Out of Charge: Do insurers and lenders hold the key to the mass adoption of electric vehicles?

In an effort to reach its stated goal of net-zero emissions across the country, the Government of Canada has plans to implement a ban on the sale of all gasoline-powered vehicles by 2035. In response, certain Ontario automotive assembly plants, such as CAMI in Woodstock, Ontario, are being retrofitted to begin manufacturing electric vehicles (EVs). However, there are concerns that Canada is not ready for the mass adoption of EVs. Significant upgrades are needed to EV infrastructure, from chargers to local distribution capacity. Specifically, with respect to charging infrastructure, it is possible that the conservative nature of lenders and insurers may affect the speed and manner of expanding these capabilities across Canadian jurisdictions.

There are a variety of reasons to install EV charging infrastructure.  For homeowners that purchase an EV, the need is clear.  But other parties are also installing EV chargers, from hotels, restaurants, retailers and even municipalities looking to attract customers or shoppers, to commercial vehicle charging providers seeking to make a profit from charging vehicles. With charging times anywhere from minutes to hours for a full charge, convenience is a particular concern, whether at home or out in the world. Although there are higher capacity ‘superchargers’ available in the market, this equipment can cost users as much as $60,000 for home installation.  Commercial units with high frequency of use expectations will cost considerably more.