Closing the “EV Renter Gap”
Adam Borison and Greg Hamm
One-third of all US households are occupied by renters rather than homeowners, and there are nearly fifty million rental households nationwide. In some regions, the fraction of renters is considerably higher. In Los Angeles and New York for example, this figure is estimated to be more than 60%. Clearly, rental households represent a very important market segment.
Unfortunately, when it comes to transportation electrification or e-mobility, this market segment is woefully under-represented. Renters are perhaps a third as likely as homeowners to own an electric vehicle (EV). As the figure below from U.C. Berkeley Professor Lucas Davis shows, this is true even when adjusted for household income.[1]
To achieve ambitious e-mobility goals and extend the advantages of EV’s beyond the core niche of wealthy, single-family homeowners, this is an issue that we need to address.
There are a variety of reasons cited for this “EV renter gap.” One that is frequently mentioned is simply the high cost of installing electric vehicle supply equipment (EVSE) – aka an EV charger – in typical multifamily rental properties. The International Council on Clean Transportation, for example, estimates that the installation cost of the most common Level 2 charger is roughly three times higher for an apartment ($4100) than for a single-family home ($1400).[2] This added cost can go a long way to discouraging EV adoption.
Our view, however, is that this simple economic comparison can be misleading because it is framed as the installation of an individual charger rather than a group of chargers. If we envision the widespread adoption of EV’s, we should not be thinking in terms of a few individual EVSE’s. Rather we should be thinking “at scale.” Rather than considering a single charger then, consider installing 100 EVSE’s in a neighborhood of 500 single-family homes versus 100 EVSE’s in a 500-unit apartment building. The table below compares the upfront costs of each element of this at-scale installation.
Element | Rental Apartment | Owned Home | Advantage |
Feeder | Upgrade of a single large transformer | Upgrade of multiple smaller transformers over a large area | Apartment |
Line to EVSE | Upgrade may be required of line to garage or multiple lines to scattered parking | Rarely will require a line upgrade | Home |
Panel | Requires a single large panel or a few smaller panels in a single location | Sizable fraction of homes over a large area will require a panel upgrade | Apartment |
EVSE | Single sophisticated control system and single installation site for high-power charger. | Many installation sites with individual low-power hardware and software | Apartment |
Meter | Metering combined with control systems to lower cost | Sizable fraction of homes over a large area will require metering upgrade | Apartment |
This simple qualitative view suggests that, at scale, EVSE installation for renters rather than homeowners has numerous advantages, and costs may actually be lower for renters rather than homeowners. It also suggests two important follow-up questions.
- What is the actual quantitative cost comparison now and in the foreseeable future?
- Assuming rental apartments actually have an EVSE advantage at scale, what government policies or business practices are required to fund the required investment and overcome this apparent market failure?
“Watch this space” for more on this important topic.
[1] Lucas Davis, Evidence of a Homeowner-Renter Gap for Electric Vehicles, Energy Institute at Haas, July 2018.
[2] Michael Nicholas, Estimating electric vehicle charging infrastructure costs across major U.S. metropolitan areas, The International Council on Clean Transportation, August 2019.