Rising fuel prices driving behaviour change but EV cost remains biggest barrier – Genesis

Rising fuel prices are prompting more New Zealanders to change how they travel and look for ways to cut household energy costs, but the upfront price of electric vehicles remains the biggest obstacle to wider EV adoption, according to new research commissioned by Genesis Energy.

The survey found 79% of New Zealanders are actively looking for ways to reduce their household energy costs, while only 30% say they have switched to, or are likely to switch to, an electric vehicle. Nearly half (44%) identified the purchase price of an EV as the biggest barrier, compared with just 11% citing driving range and 11% charging infrastructure.

Genesis chief revenue officer Stephen England-Hall says the findings show New Zealanders are motivated to reduce costs but often lack the information needed to make informed decisions.

“What’s holding us back isn’t willpower, it’s not knowing what the numbers actually look like for our own households,” England-Hall says.

The research found 76% of respondents said rising energy costs had a moderate or major impact on their household budget over the past six months.

Behaviour is already changing in response to higher fuel prices, with 40% of New Zealanders walking or cycling more, 26% using public transport more often, and 42% changing how frequently they commute to work.

Half of respondents also said they had cancelled or changed holiday travel plans because of higher petrol prices.

Younger New Zealanders were the most likely to have changed their behaviour, with 86% of those aged under 30 reporting they had made at least one change because of rising fuel costs. However, only one-third said they had a good understanding of both fuel and electricity costs, compared with three-quarters of those aged over 60.

While interest in reducing transport costs remains high, England-Hall says affordability has overtaken range anxiety as the biggest barrier to EV ownership.

“Those who were hesitant to switch twelve months ago were worried about charging infrastructure and range, but now we can see that New Zealanders who haven’t made the switch are held back by cost.

“While the price of EVs is reducing, for this group of people, it is increasingly important to find other ways to bring the total cost of energy down across the board.”

Genesis says households charging an EV at home on off-peak electricity rates can achieve running costs equivalent to about $1.60 per litre of petrol, including road user charges.

To help households better understand their energy costs, Genesis has partnered with Cogo to launch the Go Electric Calculator, which estimates the impact of changes such as switching to an EV, installing solar panels, changing home heating or moving to electric cooking.

The company says users of the calculator are identifying average potential annual savings of around $4,000, with the largest savings coming from fully electrifying both transport and household energy use.

The survey also found:

• 63% of New Zealanders have made at least one behaviour change because of rising fuel prices.
• 42% did not know they could reduce their electricity bill by changing the time of day they heat their water.
• Half have never used an online calculator to estimate potential household energy savings.
• 60% believe they have the ability to reduce their household energy costs.

England-Hall says increasing electrification will play an important role in reducing long-term household energy costs.

“Electricity is the cheapest energy for most households and going fully electric reduces exposure to volatile fuel prices.

“We’re backing that with $1.1 billion in new renewable generation and storage by 2030: solar farms, wind, and a new grid-scale battery at Huntly that can power 60,000 homes on a winter evening. Our 30,000 solar customers are already exporting enough to power a town the size of Taupo. More home-grown supply is what will structurally bring costs down for New Zealanders.”

Read the full report here.