Utilities Can Eliminate EV 'Renter's Penalty' by Modernizing Affordability Programs

The economics of electric vehicles are supposed to work in favor of consumers, but a significant barrier to transportation electrification is preventing many from reaping the benefits. For tens of millions of Americans who live in apartments, multifamily housing, or rental properties, the promise of affordable home charging is unattainable.

## The 'Renter's Penalty'

The result is what is called the "renter's penalty" - a pricing disparity that strips away one of the most compelling financial benefits of driving electric simply because of where someone lives. This is not just an affordability challenge, but a structural barrier to transportation electrification.

## Modernizing Affordability Programs

Most utility affordability programs are still tied to a customer's home meter. However, as electricity increasingly fuels transportation, customers need affordable rates that move with them - not benefits that stop at their front door. Utilities have an opportunity to modernize this approach by separating income-qualified benefits from a static residential meter and applying them wherever eligible customers charge their vehicles.

## Implementation Pathways

Fortunately, utilities have multiple implementation pathways depending on their operational capabilities and regulatory environment. A recently released utility playbook from GRID Alternatives and the Smart Electric Power Alliance outlines several models already emerging across the industry. These include:

| Model | Description | | --- | --- | | Discounts through customer accounts | Income-qualified drivers receive affordable charging rates wherever participating infrastructure exists. | | Prepaid charging cards | Income-qualified drivers receive affordable charging rates wherever participating infrastructure exists. | | Directly applying discounted rates | Discounted rates are applied directly to utility-owned public charging stations or multifamily charging installations in priority communities. | | Blended strategy | A combination of the above approaches is used to deliver the greatest impact. |

## Benefits of Addressing the Renter's Penalty

Addressing the renter's penalty is not only a matter of equity, but also good utility business. Affordable public charging expands the pool of customers who can realistically adopt electric vehicles, increasing electricity sales while improving utilization of existing charging infrastructure. Well-designed programs can also encourage managed off-peak charging, improving system load factors and maximizing the value of grid investments.

## Conclusion

Transportation electrification should not create two classes of EV drivers: those who enjoy low-cost residential charging and those who pay a premium simply because they rent. By modernizing affordability programs beyond the home meter, utilities can help ensure that the economic benefits of driving electric are available to every customer - not just those with a garage. For utilities seeking to design, implement or evaluate affordable public and multifamily EV charging programs, GRID Alternatives offers free technical assistance and planning resources. The technology exists. The implementation pathways are becoming clearer. Now is the time to ensure that affordable EV charging follows the customer, not just the address.