Anderson Economic Group EV Charging Study Makes Flawed Assumptions
By Edward A. Sanchez – Oct. 25, 2021
(Editor’s Note: Since this story was published, Mr. Anderson, CEO of Anderson Economic Group, contacted us to talk through our response to his company’s report. The result was this follow-up article.)
Michigan-based economic consultancy firm Anderson Economic Group recently released a study, “Comparison: Real World Cost of Fueling EVs and ICE Vehicles” that attempts to make the case that EVs are substantially more expensive to fuel than ICE vehicles. There are a number of issues I have with this study and its assumptions, a few of which I will get into here. I won’t, however, do a line-by-line analysis of the study, which is why I included a link to the report – please peruse at your leisure.
The study has been cited by several major media outlets, including the Detroit Free Press, which largely reiterated the report’s findings without any challenges or questions to its underlying assumptions. Depending on who you’re listening to, Detroit is either being dragged kicking and screaming into the EV age, or enthusiastically embracing it.
My main issue with the study is that it makes the assumption that the majority of EV charging is (and will be) done on public chargers rather than at home. The current public EV charging environment is very much a “Wild West” in terms of pricing, reliability, and geographic distribution. According to the U.S. Department of Energy itself, as much as 37 percent of drivers don’t have access to a private garage or off-street parking. For these owners who don’t have regular or easy access to non-networked charging, this is undeniably a real issue.
As I’ve said before, and as I say to a lot of people who are curious but perhaps uninformed about EVs, not everyone should buy an EV right now. The decision should be thoroughly researched, pragmatic and deliberate. Someone who’s enticed into buying an EV because of an ultra-cheap lease offer or a broad desire to “save the planet” should think twice before taking the plunge. It also requires a comprehensive re-think in your approach to fueling for EV ownership to be a pleasant, convenient experience.
Access to a Level 2 home charger is largely a necessity when it comes to smoothly transitioning from ICE to EV ownership. (Image courtesy BMW)
As TWC contributor Phil Royle and I discussed in Episode 36 of The Watt Car Podcast, I talked my cousin out of buying a BMW i3 BEV because I didn’t think the car’s short range was a good fit for what her use case would be. She ended up buying a used Chevrolet Volt PHEV, which I thought would be a better and more practical fit, giving her most of the benefits of an EV without the potential range anxiety of a short-range BEV.
Back to the report, one of the strangest exhibits and charts that is included is “Implicit Time Cost Comparison.” In it, the report tries to make the case that charging an EV is “lost time” compared to the 5-10 minutes it would be for refueling an ICE vehicle. Certainly, for EV drivers that are entirely dependent on public networked charging, and are away from work or otherwise not able to use the time their vehicle was charging productively, it’s a factor. But if you have a home Level 2 charger, chances are your car is charging in your driveway or garage while you’re doing other things, like working, spending time with family, or sleeping.
Again, the study forcibly superimposes the ICE fueling paradigm on EV charging and makes certain assumptions. If approached intelligently and pragmatically, the two models are entirely different, and not directly comparable. I don’t want to cast aspersions on AEG’s research methodology or funding, directly, or indirectly for this study. But I would venture to say the authors are probably not EV owners themselves, despite the Detroit Free Press’ report (see link above) that the company CEO claims he drives a Porsche Taycan, and that it takes “90 hours” for it to recharge on a home Level 1 charger.
Even in smaller battery BEVs like the Kia Niro, simply topping up via a Level 1 charger can be inconvenient. (Image by Phil Royle)
First of all, if you can afford to purchase or lease a car that costs between $83,000-$188,000, you can certainly afford the $1,500-5,000 for a home panel upgrade and installation of a L2 home charger. In my case, the installation of a 240V plug in my garage was $325, and the Tesla Mobile Charger (which I use as my home charger) was about another $300 on top of that with the proper adapter. I was dialed in for less than $1,000, which, by the way, I got back in the form of a rebate check from my local utility.
There are dozens of variables in purchasing, owning, and charging an EV. This study attempts to make definitive statements about the EV ownership experience that in certain, specific scenarios may be true, but with the right research and approach, can be overcome, and could just as easily be proven to be demonstrably false.
I don’t know what AEG’s motivation was behind researching and publishing this report, as nearly all major OEMs are solidly behind the trend toward electrification (with a few exceptions). But this study, along with many others that have tried to cast FUD on the trend of electrification should be approached with a healthy dose of skepticism and a major caveat of “your mileage may vary.”
(Main image courtesy Chevrolet)
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