NRC to PHEVs: You're Too Expensive

Yesterday, the National Research Council (NRC) released a report on the costs of plug-in hybrids that seems to confirm basic logic: Consumers won't see a return on their initial investment for decades. It could be 2030 before it's actually a good buy to plunk down cash for a hybrid.

According to the NRC report, "costs to manufacture plug-in hybrid electric vehicles in 2010 are estimated to be as much as $18,000 more than for an equivalent conventional vehicle." Since my last car cost less than $18,000 altogether, that seems like a big ol' mountain for the hybrid industry to climb before the average consumer like me thinks: Oh boy, I get to save money AND save the environment. I'll definitely buy one.

This reminds me of the time I looked into putting solar cells on my house. When I figured in the cost of the panels, the conversion of the electric wiring, the specialty meter, etc., the figure topped out at over $20,000. Since my average power bill in the summer is $60 and in the winter is $30, it would be nearly 30 years until those solar cells started paying for themselves. And they only had a shelf life of a decade. After that, I would be tush-over-teakettle, building up debt to replace panels every 10 years---like those people who trade in cars every six months and then wonder why they can no longer afford to eat. It just wasn't a feasible, practical option.

Now, some of the same adjustments to home electric wiring required for me to prop up those solar panels would also be required for PHEVs, adding as much as a grand on top of the 18K for the vehicle.

Apparently, it takes a lot of money to save the world. And, while I wish to save the world, don't get me wrong, I'm more concerned about not ending up tush-over-teakettle. I don't like debt. I certainly don't want to be swimming in it, personally, in order to transfer part of my carbon footprint from my little Kia Sportage to my local electric company.

I remember an old friend who was all gung-ho for PHEVs. He was ready to pay heavy for saving the world. He was pumped and prepped to trade in his Ford and get on the green bandwagon, though he still lived in a huge, three-car-garage/five-bedroom house 65+ miles from his workplace. As he talked to me about the positives of PHEVs, all I could think about were the costs he would be ringing up when he could buy a smaller house closer to his work and make a much larger contribution to bettering the environment. But, buying the car was actually easier, for him anyway.

For most of us, though, buying a PHEV is difficult. I love the environment, and I hope we can all do our part to make it greener. But, I prefer the more practical---and infinitely easier for me---concepts of smaller footprints through smaller living, cold-water washing, using less paper products, living 3 miles from work (although I do still drive, I admit that).

While PHEVs may offer hope that we can slice our larger, national population's carbon footprint, it seems the first hurdle is still the most prominent: making it affordable for the individual average consumer who cannot see an extra 20K fly out of their pocketbook for the environment. I would love to see this technology become affordable and accessible. But, until it does, I don't see very many of us clamoring to go green through our garages.

For more information on PHEVs, click through to our PHEV topic page here.