Switching to an EV is likely the single biggest thing you can do to reduce your household's running costs and emissions |
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EVs produce zero tailpipe emissions, significantly reducing the amount of harmful pollutants released to the atmosphere
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They also have lower fuel and maintenance costs compared to petrol cars, saving you money over the long term |
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EVs are fun!! They provide a superior driving experience, with a quieter, smoother ride and instant acceleration |
Want to learn more?
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Did you know that EVs are exempt from Fringe Benefit Tax, potentially leading to significant savings on the purchase price?
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The BasicsWhat is an EV?
There are four main types of vehicles on the road being: 1. Internal Combustion Engine (“ICE”). Powered by petrol or diesel and the most prevalent type of vehicle on our roads today. 2. Hybrid. Made famous by Toyota. These are ICE vehicles with a small battery pack that gets charged when the car brakes or from the fuel in the tank. You do not plug these vehicles in. Toyota claim that their hybrids are approximately 30% more fuel efficient than their non-hybrid counterpart. 3. Plug-in hybrid. These vehicles also have both an internal combustion engine and a battery pack. However, the battery can be charged by plugging in the car and it can have a range of around 30-50km. 4. Battery Electric Vehicle (“BEV” or “EV”). A vehicle that is only powered by electricity and has no internal combustion engine. The battery is charged when the brakes are applied or when the car is plugged in. A number of countries have legislated to ban the sale of ICE vehicles, hybrid vehicles and most plug-in hybrid vehicles including: the UK (2035), Norway (2025), France (2040), California (2035) and Germany (2040). Whether you like it or not this will force the latter of the above, the BEV or EV, to become the most prevalent vehicle on our roads over the next decade and indeed the only type of vehicle on our roads within the next two decades. Are EVs more efficient than ICE vehicles?
EVs are significantly more efficient than ICE vehicles. An EV converts around 80% of the energy stored in its battery to movement at the wheels which compares to around 30% for an ICE vehicle where the majority of energy is lost as heat and friction. An EV will therefore travel far further for the same amount of energy as an ICE vehicle. An EV has around 20 moving parts compared to over 2,000 for an ICE vehicle. This also makes servicing and maintenance far cheaper for an EV. How far can I travel in an EV?
Electric vehicles have become synonymous with the term “range anxiety” – used to express a fear of not being able to reach your destination before running out of power. However, almost as soon as this phrase became commonplace, it had already become a myth – if it ever was true in the first place.
What size battery do I need?
Many EVs come with different battery options with the larger batteries generally offering further range. Just like your home electricity bill, battery size is measured in kilowatt hours or kWh.
How long will the battery last?
One of the biggest myths surrounding EVs is that their battery packs will need frequent replacement. This is simply not true. Critics need to look no further than the example of German motorist Hansjorg von Gemmingen, who has driven 1.9 million kilometres in his 2013 Tesla! The battery has been replaced three times giving an average of over 630,000 kilometres per battery (and battery technology has significantly improved since 2013). The average Australian motorist covers 12,000 km per annum, which at this rate would give them a whopping 54 years’ worth of battery life. Or the example of California based EV mobility company Tesloop, who have a Model X that has travelled more than 640,000 km with its original battery. And Tesloop uses its fleet commercially, meaning their charging regime and maintenance is about the worst possible for ensuring battery longevity: a full discharge, followed by a rapid charge rate. There are numerous other similar examples. What are the maintenance costs?
An EV has around 20 moving parts compared to over 2,000 for an ICE vehicle. This makes servicing and maintenance far cheaper for an EV. Some brands have no mandatory servicing, and the only real maintenance expenditure is on tyres. ChargingHow do I charge an EV? How long does it take to charge?
Before discussing the different types of chargers, we first need to take you back to high school physics and introduce the concept of alternating current (“AC”) and direct current (“DC”). Batteries store energy in DC, or direct current, whereas the Australian grid, and most household appliances, are AC, or alternating current.
Despite the car battery storing DC, EV’s can charge off of AC as they have an onboard invertor that turns the AC from the grid into DC prior to charging the battery. However, when an EV is charged directly with DC, and not AC, then the onboard invertor is bypassed and the battery is charged directly. DC chargers charge EV’s far quicker than AC chargers but they are expensive and complex, and not available for home installation. 
Should I install a charge point at home?
If you own your own home the answer to this question should be a resounding “yes”. The benefits are numerous including:
What home charger should I buy?
There are a few considerations before installing a home charger. How “smart” is my car? You will need the ability to do the charging basics for your car from your mobile device e.g. turn charging on/off, set a charging schedule and ideally also adjust the amount of power that is going to your car from your home. The first question to understand is how “smart” is my car? In this day and age, we take it as a given that the gadgets we buy will have internet connectivity. However, surprisingly few cars have internet connectivity and a mobile app. Why does this matter? If your car does not have internet connectivity and a mobile app then you will not be able to control charging functionality via the car. Therefore, you will need a more premium charger which has internet connectivity and an app – giving you the ability to remotely turn charging on/off and set charging schedules via the charger as opposed to the car. Tesla cars are extremely smart, you can even go as far as to remotely drive the car via the app. However, connectivity and functionality with other brands can be limited e.g. Nissan cars have no wi-fi connectivity and no mobile app. My car is “smart” Ok, so you have determined that your car is “smart” i.e. the car has 4G/WiFi connectivity and an app that lets you control key charging functionality. If this is the case, then you can get away with buying a cheaper charger as all the charging control is done via the car. For example, Tesla’s home charger is only $750. The charger itself doesn’t have any functionality but that is not required as the car has everything that is needed. I don’t have a “smart” car If you buy a car brand that does not have a mobile app, or the functionality within that app is limited, then you should consider a more premium charger. Look for a charger that comes with internet connectivity and a mobile app so that you can start/stop charging, set schedules and alter the power going to the car via the charger. I have had direct and indirect experience with a number of EV brands and Tesla appears to be the only brand that offers the functionality you are likely to require via a mobile app. However, brands like Kia, Hyundai and BMW do offer some more basic functionality like start/stop charging. The cost for a more premium charger is likely to be around $1,500-$2,000 (plus installation). Some well-respected brands include Zappi, Wallbox and Ocular. Is a charger compatible with my EV?
The early days of EVs saw a number of different plug types for charging your car, much like the early days of mobile phones. This often created a poor experience for consumers as they arrived at a charger only to find that it wasn’t compatible with their vehicle.
However, the market has largely consolidated to two standards:
Where are public chargers located?
Download the PlugShare app to your mobile phone. PlugShare has over 2.5 million charging stations in its database, covering 140 countries. The app allows users to find charging stations near them or on their route, filter by type of charger and see operational status. Users can also leave reviews and photos of charging stations, which helps other users make informed decisions. Tesla’s in-built mapping system automatically maps stops at charging points on your route according to the car’s charge making your journey seamless. Not all cars are born equal with respect to access to charging infrastructure with Tesla being the only brand to have its own supercharging network throughout many countries of the globe including Australia. This currently gives Tesla drivers access to a far superior charging network than owners of other brands. However, Tesla have started a pilot program, including Australia, to open their network to non-Tesla EVs. See this link for further details. |
Cost and financingHow much will an EV cost?
Prices of new EVs are now not too dissimilar to ICE vehicles. Mid-range EV’s now start from $35,000 on the road. In fact, the upfront cost of a premium EV like a Tesla Model Y ($60,000), is significantly cheaper than similar ICE vehicles like a BMW X3 ($90,000). Good deals can also be had on low milage second hand vehicles with a number of years remaining on the original warranty. Is an EV worth the investment?
An EV should save you a significant amount of money
compared to the majority of new ICE vehicles. This is primarily due to the costs to power an EV which range from zero (if you primarily charge from home solar or use Destination Charging) to around a third of an ICE vehicle if you pay for the electricity. In addition, servicing and maintenance is far cheaper for an EV. An EV has around 20 moving parts compared to over 2,000 for an ICE vehicle. Tesla for example, have no service windows and no associated annual charges (assuming you can check the tyres and wiper blades yourself). The regenerative braking of an EV also means the brake pads can last 10x longer than an ICE vehicle. The upfront cost of EVs should also continue to fall as car manufacturers scale up production and gain better economies of scale. 
How can I finance an EV?
There are a number of ways to finance your EV including cash, via your existing mortgage, car loan or a novated lease. These are discussed further in our EV Financing Guide above. OtherHow much CO2 emissions will I save?
EVs produce zero tailpipe emissions. This has two benefits:
What about other perks?
Did you can now use transit lanes in NSW regardless of the number of occupants until mid-2025? This perk, originally introduced in 2022 to boost EV adoption, got a quiet extension late last year. Previously, these lanes (marked T2 and T3) were reserved for buses, taxis, and carpools with at least two or three people. The extension aims to make EVs more attractive by offering faster commutes for solo drivers. While the initial program was set to expire in November 2022, it was first extended to October 2023. Just before that deadline, the NSW Minister for Roads stepped in and secured a further extension, lasting until June 2025. What is Vehicle to Home and Vehicle to Grid
Vehicle-to-Home (V2H) and Vehicle-to-Grid (V2G) technologies enable EVs to supply power back to homes or the grid. In V2H, EVs can provide electricity to a household, acting as a backup power source. V2G takes this a step further by allowing EVs to contribute energy to the electrical grid, helping to balance supply and demand, and support grid stability. Both technologies leverage the battery storage capacity of EVs. Where is this technology at? Unfortunately this technology is in its infancy in Australia. Some states have allowed trials to take place but only for EVs that utilise the CHAdeMO charging standard. The Nissan Leaf and Mitsubishi PHEV are the only two vehicles utilising CHAdeMO in Australia, and these cars represent only a small portion of the overall EV market. The vast majority of EVs use CCS and this has not yet been approved for V2H or V2G in Australia. The timing for approval remains uncertain. Additional challenges arise from car manufacturers, many of whom do not offer V2H or V2G capabilities. For those that do, the power output is often limited and may not sufficiently meet a home’s energy needs. However, this situation is expected to improve in the medium term, particularly if Tesla, the leading brand in the market, integrates this V2H/V2G functionality into their vehicles. Additionally, the current cost of a V2H or V2G-compatible charger is around $10,000, meaning the cost of the charger alone is not too dissimilar to that of a Home Battery. |
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