According to a study done by the National Research Council (NRC), if electric and plug in hybrid vehicles are to be adopted by consumers, the Federal government must continue to provide incentives for buyers. Currently, vehicle cost, battery technology, and lack of consumer knowledge are some areas that the federal government need to address. Developing less expensive, better performing batteries to reduce cost, and a market strategy, is needed to create awareness and overcome customer uncertainty.

Other recommendations of the study include:

• Streamline permitting processes and adopt building codes that require new construction to be capable of supporting future charging installations and encourage work places to consider investments in charging infrastructure.
• Standardize plugs and ensure that all drivers can charge their vehicles and pay at all public charging stations using a universally accepted methods.
• Fund research to determine how much public infrastructure is needed and where it should be sited to persuade more people to purchase and use EV’s.
• Continue to invest in fundamental and applied research to expedite the development of low-cost, high-performance batteries to increase the all-electric range and reduce vehicle cost.
• Develop rate structures that encourage owners to charge vehicles when the cost of supplying energy is low.
• Continue incentives to purchase plug-in electric vehicles beyond the current production volume limit.
• Consider converting the federal income tax credit offered to purchasers of plug-in electric vehicles into a point-of-sale rebate.
• Adopt a policy in which plug-in vehicles remain free from special roadway or registration surcharges for a limited time.
• Conduct more research on the variety of other consumer incentives that have been offered by states and local governments to determine which have proved effective in promoting deployment of plug-in electric vehicles.
• The federal government should also make use of its Ad Council program to provide accurate information about federal tax credits and other incentives and the value of vehicle ownership.

The study was sponsored by the U.S. Department of Energy. The National Academy of Sciences, National Academy of Engineering, Institute of Medicine, and National Research Council make up the National Academies.  They are private, independent nonprofit institutions that provide science, technology, and health policy advice under a congressional charter granted to NAS in 1863.  The National Research Council is the principal operating arm of the National Academy of Sciences and the National Academy of Engineering.