As the world grows more conscious about its carbon footprint, renewable energy sources like solar power and electric vehicles (EVs) have become increasingly popular. One of the biggest challenges to wider adoption has been the lack of charging infrastructure for EVs. However, a new report released by Wood Mackenzie suggests that for the first time ever, the capacity of electric vehicle (EV) chargers in the US will surpass that of rooftop solar power by 2023. This landmark shift is set to shape the future of the industry and encourage more widespread adoption of EVs. In this blog post, we’ll explore this exciting development in greater depth.
The report predicts that the annual installed capacity of EV chargers will reach a staggering 41 gigawatts (GW) by 2027. This is more than three times the expected solar annual additions in the same year. The report also highlights the fact that both EV chargers and rooftop solar are distributed energy resources. A DER is a small-scale power generation unit that operates locally and is connected to a larger power grid at the distribution level.
To support this exponential growth, the EV charging infrastructure market is forecast to reach $20 billion by 2027. Interestingly, the market is set to be led by residential Level 2 chargers, with an estimated value of $6.5 billion. However, public DC fast chargers are not far behind with an estimated value of $5.6 billion.
Even though residential charging capacity will remain the prominent share of the market, the proportion will decrease due to growth in infrastructure catering specifically for buses and trucks. The report predicts this sector will account for 18% of total charging capacity by 2027.
The shift towards EV charger infrastructure has already begun, with major companies making big investments. ChargePoint, a company that provides EV charging solutions in North America and Europe, recently announced that it is going public through a reverse merger with Switchback Energy Acquisition Corporation. This move has an estimated value of $2.4 billion and highlights the potential future for the EV charging industry.
The prospect of US EV charger capacity overtaking rooftop solar in 2023 is an exciting development that has the potential to transform the electric vehicle landscape. With more and more people recognizing the importance of environmentally friendly solutions, the shift towards electric power and infrastructure will only continue to grow. As a society, we must continue to prioritize and invest in renewable energy options to ensure a greener and brighter future.