Economic Growth of Electric Cars

Electric car sales have been pretty low for the past decade but with the start of 2020, they project an upward trend in sales. This transition in the market depends on the growth of the power grid and the growth in rooftop solar. In regards to the power grid, there is a large amount of infrastructure necessary to increase the incentive for consumers to purchase electric cars. Rooftop solar can also be a solution for lowering the demand for the power grid and decreasing the necessary infrastructure.

The challenges specifically concerning the power grid are starting to be addressed in California, which has the largest market for electric cars. Energy companies struggle to keep up with the large demand for electricity for these electric vehicles. The cost of the electricity stays extremely low probably due to subsidies from the government to promote the use of electric vehicles as an alternative to fuel cars. The electricity companies fear the increase in discrepancies in production with the surge to electric cars vehicles in California.

To address these issues companies are looking toward solar mandate for new homes that goes into effect in 2020. All of the new homes in California will have to have rooftop solar installed taking a load off of the electricity companies to produce enough energy for the increasing number of electric cars. Yet due to slow implementation, this solution has not proven to be as beneficial as previously projected.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/55903940