Let’s face it, electric vehicles are the future of transportation. Every time you hit the road you see more electric cars being driven from brands like Tesla, Volkswagen, Hyundai, Chevy, and more. Most vehicle manufacturers are now strategically planning to produce cars that strictly run-on electricity. And, there’s already a mandate in California for future sales of new gasoline-powered vehicles that will stop in 2035, according to an article on Engadget. Which makes us all wonder when it’ll be feasible to actually own one for ourselves. With today’s high cost of gas at the pump EV ownership may come faster for some people.
According to AAA fuel prices in Southern California are now averaging over $4.68 per gallon (November 2021) for regular unleaded. As for electricity, it’s also up at an average price of 23.9 cents per kilowatt hour (kWh) in the Los Angeles (October 2021) area. That’s three cents more per kilowatt than last year at the same time frame. For some, a three cents price hike may be minimal but multiplying that by the average home usage of 10,715 kilowatts per year equates to an additional $321.40. That totals to $2,560.88 for a year of electricity alone. According to energysage.com the average yearly rate increase for electricity within the past decade has been approximately 1.3% so you can only continue to expect costs to go up.
If an electric vehicle is in your future, it definitely makes sense to think about your home electricity bills. After all, part of having an EV is charging while at home so you’re able to forever skip going to a conventional gas station. But this also means obtaining electricity by conventional means from your local utility company like Edison, which will significantly increase your electric bills. You have to consider electricity rates that change quite a bit. In fact, rates change based on seasons, like summer and winter, as well as tiered rates and time of use. With tiered rate plans, energy price increases as you’re moved to different tiers based on your consumption level. Whereas in time of use, electricity is most expensive in the afternoon and evening times between 4pm – 9pm which are considered peak hours when more people are at home consuming more electricity for appliances, lights, and devices.
The exact cost to charge an EV at home and how much it will cost you every year will have many variables from vehicle to vehicle, mileage specifications, your driving habits, and when you’re actually charging. You’ll have to calculate that yourself based on the current utility pricing structure and charging times. This is why solar power and a back-up battery for your home should also be a consideration when it comes to future EV adoption.
A solar power system at home may be the only way to effectively combat the rising cost of electricity to power both your home and future electric vehicle(s). Technically a solar energy system enables the production of electricity at a set price based on the size of the solar power system and how much energy it will produce, as well as the payment plan you choose for ownership. At Solar Power Supply we believe the best way to obtain a solar energy system is to purchase one rather than leasing or committing to a power purchase agreement (PPA). That way, you’ll also be able to take advantage of the current (limited-time) 26% Federal Solar Tax Credit, additional discounts, and low financing rates available today. If you own a home now, it doesn’t hurt to get a free estimate on solar energy. You’ll at least be able to compare what you pay the utility company and what you’ll get out of solar energy to power your home and/or EV and determine if it’s right for your situation.
Call us today to discuss your alternative for power.