or more to charge to over 90% SOC at 43 cents/kWh. However, a monthly subscription can make it cheaper.

Blaming and Consumption: The Real Factors

Blaming political figures or oil companies for the current state of gas prices is not productive. The reality is that our own consumption decisions lead to fluctuations in oil prices. When consumption decreases, oil companies start charging less, but as consumption increases, prices rise. This is a natural market equilibrium.

Conclusion

The cost of charging an electric vehicle will depend on various factors, including electricity prices, technological advancements, and how we choose to consume energy. While predicting exact costs is difficult, understanding these factors can help you make informed decisions about charging and reduce the overall cost. It is crucial to take responsibility for our energy consumption and its impact on the economy and environment.