Electric Cars to be Cheaper than Gas-Powered Cars by 2025
Energy efficient, battery-powered cars will, by 2025, be cheaper to buy than conventional, gasoline-powered cars.
Bloomberg New Energy Finance recently reported that the price of the zero emission cars is largely due to falling battery costs. The report says that “batteries currently account for about half the cost of EVs, and their prices will fall by about 77 percent between 2016 and 2030.”
Automaker Renault predicts ownership costs of electric vehicles will, by the early 2020s, equal that of conventional gas-powered vehicles.
The report also noted that by 2025 14% of new car sales, or 100 million electric cars globally, will be electric vehicles.
For fleet operators, this is good news. In 2014, greencarreports.com reported that electric vehicle fleets could save operators an average of $16,000 each, compared to the traditional vehicles over a service life of seven years. Now, the cost savings is clearly larger.
One of the challenges, however, with electric vehicles is total energy demand. The energy demand created by fully charging an electric vehicle (EV) can be as high as total domestic electricity consumption for one household, albeit more concentrated over particular periods of the day as well as geographical areas.