In 2020 alone, there were 10 million EV sales worldwide. And while that’s still a relatively small portion of the nearly 64 million new cars sold that year, that gap will steadily close in the years to come.
That’s particularly true here in Canada. Over the past two years, we’ve purchased more EVs than in the previous eight years combined — a trend that is all but certain to continue. Below we look at what’s fueling the growth in EV sales and how that’s creating massive demand for residential charging stations. We’ll then look at how innovative financing solutions can help you eliminate one of the key friction points around having those charging stations installed.
New regulation drives steady EV sales growth
While Tesla may have paved the way for EVs with the release of its first car in 2008, these days it’s no longer the only game in town. Many other companies have since followed suit, including Ford and GM, among other incumbents, not to mention innovative new players such as Rivian.
And while greater choice and access to EVs has certainly helped drive their adoption, regulatory requirements are having the biggest impact. As more and more countries commit to achieving zero emissions, their governments are pushing for EV adoption. Here in Canada, for example, new regulations mean that by 2040 100 percent of cars sold will need to be electric.
Of course, buying an electric vehicle isn’t just about complying with regulations. It’s also about doing something to help the environment and your own bottom line. Not only do EVs emit 90 percent fewer greenhouse gas emissions than traditional combustion engine cars, they’re also cheaper to run. According to some estimates, the average EV owner saves $2,000 annually on fuel and maintenance costs compared to owners of vehicles with combustion engines.
Growth in EV charging stations expected to skyrocket
As more people buy electric vehicles, EV charging station sales are increasing dramatically too. According to Juniper Research, spend on EV residential charging is expected to grow from $3.1 billion in 2021 to $16 billion by 2026, an increase of more than 390 percent. Within the next five years, they predict that over 21 million households will opt for the convenience of home charging stations to power their vehicles, rather than relying on public ones.
With many Canadians living in multi-tenanted buildings, providing access to reliable EV charging presents a huge opportunity for building owners and operators. EV chargers are relatively easy to install and cheap to operate in residential buildings. They’re also an attractive feature that can generate a new revenue stream for buildings, while increasing property value and keeping tenants happy.
Financing your EV charger
Though EV chargers can save homeowners money in the long run by skipping trips to the gas station, and save building owners money by generating new revenue streams, the upfront cost of installing them can be a real friction point. Fortunately, some provinces and municipalities offer rebates for EV home charging purchases that can help with the cost. Edmonton’s Electric Vehicle Charger & E-Bike Rebate Program and British Columbia’s CleanBC plan are two of the many rebate programs available for the purchase and installation of electric vehicle chargers (click here for a full list of Canadian charging incentives).
Plus, if you’re looking to avoid a large upfront cost altogether, Abode Financial can help. As a home improvement financing leader, we’ll help you break down the cost of installing an EV charging station into affordable monthly payments.
Interested in learning more? Get in touch.