2 Steps States Should Take to Grow EV Adoption

Even as electric vehicle (EV) adoption in the U.S. has surged from a mere 2% of new light-duty vehicle sales in 2020 to now nearing 10%, continued market growth faces significant challenges.

We see certain automakers modifying their commitments to scaling up EV production. U.S. consumers are showing a preference for plug-in hybrids. And range anxiety persists as the EV charging industry strives to catch up to EV adoption.

To support the EV industry’s continued growth, some Northeastern states are focusing on EV incentive programs and leveraging charging data for insights.

 

How the Northeast varies in EV infrastructure 

A recent New Hampshire Public Radio (NHPR) report detailing the EV adoption and charging infrastructure landscape across the state underscores the difficulties of widespread charging rollout. According to data from the U.S. Department of Energy (DOE), New Hampshire only has 251 public charging station locations (excluding residences). In comparison, Vermont has 410 stations and Maine has 475.

New Hampshire's population is about 1.4 million (2023), while Vermont has around 647,000 residents and Maine about 1.4 million. That equates to one station location per 1,500 individuals in Vermont and one per 3,000 residents in Maine, compared to one station location per 5,500 individuals in New Hampshire.

 

Small state governments struggle

The NHPR news report notes that New Hampshire missed out on receiving $15 million in federal grants for developing direct current fast charging infrastructure, largely due to insufficient staff capacity and internal resources to submit a compelling application. Unlike Vermont and Maine, New Hampshire also doesn’t have a state-run incentive program, relying on local utilities and other entities, along with federal programs, to help scale the industry.

State governments with limited staffing resources may struggle not only with winning grants to support EV adoption but also with administering grant funds, managing incentive programs and deploying infrastructure. Soliciting external help in planning and scaling up programs can ensure:

• Compelling incentive program design that drives EV sales.
• Methodical and well-timed rollout of funding to applicants.
• Continuous tracking of state EV and charging adoption.
• Monitoring and maintaining charging infrastructure uptime.

 

Recommendations for states to scale EV adoption

1. States, especially ones with limited resources, should partner with third-party entities.

States can offload the burden of developing, administering and maintaining EV and charging programs by partnering with third-party entities that have the expertise to help implement them. Doing so allows for tax dollars and staff resources to be more effectively used in other areas while continuing to invest in EV adoption. For example, CSE works with several Northeastern states including Connecticut, Maine, New Jersey, New York and Vermont.

Vermont’s Drive Electric Vermont incentive program launched in 2019, and CSE started administering it in 2022. When looking at the CSE dashboard for Vermont, almost 2,000 EV applications have since been approved with over $6.5 million in funding issued. DOE 2022 light-duty EV registration data shows EV and plug-in hybrid EV sales in Vermont totaled around 9,500.

 

2. States must focus on monitoring and ensuring robust uptime and reliability of charging stations.

Without adequate monitoring and constant oversight of EV charging stations, states will struggle to build consumer trust in EV infrastructure and likely fail to expand their EV charging network effectively.

The issue of EV charging reliability has been widely discussed in the media, shaping consumer perceptions. Software tools for tracking and monitoring a state’s EV charging network for various metrics, including uptime, are essential for quickly diagnosing issues and managing the network, akin to the continuous monitoring of traffic lights for road safety.

States need an added layer of oversight to ensure private charging companies abide by their terms of service and operating agreements to ensure uptime rather than relying on reports from those who own the equipment.

 

Get help deploying EV programs

Achieving levels of EV adoption that will move the needle on greenhouse gas reduction goals will require states to offer effective incentives, diligently monitor their progress and measure their impacts.

CSE has developed the Caret® platform to help forecast EV demand, optimize EV charger siting, deploy funds and track results. Learn more about how it works in the article Facilitating Data-Driven Policy in the Electric Vehicle Market: Introducing the Caret Suite.