State Strategies for an Affordable, Reliable, and EV-Ready Grid

With federal purchase incentives sunsetting and new loads coming online, now more than ever, the economics needed for widespread electric vehicle (EV) adoption hinge on affordable electricity and accessible charging.  

Roughly 1.3 million EVs were sold in the U.S. in 2024, and nearly that many have already been sold in the U.S. in 2025. Even with a slowdown in sales anticipated in the coming months now that the federal purchase incentives have expired, EVs have significant market penetration in many states, and carmakers are committed to the EV transition, albeit at different speeds.  

At the same time, electricity rates are rising across the country, hurting average consumers’ pocketbooks and eroding the economic case for EVs. This is a crossroads moment for states: they can enact policies that make EV adoption more attractive to drivers and even help push down electricity costs for all ratepayers, or allow continued EV market penetration to exacerbate grid constraints, threatening to increase both costs and threats to reliability. As affordability pressures mount and EV demand grows, governors’ offices, utility regulators, state energy and transportation agencies, utilities, and industry partners must prepare distribution systems for growing EV load while protecting ratepayers and capturing the operational benefits EVs can provide. A question we hear often – “Is the grid ready for forecasted EV growth?” – has an honest answer: not yet, but it can be with targeted state policy and regulatory moves. Critically, the most expensive option is the status quo. Thankfully, progress is already happening in states in the absence of federal support. Take, for example: 

• In Colorado, which streamlined the permitting process for EV charging stations, establishing standardized procedures and a model code to reduce red tape and accelerate the deployment of charging infrastructure across the state. Through the passage of HB24-1173 in May 2024, the state established clear timelines for EV charger permitting processes, ensuring applications are reviewed within 30-60 days. The bill also creates a grant fund to assist local governments in implementing new permitting standards, helping to rapidly scale charging infrastructure statewide.
   
• In Maryland, which became the first state in the nation to require electric utility companies to allow ‘vehicle-to-grid' systems to interconnect to the state’s electric distribution network through the passage of the DRIVE Act in April 2024. The law requires electric utility companies to implement pilot programs that pay the owners of EVs with bidirectional charging for helping to bolster grid reliability, incentivizing the development and deployment of technologies that contribute to grid support and efficiency.
  
  
• In New York, which established a policy that lowers costs for businesses installing EV chargers by using tiered demand charges based on their charging load factor, transitioning them to time-based energy rates. This approach allows low-utilization stations to avoid costly demand charges that make building EV charging uneconomical in more remote areas. The policy encourages private investment as networks expand and gives EV drivers confidence in charging availability.  

These policy advances, and others across the country, are a clear indication that states remain the center of gravity when it comes to energy and transportation policy – innovating on cost-cutting, charging access, and grid reliability. The more quickly these kinds of policies are put into place, the more benefits states and consumers can derive from the technology. Our newly released EV-Ready Grid Guidebook (2025 Edition) is designed to be a tool for exactly this job – organizing model policies and recommendations so more state policymakers can move from intent to action. 

The policy recommendations and illustrated examples within the guidebook align closely with the core pillars of our work at Advanced Energy United: Build It, Make It Flexible, Make It Affordable. In our guidebook, we detail how state and regional leaders can: 

• Build It – Take action to accelerate least-cost charging and grid integration projects that align with the compressed federal incentive timelines now in place. Establish a stable pipeline of EV infrastructure and advanced transportation projects to meet future residential, commercial, and fleet charging needs by streamlining permitting, interconnection, and energization processes.
  
  
• Make It Flexible – Scale advanced transportation electrification solutions through state programs, plans, and rates to ensure utilities can get more out of our existing grid infrastructure. Work to ensure technologies, such as managed charging, V2X, and distributed energy resource (DER) integration, pull more performance from existing wires and keep demand peaks in check.
  
  
• Make It Affordable – Take steps to ensure that public utilities plan, optimize, and deliver the right mix of energy investments at the lowest possible cost. Strengthen the connection between rate design, system planning, and total costs to maintain reliability and affordability as EV demand grows. 

Reflective of these pillars, our guidebook focuses on planning for electrification transportation, making the most of existing infrastructure, removing barriers to deployment, and modernizing the utility model –all to achieve affordable energy, a more reliable grid, and equitable charging access. 

We encourage policymakers, state energy officials, and utility regulators to work together and across state lines to share solutions that address the important work of preparing the grid for EVs. Together, these model policies offer a flexible yet comprehensive framework that can be tailored to local conditions and needs, empowering stakeholders to develop strategies that promote sustainable and efficient electrification of transportation.