Utilities are emerging as key players in the electric vehicle transition. As EV adoption accelerates, they have the expertise and market positioning to expand reliable charging access. As they invest in grid modernization, programs, and partnerships, power utilities can also generate revenue while meeting demand and improving the grid.
The electric vehicle (EV) market continues to grow steadily. Over the next decade, millions more drivers will make the switch, but concerns about charging access and reliability remain among the biggest barriers.
Power utilities hold the key to overcoming these challenges. With their deep grid expertise, existing infrastructure, and trusted customer relationships, utilities are uniquely positioned to expand reliable charging access and spur the nation’s EV market.
How Power Utilities Can Boost EV Adoption
The Edison Electric Institute (EEI) reports that more than 40 million charging ports (including over 325,000 DC fast charging ports) will be needed to meet electric vehicle demand in the U.S. alone. Building this infrastructure will require coordination across the energy ecosystem. Power utilities are assessing their systems and engaging stakeholders to ensure they can deliver power safely, reliably, and affordably as electrification continues. Here are some other ways they can serve as market leaders.
Managing and modernizing the grid
For EVs to succeed at scale, the charging network must be treated as an essential service as critical as the power lines and substations that keep the lights on. Just as utilities monitor their assets and respond quickly when an outage occurs, they must devote the same level of attention to ensuring reliable charging infrastructure.
Utilities are uniquely positioned to meet this need. They already understand the importance of upgrading the grid to handle the new demand and have the expertise and regulatory framework to make these investments. By adapting the traditional power utility function to include EV charging management, utilities can ensure both reliability for customers and efficient integration of new loads onto the grid.
Smart grid technologies take this even further. By leveraging demand response and other programs, utilities can monitor EV charging patterns in real time, anticipate load fluctuations, and improve power utilization effectiveness, smoothing out peaks. At the same time, integrating renewable sources like wind and solar helps meet rising electricity needs sustainably, reducing emissions while increasing resilience. Together, these investments modernize the grid while expanding charging access and building consumer trust.
Establishing incentives and programs
Utilities play an important role in making EVs more attainable by offering incentives and programs that remove barriers for consumers and businesses. Rebates and financial assistance can offset the upfront cost of purchasing and installing chargers at homes, workplaces, and commercial sites. State and federal funding can help utilities offer discounted equipment, lower installation costs, or even free assessments that help customers safely and affordably transition to electric vehicles. These programs not only make EV ownership more cost-effective but also expand community access to charging in underserved areas.
Beyond direct incentives, utilities can design smart energy programs that encourage efficient use of electricity. Time-of-use (TOU) rates incentivize drivers to charge during off-peak hours, easing grid strain and lowering costs. Also, pilot vehicle-to-grid (V2G) programs compensate EV drivers who sell excess energy back to the grid.
Utilities can also foster commercial EV adoption by supporting fleet electrification. From tailored assessments to discounted bulk rates and grid-ready infrastructure, utilities can help public agencies, transit providers, and private businesses electrify operations at scale while driving economic and environmental benefits.
Building partnerships through education
Utilities have long been trusted stewards of the electric grid. That expertise makes them natural leaders in the transition to electric vehicles. By forming strategic partnerships and providing education, utilities can help develop EV infrastructure that’s reliable and accessible.
Collaboration with charging providers and technology vendors is key to expanding infrastructure and improving performance. Utilities can share data on grid capacity, demand patterns, and charger performance to help these partners plan smarter and deliver better service. Working together ensures charging stations are built where they’re needed most and maintained to the same high standards as the broader electric grid.
Partnerships with local car dealerships, electricians, and governments can also drive adoption on the ground. Collaboration on programs that bundle purchase and charging incentives, ensure safe and certified charger installations, and expand public charging through joint investment and planning can accelerate solutions. Educational initiatives—from community workshops to online tools and campaigns—help consumers understand costs, benefits, and incentives, turning uncertainty into confidence.
EV Benefits for Power Utilities
While furthering electrification enables consumer choice and supports environmental goals, utilities also stand to benefit significantly from embracing this transition. Through their active role in building out and managing EV charging infrastructure, utilities can meet their customers’ needs while strengthening their business, expanding their market influence, and modernizing their operations. Several attractive benefits include the ability to increase revenue opportunities, effectively meet rising electricity demand, and update the grid.
1. Generate new revenue streams
As EV sales grow, utilities are well-positioned to drive revenue by expanding charging networks and investing in the supporting infrastructure. While they develop a reliable charging network, these investments can increase regulated asset value, permitting utilities to earn a rate of return. Utilities can also monetize EV charging by scaling their business as EV charging network operators. Additionally, utilities can capitalize on the flexibility of EV charging using smart energy management to control the flow of energy at EV charging sites and generate revenue in energy flexibility markets.
2. Meet growing electricity demand
After two decades of little change, U.S. electricity consumption is expected to increase 9% by 2028 and 18% by 2033. Widespread EV adoption and expanding data center loads are driving this dramatic demand. While many utilities see this as a challenge, they can approach it as an opportunity. By proactively developing charging partnerships, investing in infrastructure, and employing smart management solutions, power utilities can turn demand growth into sustainable business expansion while ensuring reliability for customers.
3. Strengthen and modernize the grid
EV charging can become an asset to the grid. By encouraging off-peak charging, utilities can reduce strain during peak hours and improve overall stability. They can also leverage distributed energy resources (DERs)—including EV batteries, onsite storage, and renewables—for flexibility services, grid balancing, and even backup power in emergencies.
With smart energy management, utilities can make the most of these resources and ease localized strain on the grid. This approach also makes it possible to offer more charging capacity without expensive infrastructure upgrades. As EV adoption continues, utilities can go a step further, turning charging into a tool for greater reliability and positioning electric vehicles as a driver of long-term grid resilience.
Aside from keeping pace with consumer demand, the shift to electric vehicles creates new opportunities to grow, innovate, and modernize the energy sector. Utilities that lean in today will be rewarded with stronger customer relationships, along with new business models and more resiliency.
Software can Help Utilities Embrace and Monetize EVs
As utilities work to modernize the grid, advanced EV charging and smart energy management software can also collect and analyze data to provide insights for continuous improvement. Tools and features like operations and smart energy management, billing and payment systems, alert management and ticketing systems, a mobile app and web portal, and reports and analytics can support utilities with intelligence as they strive for smooth operations, satisfied customers, and EV charging network expansion.
For example, Driivz EV Charging and Energy Management Platform can help power utilities increase grid resilience, generate new revenue streams, and foster customer loyalty using existing operations infrastructure. With the right software and approach, utilities can take advantage of their leadership position in the EV charging value chain to generate new revenue and build customer loyalty—all while balancing the grid and furthering EV adoption.
