The State Leading The US In EV Adoption Is…

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Originally published on EIA.

In 2013, there were about 70,000 battery electric vehicles (EVs) and 104,000 plug-in hybrid electric vehicles (PHEVs)—small numbers compared to around 226 million registered vehicles in the United States. Total U.S. sales of plug-in electric vehicles (PEVs) have increased in recent years, but still represent only about 0.7% of new vehicle sales in 2014 so far, up from 0.6% in 2013 and 0.4% in 2012. California is home to almost half of all of the nation’s PEVs, but even in California, only about 5 out of every 1,000 registered vehicles are PEVs.

Source: U.S. Energy Information Administration, based on Federal Highway Administration data and R.L. Polk & Company

Several states offer tax incentives to reduce the upfront cost of PEVs to consumers. These incentives are in addition to a federal (nationwide) tax credit, which ranges from $2,500 to $7,500 depending on battery capacity and gross vehicle weight. Examples of incentives include the following:

  • California offers rebates of up to $2,500 for EVs that run only on a charge, and $1,500 for PHEVs, which can also run on gasoline.
  • Washington has exempted EVs from the state’s 6.5% sales and use tax. However, the incentive does not apply to the purchase of PHEVs. While PHEV ownership is higher than that of EVs for the United States, the reverse is true in Washington.
  • Georgia offers a zero emissions vehicle (ZEV) tax credit of 20% of the cost, up to $5,000. ZEVs include vehicles powered by electricity or hydrogen fuel cells.
  • Maryland offers a tax credit of $125 for each kilowatthour of battery capacity of an EV, up to $3,000. Many EVs have a battery capacity sufficient to obtain the full credit. PHEVs have a lower capacity and therefore secure a lower credit; the state estimates that a consumer purchasing a plug-in Toyota Prius would get a credit of $550.
  • The District of Columbia has a tax credit of 50% of the incremental cost of an EV, up to $19,000. The District also exempts EVs from its excise tax, which varies from 6% to 8% depending on vehicle weight.

Some utility companies offer special electricity rate structures for PEV owners to incentivize vehicle charging during off-peak hours, generally in the evening. For instance, DTE Energy in Michigan offers customers discounted electricity rates at off-peak hours if they install a 240-volt Level 2 charger, which powers a PEV more quickly than a 120-volt Level 1 charger. The ratepayer must also install a separate meter dedicated to the PEV. Customers also have the option of paying a flat $40 monthly fee for charging.

California implemented a ZEV mandate that requires automobile companies to produce for sale a certain percentage of zero emission vehicles, such as electric and hydrogen fuel cell. By 2025, approximately 15% of all new light-duty vehicles sold in the state must be either electric or fuel-cell powered.

Nine states have agreed to follow California’s ZEV mandate: Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont. These ten states represent close to one-quarter of the U.S. light-duty vehicle market.

Principal contributors: Nicholas Chase, Allen McFarland

Reprinted with permission.

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9 thoughts on “The State Leading The US In EV Adoption Is…

  • Lots of interesting information in this article as to the various credits/discounts available in different US states to encourage the adoption of EV’s.
    But the initial question brought up in the title “State Leading the US in EV Adoption…..” isn’t answered?
    Other commentors have brought up the issue of various titles of articles qualifying as ‘click bait’. It might seem that this one does also.
    The variety of information and community of commentors on this site has been very much appreciated and enjoyed since finding it. I hope that it doesn’t degrade into the same fluff to be found in the rest of the mass media.

    • “But the initial question brought up in the title “State Leading the US in EV Adoption…..” isn’t answered? “

      Yes, it is. At the end of the first paragraph it says, “California is home to almost half of all of the nation’s PEVs….”

      • Hey Jean,
        I am being persnickety about this it must be admitted.
        With the title saying EV it seemed that they might be talking battery vehicles, but then it started including hybrids even something with as short of an electric range as the Prius. So with everything lumped together BEV, PHEV, EREV, and etc the answer will obviously be California.
        It would be interesting to see a breakdown of just electric vehicles even if it included the low speed neighborhood cars because I know that Atlanta has done a lot to encourage there use through the years, but maybe still hasn’t kept up with California.
        Apologies for getting so picky over this.

  • PEV? who wrote this article? It switches from the commonly used EV and PHEV designations, to use PEV? is that the combination of both categories? because its far from clear, and doesnt really answer the question posed in the title.

  • Interesting to see AZ starting to wake up and use cleaner autos. Air stagnation events in and around Phoenix make the air almost thick enough to plow on some days. All those people who moved to AZ for those “Clear desert skies” wonder what happened to them

  • What would the demand for oil and the price per barrel be if half the cars were plug-in hybrids and EVs? Or all the cars.

    These vehicles could change the world in a profound way.

    • Will change the world in a profound way.

      We’re probably two years away from a 200 mile range EV for less than $40k. Just increasing sales numbers (economy of scale) will start bringing those prices and the offerings toward $25k. And $25k long range EVs sill pretty much push ICEVs into a small niche over a small number of years.

      Demand for oil will shrink. Prices will shrink down to the level that the least expensive producers will be willing to sell product. Watch for some of our most problematic oil sources to be shut down.

      • Great chart, Bob, although I would think the tar sands would be the most expensive production of all. Where did you find it?

        IMO we should be doing everything possible to move people into plug-ins as quickly as possible, including a carbon fee or tax on oil to make the price of gasoline reflect the external costs of oil and extending the purchase subsidies.

        BTW, I have enjoyed reading your posts for a long time.

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