TODAY’S CAR MARKET is no longer only diesel or petrol, as a new wave of electric and electrified models continue to grow in popularity.
In fact, there are a number of types of car that use electric power some or all of the time – from full electric vehicles to hybrids, plug-in hybrids and ‘mild hybrid’ models. But there are some important differences between these that the marketing departments often don’t explain, so we’re going to do it for you.
Let’s start with electric cars or electric vehicles (EVs), also referred to as battery electric vehicles (BEVs). Now coming in an increasing variety of models, EVs are exclusively powered by a built-in battery that varies in size (or capacity) depending on the car.
The upfront or initial purchase price of a new EV is typically higher than that of the combustion engine equivalent, with new prices starting from around €27,000. But it helps to consider the total cost of ownership. Your ‘fuel’ costs with an EV should be a lot less, especially if you’re charging the car at home and have a favourable electricity tariff. Maintenance and servicing costs are also usually a lot less, as EVs have fewer moving parts.
EVs have a built-in battery – much like your smartphone, but a lot bigger – and the size of this battery has a big say in how far the car can drive on a single charge, referred to as its range. Like most new forms of technology, be it laptops, smartphones or even big-screen TVs, batteries are improving all the time and coming down in price. All manufacturers guarantee the battery to retain a minimum performance level for an average of eight years, which is usually longer than you’ll own the car.
How much cheaper is an EV to run?
Generally speaking, an EV will cost much less to run than an internal combustion engine (ICE) car, and the cost of electricity can be less than petrol or diesel. Providing you have a competitive electricity provider, home charging is the most cost-effective way of running your EV, but there is an expanding public charging network. Some of these are free to use, while other operate on a pay-as-you-go or subscription plan with varying tariffs. Rapid chargers along motorways can recharge batteries faster but typically cost more to use.
At present, all new electric vehicles registered in Ireland receive Vehicle Registration Tax (VRT) relief up to a maximum of €5,000. Additionally, the SEAI provides a further €5,000 in Government-funded support through its EV Grant Scheme. These are typically applied through the dealership when purchasing.
Furthermore, the SEAI also offers a Home Charger Grant that entitles buyers to redeem up to €600 off the purchase and installation of a home charger, subject to certain conditions. More information is available at seai.ie.
Using an EV as a company car
Another way to save money is to switch to an EV for your company car. Providing the car’s value is under €50,000 it is exempt from Benefit in Kind (BIK), while any value above that BIK is only charged on the additional amount.
EVs also receive a 50 per cent (or greater for off-peak travel) reduction in road tolls up to €500. If you’re a sole trader or business, you can avail of an Accelerated Capital Allowance scheme that subtracts the full cost of the vehicle in one year.
Plug-in hybrid electric vehicles, or PHEVs for short, are the middle ground between combustion engine cars and electric cars. PHEVs have a petrol engine, electric motor and a smaller battery than an EV and still require plugging in to charge, but this takes less time. That battery is usually large enough for a driving range of between 30 and 60 kilometres, depending on the age and size of the car. Once the battery depletes, the petrol engine automatically starts and takes over, so there is no need to stop or push any buttons.
With a PHEV you can decide which part of the powertrain to use at any one time, such as running in a pure electric mode (using only the battery), or operating as a hybrid, with the petrol engine running intermittently. It is also possible to run both motors simultaneously to deliver the vehicle’s maximum performance, though this is much less efficient.
Are PHEVs cheaper than EVs?
The purchase price of a new PHEV is usually less than that of an equivalent EV but more than a petrol or diesel car.
PHEVs do not qualify for VRT reductions, but they are eligible for the full SEAI grant support of €5,000. Running costs can be low, you will need to exercise discipline at charging the smaller battery as frequently as possible if you want to exploit the claimed low fuel consumption figures. You can also benefit from a 25 per cent (or more off-peak) reduction in road tolls with a PHEV.
One of the most common and popular types of electrified car is a hybrid. These consist of a combustion engine, almost always a petrol one, that works in tandem with an electric motor connected to a small battery. An advantage of a hybrid is that they don’t need to be plugged in or charged – the car manages that by recuperating its kinetic energy and saving it to the battery.
This system enables the car to travel for brief periods, perhaps as little as two or three kilometres, using that electrical energy. A popular marketing term is that these cars are ‘self-charging’ or a ‘self-charging electric vehicle’. These terms are slightly misleading because electrical power comes from recovered energy from the engine burning its fossil fuel and are electrified vehicles rather than electric vehicles. These cars can be reasonably fuel-efficient, especially during slower-speed urban driving where the car can optimise how it uses that battery.
How much you can potentially save on fuel costs is greatly dependent on how and where you’re using a hybrid. If you mostly travel long distances on the motorway network, you won’t see much in terms of fuel savings, but if you spend most of your driving at low speeds with plenty of stop-start traffic, then you may get more from your fuel tank.
What is a mild-hybrid?
You may see some newer cars being advertised as having mild-hybrid technology. Unlike the hybrids we’ve already mentioned, these mild hybrids do not power the cars using electric or battery propulsion at any time. Instead, they utilise an electrical system that collects energy through a more advanced type of starter motor and saves it in a small battery, often located underneath a passenger seat or in the boot.
Energy from this second battery is quickly redeployed to power the car’s ancillary systems, such as power steering and air conditioning during brief engine-off coasting. Mild hybrids don’t cost a great deal more than a conventional engined car, but as they only reduce fuel consumption by tiny amounts, you won’t see any significant fuel savings with one.
The Sustainable Energy Authority of Ireland is committed to creating a cleaner energy future for Ireland. Discover why electric vehicles offer a more sustainable transport solution, search for EV dealers by county and even book a test drive on the SEAI website.
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