Carrie Atiyeh, the associate director of Transportation Fuels and Technology at the Colorado Energy Office, raves about her electric vehicle.
“I’ve now been an electric vehicle driver for almost two and a half years and I have absolutely loved it.”
Electric vehicles, also known as EVs, do exactly what’s in the name: operate on electricity instead of gasoline or diesel, switching out an internal combustion engine in favor of a motor powered by batteries. They’ve been around for more than 130 years, but have seen a surge in popularity over the last few decades as more consumers become aware of their carbon footprint.
As gas prices trend up, EVs can also save a pretty penny at the pump.
“EVs have somewhere around 60% to 75% less fueling costs than compared to gasoline,” Atiyeh said. “So if you want to look at it on a cost equivalent, or like electric miles per gallon, right now, if you’re able to charge at home, that would be equivalent to paying about $1.30 a gallon in Colorado.”
One of the biggest concerns surrounding individuals’ hesitation in purchasing an electric vehicle is some inconvenience that comes with charging the vehicle. Many EVs now come equipped with a charging adapter to plug directly into a standard American three-pronged electrical outlet at home. This charging method typically adds 3-5 miles of range per hour, so it is only a suitable option for the average person who drives about 30 miles a day. Xcel also offers several rebates and bill credits for customers installing Level 2 chargers in their homes.
“Just like you plug in your cell phone when you go to bed at night, and you have it plugged into the wall, you can do the same with your electric vehicle,” Atiyeh said.
There are other options for those who can’t charge at home with over 5,000 public charging stations across Colorado—but they are pricier. Filling up at a public charging station can cost double to quadruple the price of charging at home. The exact fee depends on local electricity costs and regulations and the type of charger. Atiyeh said making the state’s public charging network accessible, reliable and affordable is a top priority. Just this month, the state received an $8.3 million grant to maintain around 360 charger ports in almost 200 locations statewide. Those funds are in addition to $60 million in state and federal investments in public EV charging.
“This money will help ensure that electric vehicle drivers in Colorado have peace of mind that when they stop to recharge, the equipment is in good working order,” said Kay Kelly, chief of innovative mobility for the Colorado Department of Transportation, in a statement.
Having access to a robust charging network is an important factor in Colorado, where temperatures often hover around freezing during the winter. Not only does the cold weather increase charging times, but it can also compromise driving range as many people found out during the January cold snap. A recent look at 18 popular EV models found their range dropped on average about 70% in freezing conditions. Despite some drawbacks, for many, fighting climate change is driving people to go electric. There are no tailpipe emissions associated with EVs which translates to about 65% fewer emissions.
“As we look at achieving our state climate goals and our greenhouse gas emission reduction goals here in the state of Colorado, the transportation sector is currently the largest source of our greenhouse gas emissions across the state,” Atiyeh said.
To assist in reaching those climate goals, Colorado has one of the most generous tax credits for EVs in the nation. Taxpayers could be eligible for up to $7,500 in state tax credits depending on the vehicle they purchase or lease, and some may qualify for federal offsets up to $15,000 as well.
“There are different eligibility requirements for the federal tax credit, including where the vehicle was manufactured and where the battery components are sourced from,” Atiyeh said. “But if you’re able to find a vehicle that meets that criteria, then it could be up to $15,000 in federal plus state tax credits that could be applied to a new electric vehicle.”
For many, the price of an EV may be cost-prohibitive, even with the tax credits offered. According to Kelly Blue Book, the average cost of an electric vehicle is almost $53,500, compared to just over $48,000 for gas-powered. To remedy this issue, the state now offers the Vehicle Exchange Colorado program. Income-qualified residents who own high-emitting gas or diesel vehicles can turn in their old rides to be recycled. In exchange, they receive a rebate of $6,000 for a new EV or $4,000 for a used EV that can be applied at the point of sale. Xcel Energy also offers an income-qualified rebate program for customers.
The upfront costs of switching to an electric vehicle may be daunting for most. But the long-term savings are a huge benefit of owning an EV, Atiyeh said. Most importantly, driving one can help reduce transportation emissions.
“If we’re going to have an impact on reducing climate-causing emissions, then we really need to focus on the transportation sector,” Atiyeh said.