What Is Considered a Neighborhood Electric Vehicle? (With Examples)

Small electric cars are becoming a popular part of the urban landscape. More and more people seem interested in making changes to their carbon footprint, but not a lot of people have heard much about neighborhood electric vehicles (NEV). 

Neighborhood electric is a U.S. classification for small, low-speed vehicles. For these small cars to qualify as a NEV, the maximum speed must be below 25 mph. According to the National Highway Traffic Safety Administration (NHTSA) classification, a NEV is entirely electric-powered. This makes it different from the other types of low-speed vehicles available in the States. Neighborhood electric vehicles (NEVs), like their name suggests, are relatively small and are intended to be used only in residential neighborhoods.

Neighborhood electric vehicles (NEV) are battery-powered electric vehicles used primarily for driving around town. NEVs are easy to drive and park and cheaper to buy and maintain than gas-powered cars. In addition, they can operate in bike lanes and are emissions-free. While they cannot travel as far or carry as much cargo as standard electric vehicles, NEVs still cause less pollution and CO2 than comparable gasoline-powered vehicles. Also, while they are similar to hybrid cars, neighborhood electric cars are much more efficient because they operate at lower speeds and consume almost no energy while parked. 

Many experts believe that this type of small, single-passenger electric car is the wave of the future -at least in medium to large cities. So, let’s talk about all of the details and characteristics of this unique new class of urban vehicles.

NEVs Have 4 Characteristics

All vehicles that legally qualify as neighborhood electric vehicles have four distinct characteristics.

  1. They operate at a speed of 25 miles or less. Typically, the motor CAN be modified to achieve speeds over 35 mph however, this modification might have an effect on whether or not the vehicle is legal.
  2. The entire vehicle weighs less than 3,000lbs.
  3. They have a rechargeable battery electric motor.
  4. They have a short driving range between charges. This range is typically between 30-50 miles.

What Makes a Neighborhood Electric Vehicle Different?

Neighborhood electric vehicles are a one-of-a-kind class of vehicles. While they are often confused with other types of short-range vehicle, modern NEVs have many characteristics that make them truly unique. 

Some of the earliest models of NEVs were similar to golf carts. In fact, this style of NEV is still quite popular throughout the country. However, many traditional golf carts have gasoline-powered engines and lack key features that allow you to drive them on city streets. NEVs are always 100% electric and can travel at slightly faster speeds than the traditional carts designed for golfers. They are incredibly energy-efficient and eco-friendly, which is why they have become so popular for short trips around town.

Since the maximum driving range of a neighborhood electric vehicle tops out at an average of 50 miles, they are designed for trips around the immediate neighborhood. NEVs are built for driving on city streets. 

Also, not all NEVs look like golf carts anymore. Many designers have abandoned the open-air golf cart feel that early models featured. Instead, the newest models are beginning to resemble small cars and are often loaded with creature comforts intended to make your daily short commute enjoyable. Today’s NEVs are as close to a mini electric car as you can get.

Is a NEV the same as a “Smart Car”? 

When most people consider “mini cars,” they tend to automatically think about the “Smart Car.” These mini cars made a big splash when they entered the automobile market in 2008, and it is still fairly rare to encounter one outside of major urban centers. Therefore, it is easy to see how many consumers assume that a NEV is just another type of Smart Car. However, these two vehicle types are quite different.

The Smart Car is a specific brand of small gasoline-powered vehicle manufactured by the German company Daimler. They have been working on subcompact vehicles or microcars since the mid-90s. The most significant difference between the cars produced by the Smart brand and a NEV is the gasoline engine. Smart Cars are intentionally designed to have unparalleled fuel efficiency, but at the end of the day, they still rely on gasoline to keep the engine running.  

Smart Cars aren’t typically much bigger than the average neighborhood electric car. However, size is really where the similarities end. Since the Smart Car is gasoline-powered, it tends to operate more like a scaled-down traditional car. They can typically reach speeds up to 100mph, which means they can be driven on nearly any road, anywhere. They are classified as a passenger vehicle. As a result, they must meet all of the same safety standards as any other normal-sized car on the road. In the past few years, Smart has released both electric and hybrid versions of their vehicles. However, these electric models have more in common with full-sized electric/ hybrid vehicles than they do with the NEVs.

How Much do Neighborhood Electric Vehicles Cost?

The U.S. Department of Energy currently estimates that most neighborhood electric vehicles cost between $12,000-$30,000. Fortunately, the market has seen prices coming down in the past couple of years, so this official range appears to be a little inflated. A more recent price estimate of newer models ranges from $6,000-$18,000. For many city dwellers, this makes the NEV much more affordable than a traditional vehicle. 

You also might be wondering about the average cost of operating these mini electric cars. Of course, you expect it to cost less than a gasoline-powered vehicle. But since you are paying for the electricity needed to recharge it, how big of a cost difference is there?

The average driver has a 16-mile commute to and from work. This makes a monthly total of just under 700 miles per month. The average price of electricity typically comes out to 10cents per/KwH. Finally, most electric motors can travel an average of 3 miles with 1 KwH of electricity. This means that your monthly commute will use around 233KwH.   We can then use those figures to calculate how much electricity a NEV uses during a typical five-day workweek. After doing the calculations, we find that a typical monthly bill comes out at $23.00 per month or $5.31 per week! 

The gas mileage on a standard gas-powered compact car tops out around 33 miles per gallon. So, for the same commute, the compact car would use 21 gallons of gas and cost approximately $60 per month (with an average gas price of $2.85). The math shows that the NEV clearly saves money, despite the slight increase in your electric bill.

How do You Legally Drive One?

As neighborhood electric vehicles become increasingly common, they are also becoming increasingly accepted on most roads. They can legally be driven on nearly any road with a speed limit below 35 mph. In addition, most NEVs can be modified to achieve faster speeds. However, under the current regulations in the U.S., any NEV that travels faster than 35 mph is subject to all of the safety requirements of traditional passenger cars.

Typically, the regulations for NEVs are the same as the ones used for any other low-speed vehicle. As we just mentioned, they are restricted to specific roads. Also, only licensed drivers are currently allowed to operate them. Finally, a legal NEV must also have seat belts, tail/brake lights, turn signals, and mirrors. Depending on where you live, there could also be other requirements, so be sure to research your specific community or city before you hit the road in one.

5 Popular Neighborhood Electric Vehicles

Moto E.V. 

Moto is an electric vehicle company that specializes in making “street legal golf carts.” As a result, their NEVs look like you might expect any other golf cart to look like. The MotoEV comes in options that seat between 2 and 8 passengers with a variety of features and options.

 

GEM e2

Global Electric Motorcar (GEM) is a company the specializes specifically in NEVs. Their signature models can carry 2-6 passengers and look nothing like a classic golf cart. While they are open on each side, they feature full-sized adjustable seats for every passenger, an automotive safety glass windshield, and 3-point seat belts. There are also luxury options that can be added, such as leather upholstery, sport tires, and a panoramic sky roof.

Twizy

The popular European electric car maker, Renault, has been selling Twizy throughout Europe and the U.K. for quite some time. However, this electric quadricycle is slowly but surely making its way to the States. In the past few years, it has been seen gracing the streets of San Francisco sporting a Nissan logo. 

Nissan is partnering with Renault to offer this popular micro electric vehicle. Nissan is calling it the New Mobility Concept in the States. Currently, renting it is the only way to drive one. Recently, a San Francisco company that offers rentable scooters for exploring the city has added the small car to its offerings. 

Eli Zero

The Eli Electric Company is focused on creating comfortable yet functional NEVs for city drivers. Their flagship model is the Eli Zero. Unfortunately, this futuristic-looking NEV is technically not quite available for purchase. 

Eli Electric Vehicles started out as a crowdfunding effort. The American creators caused quite a stir when they quickly met their funding goals in 2018 when so many other electric vehicle start-ups were spinning their wheels waiting on investors. Unfortunately, the Covid-19 pandemic has set the company’s production timeline back slightly. However, in November 2020, they announced that production was back on track after a remodeled design. Consumers can expect to see this state-of-the-art NEV available for purchase and on the road sometime in 2022.

EZ-Go 2Five E.V.

This is another cart-style electric vehicle. EZ-Go, a popular golf cart manufacturer, has designed this street-legal model, and it’s for far more than just putting around the golf course. EZ-Go markets the 2Five as a “golf car.” They have quickly come up near the top of the crowd with this NEV-focused design. Drivers love how easy it is to operate, and it comes with a wide range of extra options.

Reasons to Buy a NEV

The top reason most NEV owners give for buying this type of vehicle is that it saves them money. Current models of neighborhood electric vehicles are tens of thousands of dollars cheaper than even inexpensive compact cars. As we’ve also discussed, drivers can save a considerable amount of money on gas. This will be an increasing advantage as the price of gasoline continues to climb. In addition, as the world searches for more clean energy solutions, many countries or states are even offering tax credits for making the switch to an electric vehicle.

Many economists worldwide believe that this type of small electric car is the wave of the future. When combined with solar electric power, these vehicles have the lowest carbon footprint of any vehicle currently on the market. So, it’s no wonder that eco-conscious consumers are becoming fascinated with these mini cars! 

Of course, they are not a perfect solution for everyone. For example, families with children might have a hard time using a NEV as their primary means of transportation, and anyone who drives more than a few miles per day could find the range restrictions to be a huge problem. Industry experts predict that in these situations, the NEV can be used to completely replace a family’s second car even if they can’t eliminate the need for a traditional car entirely. Overall, they can be a great way for an individual to maneuver around any city without contributing to overcrowded roads. 

If you are wondering how to eliminate your dependence on your clunky, gas-powered car or truck, the NEV can be a great solution. They are easy on your budget and the environment and offer a bit more safety on busy streets than walking or riding a bike. These mini-electric vehicles are already quite popular throughout the major cities of Asia and Europe and are sure to be a mainstay in American cities in the coming years.