Photo: Wallbox
A recent study shows that more electric vehicles plugged into the grid help drive down the cost of electricity for everybody. This is interesting because the common belief was going in the opposite direction until now.
Electric vehicle drivers are mocked, laughed at, and bullied in traffic, have their cars keyed, and generally are not very popular among their fellows ICE drivers. It’s unclear where this grudge comes from, but it’s happening. EV detractors have many arguments, although many are based on false assumptions.
One of those arguments against electric vehicles is that more EVs will burden the grid and make electricity more expensive for everyone because of the upgrades needed. In fact, the exact opposite is true, as revealed by a recent study paid for by Natural Resources Defense Council and performed by Synapse Energy Economics.
According to the study, which analyzed the three largest electric utilities in California, the high percentage of EVs in the state has pushed down electricity costs for customers. That’s because most EV owners charge their cars overnight when people are sleeping, and there is plenty of spare capacity on the grid.
Over the last decade, the study’s authors write, EV owners in the service territories of Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric “have contributed approximately $1.7 billion more in revenues than associated costs, driving rates down for all customers.”
There’s another factor at play, and that has to do with the way utility companies are regulated. More specifically, because electricity is considered essential to life and safety, they are subject to strict controls to protect the public interest. This includes limits on pricing and revenues.
When utility companies make more money, they are required to pass some of that profit onto their customers by lowering rates. “Electric vehicles have increased utility revenues more than they have increased utility costs, leading to downward pressure on electric rates,” the study found.
A similar study was done two years ago in Nevada and came to a similar conclusion. More specifically, the study authors found that if most drivers in that state went electric, the average electricity bill would fall by $123 per year. Synapse analysis shows that large-scale EV adoption doesn’t have to be all doom and gloom, but is actually beneficial to everyone.
One of those arguments against electric vehicles is that more EVs will burden the grid and make electricity more expensive for everyone because of the upgrades needed. In fact, the exact opposite is true, as revealed by a recent study paid for by Natural Resources Defense Council and performed by Synapse Energy Economics.
According to the study, which analyzed the three largest electric utilities in California, the high percentage of EVs in the state has pushed down electricity costs for customers. That’s because most EV owners charge their cars overnight when people are sleeping, and there is plenty of spare capacity on the grid.
Over the last decade, the study’s authors write, EV owners in the service territories of Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric “have contributed approximately $1.7 billion more in revenues than associated costs, driving rates down for all customers.”
There’s another factor at play, and that has to do with the way utility companies are regulated. More specifically, because electricity is considered essential to life and safety, they are subject to strict controls to protect the public interest. This includes limits on pricing and revenues.
When utility companies make more money, they are required to pass some of that profit onto their customers by lowering rates. “Electric vehicles have increased utility revenues more than they have increased utility costs, leading to downward pressure on electric rates,” the study found.
A similar study was done two years ago in Nevada and came to a similar conclusion. More specifically, the study authors found that if most drivers in that state went electric, the average electricity bill would fall by $123 per year. Synapse analysis shows that large-scale EV adoption doesn’t have to be all doom and gloom, but is actually beneficial to everyone.
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