Is it a better economic choice to drive an electric car, today?
A growing number of well-established car manufacturers–as well as a few determined newcomers–are developing and/or selling electric cars.
The arguments for such cars are compelling: increasing gasoline price, preservation of the environment, reduced noise pollution, etc. But how do these cars compare to the classical Internal Combustion Engine (ICE) cars we are used to?
In this paper, we attempt a comparison between a typical ICE car, Tesla’s Model S, and Renault’s Zoe, based on a set of assumptions.
Assumptions #
| Distance travelled, daily (km) | Distance travelled, yearly (km) |
|---|---|
| 30 to 70 | 11 000 to 25 000 |
ICE vs. Model S vs. Zoe #
| Typical ICE car | Model S (85kwh) | Renault Zoe | |
|---|---|---|---|
| Price (€) | Wide range | 70 000 | 23 000 |
| Maximum autonomy (km) |
1 000 | 500 | 150 |
| Typical charge duration (min.) |
5 | 120 | 240 |
| Gasoline consumption, yearly (€) |
650 to 2 250 | 0 | 0 |
| Electricity consumption, yearly (€) |
0 | 350 to 800 | 350 to 800 |
| Battery amortization, yearly (€) |
0 | 1 250 | 950 to 1 475 |
| Total yearly consumption (€) |
650 to 2 250 | 1 600 to 2 050 | 1 300 to 2 275 |
Car Price #
Internal combustion engine cars have a very wide price range—from as low as 10 000 € to more than 100 000 € depending on the brand, performance, and functionality.
Zoe is priced a little above its sister category in the ICE segment.
Model S is priced like the high-end sports car it is.
Autonomy #
Today, electric cars do not even come close to ICE cars in terms of autonomy.
However, Zoe provides enough autonomy for typical day-to-day home-to-work drivers. And Model S goes even further and has enough autonomy for the typical long week-end trip.
And with the increase in the number of public electrical charging (and fast-charging) stations, autonomy will gradually become less of an issue—especially for the Model S.
Fuel and Battery Consumption #
Internal combustion engine cars burn fuel. And fuel costs money.
Electric cars use electricity, which costs much less money than fuel. But they also ‘consume’ their battery. In effect, batteries do not last forever and they need to be replaced.
The battery is guaranteed for 8 years on the Model S. And Zoe’s business model is to lease the battery for a monthly rate that depends on the distance traveled.
All things being equal, for long commuters who travel 70 km per day, ICE and electric cars have similar costs to operate—fuel for the former, and electricity plus battery for the latter.
However, for short commuters who travel 30 km per day, electric cars cost more than twice as much to operate. That is because of the battery cost.
Conclusion #
Because of the limitations on the autonomy of electric cars and the limited number of electrical charging stations as compared to gas stations, and because of the higher operating cost for short commuters, the sounder economic choice, today, is to drive an internal combustion engine car.
However, these same limiting factors reveal a simple and clear roadmap in order to improve the attractiveness of electric cars.
- Deploy the infrastructure: more public charging (and fast-charging) stations
- Improve the battery itself: reduced cost, increased capacity and longevity
In the meanwhile, if you choose to buy an electric car, it’s probably not only for economic reasons…
Author: E. Dib #
References #
- Model S Specifications, http://teslamotors.com
- Zoe Specifications, http://zoe.renault.fr