Why Utilities Should Pay Attention to Rapid EV Adoption

Electrification is one of the Top 6 areas utilities need to get right in 2022.

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.

What does this mean for electric utilities? 

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.

Do you know where EVs in your market charge up? What are your plans to support the adoption of EVs by the next wave of buyers?

As new EV models continue to enter the market, the rate of EV retail share will only continue to grow – and grow quickly – as illustrated below. 

Utility providers will be providing power for EV home charging for the life of the vehicle – long after the dealership sales transaction ends.  This translates into an opportunity for utility providers to educate customers, improve customer awareness, and ultimately, increase satisfaction with their utility.

As the EV adoption trend grows, utilities need to ask themselves some important questions:

• Do your customers know about the advantages of home charging, including rates and the best time of use?
• Are you offering customers any incentives and/or installation support?
• Is your staff prepared to answer these (and other) questions?

J.D. Power has been aggressively gathering data and insights to support you.

Learn more about the J.D. Power electric vehicle studies here. 

Learn more about the J.D. Power Sustainability Certification Program here.