With the recent change in government, the subsidy for buying electric vehicles has come under fire as the Progressive Conservatives and Doug Ford look for programs to axe. The association of the Electric and Hydrogen Vehicle Incentive Program (EHVIP) with the Liberal’s low-carbon plan make it particularly vulnerable to elimination as the new government has made it clear that they do not support these initiatives.
Note: as of July 11, 2018 the Ontario Provincial government has cancelled the EHVIP program.
Note: as of May 1, 2019 the Canadian government has established incentives for purchasing Zero-Emission Vehicles.
Low-carbon vehicles are the future of transportation. The issues surrounding the social, economic, environmental and engineering aspects of these vehicles ignite much debate, however the long-term interest clearly favours their implementation.
It is safe to say that few people have ever considered the cradle-to-grave impact of different vehicle types. I can spare you the details by telling you that the cradle-to-grave emission savings through the use of electric vehicles is significant. The savings is even greater if you purchase a vehicle that is manufactured in a jurisdiction that uses renewable electricity sources for industry. It gets even greater the longer you extend the life of the EV.
The economic cost of transitioning to EVs will limit the short-term migration to this technology. A large-scale conversion would trigger an infrastructure upgrade as the electricity distribution would not be able to handle the additional battery-charging load unless it was limited to off-peak, low demand times of day.
An extended range EV like the Chevrolet Bolt has a 60kWh battery that is estimated to take you 380 km. In Toronto as of June 2018 it would cost you $5.40 to fully charge that battery (ignoring losses) during off-peak hours. In many situations you should be able to top-up free at any municipal charging station. A compact car using 9 liters of fuel per 100km would cost almost $35 for the same distance at the current gas price of $1.30/liter. That’s six to seven times what it costs for the EV to cover the same distance.
Insurance for EVs is similar to their gasoline-powered equivalents, however it is too early to determine what the trend will be should they become more popular. Insurers will most likely try to tap into additional revenues by offering optional coverage for batteries, charging stations – and liability in case someone trips over your charging cable.
Don’t be drawn in by the low-cost to charge the EV. They are significantly more expensive to purchase and will require a battery replacement during the useful life of the vehicle. It is too early to know the exact long-term price of a replacement battery, however it would be reasonable to expect it to cost between $7k and $20k CDN depending on the battery capacity and disposal fee (if any).
I have put together a series of brief articles that examine some important aspects of electric vehicles as they will have significant impact on the environment and electrical grid in Ontario.
Electric Vehicles and greenhouse gas emissions
Electric Vehicle efficiency and operating cost
Living with an Electric Vehicle
Electric Vehicle infrastructure impact
So… which is it?
If the EV subsidies remain in place and you care about the environment – I say Yay!
Otherwise – Nay! It just isn’t worth the economic risk and if you voted-in the current PC government you really couldn’t care less about the environment.
With the cancellation of the subsidy by the Ontario PC government on July 11, 2018 there is no longer an economic case to support buying an EV. There remains an environmental benefit from EVs for those who place a greater value on environmental factors than operating cost.
On May 1, 2019 the Canadian Federal Liberal government introduced their own incentive program for purchasing Zero Emission Vehicles, restoring an economic justification for purchasing them.
You may find out additional information including the list of eligible vehicles under the iZEV Program here.
Be informed. Make the right choice.
Derek