One of the biggest EV decisions you’ll make isn’t which car to buy

As all-electric vehicles become more popular and renewable energy incentives proliferate, many early EV adopters may reconsider their home charging needs.

Many users are deciding to upgrade from a standard Level 1 charger to a Level 2 charger at home. According to a survey released by JD Power in March, 60% of current Level 1 users said they are likely to upgrade their home charging station to a Level 2 permanently installed charger or a Level 2 portable charger.

This could be an important decision given that about 80% of charging occurs at home, according to Department of Energy estimates. But upgrading doesn’t have to be a hugely important personal financial decision. Consumers need to consider several factors, including usage, vehicle type, number of EVs in the household, and cost and potential incentives.

Brian Wilkerson, product director for Ford’s Pro Charging division Ford Motor Company Focusing on commercial EV charging, the decision to upgrade can be driven by “customer behavior such as driving patterns and EV size, as well as the flexibility to manage optimal charging times.”

Here’s what drivers need to know when considering a home electric vehicle charging upgrade:

Typical driving needs key to EV decision-making

Many people may find that Level 1 is sufficient, as daily driving may not require keeping the battery topped up, and faster public chargers are available for one-time needs.

According to federal statistics, the vast majority of Americans commute 30 miles or less each day. “For the most part, if I’m commuting every day, I’m going to lose very little battery and I can happily charge it at home,” said Mark Barott, partner and head of automotive/mobility at Plante Moran. Audit, tax, consulting and wealth management firms.

The difference between Level 1 and Level 2 charging

According to EnergySage, which helps consumers compare home energy solutions, a Level 1 charger plugs into any standard three-prong 120-volt household outlet and consumes as much power as a portable electric space heater. Most electric cars come with Level 1 cables, so this is a simple but slow home charging solution. According to U.S. Department of Transportation estimates, a Level 1 charger could take 40 to 50 hours or more to charge an electric vehicle from 80% to 80%, assuming a battery capacity of 60 kWh.

For faster charging, some manufacturers produce charger cables that can be used in 120-volt or 240-volt outlets. Assuming your power strip can handle the higher power demand, the latter will provide you with Level 2 at-home charging capabilities. However, you may not need Level 2 charging capabilities at home, as they can often be found in retail stores, workplaces, restaurants, and grocery stores.

Another option is a permanently installed Level 2 home charging station, which allows users to customize charging schedules for greater control over charging. There may also be rebates available to help defray the cost of such solutions. This option typically requires electrical work, which can be costly.

Home electricity restrictions and charges

Vikram Aggarwal, CEO and founder of EnergySage, said most people can use Level 1 chargers without any electrical upgrades. But that may not be the case with Level 2 home chargers, which may require more power. Agarwal said that could mean a lot of electrical work that could cost thousands of dollars, depending on the location of the panels and the wiring required. For example, if someone’s electrical panel is in the basement, the cost of running the wires to the garage may be prohibitive.

Agarwal said the cost and feasibility should be weighed against the incentives provided through the Inflation Reduction Act, which would help mitigate spending.

For low-income households, IRA electrical rebates can cover 100% of the cost of an electrical panel, up to $4,000. For middle-income households, coverage is as high as 50%, with the same upper limit. According to Rewiring America, a nonprofit organization focused on electrification, total electrification rebate rebates are capped at $14,000 for all qualifying electrification projects.

What faster charging can do for car owners

Albert Gore, executive director of the Zero Emission Transportation Association, a federal coalition that advocates for electric vehicles, said the convenience of quick charging and knowing you might only have to plug in once a week rather than once a day could help, if needed. and former senior executives at Tesla and SolarCity.

According to Department of Transportation estimates, assuming a battery capacity of 60 kWh, a Level 2 charger can charge an electric vehicle to 80% charge in 4 to 10 hours.

Level 2 charging stations are also a good option for drivers who want smart charging capabilities, where the charger essentially communicates with the consumer’s car, charging operator and utility operator via a data connection. Wilkerson said home chargers can save consumers money by knowing when charging makes the most sense and how to optimize charging based on overall usage, since rates may be higher at certain times of the day.

Bigger batteries mean more charging needs

Batteries are trending to become larger and charge faster, which may make Level 2 home chargers a better choice. “If you buy a larger vehicle, a home charger is almost essential,” Wilkerson said, citing the F150 Lightning as an example. Using the Ford Charge Station Pro, it can take up to eight hours to fully charge the extended-range battery. By comparison, a power bank cord that provides Level 2 charging for this vehicle could take 23 hours to fully charge, according to examples on Ford’s website.

Another consideration is how many cars you have in your home. For two or more vehicles, Barrott said a Level 2 home charger may make more sense for reasons including ease, convenience and speed.

Potential tax credits, rebates and other promotions

Costs may vary, but as a general guideline, EV owners can expect a 32- to 40-amp home Level 2 EV charger to cost between $500 and $800 in hardware, plus any potential accessories and setup related installation costs, according to electric vehicle charging station company EvoCharge. Once they get a more specific estimate, they can weigh it against the potential rebates they might qualify for.

In addition to rebates for any electrical work required to handle Level 2 charging, the Inflation Reduction Act (IRA) includes a tax credit for the installation of a home electric vehicle charger equal to 30% of the total cost, including installation, Up to $1,000 — if you live in a rural or low-income area, according to EnergySage.

Some state governments also offer tax credits, rebates and other incentives for installing electric vehicle chargers. This could result in hundreds of dollars in cash or tax credits.These plans change regularly, but consumers can check National Renewable Energy Incentive Database Research local savings options. Utility companies are another good place to check for direct rebates and other programs.

Manufacturers may also offer promotions. Take Chevrolet as an example, Permanent coverage of Level 2 standard installations Install charging socket Available to qualified customers who purchase or lease a 2022 or 2023 Bolt EUV or Bolt EV.

Particularly if you’re replacing a gas-powered vehicle with an electric one, Gore said, you might consider taking advantage of a range of state, city, utility and auto company programs to offset the cost of a Level 2 home charger.Consumers can research some opportunities website Maintained by the Department of Energy.