Results of Electric Vehicle Market Research Study City of Guelph February 2011

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1 Results of Electric Vehicle Market Research Study City of Guelph February 2011 Sandy Manners Director, Corporate Communications Guelph Hydro Electric Systems Inc. Tel: Copyright 2011 Guelph Hydro Inc. / Results of survey may not be reproduced without permission. Contact

2 Background Plug-in electric vehicles are coming into the Canadian market in 2011 No one knows how fast this new technology will be adopted Transportation is a key component of achieving Guelph s Community Energy Initiative goals for reducing greenhouse gas emissions Green Energy Act Smart Grid - Electric cars Zero-emission electric cars could shape the image of environmentally aware cities because zero local emission motoring is no longer science fiction. Dieter Zetsche, President, Daimler

3 Implications for Utilities Electric cars will be plugged into the grid Increased load on distribution network One electric car = 1 house Like doubling our number of customers Safety concerns Unanswered questions When will cars be charged? Where will cars be charged? How will people pay for the electricity? Do we treat charging system as an appliance or a meter? Can discharging of batteries provide a mobile source of power?

4 Purpose To understand the level of awareness and interest in electric vehicles among Guelph consumers and businesses (fleet managers). Research Objectives To identify expectations and barriers to electric vehicle penetrationavailability of product, location of recharge stations, timeline of switching etc. To identify the energy use behavioural changes that consumers and business expect from the transition to electric vehicles. Copyright 2011 Guelph Hydro Inc. / Results of survey may not be 4 reproduced without permission. Contact

5 Methodology Telephone survey conducted in February 2011 by Research Methodology & Customer Profile Customer Profile 200 Guelph residents 25 fleet managers Mainly private industry own company Manufacturing, service, retail Building mainly one story Copyright 2011 Guelph Hydro Inc. / Results of survey may not be reproduced 5 without permission. Contact

6 Characteristics of the Guelph Community Urban community of 118,000 Citizens Well educated, reasonably affluent and environmentally concerned Commercial base A centre for institutions focusing on agriculture and life sciences strong focus on agri-food research Many advanced manufacturing, high technology and environmental enterprises Government and educational facilities University of Guelph large student population Research Park

7 Guelph Community Energy Initiative (CEI) Goals for % less energy use per capita 60% less GHG emissions per capita Population expected to grow from 118,000 to 175,000 persons Key Components of the Plan 1. Distributed Generation 2. Transmission 3. End-Use Efficiency/Conservation 4. Urban Form/Density Transportation Energy Services

8 Characteristics of the Guelph Driver Average income of respondents = $83,000 / year They own their own residence and prefer to own their vehicle as well Almost all (90%) park their vehicles at their residence either in their driveway or garage The significant majority have 1-2 vehicles and an average of two drivers per household Vehicles are generally used for shopping trips, commuting to and from work/school and running errands

9 Characteristics of the Guelph Driver Short travel distances Residents tend to live and work in Guelph or surrounding communities Vehicles are generally used for shopping trips, commuting to and from work/school and running errands The average commute is 22 km one way Outside of commuting, residents generally (84%) stay within Guelph and its surrounding communities

10 Characteristics of the Guelph Driver Awareness / Interest High awareness level and interest in electric vehicles A third say they are somewhat or very likely to consider purchasing/leasing an EV in the next 3-5 years Almost half are planning on purchasing a new automobile in the next 3 years (15% within the next year)

11 Guelph is Ideal for Pilot Projects Personal belief systems already in place - green community, citizens environmentally concerned Community vision and goals already established Community Energy Initiative High level of awareness and interest in electric vehicles A third say they are somewhat or very likely to consider purchasing/leasing an EV in the next 3-5 years Short travel distances Residents tend to live and work in Guelph or surrounding communities The average commute is 22 km one way Outside of commuting, residents generally (84%) stay within Guelph and its surrounding communities Garage or driveway parking Reasonably affluent community will be able to afford electric vehicles

12 Guelph is Ideal for Pilot Projects Guelph has the reputation as a green community Citizens are environmentally concerned City of Guelph Community Energy Initiative & transportation The average commute is 22 km one way Outside of commuting, residents generally (84%) stay within Guelph and its surrounding communities Almost half are planning on purchasing a new automobile in the next 3 years (15% within the next year) High awareness level about electric vehicles A third say they are somewhat or very likely to consider purchasing/leasing an EV in the next 3-5 years

13 Awareness of Electric Vehicles Copyright 2011 Guelph Hydro Inc. / Results of survey may not be 13 reproduced without permission. Contact

14 Most are aware of the various types of green vehicles. Automobile Type Awareness Hybrid Vehicles 96 Plug-in Electric Vehicles 92 Plug-in Hybrid Electric Vehicles 88 3% are not aware of any 150 Q13.[ASK ALL] I m now going to read you some automobile types, please tell me if you are aware of each. [READ LIST. RECORD MULTIPLE MENTIONS] 14

15 Over half could not name any makes or models of electric vehicles. Of those who could, the Chevy Volt was by far the most frequently named. 56% Chevy Volt Nissan Leaf Ford Electric Focus Mercedes Smart For Two Toyota Nissan Electric Cube Tesla Roadster Mazda Honda Zen Mitsubishi imiev Tesla Motors Model S Fisker Karma Hyundai Other EV Brand Awareness Could not name any makes, brands, or models of plug-in electric vehicles Q15. Can you name any makes, brands and/or models of plug-in electric vehicles? [DO NOT READ LIST. TRACK FIRST MENTION. PROBE. ] First Mention

16 Environmental reasons and reduced fuel costs are considered the main benefits of purchasing an electric vehicle. Good for the environment Benefits 56 First Mention 32 Reduced fuel costs Lower maintenance costs 16 4 Reduced noise pollution 10 2 Good for local use 4 2 Convenience Safety Trendy/stylish Other % do not see any benefits of purchasing an electric vehicle Q14. What are some of the reasons why you might buy an electric car? [DO NOT READ. TRACK FIRST MENTION. SELECT ALL THAT APPLY] 16

17 Purchase rebates are considered the most influential incentive. This is especially true among those likely to consider purchasing/leasing EVs. Purchase rebates between $4 000 and $ Special discounted electricity rates for charging in low electricity demand periods Voucher for a free electric vehicle charging system for your home Influential Incentives to Purchase/Lease an EV -Top 2 Box Among those Likely to Consider Purchasing/Leasing an EV Next 3 years Next 3-5 years Low-interest car loans for electric vehicles Free parking at parking lots, airports, city streets Coupons or gift cards for free off-peak electricity credits on your electricity bill Access to smart meters data at home which will provide timed and programmable charging Access to public charging facilities at select government buildings as well as in some GO Transit parking lots Use of High Occupancy Vehicle (HOV) lanes with only one person in the automobile Preferred parking/charging spaces at GO stations and malls Q26. Using a 10-point scale where 1 means not at all influential and 10 means extremely influential, how influential would the following incentives be on your decision to purchase or lease an electric vehicle? [READ, ROTATE] [50/50 ASK HALF TO 100 RESPONDENTS AND OTHER HALF TO 100 RESPONDENTS]

18 Over half would consider renting an EV and a third would consider participating in a car-sharing program. Consider Renting EV Consider Car-Sharing Program No 42% Yes 58% No 67% Yes 33% Higher among: Under 35 years Drive 20,000 km + / year More likely to purchase/lease an EV Higher among: Females Under 35 years More likely to purchase/lease an EV Q21. If electric vehicles were available for rent through a car rental company in the Guelph community, would you consider renting one? [DO NOT READ LIST. RECORD ONE MENTION ONLY] Q22. In some cities, companies are setting up car-share operations that rent electric cars by the hour. Would you consider participating in a car-sharing program for electric cars in Guelph? [DO NOT READ LIST. RECORD ONE MENTION ONLY] 18

19 Most expect to see EVs in Guelph in the next year or two but believe it will take about 10 years for them to become popular/mainstream. 200% 200% 180% 160% 140% Number of Years it will Take to See the First EV in Guelph 180% 160% 140% Number of Years it will Take for EVs to Become Popular/Mainstream 120% 120% 100% 80% 80% 100% 80% 60% 40% 20% 0% 8% Less than a year 1 to 4 years 12% 5 to 9 years 1% 1% 10 to 14 years 15+ years 60% 40% 20% 0% 1% Less than a year 12% 1 to 4 years 36% 36% 5 to 9 years 10 to 14 years 4% 8% 15 to 19 years 20 to 24 years 2% 2% 25 to 29 years 30+ years Average # of Years 2.0 Average # of Years 9.6 Q23. When do you think you will see the first electric car in Guelph? [DO NOT READ LIST. RECORD ONE MENTION ONLY. DO NOT RECORD RANGE] Q24. How many years do you think it will take for electric powered vehicles to become popular or mainstream in the Guelph community? [DO NOT READ LIST. RECORD ONE MENTION ONLY] 19

20 Plug-in Vehicles Predicted Behaviour Copyright 2011 Guelph Hydro Inc. / Results of survey may not be reproduced 20 without permission. Contact

21 4.3 is the average number of hours residents believe it will take to charge an 100% EV everyday. 90% 80% 70% 60% Time Required to Charge Average # of Hours 50% 40% 30% 20% 10% 5% 24% 30% 22% 3% 3% % 0% <1 hour 1-2 hours 3-5 hours 6-8 hours 9-11 hours 12 or more hours Don't know Q28. How much time do you imagine you would require to charge your electric vehicle every day? [DO NOT READ. RECORD ONE MENTION ONLY] 21

22 Almost all would charge their vehicles at home most often. Charging Locations Location Used Most Often Home garage/driveway Apartment/condo parking lot 35 2 At your place of work/company Shopping centres/malls/theatres Government offices/buildings School/University Public parking lots equipped with charging stations Gas stations Other a. Where do you think you would most often plug the vehicle in to charge it? [DO NOT READ, RECORD ONLY ONE MENTION] 29b. Would you charge it anywhere else? [DO NOT READ, RECORD MULTPLE MENTIONS] 22

23 Most would either plug their EV into an already installed outlet or upgrade 100% their home electrical wiring. 90% 80% 70% 60% How EVs Would be Charged 50% 40% 36% 36% 30% 20% 10% 13% 3% 2% 10% 0% Plug into standard 120- volt home outlet already installed Upgrade home electrical wiring in order to charge faster Install 120-volt outlet in garage or near driveway Depend on costs involved to upgrade home's electrical wiring Depend on vehicle purchase Not sure 30. [IF HOME AT Q29a or b, ASK:] Assuming you had an electric vehicle, how would you most likely to charge it at home? Would you.? [READ, ROTATE, RECORD ONE MENTION] 23

24 Half of households would not be willing to pay more than $500 to install an EV charging systems in their homes. However, almost two-thirds would be willing to pay to charge their EV at a public charging station. 100% 90% 80% 70% 60% 50% Amount Willing to Pay to Install Willing to Pay to Charge EV at Public Charging Stations 40% 30% 20% 10% 17% 24% 8% 12% 6% 1% 32% No 36% 0% <$100 $100- $299 $300- $499 $500- $999 Average Amount $504 $1000- $2900 $ Don t Know Yes 64% 31. How much would you be willing to spend to install an electric vehicle charging system in your home / garage that could automatically charge your car battery when the price of electricity is the lowest? [DO NOT READ. RECORD ONE MENTION ONLY] 32. Would you be willing to pay to charge your electric vehicle at public charging stations? These would be similar to using parking meters. [DO NOT READ. RECORD ONE MENTION ONLY] 24

25 Most households would charge their EVs during the night. 100% 90% 80% 70% Time of Day Most Likely to Charge 60% 50% 40% 37% 35% 30% 20% 10% 5% 5% 13% 6% 0% Between 8am - noon Between noon - 4pm Between 4pm - 9pm Between 9pm - midnight Midnight to 8:00 am Not sure 25 Q33. Thinking again of the location where you would most likely charge your vehicle, at what time of day would you be most likely to charge it? [DO NOT READ, RECORD ONLY ONE MENTION]

26 Almost half believe that they wouldn t have to make much of a lifestyle change if they purchased an electric vehicle Degree of Lifestyle Change 45% 15% No Change Significant Change Q34. If you had a plug-in electric vehicle, how much of a lifestyle change and/or adjustment do you think you would have to make? Please use a 10 point scale where 1 means no change at all and 10 means a very significant lifestyle change 26

27 Conclusion Potential Role for Utilities Education / Pilot Projects While most responders are familiar with the concept of an electric vehicle and are aware of its general benefits to the environment and reduced fuel cost, many are unaware of what owning an electric vehicle would entail and what their capabilities are. The Community of Guelph would seem to be an ideal community in which to run a pilot project due to the alignment with City of Guelph s Community Energy Initiative as well as the market demographics.

28 The Guelph Fleet Copyright 2011 Guelph Hydro Inc. / Results of survey may not be 28 reproduced without permission. Contact

29 Fleet Profile The majority of Guelph businesses own their fleet, which is usually a local decision The majority of businesses have under 10 vehicles in their fleet Most businesses have light/medium trucks and about half use gasoline 96% do not have hybrid vehicles in their fleet Almost half replace their fleet every 5 years About half are planning on purchasing or leasing a new automobile in the next 3 years

30 Almost half typically travel within the GTA and southwest Ontario. While most fleets travel under 100,000km a year, the average is considerably higher. 100% 90% 80% 70% 60% 50% 40% Fleet Travel Locations 48% Total Kilometers per Fleet per Year 100% 90% 80% 70% 60% 50% 40% 64% 36% 30% 20% 16% 16% 16% 30% 20% 10% 20% 10% 0% Within the city Within the region Within the GTA and southwest Ontario 4% Within the province 0% Within the country Within the continent 0% Under 100,000 km 100,000 km and Over Average: 231,000 km Q9. Do your vehicles travel predominantly. [READ LIST, RECORD ONE MENTION] Q10. And approximately how many kilometres does your fleet drive in one year? This includes all vehicles within your organization. [DO NOT READ. RECORD ONE MENTION ONLY] 30

31 Three quarters of businesses park their fleets at their own outdoor parking lots. 100% Parking Locations 90% 80% 76% 70% 60% 50% 40% 30% 20% 10% 16% 8% 0% Park at our own outdoor parking lot Park at our own garage Park at different parking locations Q11. When your organization s automobiles are not in use, where are they typically parked? More specifically, do you keep them at your own parking lot or garage; or are they dispersed throughout the city, province, country? [DO NOT READ LIST. ALLOW ONE MENTION ONLY] 31

32 Fleet Managers Awareness of Electric Vehicles Copyright 2011 Guelph Hydro Inc. / Results of survey may not be reproduced 32 without permission. Contact

33 Over half are aware of all three types of green vehicles. Automobile Type Awareness Hybrid Vehicles 88 Plug-in Electric Vehicles 76 Plug-in Hybrid Electric Vehicles 64 60% are aware of all 3 types 12% are not aware of any 150 Q12. [ASK ALL] I m now going to read you some automobile types, please tell me if you are aware of each. [READ LIST. RECORD MULTIPLE MENTIONS] 33

34 The Chevy Volt was the most well-known electric vehicle but the majority were unable to name any brands or models of plug-in electric vehicles. EV Brand Awareness First Mention Chevy Volt Toyota Honda 8 0 Mercedes Smart For Two 4 4 Other % Could not name any makes, brands, or models of plug-in electric vehicles 40 Q14. Can you name any makes, brands and/or models of plug-in electric vehicles? [DO NOT READ LIST. TRACK FIRST MENTION. PROBE. ] 34

35 The most commonly cited benefit of electric vehicles is that they are good for the environment. Benefits First Mention Good for the environment Reduced fuel costs Lower maintenance costs 16 4 Less petroleum used Reduced noise pollution % 12 do not see any benefits of having electric vehicles in a fleet 12 Q13. What do you see as the benefits of electric vehicles in a fleet [DO NOT READ. TRACK FIRST MENTION. SELECT ALL THAT APPLY] 35

36 Those not considering EVs doubt the new technology and its ability to perform as well as conventional vehicles. Reasons for Not Considering an EV Among Answering Too new/untried technology 25 I'm not really confident when it comes to first generation vehicles. At this point and time there are not enough statistics given to inform us more about these cars. Inconvenience of recharging Doubt ability to do required tasks I do not think that you could get an electric truck to pull the weight required for our business. The guys would have to pull over and recharge every once and a while. Price - assuming they are not cheap. Prefer gas 13 Because we are kind old school. It's more for the younger generation. Other 13 I don't believe that they will be able to do the work that is required-carrying loads During our busy season we don't have time to charge it up and I don't know how efficient they are. Not really tried & true, not enough outlets, short distance as far as mileage, not meant for here to Detroit, lots of stops & not convenient 20. [IF NOT CONSIDERING AND/OR NOT VERY LIKELY FOR A PLUG-IN VEHICLE AT Q16, ASK:] What would be the key reasons why you would not consider purchasing an electric vehicle(s) for your fleet? PROBE. 36

37 Purchase rebates and access to smart meter data are the most influential incentives. Influential Incentives to Purchase/Lease an EV -Top 2 Box- Purchase rebates between $4 000 and $ Access to smart meter data at your organization base which provides timed and programmable charging Special discounted electricity rates for charging in low electricity demand periods Voucher for a free electric vehicle charging system for your organization 28 Coupons or gift cards for free off-peak electricity credits on your company s electricity bill 28 Use of High Occupancy Vehicle (HOV) lanes with only one person in the automobile 24 Low-interest car loans for electric vehicles 16 Q24. Again, using a 10-point scale where 1 means not at all influential and 10 means extremely influential, how influential would the following incentives be on your decision to purchase or lease an electric vehicle? [READ, ROTATE]

38 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% On average, businesses expect to see the first EV in Guelph in about 3 years but believe it will take 10 years to become popular / mainstream. 48% Number of Years it will Take to See the First EV in Guelph 24% 8% 4% 4% 12% 1 year 2 years 3 years 4 years 5 years 10 years + 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 28% Number of Years it will Take for EVs to Become Popular/Mainstream 20% 24% 1-4 years 5-9 years years 16% years 12% 20 years+ Average # of Years 3.4 Average # of Years 9.6 Q21. When do you think you will see the first electric car in Guelph? [DO NOT READ LIST. RECORD ONE MENTION ONLY. DO NOT RECORD RANGE] Q22. How many years do you think it will take for electric powered vehicles to become popular or mainstream in the Guelph community? [DO NOT READ LIST. RECORD ONE MENTION ONLY. DO NOT RECORD RANGE] 38

39 Plug-in Vehicles Predicted Behaviour Copyright 2011 Guelph Hydro Inc. / Results of survey may not be 39 reproduced without permission. Contact

40 Most believe it will take 1 8 hours to charge. 100% 90% 80% 70% 60% 50% 40% 30% Time Required to Charge 32% 28% 28% Average # of Hours % 10% 0% 4% 4% 4% <1 hour 1-2 hours 3-5 hours 6-8 hours 12 or more hours Don't know Q26. How long do you imagine you would have to charge the electric vehicle(s) every day? [DO NOT READ. RECORD ONE MENTION ONLY] 40

41 The overwhelming majority would charge their vehicles on company premises. Charging Locations Location Used Most Often Company premises - garage or lot Home 36 0 Client premises 8 4 Public parking lots equipped with charging stations Street parking with charging stations in place of parking meters Gas stations 4 0 Other 8 4 Not Sure 28 4 Q27a. Where do you think [YOU/ YOUR COMPANY] would most often plug the vehicle in to charge it? [DO NOT READ, RECORD ONLY ONE MENTION] Q27b. Would you charge it anywhere else? [DO NOT READ, RECORD MULTPLE MENTIONS] 41

42 Almost half would upgrade their business wiring in order to charge their vehicles. The amount willing to pay for a charging system varies. 100% 100% 90% 80% How EVs Would be Charged 90% 80% Amount Willing to Pay to Install 70% 70% 60% 60% 50% 40% 30% 20% 10% 0% 44% Upgrade business wiring in order to charge car faster with 240 volt connection 28% Install 120-volt outlets in or near your garage or parking lot to plug into 20% Plug into standard 120- volt outlets already installed 8% Not sure 50% 40% 30% 20% 10% 0% 28% 16% 0% 36% 20% <$100 $100-$299 $300-$499 $500-$999 $1000- $2900 Average Amount $716 Q28. Again, assuming your company buys or leases an electric vehicle, on company premises, how would you most likely charge the electric vehicles? Would you.? [READ, ROTATE, RECORD ONE MENTION] Q29. How much would you be willing to spend to install an electric vehicle charging system in your business that could automatically charge your car battery when the price of electricity is the lowest?? [DO NOT READ. RECORD ONE MENTION ONLY] 42

43 The time of day businesses would most likely charge their vehicles varies. 100% 90% 80% 70% Time of Day Most Likely to Charge 60% 50% 40% 30% 20% 10% 16% 12% 28% 16% 20% 8% 0% Between 8am - noon Between noon - 4pm Between 4pm - 9pm Between 9pm - midnight Midnight to 8:00 am Not sure Q30. At what time of day would you be most likely to charge your vehicle(s)? [DO NOT READ, RECORD ONLY ONE MENTION] 43

44 44% believe electric vehicles will not result in much change to their business Degree of Business Operating Change 44% 28% No Change Significant Change Q31. If your company had electric vehicles, how much of a business operating change and/or adjustment do you think your company will have to make? Please use a 10 point scale where 1 means no change at all and 10 means a very significant business change 44

45 Key Findings Fleet Managers Businesses in Guelph typically have fleets under 10 vehicles a mix of autos, trucks, and both. Fleet turnover is fairly frequent and most travel within southwest Ontario Awareness of green vehicle types among fleet managers is high but almost two thirds could not name specific models or makes of electric vehicles. Like residents, fleet managers are hesitant about the new technology and EV performance and capabilities. Likelihood to purchase an EV increases over time but many are uncertain about whether EVs could handle the tasks required in an efficient manner. Cost is another issue for fleet managers many are unwilling to pay a large premium to own an EV over a conventional automobile and are more encouraged by price related incentives.

46 Conclusions Guelph community appears to be an ideal location for an electric vehicle pilot project Clear role for utilities to play in educating the public and fleet managers about electric vehicles and charging systems A key incentive - discounted electricity rates for electric vehicle charging Fleet managers should be targeted with special education efforts

47 Thank you! Sandy Manners Director, Corporate Communications Guelph Hydro Electric Systems Inc. Tel: Copyright 2011 Guelph Hydro Inc. / Results of survey may not be reproduced 47 without permission. Contact

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