EIA: EV Power Demand Growth Cools With Tax Credit Expiry


   
   SECAUCUS, NJ (DTN) -- Growth in U.S. electricity consumption from light-duty 
electric vehicles (EVs) slowed significantly in the first half of 2026, 
signaling a cooling trajectory for fleet power demand after the expiry of 
federal tax incentives, an analysis by the Energy Information Administration 
(EIA) showed Wednesday (9/30).

   While light-duty electric vehicles consumed 8% more electricity during the 
first six months of 2026 compared to the second half of 2025, it represents a 
sharp deceleration from the double-digit six-month growth seen in recent years, 
the EIA noted. 

   Emphasizing its point, the agency listed some of the prior growth, which 
included a 24% expansion in the second half of 2023, 13% and 16% across 2024, 
and 14% and 16% in 2025. 

   The primary catalyst behind the slower demand expansion is a direct pullback 
in new vehicle sales following the end of federal financial incentives, the EIA 
analysis found.

   Both the New Clean Vehicle Credit and the Qualified Commercial Clean Vehicle 
Credit expired on September 30, 2025. 

   In the first half of 2026, new electric vehicle sales dropped 19% compared 
with the final six months of 2025. Because new vehicle additions drive 
incremental load growth, the sales contraction immediately chilled the pace of 
new power draw across the grid. 

   Despite the lower growth rate, cumulative power draw from the existing fleet 
continues to expand. Total U.S. light-duty electric vehicle electricity use 
reached nearly 14 billion kilowatthours in the first half of 2026, having more 
than doubled since the first half of 2023.




(c) Copyright 2026 DTN, LLC. All rights reserved.