Despite the touted “EV slowdown” that dominated news stories toward the end of last year, EV sales grew by 46% in 2023. Further, Cox Automotive forecasts 2024 sales to grow by an additional 36%, to almost 10% of the new vehicle market. That’s exciting news for utilities, who stand to reap the benefits of this EV load growth, and it’s reason to push back against a media narrative that seems to have soured on EVs.
But the truth is, despite growing sales, barriers to EV adoption remain. While many U.S. drivers are at least somewhat familiar with EVs, Consumer Reports recently found that 34% of Americans have effectively zero experience seeing, riding in, driving, or knowing anyone who owns an EV. Even among the 38% of American new-car buyers who say they will definitely buy or seriously consider buying an EV, it is hard to know where to get reliable information about the costs, benefits and logistics of EVs. Many car manufacturers are focusing on high-end luxury models—perpetuating the notion that EVs are too costly for the average consumer. Even for those with means, pursuing rebates and tax credits can be complicated, making it hard to understand how much an EV will cost. Lastly, many potential buyers cite a lack of EV charging as a top barrier to buying an EV, whether at home (renters, multifamily dwellers) or on the road. And even for those who can envision where they’d charge their car, the idea may still seem too unreliable, inconvenient, or unfamiliar for them to convert.
Underlying all these issues is a communications challenge—a lack of comprehensive support for the EV journey that threatens to depress adoption and limit the economic, environmental, and health benefits of EVs. Utilities are part of an essential ecosystem of information sources, and there are many ways that utilities today are supporting their customers to overcome barriers to EV adoption—but there’s also much more work to do.
The EV Customer Journey
The process of acquiring an EV follows a familiar path but presents unique challenges for customers to find, evaluate, and use the information they need most.
The EV customer journey includes:
- Learning. Customers learn about EVs for the first time, in many cases from friends, family or neighbors who drive one. They also pick up information from advertising and marketing campaigns, auto manufacturers, or social or traditional media. Since most people buy cars infrequently, utilities must understand that customers are hearing about EVs—for good or for ill—long before they are anywhere near a purchasing decision. This is when preconceived notions are developed: myths, outdated information, or downright misinformation starts to become “sticky” in people’s minds and impact a driver’s willingness—or not—to consider an EV.
- Shopping. Drivers dig in to understand if an EV is right for them—and if so, which one. They research makes and models, visit dealerships, consult consumer-facing resources, and read reviews to understand their options. They want to know more about range, battery size, charging options, plug-in hybrid vs. battery EV, and fueling costs—which is a lot of new information, especially since they are also evaluating vehicle size, styling, features, price, and all the other factors that car buyers consider. Incidentally, car dealerships are notoriously poor at providing this information in a useful or comparable way—making other trusted sources of information even more important.
- Buying. Many parts of this phase mimic that of buying a non-EV—the negotiating, the financing, the paperwork. However, EVs offer something new for buyers to consider: incentives, in the form of rebates and tax credits. Determining which vehicles are eligible, figuring out where to apply, and wading through onerous applications—including income qualification paperwork, if required—can be a real challenge.
- Driving. At last, the part that comes as a welcome surprise to most consumers. It turns out that driving an EV is… pretty much exactly like driving an internal combustion vehicle. What a relief!
- Charging. Buckle up: this is the roughest part of the customer journey. It is the most complicated, the most anxiety-inducing, and offers the steepest learning curve. In this phase, drivers figure out how to charge their EV. They learn about different charging connectors and adapters; kilowatts versus kilowatt-hours; estimated range versus actual range; and the impact of terrain, cargo, and weather on range. They download charging apps and set up accounts; they download charging map apps and set up accounts; they download their car’s app and set up an account. They filter the map apps for their car and their desired charging speed. They install a home charger; this may require an electrical panel upgrade. They enroll in a utility managed charging program (which may require… another app). They begin to wrap their heads around how much charging costs; at home but also in public, where energy might be priced by the kilowatt-hour, by the minute, or via flat fee—making it hard to compare. They navigate charging payments, whether by credit card, RFID card, tap-to-pay, or Plug and Charge. In an ironic twist, they will likely have to manage a situation where a public charger, which they carefully evaluated, mapped, tapped, and need, is not working—despite them doing everything right.
Improving the Journey
Clearly, this customer journey is in deep need of high-touch assistance. In some cases, utilities can do the outreach work directly, or can develop tailored online tools and resources for customers. But outreach funding isn’t boundless, so savvy utilities can also leverage existing outreach channels and collate external resources. Here are some ideas for each phase of the EV customer journey:
- Learning. Charging is the newest and most unfamiliar part of the EV journey, and utilities have a legitimate and vested interest in ensuring that customers do not carry misconceptions about using the service they provide. That work starts in the learning phase. Utilities should speak positively about EVs on social media, highlight customer success stories (especially about atypical EV buyers), actively address myths, and lean into their local presence—perhaps with advertising campaigns that feature local landmarks or influencers. Supporting electric rideshare or electric transit or school buses, which may be where many people first ride in an EV, can have a multiplier effect—if people hear about it. Don’t underestimate the impact of in-person conversation—establish a presence at local events with staff who can speak knowledgably about EVs.
- Shopping. Best utility practice is to offer an interactive, online total-cost-of-ownership (TCO) tool for customers to browse EV models and see how they compare to gas. It’s optimal if these tools are tailor-made for the utility and can include your electric rates and greenhouse gas emissions factors—but lacking that, utilities can direct customers to free external tools such as PlugStar. Offering local ride-and-drive events is also a great way to engage customers and help them choose the right EV. Fostering relationships with local dealerships is also important—sales staff should be well-versed in the utility’s program offerings, EV rates, or other incentives. Platforms like Chargeway—which created a novel, driver-friendly way of understanding electric fuel, and offers a dealership kiosk that utilities can sponsor—can also provide a smoother shopping experience.
- Buying. Utilities should consider ways to support their customers in identifying, assessing eligibility for, and securing any available tax credits and rebates for their EV purchase. Federal tax credits are now available at the dealership but don’t apply to all vehicles—so utility TCO tools should be meticulously updated to reflect this to customers. Utilities can support state legislation to offer—and fully fund—EV rebates or tax credits, as in Oregon or Colorado, especially for income-qualified customers. And utilities can tailor their income-qualification processes to piggyback off the state’s process—so customers provide documentation of higher state-level incentives to qualify for utility programs, easing the application burden on low-income customers.
- Driving. Utilities can support new EV drivers—who may be identified by a dealership, propensity modeling, or program enrollment—with curated campaigns that roll out EV program information and tips across an identified time horizon. Don’t try to give new EV drivers all the information at once—this will swamp them. Early on, drivers might appreciate light information about the driving conditions and habits that will help extend their car’s charge, for example.
- Charging. There is so much that new EV drivers must learn about the charging experience. A high-touch, layered, paced approach is the right solution that can help build driver confidence and strengthen a utility’s relationship with the customer. Utilities can offer an EV concierge service, where customers call before (or after) their EV purchase to understand more about EVs and charging. In my personal life, I occasionally sit down with new EV drivers for 30 minutes to talk through all the apps (PlugShare and Chargeway are my go-tos)—a service that some utilities provide. In my experience, people want to hear real-world examples of potential public charging pitfalls. Like the time a family friend picked up her new EV 250 miles away, then tried to navigate home without noticing her app’s filter option for charging speed—and ended up plugged into a Level 2 charger in the pouring rain for two hours. She learned fast, but hearing stories like that can also help new EV drivers avoid those tough-lesson experiences. I also always recommend that drivers try calling the 1-800 number at chargers that appear broken—frequently, a remote reset can resolve the issue, and is faster than driving around trying to find a different charger.
Customers probably want to know how their utility bill will change once they buy an EV—which is a great opportunity to introduce EV rates or managed charging programs. I always recommend that utilities offer Level 2 home chargers via a marketplace and include turnkey installation services as well. Optimally, utilities can offer charger and make-ready rebates and managed charging programs, and these can be instantly applied at marketplace checkout. But even utilities without these programs can support their customers with a marketplace that helps them order and install a Level 2 charger easily, with a trusted trade ally.
Conclusion
Helping drivers navigate the complexities of this new landscape is critical for EVs to achieve their full mass market potential. Further, how a utility approaches the EV customer journey speaks volumes about the extent to which they understand their customers and are invested in helping resolve their challenges. Buying an EV represents a major shift in a customer’s reliance on and relationship to their utility, and meeting customers where they are in this transition can help strengthen customer engagement and build confidence. There’s no avoiding the steep, intense learning curve that comes with learning how to charge an EV—but a carefully tailored utility outreach program can make the process smoother and help avoid the pain points. Even utilities that lack the resources to offer full-service support can rely on external resources and provide easy access to key information. And the investment, at whatever level, is worth it. Before you know it, your happy customers may themselves become ambassadors for EVs to their friends, family, and neighbors—and when they do, you’ll be grateful that they also have great things to say about how their utility helped.