Recent headlines have warned of impending doom for the U.S. electric vehicle market, with major manufacturers slowing production as sales fall short of their ambitious projections. Here’s a bit of context: U.S. EV sales broke new records in 2023, with 1.2 million vehicles sold. Ford, GM and others are only slowing production lines because their previous forecasts of the speed of the transition away from gasoline-and diesel-powered vehicles might have been a bit too rosy, not because the market for EVs is on the verge of collapse.

The safety of this new technology—really, technologies, given all the new developments powering these cars—also has raised some concerns. Putting aside automated driving capabilities that might not yet be ready for prime time, the risk of battery fires and explosions has discouraged some from EV purchases, especially given a well-publicized number of electric bike fires in New York City and elsewhere.

Regardless of negative headlines, the transition to electrified transportation continues, with U.S. EV sales projections topping 6 million annually by 2030. So, electrical contractors can expect to receive more requests for charging system installations. If you’re new to the market, here are some answers to questions callers might have for you.

Market forces

To add more background to major automakers’ production slow-down, 2023’s record EV sales equated to 7.9% of the U.S. light-duty vehicle market, up from 5.9% in 2022, which is a 33% year-over-year increase. However, not all of these are 100% battery models. 

Plug-in hybrids, which combine batteries with a traditional internal combustion engine (ICE), have become a popular option for buyers who want to save on fuel costs without fully committing. These cars provide 20–55 miles of battery-only operation (based on the make and model) before the engine takes over. For many drivers, this covers a daily commute or regular errand runs.

Several factors contributed to the 2023 slowdown, including falling gasoline prices. And, according to GM CEO Mary Barra in a January earnings call, manufacturers are feeling a need to pull back because earlier investments in capacity and technology outran actual demand, which has forced short-term cutbacks and pushed some smaller makers into bankruptcy. However, no one is suggesting this means future market failure. For example, Bloomberg’s analysts project EVs will make up 13% of new car purchases this year. S&P Global Mobility anticipates EV market share could hit 40% of passenger car sales by 2030.

But what about the fires?

Where things go wrong with EV batteries, publicity is sure to follow, so questions about safety might be front of mind for customers concerned about possible charging risks in their homes. A rash of e-bike battery fires nationally—especially in New York City, where e-bikes have become a favored commuting option—has fueled fears. It’s important to understand why these events don’t apply to EVs, even though lithium-ion batteries are used in both.

First, e-bike batteries aren’t constructed like those for EVs. The cause for many e-bike fires has been traced to after-­market used or refurbished batteries that were not designed for the bikes they are being used to power, and possibly not for the chargers owners were using, either.

“Both technologies face the same fire challenges and require similar safety approaches,” said Joe Mayonado, manager of the New York City office of Jensen Hughes, a leading fire-safety engineering firm. However, he explains, “The EV industry is more mature than the e-bike industry. They’ve spent years building battery fire-­propagation resistance. E-bikes don’t have as much resistance, so they’re more prone to these fire events.”

A 2024 report by the online car insurance portal AutoinsuranceEZ, based on data from the National Transportation Safety Board and the Bureau of Transportation Statistics, notes that fires are far more common with ICE vehicles than with fully battery-powered EVs. Out of every 100,000 vehicles sold, 1,529.9 traditional cars will experience a fire, versus only 25.1 EVs. (Interestingly, hybrids that combine both technologies face the highest risk, at 3,474.5 fires for every 100,000 sold.)

When they do occur, EV fires are harder to extinguish. Fire hoses can easily address a burning ICE vehicle, but water alone won’t work on an EV battery’s unique chemistry. Even when such a fire seems to be brought under control, it can reignite hours, or even days, later. Depending on the manufacturer, batteries can incorporate hundreds or thousands of individual battery cells (some look a lot like the AAAs in a TV remote). Fires often start in one individual cell, which may start a chain reaction. Causes can include electrical shorts, moisture intrusion and manufacturing problems.

Again, though, as Mayonado said, “There’s a lot of different data, but it all points to EVs having a much lower risk and frequency of fire events. They have a much better track record” than ICE vehicles. “The data supports that overall risk is lower, and probably significantly lower.”

EV charging levels explained

EV charger installation offers some unique benefits for an electrical contractor’s residential business, especially because this work is often more custom in nature than more traditional outlet replacement and new lighting installation. As a result, companies involved in this work can get away from the more commoditized nature of pricing common to those more standardized assignments.

One of the first big decisions contractors can help new EV buyers answer will be whether to stick with the Level 1 charger that might have come with their car, or to upgrade to a higher-capacity Level 2 charger. Level 1 chargers are essentially extension cords, with a 120V plug on one end and a charger connector on the other, and they don’t need any added contractor assistance if an outlet is within reach of the car. They can add about 3 miles of range per hour, which could be fine for a plug-in hybrid that might only have 30–50 miles of battery range.

“I think a lot of people don’t realize they can use a Level 1,” said Liam McCabe, senior research analyst with EnergySage, Boston, an online referral portal for homeowners and businesses looking to install solar panels, heat pumps, backup batteries, chargers and other electrical equipment. 

“But a hidden hazard is, if you forget to plug it in, you’re in trouble—you have no juice,” and getting even 10–20 more miles of range will take hours, he said.

With a Level 2 charger, an added 14–35 miles of driving would just take an hour, which is why most nonhybrid EV owners take this route.

“Level 2 effectively extends the range because you can put 20 miles on, in between errands,” McCabe said. “If you’re sinking $35,000 into the vehicle, you might as well pay” for the added convenience.

Level 2 chargers require a 240V circuit and the services of an electrical professional for installation. But here, too, EV owners have options, including the choice between a simple plug-in cord or a hardwired station. 

A plug-in system—essentially a 240V, higher-­amperage version of a Level 1 charger—will be less expensive, but some in the field argue pricier hardwired units can pay off in the long run. For one thing, the National Electrical Code doesn’t allow plug-in models to exceed 50A, which equates to a 40A output when the Code-required 20% capacity buffer is included.

“They don’t make the core that the charger plugs into beyond 50A,” said Joe Miller, director of technical support for Qmerit, Irvine, Calif., an EnergySage sister company designed to connect EV buyers with a network of vetted charging equipment installers. “At one point, they allowed 60A units, and they were failing so poorly that they just drew a hard line” at 50A.

Hardwired units often offer connectivity features that aren’t available with simple plug-in models, enabling remote charging control that could be important for participating in utility peak-demand pricing programs. Many EVs already offer this capability through apps, so this feature might not be a priority for those vehicles’ owners.

Puzzling through styles, standards and panels

Customers also might be confused about the style of charger they should buy, and whether a unit they buy now will work for their next EV purchase. Currently, there are two standards governing the design of the ports charger cords connect to on an EV. Most manufacturers now use J1772 ports. The number refers to the related Society for Automotive Engineers (SAE) standard. However, Tesla has adopted the North American Charging Standard (currently being adopted by SAE as J3400), or NACS. The good news is, this is really a moot question because adapters that allow any charger to work with either standard are readily available.

A more significant question for homeowners could be whether powering the charger will require a service or panel upgrade. More than half of U.S. homes have electrical service of 100A or less, so charger decisions could be driven by the need to stay within service limits.

“It’s about one-quarter of all panels that need some kind of work-around,” McCabe said.

However, he added, there are options to help customers whose panels might strain to meet an EV charger’s needs. These include load control devices that could allow use of, say, an existing 240V dryer circuit when the dryer isn’t in use.

“Load control is a really good work-around—it’s much cheaper than doing a panel upgrade,” McCabe said. “It makes it much easier to get extra capacity to the panel.”

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