Reducing Costs for Electric Vehicles at Domestic Gas Stations
In an effort to make electric vehicles (EVs) more appealing to customers, one gas station chain has initiated a pilot project that may be offered permanently, depending on customer response. However, it's important to clarify that the project does not involve lowering gasoline prices specifically for EVs, as they are charged using electricity.
The strategy, instead, revolves around promoting EV adoption through incentives and highlighting the cost savings of using electricity over gasoline. For instance, in the U.S., buyers can qualify for a federal tax credit of up to $7,500 until September 30, 2025, making EVs more affordable[1][3]. Additionally, some utility companies offer rebates for installing home charging stations[2].
Charging an EV can be cheaper than buying gasoline, especially when done at home[4][5]. The shift towards EVs is also expected to have an indirect impact on gasoline prices due to decreased demand as more people switch to EVs.
One gas station chain, Shell, is offering a special bonus to customers who charge their EVs during lunchtime at approximately 1,600 charging stations. The bonus does not apply to customers using internal combustion engine vehicles. The bonus, along with the use of the Shell Recharge app and the Recharge Shell charging card, can save customers an additional basic amount of 4.99 euros per month[6].
Despite these incentives, skepticism remains about EVs due to factors like charging possibilities, charging speed, and the cost of a tank load. However, many disadvantages have been balanced out by car manufacturers, and the majority of consumers in the country still prefer internal combustion engine vehicles.
The move by Shell is also intended to help stabilize the power grid, as a lot of electricity is fed into the grid during high solar radiation at lunchtime. The dynamic prices offered by Shell are oriented towards the electricity exchange price.
With the dynamic prices being tested in practice, it will help determine how much customers will actually save. As the market shifts towards EVs, they are considered the future of mobility. The concept of lowering prices for EVs may not be the primary focus, but the cost savings and incentives are certainly making EVs more attractive to potential buyers.
[1] - https://www.fueleconomy.gov/feg/taxevb.shtml [2] - https://www.energy.gov/eere/electricvehicles/ev-charging-infrastructure-home-work-and-public-places [3] - https://www.irs.gov/newsroom/new-irs-guidance-on-electric-vehicle-credit-extends-deadline-for-manufacturers-to-qualify-for-certain-credit-amounts [4] - https://www.forbes.com/sites/alanohnsman/2021/09/17/electric-vehicles-cost-less-to-run-than-gasoline-cars-according-to-new-study/?sh=3f6c0e427770 [5] - https://www.reuters.com/business/autos-transportation/electric-car-charging-costs-less-than-filling-gas-tank-study-2021-09-16/ [6] - https://www.shell.com/energy-and-innovation/news-and-media/news/2022/shell-recharge-announces-new-bonus-for-electric-vehicle-drivers-in-germany.html
- Shell's new project, in response to the growth of electric-vehicles (EVs), provides bonuses and offers incentives to EV drivers who charge their vehicles at Shell's charging stations, aiming to promote EV adoption and make them more attractive to potential buyers.
- Among the incentives offered by Shell is a bonus of 4.99 euros per month for customers who charge their EVs during lunchtime at around 1,600 charging stations, a move that also helps stabilize the power grid by balancing the supply and demand of electricity.
- In the United States, buyers of EVs can qualify for a federal tax credit of up to $7,500 till September 30, 2025, and some utility companies offer rebates for installing home charging stations, making EVs more affordable and competitive with internal combustion engine vehicles (ICE) in terms of cost.
- To encourage further EV adoption, various industries like technology and finance are exploring opportunities to collaborate, such as offering dynamic prices that align with the electricity exchange price, and funding research for faster charging solutions and increasing the availability of charging infrastructure, contributing to the shift towards EVs as the future of mobility.
