A Guide to Electric Vehicles for New Haveners

Have you thought about buying or leasing an electric vehicle? Below, you can find information on the benefits of electric vehicles, incentive programs that make new and used electric vehicles cheaper to buy or lease, and facts that dispel some of the common myths about electric vehicles.

BENEFITS OF ELECTRIC VEHICLES

Electric vehicles offer significant benefits to owners, such as:

• Lower fueling costs: On average, electric vehicle drivers spend 60% less on fuel over the lifetime of their vehicle than gas car owners do. In Connecticut, even with the recent spike in residential electricity rates to 33.23 cents per kilowatt-hour, it would cost $17.94 to charge an electric vehicle with a 200-mile range (a 54 kWh battery) at home. By comparison, as of June 2023, Connecticut gas prices were $3.63, so it would cost $30 to fill a 200-mile range gas car with average fuel efficiency (24.2 mpg). Electric vehicles are also typically more energy efficient than gasoline cars, which means they use less fuel and cost less to run.
• Lower maintenance costs over the lifecycle of the vehicle: Electric vehicles also have fewer moving parts that can break or wear out and don't require oil changes or emissions tests. If maintained according to automakers’ recommendations, electric vehicles save about $950 annually on maintenance compared to gas vehicles.  
• Release less pollution: Electric vehicles have no tailpipe emissions, which means they don't contribute to local air pollution or smog when you drive. They also have lower “lifecycle emissions” than gasoline cars. In other words, their “lifecycle”—including manufacturing the vehicle and its battery and charging it—releases less of the air pollution that causes climate change than the full “lifecycle” of gas vehicles. The amount of emissions depends on how the electricity is generated. With New England’s relatively clean electricity grid, the Union of Concerned Scientists estimates that driving the average electric vehicle creates the same emissions as a gasoline car that drives 111 miles per gallon . As more renewable energy sources like wind and solar are used to generate electricity, the emissions associated with electric vehicles will be even lower.
• Energy security and resilience: electric vehicles can help reduce your dependence on volatile global oil markets, since they can use electricity from various sources, including natural gas, coal, nuclear, wind, solar, and hydropower. For example, when gas prices spiked in the spring of 2022 due partly to the Russian invasion of Ukraine and ensuing issues in the global gasoline supply, interest in electric vehicles spiked as well . Electric vehicles can also provide a critical source of backup power during power outages by using their batteries to power essential appliances or devices. As climate change causes increasingly severe and unpredictable weather conditions in the Northeast, power outages may become more frequent and this source of backup power will be lifesaving for many Americans.

INCENTIVE PROGRAMS FOR ELECTRIC VEHICLES

The State of Connecticut’s rebate program lowers the upfront cost of a new or used electric vehicle and the federal government allows residents to further reduce the cost of a new or used electric vehicle through tax credits. Incentives are also available through United Illuminating to help cover the cost of installing a charging station. The programs below make electric vehicles much more affordable than you may think:

State rebate:

• The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) offers a point of sale rebate to lower the upfront price of new and used electric vehicles for Connecticut residents who purchase or lease an eligible vehicle from a licensed Connecticut automobile dealership. To participate in the program, you must apply for a prequalification voucher on the CHEAPR application portal and present your voucher at the point of sale, at which point you will receive an incentive on an electric vehicle, credited to your final purchase or lease price by check (electronic or mailed). All New Haven residents are eligible for the increased Rebate+ incentive, which offers $4,250 in savings on new electric vehicles and $3,000 for used electric vehicles. There are currently over 30 eligible vehicles available, and the list continues to grow as manufacturers release new models. Review the state’s new and used eligible vehicle lists to ensure that your electric vehicle qualifies for the state CHEAPR rebate.

Federal tax incentive:

• If you buy a new plug-in electric vehicle in 2023 or after, you may qualify for a federal tax credit of up to $7,500 on a new electric vehicle. You can now receive that credit as a point-of-sale rebate. In other words, you can purchase an electric vehicle at a discounted price (up to $7,500 off), rather than purchasing it at full price and then claiming the benefit when you file your taxes. For more information on how to claim this incentive, please visit fueleconomy.gov. Please note that there is an income limitation for the tax credit: to qualify, your adjusted gross income must be below $150,000 as an individual or $300,000 if filing your taxes jointly as a couple.
• Before purchasing an electric vehicle, consult the IRS’ lists of both new eligible vehicles and used eligible vehicles that qualify for the tax credit. Not all electric vehicles qualify for the rebate, as the availability and amount of the credit depends on two factors: critical minerals requirements and battery components requirements. Vehicles that meet only one of the two requirements will receive a $3,750 rebate, while vehicles that meet both will receive a $7,500 rebate. The vehicle must also meet additional requirements, so it is important to consult the lists of eligible vehicles before making your purchase.
• Used electric vehicles qualify for a tax credit of up to $4,000. This tax credit is limited to 30% of the purchase price. So if you purchase a used electric vehicle for $10,000, you’ll receive a $3,000 tax credit.
• If you don’t have enough taxable income to take advantage of the federal tax credit, you might consider leasing an electric vehicle. The dealer can take advantage of the federal tax credit and pass on the savings to you through your monthly payment.

Utility incentives for charging equipment:

• United Illuminating offers up to $500 for new electric vehicle chargers installed in your home garage or driveway, plus an additional $500 for necessary wiring upgrades. This incentive applies only to households with new residential Level 2 chargers participating in UI’s Managed Charging Program. Households that have already installed an electric vehicle charger may be eligible to receive a $100 incentive when signing up for the Managed Charging Program. For more information, click here.

COMMON MYTHS AND MISUNDERSTANDINGS ABOUT ELECTRIC VEHICLES

Despite the many benefits of electric vehicles and incentives that make them cheaper, you may still have some doubts about them. Let’s debunk some common electric vehicle myths:

• Myth: Electric vehicles don’t have enough range to handle daily travel demands. Fact: The average American drives approximately 36 miles per day. electric vehicles have more than enough range to cover a typical day of travel. Most electric vehicles have a range of over 200 miles on a single charge, which means they can handle most daily trips without needing to recharge. In a AAA survey of electric vehicle drivers, 95% reported never having run out of charge while driving, and 77% were no longer concerned about their electric vehicle’s range after purchasing an electric vehicle. Some electric vehicles even have a longer range than gasoline cars, such as the Tesla Model S, which can travel up to 405 miles on a full charge. Of course, if you need to travel longer distances, you can always plan ahead and use one of 360+ public charging stations available across Connecticut. You can also use a plug-in hybrid electric vehicle, which can switch to gasoline mode when the battery runs low.
• Myth: Electric vehicles are as slow as golf carts. Fact: Electric vehicles can be quicker than gas cars. They can accelerate faster than many gasoline cars because they have instant torque, which means they can deliver maximum power instantly. Electric vehicles also have a smooth and quiet ride, making them feel more comfortable and enjoyable to drive.
• Myth: Electric vehicles are too expensive. Fact: Electric vehicles can have a higher sticker price than comparable gasoline cars, but they save you money in the long run. Electric vehicles have lower operating and maintenance costs than gasoline cars, using less fuel and requiring less service. Electric vehicles also qualify for various incentive programs (see above) that can lower the upfront cost or provide other benefits, such as the federal tax credits and state rebates mentioned above. Depending on your driving habits and electricity rates, you may be able to recoup the initial cost difference within a few years or even sooner.
• Myth: Electric vehicles are unsafe and blow up frequently. Fact: Electric vehicles are actually safer than gas-powered cars and have less risk of explosion or fire. They must meet the same safety standards and regulations as gasoline cars and undergo rigorous testing and evaluation by various agencies and organizations. Electric vehicles also have some safety features that gasoline cars don’t have, such as a lower center of gravity, which reduces the risk of rollover; battery management systems, which monitor and control the battery temperature and voltage; and automatic disconnect systems, which cut off the power in case of an accident or emergency. Additionally, electric vehicles have less risk of fire or explosion than gasoline cars, as they don’t carry flammable liquids or gases.
• Myth: They’re not any “greener” than gas-powered autos. Fact: electric vehicles are definitely greener than gas-powered autos. As mentioned earlier, electric vehicles have no tailpipe emissions, which means they don’t contribute to local air pollution or smog. Electric vehicles also have lower lifecycle emissions than gasoline cars, even considering the electricity used for charging and battery manufacturing . In other words, when comparing the full “lifecycle” of an electric vehicle—from where it starts at the manufacturing facility to where to ends in the junkyard—to that of a gasoline vehicle, electric vehicles release less emissions than gas cars. As more renewable energy sources like wind and solar are used to generate electricity, the emissions associated with electric vehicles could be even lower.