The power behind EVs

This story first appeared in the November issue of EVtalk – CLICK HERE to download the magazine FREE

As countries around the world set ambitious carbon zero targets, the business world is responding with more and more innovative and clean and green products to meet the changing marketplace.

And it’s fair to say that the transport industry is streets ahead of the curve, with huge investment across the globe driving the unstoppable rise of electric vehicles.

New Zealand consumers, it seems, are completely on board with this trend.
According to a recent survey by a NZ energy retailer, a whopping 46% of Kiwis say they would consider buying an electric vehicle over the next two years.

When respected futurist Tony Seba visited New Zealand last year, he predicted EVs will be cheaper than petrol cars within a decade.

But when it comes to the cold hard reality of jumping aboard the EV bandwagon today, the question of upfront cost is causing many to slam on the brakes.

“There are many reasons why switching to an EV makes perfect sense,” Vector’s new technology lead Moonis Vegdani says.

“However, for many the opportunity to buy a new car does not come up very often, simply because the upfront cost of purchasing new cars is so substantial,” he says.

“But with all the development happening in the EV space, and the amount of near-new EVs entering the second-hand car market, it’s high time to revisit the maths because the financial arguments to make the switch to an EV could be a lot stronger than we think.
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Look beyond the sticker price

According to the Energy Efficiency and Conservation Authority’s (EECA) “total cost of ownership tool”, choosing the right vehicle for your business comes down to much more than just the purchase price.
Looking at the total cost of ownership, and the amount of kilometres you clock up, could make a big difference to your bottom line, and your carbon footprint.

For example, if your business was in the market for a fleet of five-seat hatch backs – going electric with a new Nissan Leaf would cost you roughly $40,000 per car in upfront costs.
A comparable petrol-powered option, such as a new five-seat Toyota Corolla, would come in at around $32,500.

EECA’s online tool breaks down the total cost of ownership for each car over a 36-month term, or 64,000km travelled.
And it turns out the real difference in total ownership cost between the two cars comes in at about $500, with the Nissan only slightly more expensive*.
But if you drive 77,000km over that term, the total cost of ownership is more favourable for the Nissan Leaf, by $1440.

That’s because, according to EECA’s online tool, the running costs (electricity and maintenance) of the Nissan Leaf are considerably less than the petrol costs required by the Corolla.

“Furthermore, the EV has about 20 moving parts compared to about 2000 in a car with an internal combustion engine, so over the life of the vehicle, the servicing requirements are likely to be much less onerous,” Vegdani says.

While comparing the total cost of ownership gives us plenty of food for thought, things start to get much more interesting for the discerning buyer when you add home solar and battery systems into the EV equation.

Compounding interest

HRV Solar’s Rob Speirs says as more homes and businesses adopt solar and battery systems to their energy mix, and the technology that drives them continues to advance at pace, the benefits of EVs could really kick into gear.

“Picture a future where you’ve just arrived home in your EV, it’s been a sunny day so the HRV solar panels on your roof have generated enough energy to fully charge your home battery.

“Then, as the family uses that stored energy to get ready for dinner, you might plug your EV into the wall to discharge energy left in your car’s battery to use in your home.

“Continuing with the future vision, as you’re getting ready for bed, you might reverse the charge of your car battery to fill it up for the commute to work tomorrow – either from what’s left in your storage battery, or directly from the power grid now that you have the option to choose.

“The next day you repeat the cycle, and do this over the course of the year and work out that during this time you would have utilised quite a lot of solar energy to power your EV.

“While this is hypothetical today, this sort of technology could exist in future, and that’s when the benefits of EVs could end up being an easy choice for families.
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As with EVs, doing your sums carefully and keeping your household’s needs in mind is important when it comes to determining if solar is right for you.
The good news is, as solar and battery technology continues to improve, the options for maximising your EV investment could increase.

That may be good for your wallet and the planet too.
After all, New Zealand’s mostly renewable electricity supply puts us in a unique position to transition swiftly to an EV nation.

*Comparing total cost of ownership of a Toyota Corolla ZR CVT Hatch 5-seat 103kW petrol car with a Nissan Leaf AC Motor Hatch 5-seat 80kW electric car using EECA’s Total Cost of Ownership Tool