electric vehicles Archives | Citizens Utility Board

Here’s what Illinois consumers need to know about Inflation Reduction Act clean energy benefits

Elizabeth — Thu, 01 Sep 2022 21:00:03 +0000

Now that the historic Inflation Reduction Act (IRA) has been signed into law, many consumers are wondering how they can benefit from the money-saving, clean energy provisions in the bill. The IRA represents much needed relief at a time when 1 in 6 homes in America are behind on their utility payments. Below are the major ways consumers can take advantage of the new legislation: Home Energy Efficiency Tax Credits Each year for the next decade, consumers can claim a tax credit for 30 percent of the cost of qualified projects that make their home less drafty or improve energy efficiency, to an annual limit of $1,200 credit. These incentives include: Up to $600 for highly efficient central air conditioners; electric panel upgrades; and water heaters, furnaces and water boilers that run on natural gas, propane or oil. These products must meet Consortium for Energy Efficiency’s highest efficiency tier. Up to $150 for a home energy audit $600 for new energy-efficient exterior windows or skylights $500 for exterior doors Heat Pumps and wood burning stoves If you purchase an energy-efficient electric or heat pump for space heating and cooling or a heat pump water heater, you qualify for 30 percent tax credits up to $2,000. Tax credits are also available for highly rated stoves and boilers that generate heat from burning wood or other biomass feedstocks. The credits for heat pumps or biomass stoves and boilers don’t count against the $1,200 annual limit for the home energy efficiency tax credit detailed in the previous section. Electrification rebates The Inflation Reduction Act includes $4.5 billion over 10 years for state and tribal programs that discount or fund electrification and efficiency projects or appliances for lower and moderate-income households. The bill defines lower-income households by annual incomes less than 80 percent of the area median income. Moderate income is defined by annual income no greater than 150 percent of the median. (Learn how to find your area median income.) The lowest-income households are eligible for point-of-sale rebates covering the full cost of certain electrical appliances or efficiency projects. Moderate-income individuals and families can get half off. The cumulative rebates available to each household total $14,000. The law sets rebate caps for selected electric product classes. There is up to $8,000 available for purchasing space heating and cooling heat pumps. For heat pump water heaters, the maximum is $1,750. For electric stoves, it’s $840. The high-efficiency electric home rebates should also cover half or all the cost of upgrading electric panels up to a $4,000 limit. Other covered services are electrical work, with a $2,500 maximum, and insulation projects, up to $1,600. Solar, batteries and geothermal Thanks to the new law, the existing 22 percent solar panel tax credit has been immediately bumped to 30 percent for the next decade. This tax credit is available now, so it’s a great time to look into your local solar group-buy programs, like Grow Solar Chicagoland. There’s also a tax credit for home battery units with more than 3 kilowatt-hours of storage capacity, allowing the benefits of solar generation to stretch into shorter winter days. For […]

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The EV Buyer’s Handbook: A summary

Elizabeth — Tue, 30 Aug 2022 19:38:23 +0000

For your convenience, we offer this summary of the EV Buyer’s Handbook. You can order the full guide for free on our guide order form. Introduction An electric vehicle is any car or truck that plugs into an electric socket. It has a battery that stores energy to power an electric motor (or two, three, or four motors) that propels the vehicle. Battery Electric Vehicle (BEV) is an all-electric vehicle. Plug-In Hybrid Electric Vehicle (PHEV) has both an electric motor and a gasoline engine. A PHEV runs on electricity until the battery runs down and then automatically switches to gas. Note: A car must be able to plug into the electricity grid to be considered an EV. Hybrid cars, such as the Toyota Prius, aren’t EVs because they are fueled by gasoline, but have an electric motor making them a more fuel-efficient internal combustion vehicle (ICV). Costs: EV vs ICV While the sticker price of a new EV is higher than a comparable ICV, many EVs are eligible for federal rebates and state purchase incentives that help reduce the costs. Also, EV operating costs are lower than traditional ICV cars. While EVs are typically 10-15% more expensive than comparable gasoline models, maintenance costs are 40% lower for EVs and electricity for charging is less expensive than gas. You may also find that your insurance costs are higher for an EV, because the value of the car and the cost of parts and labor to fix it after a collision are higher. EV Range EV range depends on the storage capacity of the battery and the efficiency of the vehicle, though bigger batteries mean higher costs. It’s a good idea to estimate your maximum daily travel and get a vehicle with at least twice that amount of range. The average car in Illinois travels less than 40 miles a day and the typical all-battery EV (BEV) has a range of at least 100 miles, so an EV covers many needs. EV Rebates and Fees Rebates– Illinois passed the Climate & Equitable Jobs Act (CEJA), which provides a state-level rebate of up to $4,000 to help reach a goal of over 1 million EVs on Illinois roads by 2030. Plus, there are federal incentive programs. The federal tax credit is $7,500 for most EVs, based on battery capacity. Fees– There is at least one extra cost of owning an EV in Illinois– the state charges a $100 annual EV fee to make up for the fact that you don’t pay any gas taxes into the Road Fund that funds state highways. Charging Your EV All you need to charge an EV is a place to plug it in. For most people that means a home garage or parking space. How long you need to be plugged in depends on the power of the charge and how far you’re going. EVs have three levels of charging speed. Level 1 is a standard 120-volt wall socket. Level 2 is a 240-volt appliance wall socket. Level 3, or Direct Current Fast Charge (DCFC), is a 480-volt outlet socket, which is not currently able to be […]

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Bipartisan infrastructure bill would see funds for electric grid, internet, EVs

Hannah — Fri, 13 Aug 2021 14:38:55 +0000

On Tuesday this week, the Senate passed the Infrastructure Investment and Jobs Act, a $1.2 trillion bipartisan bill that takes aim at the nation’s failing infrastructure. The plan includes funding for roads and bridges, broadband infrastructure and access, electric vehicle charging stations and research, and aged water systems. “Today the Senate takes a decades overdue step to revitalize America’s infrastructure and give our workers, our businesses, our economy the tools to succeed in the 21st century,” Senate Majority Leader Chuck Schumer said. The largest share of the bill — $110 billion — is set aside for roads and bridges. But it also includes: $73 billion for the electric grid and power infrastructure $55 billion for water systems and infrastructure $65 billion for broadband investments $15 billion for electric vehicles The bill now awaits a vote by the House. If approved, Illinois should receive more than $15 billion for projects, according to the White House and Senators Dick Durbin and Tammy Duckworth. These state-specific funds include at least $100 million to expand broadband access and make it more affordable. Illinois would also see $149 million funneled to the expansion of electric vehicle charging networks. “Illinoisans from Chicago to Cairo will see the tangible impacts of this bill and the jobs it will create,” Illinois Sen. Dick Durbin said in a statement. The infrastructure bill now heads to the House, but its future is uncertain, as some critics have argued the legislation doesn’t go far enough to combat climate change. Following the senate’s vote on the infrastructure bill, the body voted to begin work on another critical piece of legislation–an ambitious $3.5 trillion budget bill that is a companion to the infrastructure proposal. The budget measure will include bold carbon emission reductions and clean energy development provisions, according to an outline released by Sen. Schumer. Please, urge our representatives in Washington to pass this infrastructure bill and a budget that helps consumers, improves broadband and advances clean energy.

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CUB study finds big savings for EV drivers with special Ameren pricing plan

Jim Chilsen — Tue, 11 Feb 2020 21:52:22 +0000

A new study by CUB found that electric vehicle drivers in Central and Southern Illinois could potentially save hundreds of dollars a year in charging costs if they participate in an Ameren Illinois program called Power Smart Pricing. “Charge for Less: An Analysis of Electricity Pricing for Electric Vehicles in Ameren Territory” was released on Monday. It was written by CUB Data Scientist Ramandeep Makhija, Research Director Jeff Zethmayr and Executive Director David Kolata. The study found that Ameren’s Power Smart Pricing program, a special electricity plan available to residential customers, could have helped electric vehicle (EV) drivers reduce the annual cost for charging their vehicles by 50 percent to 51 percent, compared with what they would have paid under Ameren’s traditional electric prices. The potential savings ranged from $31 to $220 over the year studied, 2018. Unlike Ameren’s standard power price, which changes infrequently, Power Smart Pricing charges a market-based price that can change hourly. Those prices often plummet during “off-peak” times (typically nights and weekends) when electricity demand is low, giving customers the chance to save money on their electric bills. By encouraging drivers to charge their cars when electricity demand is low, Power Smart Pricing not only saves participants money, but it also puts less stress on the power grid, improving reliability and reducing pollution. “Power Smart Pricing is a great choice for a lot of Ameren customers—because the program is good for the planet and our pocketbooks—but it is especially beneficial for EV drivers,” said CUB Executive Director David Kolata, an EV driver himself. “Illinois urgently needs to develop smart charging policies that promote programs like Power Smart Pricing to prevent our costs from going up as more and more EVs hit Illinois roadways.” The Edison Electric Institute predicts that EV sales will rise sharply over the next decade, leading to nearly 19 million in the U.S. by 2030, up from about 1.5 million now. If not properly managed, this influx could significantly increase overall U.S. peak electricity demand and force everyone to pay higher power bills to cover a costly expansion of power plants and the grid. But this is preventable with good policies. In fact, CUB studies show that optimization—charging EVs at the right times—would lower electricity rates for all consumers. CUB’s report comes as EVs are generating news in Central and Southern Illinois. In Normal, Rivian is giving new life to a shuttered Mitsubishi factory, transforming it into an EV manufacturing plant that will employ as many as 1,000 workers. Meanwhile, in Springfield, Gov. J.B. Pritzker has called for clean energy legislation that “accelerates electrification of our transportation sector.” CUB is currently advocating for the General Assembly to pass the Clean Energy Jobs Act (CEJA), the most consumer-friendly energy bill in Springfield. It includes a “beneficial electrification” provision that would encourage people to charge their EVs at off-peak times, using programs like Power Smart Pricing. Power Smart Pricing is open to all Ameren customers, not just those with EVs. Participants save money by adjusting the time of day when they perform major tasks like operating the dishwasher, doing laundry, or charging an EV. […]

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Another Reason Illinois Must Act

Megan — Wed, 25 Sep 2019 21:28:55 +0000

Last week, President Trump reversed a 1968 decision allowing California to set more stringent car emissions standards than the federal government—a blow to the growing electric vehicle (EV) industry. Here’s why we should care about this in Illinois: 1) The latest move by the Administration just reinforces the urgency of states taking their own steps to work for a future with clean, affordable energy. That’s why in Illinois it’s vital we fight for the Clean Energy Jobs Act in the Fall Veto Session in October! 2) Because of California’s size, any setback to its clean energy policy can have national ramifications. The White House’s decision is bad for air quality of course, but it’s also bad for your bottom line: CUB’s own studies have shown that electrification can lead to lower bills even for people who don’t drive. Even some car manufacturers oppose this move to trample on a state’s authority to set its own clean energy agenda. Tell the White House: Restore California’s authority to set auto emissions standards!

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Urgent: Outrageous fee increase

Jennifer — Mon, 13 May 2019 15:25:03 +0000

You’ve shown an interest in the fight for clean, low-cost energy, so today we’re asking you to take action against a terrible proposal in Springfield that would punish electric vehicle (EV) drivers with an outrageous fee increase. We’ve just been made aware of a legislative proposal that would jack up the annual registration fee for EV drivers from $17.50….to $1,000! “The proposed fee increase is way too high,” CUB told the Chicago Tribune. “It’s punitive, it’s unfair and it goes against Illinois’ transportation trends and needs.” Here’s why this proposal is a bad deal for everyone: CUB just published a paper that showed how smart EV charging policies could transform electric vehicles into a tool to manage the power grid and reduce electricity costs by billions for ALL consumers—even those who don’t drive an EV. So we should be encouraging people to buy EVs, not scaring them away with ridiculous fees. This proposal is being considered right now in the General Assembly, so please don’t wait to urge your legislators to oppose it!

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How electric vehicles could cut your power bill, even if you don’t drive

Megan — Thu, 28 Mar 2019 16:54:26 +0000

The surging popularity of electric vehicles on American roads could actually lower power bills for all electric consumers, even those who don’t own cars, a new CUB study found. The key is for policymakers to adopt key measures necessary to manage how EVs get charged. The study, Charging Ahead: Deriving Value from Electric Vehicles For All Electricity Customers, is possibly the nation’s first analysis by a consumer watchdog group into how EVs will impact electric customers and the power grid. (Read a summary of the study here.) “To ensure that we seize this opportunity for savings, the public can’t afford for their policy makers to wait,” said David Kolata, Executive Director of the Citizens Utility Board (CUB). “Action is needed now to set policies that help EV owners charge their cars in a way that benefits everyone.” Specifically, the report advocates for automatically enrolling EV owners in a “Time of Use” (TOU) pricing program. While electricity is most often billed under a fixed rate that rarely changes, dynamic prices fluctuate over the course of the day as the total volume of demand on the system swells and dips. By funneling EV owners into dynamic plans on an opt-out basis, utilities can ensure the grid digests added demand from EVs without necessitating new expenditures on increased generation capacity or enhanced transmission and distribution infrastructure. EV owners, meanwhile, would benefit from electricity priced far lower than the regular fixed rate.

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Latest CUB research good news for EV drivers

Jennifer — Tue, 22 Jan 2019 22:00:40 +0000

The World Electric Vehicle Journal recently published CUB’s paper on electric vehicle (EV) charging. Researched and written by CUB Executive Director Dave Kolata and Director of Research Jeff Zethmayr, Charge for Less: An Analysis of Hourly Electricity Pricing for Electric Vehicles compares what customers of Illinois utility Commonwealth Edison would have paid in 2016 and 2017 to charge their electric vehicle under average rates compared to the utility’s hourly pricing program. CUB’s research found that EV drivers on hourly pricing would save 52-59% on their energy costs. Here’s a snippet: By motivating EV owners to charge their vehicles when power supply exceeds demand, dynamic pricing can improve system load shape and capacity utilization, reduce consumer costs, and cut pollution. Particularly in states that have deployed smart meters, implementing that simple policy option can make EVs a substantial source of system benefit, even for those who don’t drive or own an EV. To read the full paper, click here. Whether we’re publishing a paper, holding a utility bill clinic, or fighting a rate hike, CUB’s goal is always to save utility customers money. In 2019, we’re celebrating our 35th anniversary of fighting for consumers. As we continue that fight, please consider becoming a CUB member today.

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Illinois is friendlier to EVs than you think

Megan — Wed, 24 Oct 2018 21:41:54 +0000

A recent Forbes article about electric vehicles cited a study rating all 50 states on EV friendliness, and Illinois came in 14th. But the study missed a huge bonus for Illinois EV owners that should bump the state higher up the list. One factor the study looked at was the relative cost to charge an EV versus filling up at the pump: But this doesn’t take into account the savings from hourly pricing programs offered by ComEd and Ameren Illinois. “Their analysis overestimates the cost to charge an EV in Illinois because it overlooks the real-time pricing option Illinois utilities offer,” said Eric DeBellis, CUB policy analyst and attorney. “If you have an EV, you can expect to cut the rate you pay to charge by about 20% if call your utility, switch to real-time pricing, and charge your car overnight when the price is the lowest.” For more information on using real-time pricing to cut the cost of charging your electric vehicle, read CUB’s publication Charge for Less: An Analysis of Hourly Electric Pricing for Electric Vehicles.

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Are rising gas prices pushing Chicagoans to EVs?

Jennifer — Wed, 27 Jun 2018 19:17:23 +0000

Whether you’re environmentally conscience or searching for better economic choices, Electric Vehicles (EVs) present benefits across the board, especially in cities with rising gas prices, like Chicago. A spokesman for AAA said earlier this month that Chicago’s average gas price was $3.46 a gallon, a 35 percent increase from last year. When consumers see spikes like that, it sparks greater interest in what an EV could mean for their wallets. While many drivers may automatically assume EVs are too pricey to even consider, the demand and technology is allowing manufacturers to cut the cost of batteries, while also upping their capacity. When those prices start to compare with standard fueled vehicles, the appeal goes up. Tax credits are a big motivator, too. A 2011 Nissan Leaf had a range of just 74 miles on a charge, and cost $35,000, while a similar hatchback cost upwards of $20,000. The Leaf now has a 151-mile range and starts around $30,000–actually $22,500 after the $7,500 federal tax credit (via Omaha.com). The prospect of saving money on his transportation costs and helping the environment, prompted CUB’s David Kolata, our executive director, to replace his 14-year old Subaru with a Chevy Bolt this past May. (He also likes the Bolt’s performance–it’s fast if he needs it to be.) For more information on EVs, check out CUB’s fact sheet on electric vehicle incentives.

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