EV Outlook for 2024:  Time to Plug Into the Sun?

Do you own an electric vehicle, or will 2024 be the year you plug into the future by purchasing one?  Adding a Solaflect Tracker at home makes for the perfect combination – creating a backyard filling station for your EV that that runs on pure sunshine and costs up to 80% less than using public charging stations.  With current gas prices and depending on the model you choose, your fuel savings can pay back the cost of purchasing your Tracker in eight years or less.

A car charging at a solar panel charging station

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And, if it’s the sticker price of EVs that’s been holding you back, 2024 has more good news in store:  

  • First, as more EVs are produced at scale, the price gap with gas-powered cars is rapidly closing.  According to Cox Automotive, the parent of Kelley Blue Book, the average price for EVs sold in December 2023 was $50,789, compared to $48,759 for the U.S. new-vehicle market overall. 
  • Second, as of Jan. 1, EV buyers no longer have to wait until they do their taxes to receive a $7,000 federal tax credit on their EV purchase.  EV buyers now can ask for that money up front, with the dealer rolling the tax credit into the down payment or reducing the size of the car loan.
  • Third, a growing number of EVs now qualify for state rebates or tax credits.  Taken together, these incentives can shave as much as $15,000 off the price of a new EV.  The Department of Energy’s Alternative Fuels Data Center provides updated information on state rebates and incentives that are available to EV purchasers. 

Home solar installations also qualify for a 30% federal tax credit.  The size of this credit is not capped and includes the costs of EV charging equipment and installation by a licensed electrician.  Selecting a Solaflect Tracker as the primary generating source for EV charging locks in 25 years of savings at less than 10 cents per kilowatt-hour and for the equivalent of less than a dollar a gallon.    

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2024 EV Models and Tax Credit Eligibility

In 2024, EV sales are projected to grow by a third, following 49% growth in 2023.  This compares with just 2% growth in the U.S. car market overall.  Altogether, roughly 9% of new cars sold in 2023 were battery-powered, including plug-in hybrids.  

Carmakers are expected to launch at least 24 new EV models in the U.S. this year.  This represents a nearly 50% increase in the number of models offered on the market in 2023.  Five of the 2024 models have sticker prices starting under $50,000.  

However, due to tightening eligibility requirements for EV battery components, fewer models now qualify for federal tax credits, dropping from 34 models in 2023 to only 19 models at the start of this year.  The table below includes 19 EV models that have made the cut so far for federal tax credits in 2024:

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More EV News You Can Use

  • To qualify for a federal tax credit in 2024, a new EV and its battery pack must be assembled in the U.S., Canada, or Mexico, and battery cells must use minerals from a list of approved countries.  
  • Some auto manufacturers are tweaking their supply chains to allow some of their most popular EV models to return to the approved list for federal tax credits.  These models include the Ford Mustang Mach-E and Volkswagen’s ID.4.
  • If you buy a qualified used EV from a licensed dealer for $25,000 or less, you may be eligible for a used EV tax credit that equals 30% of the sales price up to a maximum credit of $4,000. 
  • If you lease a new electric vehicle, you may be able to take advantage of a 30% federal tax credit on models that do not meet the North American battery-content and manufacturing rules.  That’s because the Treasury Department currently defines leased EVs as “commercial” vehicles that are exempt from this sourcing requirement.  Updates on IRS rules regarding which models qualify for credits, as well as buyer income limits, can be checked here.

Solaflect Energy is your EV Charging Partner

Carmakers and consumers alike are counting on lower-priced EV models and better availability of public EV charging stations to sustain growth in demand.  Solaflect Energy is doing its part on both fronts:  

Finally, we’re raising a series of investment funds to offer employers attractive lease options for our Solar EV Solar Chargers.  We welcome introductions to accredited investors who wish to take advantage of attractive returns from a truly clean, impactful, and sustainable investment.  

For more information about solar at home or solar EV charging at work email us at info@solaflect.com, or call (802) 649-3700.  Working together, the power is in our hands to propel the solar and EV charging markets and make a real difference in the fight against climate change.

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