Cleantech Market Intelligence
EVs Driving on Sunshine
The renewable energy and automobile industries have traditionally operated in distinct, separate markets. However, the future may see the increasing convergence of the two industries. According to Navigant Research’s 2012 Energy & Environment Consumer Survey, 85% of consumers who are interested in purchasing an electric vehicle (EV) have either favorable or very favorable views toward solar energy. The potential for overlap between the two industries is high, given the shared interests and values of their target customers. Consumers that have solar panels installed on their roof likely have a garage where they could set up an EV charging station as well, and vice versa.
Interesting symbiotic relationships between the industries are already starting to emerge. Envision Solar, for example, recently deployed the first and only fully autonomous, fully mobile, fully renewable, standalone solar EV charging station at the San Diego International Airport. REC Solar has partnered with General Electric (GE) to distribute solar EV charging systems, and SolarCity has teamed up with Tesla Motors to conduct research on solar energy battery storage.
Cleaner Fuel = Cleaner Cars
Using renewable energy, such as solar, to charge EVs makes a huge difference in the total emissions of EVs, compared to traditional internal combustion engine (ICE) vehicles. The resurgent interest in EVs has drawn some attention and criticism to the issue of whether charging an EV with electricity that is largely derived from fossil fuels really derives any environmental benefits at all. However, according to the Natural Resources Defense Council (NRDC), even with the 2012 electricity mix of the United States, which is predominantly generated from fossil fuels (37% coal, 30% natural gas, 19% nuclear, 12% renewables, remaining 2% petroleum and other gases), an electric car only emits about half the amount of carbon pollution per mile as the average new ICE vehicle. In states with higher percentages of renewable energy generation, such as California, EVs emit only a quarter as much. The Environmental Protection Agency’s (EPA) Beyond Tailpipe Emissions calculator allows users to input their zip code and type of EV to assess the level of greenhouse gas emissions their car releases based on the electricity generation mix in their area.
According to Navigant Research’s report, Solar and Electric Vehicle Cross-Marketing Strategies, approximately 250,000 homes are equipped with solar photovoltaic (PV) systems in the United States, and about 52,000 plug-in cars were sold in 2012 alone. Combining solar energy with EVs not only presents a great market opportunity for both industries; it will demonstrably expand the economic and environmental benefits of EV ownership.