Your neighbor’s electric vehicle is probably lowering your electric bill, according to a study conducted by an independent researcher on behalf of a national environmental group.
“Plug‐in electric vehicles (EVs) offer a key opportunity to reduce harmful emissions and save customers money at the same time,” said Synapse Energy Economics, which performed the study for the Natural Resources Defense Council.
The electricity industry is unlike most other businesses.
Since most of the U.S. energy grids are owned by private businesses, not publicly owned but they are a vital public service essential to life and safety, they are operated under heavy regulation.
That causes energy providers to undergo strict regulatory controls aimed at protecting the public interest while allowing electric companies to profit.
Since EVs use more power but usually consume it overnight when power companies are in off-peak, the demand does not tax the system as it uses electricity that is essentially being produced cheaper than normal.
“EVs are responsible for far fewer greenhouse gases and local air pollutants than conventional vehicles and become cleaner as more renewable electricity is added to the grid. In addition, EVs are generally much less expensive to operate than conventional vehicles,” the report says.
Americans are expected to buy more electric cars as many states are planning to ban sales of gasoline-powered cars and light trucks. California regulators passed rules banning the sale of new gas-powered cars by 2035, a move hailed as a significant victory in the fight against climate change.
As those consumers add to the off-peak demand for electricity, it will result in greater output at lower costs, and regulators will force producers to pass along some of the savings to customers.