From expansions in EV charging station infrastructure and tax incentives to improved range, 2021 is a big year for electric vehicles.
2021 is shaping up to be a big year for electric vehicles (EVs) and battery electric vehicles (BEVs). A confluence of factors will contribute to major growth and even wider adoption of this already popular and energy-efficient mode of transportation.
Let’s take a look at five major EV trends likely to define the year for this sector:
1. Government Initiatives and Incentives
The economic environment for EV initiatives will largely be shaped at the federal and state level with a host of incentives and initiatives.
At the federal level, the new administration has stated its support for tax credits for consumer EV purchases, Nasdaq reported. This is in addition to a pledge to build 550,000 new EV charging stations.
Currently, the U.S. Department of Energy (DOE) offers the Qualified Plug-in Electric Vehicle Tax Credit for EV purchases that meet certain requirements. The credit has a range of $2,500 to $7,500 based on battery capacity and gross vehicle weight rating. It should be noted that this credit expires upon the automaker selling 200,000 qualified EVs. Although both Tesla and General Motors have reached this cap, plenty of other EV companies have not.
Nationwide, at least 45 states and the District of Columbia offer incentives as of November 2020, according to the National Conference of State Legislatures (NCSL). You can find individual state laws and incentives related to alternative fuels and vehicles at the DOE website.
In general, these incentives include:
- Tax credits for EV purchases and EV charging infrastructure
- Reduced vehicle registration fees
- Research project grants
- Alternative fuel technology loans
However, some of these incentives are ending soon, so it’s important to move quickly if you want to take advantage of them. For instance, Colorado’s $4,000 tax credit on the purchase of light-duty EVs will sunset in 2021. Maine’s rebate for purchasing an EV based on income eligibility requirements will expire at the end of the year. Meanwhile, residents in Oklahoma have until Oct. 31, 2021, to qualify for a rebate on EV chargers.
2. Surge in EV sales
In 2021, you can expect to see more fellow EV drivers on the road. Although the pandemic caused EV sales to stall out early in the year, the market rebounded strongly to close out 2020.
This momentum should carry over for a big year for EV purchases. Year-over-year EV sales are projected to rise a staggering 70% in 2021 over 2020, according to CleanTechnica’s EVAdoption Analysis. As EVs increase on the streets, this may cause additional congestion at charging stations until the national infrastructure catches up. Ultimately, it suggests a good time to consider looking into home-charging stations.
3. Improving Range and Charge for new EVs
Once you’ve experienced the ease and comfort of driving an EV, there’s no going back to gas-powered cars. So if you’re looking to buy a new EV, 2021 will offer more EVs and BEVs than any year prior, Motor Trend reported. What’s even better is that automakers have been refining and upgrading designs and manufacturing processes, making the 2021 models better to drive with optimized range.
For example, on the more affordable side of the EV price tag, the Chevrolet Bolt saw its range increase from 200-plus miles to 259-plus miles of range.
4. Expanding EV Charging Station Infrastructure
Widespread and accessible public EV-charging infrastructure will be absolutely critical in supporting a robust EV market. Thankfully, with more EVs forecast to be on the roads next year, EV drivers can expect significant growth of charging stations across the country.
The Natural Resources Defense Council (NRDC) noted that 26 states have approved 45 utilities to invest $1.5 billion in EV charging-related programs. In addition, there is still $1.3 billion in EV-charging proposals awaiting approval. The activities and programs being funded include:
- Supporting transportation electrification via EV programs
- Directly owning charging equipment
- Funding portions of the charging installation
- Conducting consumer education programs
- Offering special electricity rates for EVs
These programs will help scale up EV charging infrastructure to accommodate the increase in EV drivers.
5. Home EV Charging Stations More Efficient Than Ever
In the past, home-charging stations were super expensive, needed to be hardwired to a home’s electric system and didn’t even work with every EV.
New EV home-charging stations have come a long way since those older versions. Current models not only offer faster charging times, but they’re much more convenient, affordable and expansive in their charging capabilities than they’ve been in the past. Plus, they’re much more efficient.
With many utilities in several states offering price breaks and rebates, a home-charging station will be on the agenda for a lot of people in 2021.
Want to know more about the top EV trends of 2021?
Reach out to the electromobility pros at Webasto today.