Are Electric Vehicles Better for the Environment?

It’s true that a grid-powered car, more commonly known as an electric vehicle (EV), runs entirely on electricity; however, it still impacts the environment. This is especially true if the energy used from the grid to charge the EV is created using fossil fuels like coal and natural gas instead of non-polluting renewable energy sources such as solar and wind.

Nonetheless, data shows that an EV produces significantly zero tailpipe emissions ¹ compared to gasoline- or diesel-powered vehicles. Tailpipe emissions affect local air quality and contribute to greenhouse gases, which accelerate global warming.

Main Differences between an EV vs Gas Emissions

You might think that the electric car is a modern invention, but the first small-scale EV (which looked like a chariot) was created in 1828 with a top speed of 14 miles per hour.²  It’s remarkable how the electric car has evolved since then. Today, battery electric vehicles (BEVs) have become more common in all shapes, sizes, and prices.

In fact, as of 2020, there were more than 1.4 million plug-in electric cars on U.S. roads,³ with Tesla, General Motors, Nissan, and Audi being the most popular brands.⁴ The Edison Electric Institute (EEI) projects we’ll see more than 18 million EVs on U.S. roads by 2030,⁵ a significant leap from today’s mix of gas vehicles and conventional vehicles. 

Are you curious about leasing or buying an electric car to reduce your GHG emissions or save money on fuel? The comparison chart below could help you discover whether an EV or a gasoline car is right for your lifestyle. While comparable gasoline vehicles may still dominate, the gap between costs and benefits is closing rapidly.

An Electric Vehicle Is a Win for Your Wallet and the Planet

When you lease or own an electric car, you benefit your finances and the environment. While gas cars may still make up most of the market today, EV manufacturing advancements have narrowed the price gap, especially in battery production.¹⁶ Electric car battery manufacturing costs have plummeted, offering longer mile ranges and faster charging capabilities.

There are now 26,000 charging stations across the U.S.,¹⁷ of which are growing each year, so you can worry less about where to charge your EV if you’re on the road. Furthermore, the Inflation Reduction Act and federal income tax credits of up to $7,500 make electric vehicles more accessible, reducing the total GHG emissions associated with driving over the vehicle's lifespan.

If you prefer to own your electric car, you’ll be happy to know that purchased all-electric and plug-in hybrid electric vehicles may qualify for a federal income tax credit of up to $7,500 along with other state and local incentives.¹⁸ This means an EV with the average price tag of $55,6008 could end up costing you $48,100 or less after federal, state, and local tax credits.¹⁸ 

Beyond this, electric cars' national average lifetime energy cost is already lower than that of gasoline produced for ICE vehicles. 

Regardless of what you decide, research shows that electric vehicles are better for the environment than gas-powered cars. Like Sunrun solar and storage systems,¹⁹ EVs generate fewer lifecycle emissions compared to conventional vehicles because, once installed or purchased, their energy primarily comes from cleaner sources. Many EV owners combine at-home electricity generation from renewable energy, such as rooftop solar, with EVs, reducing the emissions associated with long-distance electricity grid reliance.

Remember that while vehicle manufacturing emissions—especially EV batteries—are higher upfront than those from gasoline vehicles, the environmental payback over the vehicle lifetime in terms of drastically reduced use-phase emissions makes EVs a clear winner in the long run.

Even considering upstream emissions, EVs contribute fewer greenhouse gas emissions over their lifecycle than gas cars.

EVs and solar-powered homes offer an efficient path toward reducing our overall life cycle emissions, and communities with abundant renewable energy can harness the full potential of this eco-friendly solution.