Arvato commissions first solar power plant


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Arvato Ontario Solar Power Plant advances sustainability with rooftop photovoltaic panels, PPA financing, and green electricity, generating 800,000 kWh annually to cut logistics emissions, reduce energy costs, and support carbon-neutral supply chain operations.

 

Key Points

A rooftop PV system under a PPA, supplying low-cost green power to Arvato's Ontario, CA distribution center.

✅ 1,160 panels produce 800,000 kWh of renewable power yearly

✅ PPA model avoids upfront costs and lowers electricity rates

✅ Cuts center emissions by 72%; 45% roof coverage

 

Arvato continues to invest consistently in the sustainability of its distribution centers. To this end, the first solar power plant in the focus market has now been commissioned on the roof of the distribution center in Ontario, California. The solar power plant has 1,160 solar panels and generates more than 800,000 kilowatt hours (kWh) of green electricity annually. This reduces electricity costs and, with advances in battery storage, further cuts the logistics center's greenhouse gas emissions. Previously, the international supply chain and e-commerce service provider had converted five other distribution centers in the USA to green electricity.

The project started as early as November 2019 with an intensive site investigation. An extensive catalogue of measures and criteria had to be worked through to install and commission the solar power plant on the roof system. After a rigorous process involving numerous stakeholders, the new solar modules were installed in August 2022, similar to utility-scale deployments like the largest solar array in Washington seen recently. However, further approvals and permits were required before the solar system could be officially commissioned, a common step for solar power plants worldwide. Once official permission for the operation was granted, the switch could be flipped in February 2023, and production of environmentally friendly solar electricity could begin.

The photovoltaic system is operated under a Purchase Power Agreement (PPA), a model widely used in corporate renewable energy projects today. This unique financing mechanism is available in twenty-six U.S. states, including California. While a third-party developer installs, owns and operates the solar panels, Arvato purchases the electricity generated. This allows companies in the U.S. to support clean energy projects while buying low-cost electricity without having to finance upfront costs. "The PPA and the resulting benefits were quite critical to the success of this project," says Christina Greenwell, Microsoft AOC F&L Client Services Manager at Arvato, who managed the project from start to finish. "It allows us to reduce our electricity costs while supporting Bertelsmann's ambitious goal of becoming carbon neutral by 2030."

The 1,160 solar panels were added to an existing system of 920 panels owned by the logistics center's landlord. In total, the panels now cover 45 percent of the roof space at the Ontario distribution center. The emissions generated by the distribution center are now reduced by 72 percent with the new solar panels and clean power generation. As Bertelsmann plans to switch all its sites worldwide to 100 percent green electricity, renewable energy certificates will, as seen when Bimbo Canada signed agreements to offset 100 percent of its electricity for its operations, offset the remaining emissions.

"The new solar power plant is a significant step on our path to carbon neutrality and demonstrates our commitment to finding innovative solutions that reduce our carbon footprint," said Mitat Aydindag, President of North America at Arvato. "All employees at the site are pleased that our Ontario distribution center is now a pioneer and is providing effective support in achieving our ambitious climate goal in 2030."

Similar facility-level efforts include the Bright Feeds Berlin solar project underscoring momentum across industrial operations.

 

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Tesla prepares to bring its electric cars to South America

Tesla Chile Market Entry signals EV expansion into South America, with a Santiago country manager, service technicians, and advisors, leveraging lithium supply, competing with BYD, and preparing sales, service, and charging infrastructure.

 

Key Points

Tesla will enter Chile to launch EV sales, service, and charging from Santiago, opening its South America expansion.

✅ Country manager role based in Santiago to lead market launch

✅ Focus on EV sales, service centers, and charging infrastructure

✅ Leverages Chile's lithium ecosystem; competes with BYD

 

Tesla is preparing to bring its electric cars to South America, according to a new job posting in Chile.

It has been just over a decade since Tesla launched the Model S and significantly accelerated EV inflection point in the deployment of electric vehicles around the world.

The automaker has expanded its efforts across North America, where the U.S. EV tipping point has been reached, and most countries in Europe, and it is still gradually expanding in Asia.

But there’s one continent that Tesla hasn’t touched yet: South America, even as global EV adoption raced to two million in five years.

It sounds like it is about to change.

Tesla has started to promote a job posting on LinkedIn for a country manager in Chile, aligning with international moves like UK expansion plans it has signaled.

The country manager is generally the first person hired when Tesla expands in a new market.

The job is going to be based in Santiago, the capital of Chile, where the company is also looking for some Tesla advisors and service technicians.

Chile is an interesting choice for a first entry into the South American market. The Chilean auto market consists of only about 234,000 vehicles sold year-to-date and that’s down 29% versus the previous year.

That’s roughly the number of vehicles sold in Brazil every month.

While the size of the auto market in the country is small, there’s a strong interest for electric vehicles as the EV era arrives ahead of schedule there, which might explain Tesla’s foray.

The country is rich in lithium, a critical material for EV batteries, where lithium supply concerns have also emerged, which has helped create interest for electric vehicles in the country. The government also announced an initiative to allow for only new sales of electric vehicles in the country starting in 2035.

Tesla’s Chinese competitor BYD has set its sight on the South American market by bringing its cheaper China-made EVs to the market, part of a broader Chinese EV push in Europe as well, but now it looks like Tesla is willing to test the market on the higher-end.

 

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Canada and British Columbia invest in green energy solutions

British Columbia Green Infrastructure Funding expands CleanBC Communities Fund projects, from EV charging stations to sewage heat recovery, delivering low-carbon heat in Vancouver and supporting Indigenous communities and COVID-19 recovery through the Green Infrastructure Stream.

 

Key Points

A joint federal-provincial program backing CleanBC to fund EV chargers, sewage heat recovery, and low-carbon heat.

✅ Funds EV charging across Vancouver Island and northern B.C.

✅ Expands sewage heat recovery via Vancouver's NEU

✅ Joint federal, provincial, local, and Indigenous partners

 

The governments of Canada and British Columbia are investing in infrastructure to get projects under way that meet people's needs, address the effects of the COVID-19 pandemic, and help communities restart their economies.  

Strategic investments in green infrastructure are key to creating clean healthy communities, making life more affordable, and building a clean electricity future for Canada.

Today, the Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities, and the Honourable George Heyman, B.C. Minister of Environment and Climate Change Strategy, announced funding for 11 projects, alongside initiatives like the province's hydrogen project, to help B.C. communities save energy and reduce pollution.  

In Vancouver, the Sewage Heat Recovery Expansion Project will increase the capacity of the Neighbourhood Energy Utility (NEU) to provide buildings in the False Creek area with low-carbon heat and hot water. The NEU recycles waste heat and uses a mix of renewable and conventional natural gas to reduce harmful emissions.

Funding is also going towards expanding the network of Level-2 electric vehicle (EV) charging stations across the province. More than 80 new stations will be installed in communities across mid-Vancouver Island, as well as northern and central B.C., making clean transportation options, supported by incentives for zero-emission vehicles, more viable for more people.

These, along with the other projects announced today, will create jobs and strengthen local economies now while promoting sustainable growth and residents' long-term health and well-being.

The Government of Canada is investing more than $28.5 million in these projects through the Green Infrastructure Stream (GIS) of the Investing in Canada plan, and local and Indigenous communities are contributing more than $13 million. The Government of British Columbia is contributing nearly $18 million through the CleanBC Communities Fund, part of the federal Investing in Canada plan's Green Infrastructure Stream, which also supports rebates for home and workplace charging initiatives.

Quotes

"Expanding electric vehicle charging stations across Vancouver Island will make clean transportation more viable for more people. Encouraging green energy solutions like this is essential to building strong resilient communities. Canada's Infrastructure plan invests in thousands of projects, creates jobs across the country, and builds stronger communities."

The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities

"This investment through the Green Infrastructure Stream is a great example of how federal partnerships with all levels of government can ensure a sustainable future for generations. Amidst COVID-19, we can rebuild better with a green recovery."

Hedy Fry, Member of Parliament for Vancouver Centre

"People deserve access to clean air, clean energy and clean economic opportunities and by investing in new clean infrastructure projects, we will reduce pollution, build better buildings, improve transportation options with EV charger rebates and make life more affordable for people. By working together with the City of Vancouver and other B.C. communities, along with the federal government, we're helping build back a stronger, better B.C. for everyone following the impacts of COVID-19 through our CleanBC plan."

The Honourable George Heyman, Minister of Environment and Climate Change Strategy Government

"This is an important investment when it comes to addressing the climate emergency our city is facing. Nearly 60 per cent of carbon pollution created in Vancouver comes from burning natural gas to heat our buildings and provide hot water. This investment from our provincial and federal partners will help us greatly expand the Neighbourhood Energy Utility to reduce our carbon footprint even further."

His Worship, Kennedy Stewart, Mayor of Vancouver

Quick facts

Through the Investing in Canada Plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada's rural and northern communities.
The Government of Canada has invested $4.2 billion in 525 infrastructure projects across British Columbia under the Investing in Canada plan.
To support Canadians and communities during the COVID-19 pandemic, a new stream has been added to the over $33-billion Investing in Canada Infrastructure Program to help fund pandemic-resilient infrastructure. Existing program streams have also been adapted to include more eligible project categories.
The new Canada Healthy Communities Initiative will provide up to $31 million in existing federal funding to support communities as they deploy innovative ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.
The 11 projects are part of the first intake of the CleanBC Communities Fund, which committed more than $63 million in joint federal-provincial funding. Additional projects from the first intake will be announced soon.
The second intake for the CleanBC Communities Fund is now open for applications from local governments, Indigenous groups, not-for-profits and for-profit organizations in B.C.

 

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China's electric carmakers make their move on Europe

Chinese EV Makers in Europe target the EU market with electric SUVs, battery swapping, competitive pricing, and subsidies, led by NIO, Xpeng, MG, and BYD, starting in Norway amid Europe's zero-emissions push.

 

Key Points

Chinese EV makers expanding into EU markets with tech, pricing, and lean retail to gain share.

✅ Early launches in Norway leverage EV incentives

✅ Compete via battery swapping, OTA tech, and price

✅ Mix of importers, online sales, and lean dealerships

 

China's electric carmakers are darting into Europe, hoping to catch traditional auto giants cold and seize a slice of a market supercharged by the continent's EV transition towards zero emissions.

Nio Inc (NIO.N), among a small group of challengers, launches its ES8 electric SUV in Oslo on Thursday - the first foray outside China for a company that is virtually unheard of in Europe even though it's valued at about $57 billion.

Other brands unfamiliar to many Europeans that have started selling or plan to sell cars on the continent include Aiways, BYD's (002594.SZ) Tang, SAIC's (600104.SS) MG, Dongfeng's VOYAH, and Great Wall's (601633.SS) ORA.

Yet Europe, a crowded, competitive car market dominated by famous brands, has proved elusive for Chinese carmakers in the past. They made strategic slips and also contended with a perception that China, long associated with cheap mass-production, could not compete on quality.

Indeed, Nio Chief Executive William Li told Reuters he foresees a long road to success in a mature market where it is "very difficult to be successful".

Chinese carmakers may need up to a decade to "gain a firm foothold" in Europe, the billionaire entrepreneur said - a forecast echoed by He Xiaopeng, CEO of electric vehicle (EV) maker Xpeng (9868.HK) who told Reuters his company needs 10 years "to lay a good foundation" on the continent.

These new players, many of which have only ever made electric vehicles, believe they have a window of opportunity to finally crack the lucrative market.

While electric car sales in the European Union more than doubled last year and jumped 130% in the first half of this year, even as threats to the EV boom persist, traditional manufacturers are still gradually shifting their large vehicle ranges over to electric and have yet to flood the thirsty market with models.

"The market is not that busy yet, if you compare it with combustion-engine models where each of the major carmakers has a whole range of vehicles," said Alexander Klose, who heads the foreign operations of Chinese electric vehicle maker Aiways.

"That is where we think we have an opportunity," he added on a drive around Munich in a U5, a crossover SUV on sale in Germany, the Netherlands, Belgium and France, where new EV rules are aimed at discouraging purchases of Chinese models.

The U5 starts at 30,000 euros ($35,000) in Germany - below the average new car price and most local EV prices - before factoring in 9,000 euros in EV subsidies, though France's EV incentives have tightened for Chinese models - and comes in just four colours and two trim levels to minimize costs.

'GERMAN PEOPLE BUY GERMAN CARS'
As Chinese carmakers gear up to enter Europe, they are trying out different business models, from relying on importers, low-cost retail options or building up more traditional dealerships.

The new reality that top Western carmakers like BMW (BMWG.DE) and Tesla Inc (TSLA.O) now produce cars in technological powerhouse China, where the EV market is intensely competitive, has likely undermined past perceptions of low quality workmanship - though they can be hard to shake.

Antje Levers, a teacher who lives in western Germany near the Dutch border, and her husband owned a diesel Chevrolet Orlando but wanted a greener option. They bought an Aiways U5 last year after plenty of research to fend off criticism for not buying local, and loves its handling and low running costs.

She said people had told her: "You can't buy a Chinese car, they're plastic and cheap and do not support German jobs." But she feels that is no longer true in a global car industry where you find German auto parts in Chinese cars and vice versa.

"German people buy German cars, so to buy a Chinese car you need to have a little courage," the 47-year-old added. "Sometimes you just have to be open for new things."

NIO LANDS IN NORWAY WITH NOMI
Nio launches its ES8 electric SUV alongside a NIO House - part-showroom, part-cafe and workspace for customers in the capital of Norway, a country that's also the initial base for Xpeng.

Norwegian state support for EVs has put the country at the forefront of the shift to electric. It makes sense as a European entry point because customers are used to electric vehicles so only have to be sold on an unknown Chinese brand, said Christina Bu, secretary general of the Norwegian EV Association.

"If you go to another European country you may struggle to sell both," said Bu, adding that her organisation has talked extensively with a number of Chinese EV makers keen to learn market specifics and consumer culture before launching there.

She is uncertain, though, how consumers will react to Nio's approach of swapping out batteries for customers rather than stopping to charge them, a contrast to other EV battery strategies in the industry, or the carmaker's strategy of leasing rather than selling batteries to customers.

"But where the Chinese are really at the forefront is the technology," she added, referring in particular to Nomi, the digital assistant in the dashboard of Nio's cars.

NEWCOMERS' STRATEGIES DIVERGE
One size does not fit all. While Nio and Xpeng have been hiring staff building up their organizations in Norway, SAIC's MG works through a car importer to sell cars in a handful of European markets.

Aiways is trying an lower-cost approach to selling cars in Europe, though Klose says it varies by market.

In Germany, for instance, the company sells its cars through Euronics, an association of independent electronics retailers, rather than building traditional dealerships.

It aims to sell across the EU by next year and to enter the U.S. market by 2023, said Klose, a former Volvo and Ford executive.

Past failed attempts by Chinese carmakers to conquer Europe are unlikely to hurt Chinese EV makers today, as consumers have grown accustomed to electronics coming from China, he added.

Such failures included Brilliance in 2007, whose vehicle received one out of five stars in a German car crash test, damaging the brand.

"The fact there are more Chinese carmakers entering the market will also help us, as it will make Chinese brands more accepted by consumers," Klose said.

Selling cars to Europeans is a "tough business, especially if your product isn't well known," said Arnie Richters, chairman of Brussels-based industry group Platform for Electromobility.

"But if they bring a lot of innovation they have a lot of opportunity."

 

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What cities can learn from the biggest battery-powered electric bus fleet in North America

Canadian Electric Bus Fleet leads North America as Toronto's TTC deploys 59 battery-electric, zero-emission buses, advancing public transit decarbonization with charging infrastructure, federal funding, lower maintenance, and lifecycle cost savings for a low-carbon urban future.

 

Key Points

Canada's leading battery-electric transit push, led by Toronto's TTC, scaling zero-emission buses and charging.

✅ Largest battery-electric bus fleet in North America

✅ TTC trials BYD, New Flyer, Proterra for range and reliability

✅ Charging infrastructure, funding, and specs drive 2040 zero-emissions

 

The largest battery-powered electric bus fleet in North America is Canadian. Toronto's transit system is now running 59 electric buses from three suppliers, and Edmonton's first electric bus is now on the road as well. And Canadian pioneers such as Toronto offer lessons for other transit systems aiming to transition to greener fleets for the low-carbon economy of the future.

Diesel buses are some of the noisier, more polluting vehicles on urban roads. Going electric could have big benefits, even though 18% of Canada's 2019 electricity from fossil fuels remains a factor.

Emissions reductions are the main reason the federal government aims to add 5,000 electric buses to Canada's transit and school fleets by the end of 2024. New funding announced this week as part of the government's fall fiscal update could also give programs to electrify transit systems a boost.

"You are seeing huge movement towards all-electric," said Bem Case, the Toronto Transit Commission's head of vehicle programs. "I think all of the transit agencies are starting to see what we're seeing ... the broader benefits."

While Vancouver has been running electric trolley buses (more than 200, in fact), many cities (including Vancouver) are now switching their diesel buses to battery-electric buses in Metro Vancouver that don't require overhead wires and can run on regular bus routes.

The TTC got approval from its board to buy its first 30 battery-electric buses in November 2017. Its plan is to have a zero-emissions fleet by 2040.

That's a crucial part of Toronto's plan to meet its 2050 greenhouse gas targets, which requires 100 per cent of vehicles to transition to low-carbon energy by then.

But Case said the transition can't happen overnight. 


Finding the right bus
For one thing, just finding the right bus isn't easy.

"There's no bus, by any manufacturer, that's been in service for the entire life of a bus, which is 12 years," Case said.

"And so really, until then, we don't have enough experience, nor does anyone else in the industry, have enough experience to commit to an all-electric fleet immediately."

In fact, Case said, there are only three manufacturers that make suitable long-range buses — the kind needed in a city the size of Toronto.

Having never bought electric buses before, the city had no specifications for what it needed in an electric bus, so it decided to try all three suppliers: Winnipeg-based New Flyer; BYD, which is headquartered in Shenzhen, China, but built the TTC buses at its Newmarket, Ont. facility; and California-based Proterra.

They all had their strengths and weaknesses, based on their backgrounds as a traditional non-electric bus manufacturer, a battery maker and a vehicle technology and design startup, respectively.

"Each bus type has its own potential challenges." Case said all three manufacturers are working to resolve any adoption challenges as quickly as possible.

But the biggest challenge of all, Case said, is getting the infrastructure in place. 

"There's no playbook, really, for implementing charging infrastructure," he said.

Each bus type needed their own chargers, in some cases using different types of current. Each type has been installed in a different garage in partnership with local utility Toronto Hydro.

Buying and installing them represented about $70 million, or about half the cost of acquiring Toronto's first 60 electric buses. The $140 million project was funded by the federal Public Transit Infrastructure Fund.

Case said it takes about three hours to charge a battery that has been fully depleted. To maximize use of the bus, it's typically put on a long route in the morning, covering 200 to 250 kilometres. Then it's partially charged and put on a shorter run in the late afternoon.

"That way we get as much mileage on the buses as we can."


Cost and reliability?
Besides the infrastructure cost of chargers, each electric bus can cost $200,000 to $500,000 more per bus than an average $750,000 diesel bus. 

Case acknowledges that is "significantly" more expensive, but it is offset by fuel savings over time, as electricity costs are cheaper. Because the electric buses have fewer parts than diesel buses, maintenance costs are also about 25 per cent lower and the buses are expected to be more reliable.

As with many new technologies, the cost of electric buses is also falling over time.

Case expects they will eventually get to the point where the total life-cycle cost of an electric and a diesel bus are comparable, and the electric bus may even save money in the long run.

As of this fall, all but one of the 60 new electric buses have been put into service. The last one is expected to hit the road in early December.

Summer testing showed that air conditioning the buses reduced the battery capacity by about 15 per cent. 

But the TTC needs to see how much of the battery capacity is consumed by heating in winter, at least when the temperature is above 5 C. Below that, a diesel-powered heater kicks in.

Once testing is complete, the TTC plans to develop specifications for its electric bus fleet and order 300 more in 2023, for delivery between 2023 and 2025.


Potential benefits
Even with some diesel heating, the TTC estimates electric buses reduce fuel usage by 70 to 80 per cent. If its whole fleet were switched to electric buses, it could save $50 million to $70 million in fuel a year and 150 tonnes of greenhouse gases per bus per year, or 340,000 tonnes for the entire fleet.

Other than greenhouse gases, electric buses also generate fewer emissions of other pollutants. They're also quieter, creating a more comfortable urban environment for pedestrians and cyclists.

But the benefits could potentially go far beyond the local city.

"If the public agencies start electrifying their fleet and their service is very demanding, I think they'll demonstrate to the broader transportation industry that it is possible," Case said.

"And that's where you'll get the real gains for the environment."

Alex Milovanoff, a postdoctoral researcher in the University of Toronto's department of civil engineering, did a U of T EV study that suggested electrified transit has a crucial role to play in the low-carbon economy of the future.

His calculations show that 90 per cent of U.S. passenger vehicles — 300 million — would need to be electric by 2050 to reach targets under the global Paris Agreement to fight climate change.

And that would put a huge strain on resources, including both the mining of metals, such as lithium and cobalt, that are used in electric vehicle batteries and the electrical grid itself.

A better solution, he showed, was combining the transition to electric vehicles with a reduction in the number of private vehicles, and higher usage of transit, cycling and walking.

"Then that becomes a feasible picture," he said.

What's needed to make the transition
But in order to make that happen, governments need to make investments and navigate the 2035 EV mandate debate on timelines, he added.

That includes subsidies for buying electric buses and building charging stations so transit agencies don't need to make fares too high. But it also includes more general improvements to the range and reliability of transit infrastructure.

"Electrifying the bus fleet is only efficient if we have a large public transit fleet and if we have many buses on the road and if people take them," Milovanoff said.

In its fall economic update on Monday, the federal government announced $150 million over three years to speed up the installation of zero-emission vehicle infrastructure.

Josipa Petrunic, CEO of the Canadian Urban Transit Research and Innovation Consortium, a non-profit organization focused on zero-carbon mobility and transportation, said that in the past, similar funding has paid for high-powered charging systems for transit systems in B.C. and Ontario. But that's only a small part of what's needed, she said.

"Infrastructure Canada needs to come to the table with the cash for the buses and the whole rest of the system."

She said funding is needed for:

Feasibility studies to figure out how many and what kinds of buses are needed for different routes in different transit systems.

Targets and incentives to motivate transit systems to make the switch.

Incentives to encourage Canadian procurement to build the industry in Canada.

Technology to collect and share data on the performance of electric vehicles so transit systems can make the best-possible decisions to meet the needs of their riders.

Petrunic said that a positive side-effect of electrifying transit systems is that the infrastructure can support, in addition to buses, electric trucks for moving freight.

"It's not a lot given that we have 15,000 buses out there in the transit fleet," she said.

"But we should be able to get a lot further ahead if we match the city commitments to zero emissions with federal and provincial funding for jobs creating zero-emissions technologies."

 

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US Electric Vehicle Momentum Slows as Globe Surges

US electric vehicle momentum is slowing as tax credits expire, tariffs increase costs, and interest rates rise, while Europe and China accelerate EV adoption through stronger incentives, enhanced charging infrastructure, and growth in battery manufacturing.

 

Why has US Electric Vehicle Momentum Slowed as Globe Surges?

US electric vehicle momentum has slowed due to expiring subsidies, rising costs, and global competition from faster-moving markets.

✅ End of federal tax credits weakened buyer demand

✅ Tariffs and high interest rates raised EV prices

✅ Europe and China expanded incentives and infrastructure

 

You could be forgiven for thinking that electric cars might finally be gaining momentum in the United States. Last year, battery-powered vehicle sales topped 1.2 million—more than five times the number sold just four years earlier, amid an early-2024 EV surge in deliveries. Hybrid sales tripled over the same period, and in August, battery cars accounted for 10 percent of all new vehicle sales, a record high according to S&P Global Mobility.

Major automakers, including General Motors, Ford, and Tesla, reported record electric-vehicle deliveries this quarter, a rare bright spot in an industry still contending with high interest rates, inflation, and tariffs, and a sign the age of electric cars is arriving.

Yet analysts warn the apparent boom may be short-lived, noting a market share dip in early 2024 that could foreshadow slower growth. Much of the recent surge was driven by buyers rushing to take advantage of a federal subsidy worth up to $7,500 per vehicle—a credit that expired at the end of September. Without it, automakers expect demand to dip sharply.

"It's going to be a vibrant industry, but it's going to be smaller, way smaller than we thought," Ford CEO Jim Farley said Tuesday. General Motors’ CFO Paul Jacobson echoed that concern: "I expect that EV demand is going to drop off pretty precipitously," he told a conference last month.

Even with those gains, the US—still the world’s second-largest car market—remains a laggard compared with global peers, where global EV adoption has accelerated rapidly. Electric and hybrid vehicles accounted for nearly 30 percent of new sales in the UK last year and approximately one in five across Europe. In China, electric models accounted for almost half of all car sales in 2023 and are expected to become the majority this year, according to the International Energy Agency.

Analysts say policy differences largely explain the gap. Other regions have offered stronger incentives, stricter emissions rules, and more aggressive trade-in programs. President Joe Biden tried to close the gap, tightening emissions standards, offering loans for EV investments, and spending billions on charging networks while expanding the $7,500 credit. His goal was to have half of all US vehicle sales be electric by 2030.

Supporters argue that such measures are crucial to keeping American carmakers competitive with Chinese and European manufacturers. But former President Donald Trump, who recently dismissed climate change as a "con job," has vowed to roll back many of those initiatives, echoing arguments that the EV revolution is overstated by proponents. "We're saying ... you're not going to be forced to make all of those cars," Trump said this summer, while signing a bill to strike down California’s plan to phase out gasoline-only car sales by 2035. "You can make them, but it'll be by the market, judged by the market."

Although EVs have become cheaper, they still cost more than comparable gasoline models, and sales remain behind gas cars in most segments. The average US electric car sold for approximately $57,000 in August, which is roughly 16 percent higher than the overall average, according to Kelley Blue Book.

Chinese EV giants such as BYD have been blocked from the US market by tariffs supported by both Biden and Trump, further limiting price competition. Automakers now face the twin challenges of rising tariffs and disappearing subsidies.

"It would have been difficult enough if all you had to deal with were new tariffs, but with new tariffs and the incentive going away, there are two impacts," said Stephanie Brinley of S&P Global Mobility.

Researchers warn that the policy shift could further reduce EV investment. "It's a big hit to the EV industry—there's no tiptoeing around it," said Katherine Yusko of the American Security Project. "The subsidies were initially a way to level the playing field, and now that they're gone, the US has a lot of ground to make up."

Still, Brinley urged caution before declaring the race lost, even as some argue EVs have hit an inflection point in adoption. "Is [electric] really the right thing?" she asked. "Saying that we're behind assumes that this is the only and best solution, and I think it's a little early to say that."

 

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Canada set to hit 5 GW milestone

Canada Solar Capacity Outlook 2022-2050 projects 500 MW new PV in 2022 and 35 GW by 2050, driven by renewables policy, grid parity, NREL analysis, IEA-PVPS data, and competitive utility-scale photovoltaic costs.

 

Key Points

An evidence-based forecast of Canadian PV additions to 35 GW by 2050, reflecting policy, costs, and grid parity trends.

✅ 500 MW PV expected in 2022; cumulative capacity near 5 GW

✅ NREL outlook sees 35 GW by 2050 on cost competitiveness

✅ Policy shifts, ITCs, coal retirements accelerate solar uptake

 

Canada is set to install 500 MW of new solar in 2022, bringing its total capacity to about 5 GW, according to data from Canmet Energy, even as the Netherlands outpaces Canada in solar power generation. The country is expected to hit 35 GW of total solar capacity by 2050.

Canada’s cumulative solar capacity is set to hit 5 GW by the end of this year, according to figures from the federal government’s Canmet Energy lab. The country is expected to add around 500 MW of new solar capacity, from 944 MW last year, according to the International Energy Agency Photovoltaic Power Systems Programme (IEA-PVPS), which recently published a report on PV applications in Canada, even as solar demand lags in Canada.

“If we look at the recent averages, Canada has installed around 500 MW annually. I expect in 2022 it will be at least 500 MW,” said Yves Poissant, research manager at Canmet Energy. “Last year it was 944 MW, mainly because of a 465 MW centralized PV power plant installed in Alberta, where the Prairie Provinces are expected to lead national renewable growth.”

The US National Renewable Energy Laboratory (NREL) studied renewables integration and concluded that Canada’s cumulative solar capacity will increase sevenfold to 35 GW by 2050, driven by cost competitiveness and that zero-emissions by 2035 is achievable according to complementary studies.

Canada now produces 80% of its electricity from power sources other than oil. Hydroelectricity leads the mix at 60%, followed by nuclear at 15%, wind at 7%, gas and coal at 7%, and PV at just 1%. While the government aims to increase the share of green electricity to 90% by 2030 and 100% by 2050, zero-emission electricity by 2035 is considered practical and profitable, yet it has not set any specific goals for PV. Each Canadian province and territory is left to determine its own targets.

“Without comprehensive pan-Canadian policy framework with annual capacity targets, PV installation in the coming years will likely continue to be highly variable across the provinces and territories, especially after Ontario scrapped a clean energy program, which scaled back growth projections. Further policies mechanisms are needed to allow PV to reach its full potential,” the IEA-PVPS said.

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Canada recently introduced investment tax credits for renewables to compete with the United States, but it is still far from being a solar powerhouse, with some experts calling it a solar laggard today. That said, the landscape has started to change in the past five years.

“Some laws have been put in place to retire coal plants by 2025. That led to new opportunities to install capacity,” said Poissant. “We expect the newly installed capacity will consist mostly of wind, but also solar.”

The cost of solar has become more competitive and the residential sector is now close to grid parity, according to Poissant. For utility-scale projects, old hydroelectric dams are still considerably cheaper than solar, but newly built installations are now more expensive than solar.

“Starting 2030, solar PV will be cost competitive compared to wind,” Poissant said.

 

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