You create a medium for everyone to enjoy lower electricity rates as you recharge your car at home. Here is how. According to a new study by Synapse Electricity Economics, EVs generate significant revenue for utility companies.
The study focused on three utility companies serving about 735,000 households in California. While providing electricity to customers who regularly charge cars, these utility companies generated a $1.7 billion profit between 2012 and 2022. The bottom line is that electric cars have increased utility revenue far more than they have increased utility costs.
Why such a huge profit? Research shows that EV owners use more electricity than others. Fortunately, most of them charge their cars overnight during off-peak hours when electricity is remarkably cheap. The study shows that it is cheaper for these utility companies to supply such a large amount of electricity overnight during off-peak hours.
image source: tesla.com
Utility companies would not share their extra profits with their customers; how will everyone benefit? There are regulations guiding revenues generated in the utility industry. They are bound to strict measures to protect the public interest because electricity is vital to life and safety.
They cannot just pocket the extra gain or share it with the consumers. The best way to return the excess profits made by utility companies to their customers is by lowering electricity rates for everyone. Your neighbor’s electric car reduces your electric bill if you do not know.
Two years ago, another company, MJ Bradley and Associate (focused on environmental issues), reported that increased EV charging in Nevada could lower utility bills by $123 per household yearly by 2050.
And an Added benefit: If America can massively switch to EVs, they could avoid blackouts when there is a mass power outage because they can gather enough EVs to power their homes for up to three days. EVs have gone beyond reducing carbon emissions; they also make utility bills cheaper for everyone.