Comment
Below each question are my feedback.
To help guide the development and refinement of MTO’s EV programs, we are seeking feedback on the following key questions:
1.Electric Vehicle Incentive Program (EVIP)
•What should the government tie the EV purchase incentives to (e.g., vehicle tailpipe GHG emissions, battery size, technology type, etc.) in order to support a significant growth in EV sales and GHG emissions reductions?
The battery size and the car efficiency (deployment system and coefficient drag). The bigger the battery the less emissions the car will produce i.e. a car with 20 kWh battery will still need ICE while the one with 50 kWh battery won’t. The efficiency of the car is also very important since not all 50 kWh battery will be able to provide the same distance; it depends on many factors like the power train, car weight and the aerodynamic.
The formula should take into account all those variables to get a fair evaluation. MTO should also consider getting rid of the left and right mirrors to improve aerodynamic since cameras can now replace the mirrors and they provide better view especially in the rain. With EVs is all about efficiency since battery technology only improves about 1% every year so to increase range we have to look for improvement somewhere else. The most efficient EV should get the most incentive.
•How should the government adjust the current 30 per cent Manufacturer’s Suggested Retail Price (MSRP) incentive cap and the $3000 cap on vehicles with an MSRP greater than $75,000 in order to promote EV sales and GHG emission reductions in a fiscally responsible manner (e.g. remove the cap? Relax the cap)?
I think the cap is where it should be, people who can afford to buy a car pricier than $60,000 don’t really need that much of incentive. What they need is to have more charging station in ON. The current 30% MSRP incentive is good but does not cover our weak CAD$. EV is in general more expensive than ICE and the battery is the major cost of EV.
Cheaper gas and weaker $CAD have made us more difficult to switch to EV. For instance Chevy Bolt will be available in Canada in early 2017 but the price is not cheap, starts from $43,000 compare to Toyota Yaris which is only $16,000 and about the same size. Even after the incentive the price of Yaris is still about half the price of the Bolt. Another thing is that people would think thrice to buy the Bolt since they can’t really drive too far with it.
With the range of 380 km, it’s good enough to go to the cottage country but that’s about as far as it can go. If I want to drive to Montreal I have to recharge the car every 300 km, with level 3 charging it will take 4 hours and level 2 charging will take 8 hours. Not to mention that EV range will drop about 30-40% in the winter since battery has to warm itself up before it can work properly.
As we all know Tesla will start production of Model 3 (M3) in summer 2017 and they are the only manufacturer with supercharger network. Supercharger will cut charging time from 4-8 hours to only 40 minutes. People will definitely consider the M3 even if it is going to be their only car. The only problem with M3 is the price starts from US$35,000 which will translates to CAD$46,000. There will be some upgrades that people in Canada would want to get like the winter package, AWD and if possible a slightly bigger battery. With all the upgrades the price can easily hit beyond $60,000.
At the moment we still don’t know the exact price of the car and the upgrades until spring 2017. I’m hoping that the incentive will cover 30% MSRP with those upgrades included otherwise the car will still be too expensive for middle class people.
oDo you think these caps influence an EV buyer’s decision to purchase an EV or a specific type of EV?
The answer is “Yes” for people who can only afford to buy a car below $60,000 and “No” for people who can afford pricier car. I think I represent the real middle class and I can only afford to have one car so Tesla is my only choice. If the M3 turns out to be a lot more expensive than I expected then I will stick with my new Tucson. I know that I will spend more money maintaining the Tucson (gas, oil, etc) over the years but it will still be a lot cheaper compare to owning a Tesla.
•How can the government adjust the Electric Vehicle Charging Incentive Program (EVCIP) to benefit even more EV owners?
I think the $500 incentive for charger and another $500 for labor are pretty good. My only concern is what will happen when EV owners want to move to a different house, should they leave the charger to encourage new owner to get an EV (act like an incentive) but then they will have to buy and install a new charger at their new place but this time won’t get the incentive from the government. Can EV owners claim the incentive more than once if they move to a new place?
Most people moved more than once in their entire life and people who own EV will most likely to buy another EV for their next car. Perhaps our government can use this opportunity to indirectly install EV charger in houses by letting EV owners to claim the incentive based on the EV ownership and address. That way over the years there will be more and more houses equipped with EV charger.
2. Electric Vehicle Chargers Ontario Program (EVCO)
•What program features (e.g., eligibility requirements, evaluation criteria, technical requirements) should be considered in a program to deploy charging stations at workplaces, multi-unit residential buildings, downtowns and town centres?
•Specifically for multi-residential and workplaces:
oWho are best positioned to implement the installation of charging stations?
oHow should funding for charging stations be structured and/or capped? What value(s) of cap(s) should be applied?
oHow can government best engage workplaces, condos and apartment boards to participate in the EVCO program?
•How should government ensure that Local Distribution Companies are involved in EVCO applications?
•What aspects of the first round of EVCO do you feel should be repeated or done differently?
I personally hope that our government will not be pulled into providing charging station for businesses just to persuade people to buy EV. Government main job/focus is to trigger the snowball effect and then watch the progress from the sideline, give a push if the snowball is rolling down too slowly. We should not leave it to private sector to maintain the charging station unless they are the one who build it. Government should focus on building level 3 charging station in a place far from the city within 200 km radius to each other (similar strategy to Tesla supercharger) so that EV owners can drive anywhere in ON without running out of juice.
Govt should maintain those charging stations themselves and collect data from it like how often has it been used and for how long (on average). Use the data to analyze behavior and to help make decision if more charging station needed in certain locations. The data can also be sold to attract businesses i.e. a charging station in the middle of nowhere but often used means that we need more chargers there and most likely also needs coffee shop and restaurant.
Govt should provide a website for EV owners to give feedback on where the next charging location should be built. It is also imperative to collect information from Tesla so that we know where they will build their next supercharger and if possible get high level information (not violating people’s privacy) on where Tesla owners normally go. All of those information will help us put together a solid plan, we can approach businesses to open their stores there and in return they should provide a charging station. Govt have the advantage of all the data available to them and should use it to help with decision making process. Building charging stations should be on a continuous basis and not all at once.
3. Education and Awareness
EV Educational Campaigns
oWhat are your current perceptions related to EVs? How can government help in improving perceptions related to EVs, and help consumers better understand the benefits of EVs?
I am a big supporter of Elon Musk and what he is trying to achieve. Tesla is one of the best cars in the market, unfortunately most people in Canada haven’t even heard of Tesla yet but that’s mostly because they are still expensive hence rarely seen on the street. The M3 will change the whole game in the US but may not so much in Canada, depends on how much the price will be when it arrives here.
oWhat innovative education and/or awareness programs or policies, currently operating in other jurisdictions that provide support for the adoption of EVs, could be applied in Ontario?
I think Norway has the best policies for this but may be too difficult to apply it here. They put a very high tax on ICE and no tax on EV. I think this is the major flaw in our policies, low sales tax for cars along with expensive public transportation forced people to own cars. This results in traffic jam hence more carbon emissions.
Despite that there are still room for policies improvement to help EV adoption. Insurance rates are the major factor for Ontarians, most of my friends aren’t too happy about it. Perhaps government can step in and make it 30-40% cheaper for EV owners. Sales tax is also another major factor, the incentive will be more effective if we don’t have to pay sales tax for EV. Another addition is to provide free street parking in Toronto if possible.
oWho should the government be partnering and collaborating with to deliver an EV educational campaign?
Government should partner with EV communities especially Tesla community which should be the biggest one. There are probably around 30,000 fans in Canada and most of them are most likely in BC, ON and QC.
oTo increase education and awareness of the benefits of EVs, what forms of communication and key messages should the government consider to reach an audience beyond the EV community?
Government can use Tesla loyal supporters to do this job, it is more effective and less costly. One Tesla owner can “persuade” two or more neighbors and eventually create a snowball effect down the road. Tesla fanboys will happily show off their car, provide information and all the advantages of owning it. Since I leased the new Tucson back in April, two of my neighbors have bought the same car, they came to see my car and asked information about it.
I asked them if they would consider buying an EV or have heard of Tesla and the responds were as expected, they never heard of it and I’m pretty sure they had that golf cart in their mind when I mentioned about EV. If only I had the Tesla at that time, the result would be different. People will want to hear directly from the owners about their experience owning an EV. Testimony is a very powerful message.
Partner and Dealership Programs
oWhat are potential tools that can be used to increase the availability of EV models on the showroom floor, for test drives and for purchase at dealerships?
oWhat supportive mechanisms and/or incentives should the government provide to EV salespeople and dealerships in order to increase EV sales?
Private Fleet Awareness Campaign
oHow can we effectively raise awareness of EVs and EV incentives to private fleets?
oWhat elements should be included in a decision-making tool or cost calculator to help fleets consider purchasing an EV?
This is my answer to all questions about Partner & Dealership Programs and Private Fleet Awareness Campaign. I don’t think government can do much in this area, the car manufacturers will have total control on what cars they want to sell more and salesmen only care about their commission. So spending money to try to influence them may not be the right strategy. Government should focus on the individual level first while waiting for the market to have more (better) options on EV.
Currently the Model S and X are not the game changer so we are left with only Nissan Leaf and Chevy Bolt in the market. At the moment both of them are not good enough to compete with ICE cars so only people with deep pocket can afford them as a second car.
So to summarize all my feedback I would like to see our govt to first focus on individual level, helping EV fans in getting the car of their dream. This will trigger a snowball effect, these people will spread awareness and educate their communities about EV and more people will then follow. The more EV owners we have means the more power to attract businesses to contribute to this good cause. More businesses (from coffee shop to apartment building) will provide charging stations based on the information from government and that in return will attract more people to buy EV.
I hope the feedback will help MTO in creating better policies for the year to come. Feel free to contact me if you need more information. Thank you.
[Original Comment ID: 196529]
Submitted February 12, 2018 11:49 AM
Comment on
MTO discussion paper on electric vehicle incentive initiatives under the Climate Change Action Plan
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