Total cost of ownership for battery electric vehicles: The role of energy prices
Johann Bauer, Peter Letmathe, Richard Woeste
Abstract
The wide usage of battery electric vehicles (BEVs) is one of the most promising pathways to reduce greenhouse gas emissions in the mobility sector. The German target of having 15 million BEVs registered by 2030 is an ambitious challenge, as the market share of these vehicles is only growing slowly. This can be attributed to a variety of cost factors that are related to their purchase and operation. Therefore, this study analyzes the total cost of ownership (TCO) for privately owned vehicles. To assess future energy price developments, a break-even model is developed and applied to the TCO results. Further sensitivity analyses consider the effects of subsidies and charging profiles. The results reveal that the optimal vehicle drive technology depends strongly on the vehicle segment considered. The implementation of reasonable measures to make BEVs economically advantageous for consumers would enable Germany's transition to electric mobility. • Economic decision in favor of BEV or ICEV strongly depends on the vehicle segment • For both BEVs and ICEVs, vehicle value loss has the greatest impact on the TCO • The break-even model enables a holistic impact analysis of energy price development • Incentives favoring BEVs are needed to foster Germany's mobility transition • Changes in charging behavior barely influence the TCO of BEVs