And gasoline won't become more expensive as well? Even if electricity gets more expensive, it will still be becoming cheaper relative to gasoline.
Electricity will never be free.
Paulus's point, and Paulus is 100% correct about this, is that gasoline will get more expensive much faster than electricity. Electricity rates have been going up slowly; gasoline prices have been going up FAST, though they fluctuate a lot more. And peak oil means gasoline prices will keep going up fast.
There are several large trends serving to drive electricity prices down:
- LED lighting (uses about 10% the energy of incandescents)
- ever-cheaper solar panels (they have capital costs, but once installed they produce free electricity; levelized cost including capital and operating is now dropping below the price of natural gas generators, and it continues to drop, FAST)
- ever-cheaper batteries (the prices here drop more slowly, but there's a huge amount of work being put into these)
- better insulation (for those with electric heating)
There's a couple of trends counteracting this:
- switches from fossil fuel heating to electric heating are getting common
- switches from fossil fuel vehicles (car & train) to electric vehicles are getting more common
I predict that the result, overall, is going to be electricity prices roughly tracking general inflation rates.
By contrast, gasoline prices will simply skyrocket.
The move to SOLAR is happening FAST. Really, really fast. Faster than most people predicted. Solar deployments have been increasing on an exponential curve, with usage multiplying by a factor of roughly 1.7 every year. (That is, the amount out there is 1.7 times as much this year as last year.)
This means that in 10 years, based on current trends, there will be roughly 200 times as much solar deployed as there is now. The theoretical deployment limit is very far away so this exponential growth could go on for a long time.
BTW, the environmental impact to creat Lithium batteries is SO under-reported.
This is because it isn't really very big. Lithium mining and refining, graphite production, and cobalt mining and refining are all relatively low-impact as mining goes (mining is always high-impact). Arguably on-land oil drilling is better, but tar sands mining and deepwater oil drilling are far worse. Coal mining is also worse. Gold mining is far worse, and aluminum mining and refining is also far worse. (And then there's LEAD mining -- lead is nasty nasty nasty poison.)
So I feel a lot worse, environmentally speaking, about the aluminum body of my Tesla (and about the lead-acid batteries in all cars) than about the lithium battery.
The problem with the batteries at the moment is the use of Chinese mining, where they cut corners environmentally in order to be cheaper. Tesla is currently actively pursuing US sourcing of its battery materials in order to have more environmentally sound mining. (And there's lots of US lithium, in case anyone was wondering.)
The Tesla Model S is definitely an elite car at the moment -- this is all in accordance with "Tesla's Secret Master Plan", which involves funding the R&D and capital costs of the company by starting at the top of the market with the highest-margin cars.
Despite this, you can actually save money by buying a Tesla Model S rather than a gasoline car, if you have the right driving profile: a huge number of miles per year, but never very far from home. Several people who routinely put 100,000 miles/year on their cars, but almost never go more than 150 miles from home, figured this out. They didn't specify why they had this driving profile, but it seems to go with certain types of jobs. (I don't have that profile. I'm just helping fund Tesla's R&D, I guess.)
The Leaf is a more mass-market car. If you don't have to make routine car trips longer than its range, it's a very economical choice.
The biggest thing restricting popular uptake of electric cars is "range anxiety". And frankly, if we had a functional intercity rail network, I think that would evaporate, because that would eliminate the need for really-long-range car trips in most of the populated parts of the country -- even the car-dependent parts. If I can take a train from Ithaca NY to Lansing MI, I don't need a long-range car, I just rent a shorter-range electric car at my destination.
This is part of my vision of future intercity rail as part of a complete transportation network.
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For reference on the pricing, I looked up the *ratio* of electricity price per kilowatt to gasoline price per gallon in various years. The ratio keeps going down. In the 1920s electricity was very expensive and gasoline was very cheap. Now it's the opposite. The trend has been essentially constant.