Rebates can make buying an EV more affordable

There’s no denying the popularity of EVs, and that figures to increase in the years to come. Drivers who have purchased their share of gas-powered vehicles in the past may not know what to expect when shopping for an EV, especially regarding price. According to Kelley Blue Book, the average price of an electric vehicle at the end of 2022 was $61,488. That figure might shock many drivers, especially considering that the average price for all passenger cars at the end of 2022 was below $50,000.

Sticker shock can set in when buyers first dip their toes into the EV market, but it need not compel drivers to resign themselves to gas-powered vehicles. In fact, rebates can make purchasing an EV much more budget-friendly than the sticker price of the average electric vehicle suggests. Incentives like rebates can help to defray the costs of EVs, and KBB notes that many states have incentivized the purchase of EVs through various rebates and tax deductions.

For example, the U.S. Department of Energy notes that the New Jersey Board of Public Utilities’ Charge Up New Jersey program offers point-of-sale rebates to residents of the state who purchase or lease a new lightduty EV. In addition, the NJBOU offers residents a $250 rebate for the purchase of an eligible Level 2 EV charger. The Garden State is not the only place where drivers can access incentives related to driving, purchasing or leasing an EV.

In Arkansas, the Carroll Electric Cooperative allows members to enroll in their Drive Free for a Year Program. That program issues a $30 monthly credit to enrollees’ power bills to cover the cost of charging their EVs. In California, low-income residents can earn as much as $30,000 in rebates from the federal and state government when purchasing an EV. In Florida, the Orlando Utilities Commission offers a $200 rebate for residential customers who purchase or lease a new electric vehicle. These incentives were available as of June 2023, and KBB maintains a stateby-state list of EV incentives and rebates at kbb.com/car-advice/ electric-vehicle-rebates-by-state/.

EV incentives also are available to drivers in Canada. According to the Canadian Automobile Association, the Government of Canada offers point-of-sale incentives of $2,500 to $5,000 for drivers who purchase or lease an EV. Canadian businesses also can benefit from pivoting to EVs. In July 2022, the federal government in Canada launched a $550 million program to help businesses switch to zero-emission vehicles. The Mediumand Heavy-Duty Zero-Emission Vehicles Program provides incentives worth roughly 50 percent of the price difference between an EV and a combustion vehicle. This program can cover up to $200,000 per vehicle and Electic Autonomy Canada notes it is allowed to be combined with provincial and territorial incentives.

The sticker price of EVs may shock drivers. However, the costs associated with purchasing or leasing such vehicles can be defrayed through various programs designed to incentivize drivers to switch from gas-powered cars and trucks to EVs.