Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs. Switching from a gas-guzzling vehicle to an electric vehicle (EV) is an excellent method to reduce the cost and emissions of going from point A to point B. Nevertheless, charging an EV with solar panels is a game changer for saving money, avoiding public charging, and virtually erasing your carbon impact.

Now, with the Inflation Reduction Act of 2022 providing significant incentives for EVs, solar, and batteries, there’s never been a better time to install a solar power charging station in your own home.

We’ll go over your alternatives for charging an EV using solar panels, whether you already have an EV, solar panels, or neither.

Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs

What are the advantages of charging your electric vehicle using solar panels?

Almost 80% of EV owners have a charging station in their house. There are three major advantages to combining an EV charger with solar panels:

• Lower charging costs
• Zero carbon emissions
• Convenience of charging at home

To begin, consider how much money you may save by charging your electric vehicle with solar panels.

Home solar is the most cost-effective option to power a vehicle

Previously, drivers were at the mercy of petrol costs and could only control how much they drove and, to a lesser extent, how fuel efficient their vehicle was. That is no longer the case. They can manage the cost of the fuel itself by going solar.

According to the US Department of Transportation, the average motorist travels 13,476 miles each year, or nearly 37 miles per day. A Tesla Model 3 driver who gets 3.33 miles per kWh would spend $1,500 less per year charging an EV with solar panels than filling up a petrol car that gets 30 miles per gallon at roughly $4 per gallon.

Charging an EV using solar is also less expensive than charging with grid energy or public EV stations.

Expense of charging an electric vehicle with solar versus conventional fueling methods

Let’s take it a step farther. Solar charging an EV is:

• 51% less expensive than charging on grid power
• 80% less expensive than charging on public chargers
• 81% less expensive than fueling up a 30 mpg automobile at $4 per gallon

Remember that these values will vary depending on the brand of car, the distance travelled, the cost of fuel, and the time of day.

In reality, the only constant in household solar energy is the cost. When you buy and install solar with solar.com, your EV charging prices are fixed at roughly 6 to 8 cents per kWH for the life of the system.

Energy from the grid or petrol defy that. The U.S. Energy Information Administration reports that grid energy has grown by an average of 1.98% annually since 1990. (EIA). In addition, the cost of petrol has climbed by an average of 3.89% every year over the previous 87 years.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

These are the results over a house solar system’s 25-year lifespan:

The savings from using solar power to charge an EV over a 25-year period are as follows:

• Compared to grid energy, using home solar to charge an EV saves over $14,000.
• About $70,000 as opposed to $30/gallon gasoline for the same vehicle

Home solar is the best defence against growing energy and EV charging costs in an era characterised by inflation.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

The cleanest way to charge an EV is with home solar

In addition to fixing EV charging costs at a very low price, home solar power virtually reduces your driving pollution.

True to the common criticism of charging for electric vehicles, we have no control over the source of the energy. If the neighbourhood grid or public charging stations are also powered by fossil fuels, your EV is as well.

The US Energy Information Administration estimates that in 2023, 24% of the nation’s electricity will come from renewable sources. The good news is that your EV can and will increasingly run on clean energy as renewable sources continue to supply a growing portion of the world’s energy requirements.

However, this cannot be stated of internal combustion engine vehicles, also known as ICE automobiles. No matter how fuel-efficient they are, ICE vehicles will always emit greenhouse gas emissions that contaminate the local air and contribute to climate change, just like a tiger cannot change its stripes.

The only surefire option to charge your EV on clean energy and get rid of your car emissions for the time being is with home solar.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

It’s convenient to charge your EV at home

One of the main obstacles to EV ownership, next to cost (which the Inflation Reduction Act would help with), is range anxiety. In other words, individuals are concerned that there are not enough charging stations.

How would it feel to have a solar power charging station inside your house?

Imagine never having to wait in line at a smelly petrol station or public charging station and waking up to a vehicle that is always fully filled. Very awesome setup, no? Imagine charging your EV as cheaply as possible by combining it with solar power.

All things considered, solar energy is a cheap, clean, and practical way to charge EVs. Let’s now examine how to establish this perfect union of renewable energy sources.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

How to Connect an EV to Solar Charging

The advantages of owning your own solar EV charging station are apparent. Now, thanks to recent Inflation Reduction Act incentives, the cost of pairing an EV with solar charging is on the down.

To begin saving, you will need three items:

• A vehicle that runs on electricity
• An electric vehicle charging system
• Panels for solar energy

The sequence in which you purchase an EV and solar is entirely up to you (though we don’t recommend purchasing a charging system without first purchasing an EV), and we’ll go over some common scenarios below.

Let’s start with the costs and incentives for each component.

Tax incentives for purchasing an EV

On August 16, President Biden signed the Inflation Reduction Act (IRA), which includes the Clean Vehicle Credit for new and used EVs and eligible plug-in hybrids.

Americans can receive a $7,500 tax credit for purchasing a new electric vehicle or a $4,000 tax credit for purchasing a used electric vehicle (up to 30% of the purchase price).

Clean Vehicle Credit incentives

Even better, at the point of sale, the dealer can receive the tax credit. In other words, you can use the tax credit now to lower the cost of buying the EV rather than waiting until you file your taxes.

Yet, there is a catch: Not all EVs and buyers qualify. If you have any doubts regarding the Clean Vehicle tax credit, speak with a tax expert. The Clean Vehicle credit will be in force for ten years starting on January 1, 2023.

Let’s examine a few of the eligibility conditions.

Eligibility of used cars

The credit only applies to the first time a used EV is resold, according to its VIN number, and used EVs must be sold via a dealer (no back alley Craigslist sales).

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Income limits

The Clean Vehicle Credit is intended to enable more People get access to EVs, not necessarily to assist consumers who can currently afford them. Therefore, the IRA has income restrictions to be eligible for the tax credit.

The maximum annual income to be eligible for the $7,500 new EV credit is $150,000, or $300,000 for joint filers.

The maximum annual income is $75,000 or $150,000 for joint filers in order to be eligible for the $4,000 used EV tax credit.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Price limits

The vehicles that qualify for the Clean Vehicle credit have price restrictions depending on the manufacturer’s suggested retail price in addition to income restrictions (MSRP).

Price caps for the Clean Vehicle Credit are as follows:

• $80,000 will get you a new SUV, truck, or van.
• For new sedans, $55,000
• $25k for second-hand EVs

Once more, the goal is to assist regular Americans in switching from gas-guzzlers to electric vehicles rather than to reward hedge fund managers for pre-ordering electric Hummers.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Manufacturing requirements

Last but not least, there are production standards intended to promote local manufacture, sourcing, and recycling, mostly for battery components.

First, as of right away, the IRA mandates that final assembly for qualified EVs take place in North America.

Finally, as of January 1, 2023, 50% of the battery components for qualifying EVs must be produced or built in North America. Each year, the need increases until it reaches 100% in 2029.

A specific percentage of battery minerals must also come from free trade partners or be recycled in North America, according to the IRA. The requirement gradually rises to 80% by 2027 after starting at 40% in 2023.

These conditions will accomplish two goals:

• Limit the amount of EVs that can be used to calculate the Clean Vehicle Credit
• Boost regional EV and battery production, recycling, and technology

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

What EV models are eligible for the Clean Vehicle Credit?

To find out which EVs qualify for the Clean Vehicle Credit, the average American has do a fair amount of research. Fortunately, the US Department of Energy published a list of cars that were final assembled in North America, making them eligible starting in 2022 until the battery regulations took effect in 2023.

The 200,000 unit cap for the prior tax credit was reached by the models marked “manufacturer sales cap met,” hence they are no longer eligible for the tax credit. If the battery and pricing requirements are met, these models might be eligible when this restriction is abolished in 2023.

As the Clean Vehicle Credit provisions are updated, the list is subject to change.

Note that even if the car you desire is not eligible for a tax credit, the average driver will still save thousands of dollars annually on fuel by charging an EV at home rather than buying petrol.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Setting up an EV charging system

A solar panel system with an EV charging station offers a number of advantages and a practical way to generate and use solar energy at a reasonable price.

The key component of this puzzle is solar inverters. Direct current (DC) must be converted to alternating current (AC) before the majority of your appliances and devices may utilise your solar energy (AC). This also applies to solar energy used to power your electric vehicle.

In order for the inverter to extract power and put it into the battery of the electric car, the charging port will really be installed and attached to it.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

How much does it cost to use an EV charging station?

Carvana estimates that the parts and labour for Level 1 and Level 2 home charging stations is from $1,000 to $2,000 per unit. Although they can cost up to $50,000, Level 3 chargers are only compatible with a select few EVs. The majority of EV users will only use Level 1 and 2 chargers.

Regrettably, there are no special incentives for EV charging in the IRA. But, it does provide incentives for updating your electrical panel and wiring, which may be required when adding a charging station.

Nonetheless, the average motorist will recover the cost of a standard Level 1 or 2 charger in two to six years if they charge their EV with solar energy rather than grid energy.

solar energy verses grid power for EV charging

*Based on average annual price increase of 1.98% since 1990.

Never needing to use a petrol station or public charger again is not a bad deal at all!

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Adding solar to your electric vehicle

You’ve probably guessed it already, but solar panels are required to complete the EV solar charging trifecta.

It’s just a matter of how many panels you need to add, regardless of whether you already have a solar system at home. The good news is that the solar tax credit was doubled by the IRA to 30% for the following 10 years, which significantly reduces the cost.

Two typical EV-solar scenarios will be discussed.

1. Purchasing an EV prior to installing solar

Getting an EV before installing solar is fantastic! Installing an EV charging station will be your next step in order to use grid power to charge at home (the second cheapest option to home solar).

It is advised to wait a few months in this case to determine your EV battery usage and how it affects your energy cost. Solar installers can calculate precisely how much solar power you need to offset your electricity consumption if they have a reliable collection of data.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

2. Acquiring an EV when solar energy is already available

It’s wonderful if you already have solar power before purchasing an EV. The same as in the last instance, your next step is to purchase an EV charging station so you may use solar energy to charge at home.

You’ll probably discover that your solar system won’t totally offset your electricity demand unless you add panels to account for your EV usage, and you might end up with an electricity bill at the end of the year.

There are two solutions for this:

• To determine the precise amount of additional solar capacity you require, obtain data for a few months.
• To determine how many more solar panels you’ll need to install to balance your EV usage, see a solarpowernewz.com Energy Adviser.

Let’s conduct some maths to estimate the approximate number of solar panels needed to charge an EV.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

How many solar panels are needed to power an electric vehicle?

Depending on the type of panel, EV battery capacity, travel distance, and sun exposure, a specific number of panels may be needed to charge an EV using solar power. To fully power an EV with solar energy, however, it typically takes between 5 and 12 panels (perhaps less if you work from home).

We’ll use the Nissan LEAF SV Plus as an example because it qualifies for the $7,500 Clean Vehicle Credit and has a 62 kWh battery with a 215-mile range in order to provide some context.

Do the output per panel calculation first.

The quantity of energy produced by a single solar panel must be taken into account first. The material, size, efficiency, age, and a few other parameters that affect solar panels’ ability to produce energy.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

A typical 250 watt solar panel will generate about 37.5 kWh of AC each month or 1.25 kWh per day, assuming 5 hours of sunlight per day. Again, this is a projection, and a variety of variables will influence output.

5 hours of sun per day X 250 watt = 1,250 Watt-hours or 1.25 kWh per day

Then determine your EV battery usage.

Let’s now determine the amount of solar output you’ll need to generate to recharge your EV battery.

The LEAF delivers 3.7 miles per kWh and the daily mileage of an average motorist is 37 miles. That equals 10 kWh of power each day.

This estimate is easy modifiable to account for personal driving preferences and EV efficiency.

37 miles per day / 3.7 miles per kWh = 10 kWh of electricity per day

The production of solar panels divided by the final EV usage

You would require eight 250 watt solar panels to fully charge your Nissan LEAF EV if one 250 watt solar panel could only provide about 1.25 kWh of AC electricity per day and you needed 10 kWh of electricity daily.

10 kWh of EV usage / 1.25 kWh of production per panel = Eight 250-watt panels

In this case, 5 solar panels would be sufficient if you upgraded to premium 400-watt solar panels that generate 2 kWh every day. Nevertheless, if you only get 4 hours of sunlight each day, you would need more like 12 250-watt panels to charge your EV.

We’ll admit that the scenarios are limitless and the maths is occasionally challenging. It is best to talk with an energy advisor about your unique needs if you need additional clarification on your individual scenario.

In this article, we will discuss Utilizing Solar Panels to Charge Your EV and IRA Incentives to Reduce Costs.

Should I use solar panels to charge my EV?

Only if you want to have the least expensive, cleanest, and most practical driving experience possible should you charge your EV with solar panels.

That is to say, yeah.

The primary barrier for both EVs and solar panels is their initial cost. The $7,500 tax credit for new EVs and the 30% tax credit for solar and batteries were also strengthened by the IRA, which can help lessen the damage.

Another perspective is as follows: At least 75% less is spent on solar charging for your EV than it would on gas or public charging, which both cost more than 50% more. Simply put, you’re saving a lot of money by purchasing enough fuel for more than 25 years all at once, much like when you shop at Costco.

You might need anywhere between 5 and 12 solar panels to power your electric vehicle economically. You can use the aforementioned averages as a guide when conducting your own study, and if you ever require assistance, don’t hesitate to contact one of our energy advisers right away!