What Does the Current EV Adoption Rate Mean for Utilities?

The race to plug in more electric vehicles (EVs) is happening right in front of our very eyes. Automakers are committed to creating a fully electric future with 25 new EV models scheduled to be released in the U.S. during 2022.  The EV share of all U.S. vehicle sales doubled from 2018 to 2021. Put simply: the automotive industry is on the brink of massive EV expansion and adoption.

Auto shoppers in America are more likely than ever before to consider buying a fully electric vehicle (EV), and new EV entries are responsible for much of the added consideration. These new entries, many from long-established vehicle manufacturers, are turning EV skeptics into likely EV considerers, according to the recently released J.D. Power 2022 U.S. Electric Vehicle Consideration (EVC) Study.

“The addition of new EV models has moved the needle on consumer consideration,” said Stewart Stropp, senior director of automotive retail at J.D. Power. "In fact, several new models from perennial mass market brands are at the top of that consideration list. Even so, more remains to be done in terms of transitioning from early to mass adoption."

There is a substantially higher ratio of shoppers who own their home who say they are "very likely to consider” an EV (27%) than those who rent (17%). Not only are homeowners more affluent, on average, but are more likely to be able to charge an EV at their residence. This makes the home charging experience more important than ever before. 

What does this mean for electric utilities? 

Adrian Chung, Director of Utilities Intelligence weighs in:

"Utilities should be encouraged by the growing consideration of electric vehicles in the market as this represents a great opportunity  for utilities to lend support to helping to continue this momentum.  With exciting new electric vehicles coming out throughout the year, utilities should be ramping up their presence in educating customers with key information on applicable home charging rates or programs, installation support and overall value.  As most charging continues to take place at home, utilities will want to establish their importance to the long-term EV ownership experience."

EVs offer a golden opportunity for a new revenue stream.  Customers with EVs today rate their utilities higher in overall customer satisfaction. And our studies show that consumers are more willing to consider an EV purchase as they become more exposed to EVs – riding in them and test driving them.

Communicating running costs and providing access to test drive EVs are a few of the ways utilities can foster EV adoption and make a positive impact on their revenue streams. Utilities that educate EV customers on time of use and charging's impact on rates will likely reap rewards in customer satisfaction.