Germany Approves Incentives For EVs, Plans For A Million On The Road By 2020

MAY 19 2016 BY MARK KANE 17

Past The Rather Suspect 3,839 Kia Soul EV Registrations In Germany, The BMW i3 Finished "Second" With 2,271 Sales

BMW i3

An incentive package for plug-in electric cars in Germany was approved on Wednesday by the government.

Whether it will be enough to achieve 1 million EVs by 2020 (from over 50,000 today) remains a question. Over €1 billion is planned for incentives, but that amount will not even last for 500,000 cars.

So most likely the program will need to “double up” at some point if it is received at a pace congruent to German plans.

Consumers in Germany can count on:

  • subsidy of €4,000 for all-electric cars and €3,000 for plug-in hybrids
  • exemption from paying vehicle tax for ten years (previously five years)
  • reduced tax rate of 25 percent on electricity for charging electric cars at work by employees

Funds for the project will be equally shared by government and the car industry.

€300 million will also be spent on the charging infrastructure (mostly DC fast chargers).

Nissan already saw growing interest in EVs, so we expect a huge jump in EV sales – Germany could even become largest European market by volume of sales.  Because the program only kicks off now in late May, first results on the ground will likely not be seen until June’s sales are known.

In order to hit 1 million EVs on the road by the end of 2020, just over 17,000 plug-ins would have to be sold per month in Germany, or roughly 7x over the recent monthly results.

Source: Automotive News

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17 Comments on "Germany Approves Incentives For EVs, Plans For A Million On The Road By 2020"

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Congrats Germany! You have made a wise decision to reduce your dependence on Russian oil!

Its got nothing to do with oil dependence – oil is cheap. It’s related to carbon emissions and clean air.

You mean that sponsoring Putin imperialistic dreams (and army/navy/air bugdets), is a good thing?

In USA You at least buy oil from people who hate Your guts who live thousands of km oversea.

Russia is right there next to Germany in comparison. Nice wide land connection.

Denying Russia/Putin petro-dolars must be quite important goal of German politics.

Why can’t it be both?

So incentives for ~350k plug-ins?

Should be the same million that Obama wanted by 2015. Oops!

I’m not sure about all the details, but the €300 million might be better spent on business tax credits for at work charging with smart-grid type stations that charge mostly between 10am-2pm (solar time). If everyone who drove to work could be guaranteed a full 4 hrs of charging (every parking space so no vehicle movement needed), there would be very little need for fast DCQC stations. This could effectively double the EV range from ~100 to ~200 mi with a relatively small battery (~36 KWh). Maybe use patterns are different in Germany, but in the US it seems like commuting more than 60 mi RT is difficult with a 20-24 KWh battery EV, unless guaranteed workplace charging is available.

Actually that is part of the package… just it is missing in the headlines. Starting 2017 till end of 2020 no income tax for workplace charging. Biggest advantage is the employer doesn’t have to account for every single kWh going into your car. Also if your employer lends you equipment for charging at home it is not taxed.

€300 million on the charging infrastructure will probably make a huge difference

Seriously, that is a really big number, more than enough to do what Tesla has done on their own dime in Germany but with standard connectors that any vehicle can access.

…standard connectors… not supported by car makers, hard to find and with sluggish charging…

Fastned manages to install 2 DCFC chargers (ABB Terra 53 CJG) with their yellow solar panel canopy and all the groundwork for 200k euro a piece.

That would make for 1500 DCFC chargers, so atleast a 1000-1200 seems like a reasonable number.

Germans finally joining the party ?

German battery maker BMZ is planning a battery assembly factory in Germany that will be Europe’s largest. At present BMZ just assembles battery packs from existing standard cells mostly for household appliances and power tools, electric yard tools, etc. The company has 1100 employees in Germany, Poland China. Citing the need for Europe to become more self sufficient in batteries, BMZ spokesman Bauer says:

“It is most important to build up our own production of lithium-ion cells in Germany. That is the only way to reduce the dependency risks on the few, mainly Asiatic cell producers in the long run,” continued Bauer.

Bauer says BMZ intends to launch a new cell, with a prototype available at the end of this year, that delivers up to 60% more capacity than the current industry standard 18650, along with significant improvements in durability, performance, energy and charging current.”

BMZ currently uses LiFePO4 chemistry for Lithium batteries, but they also make battery packs to order using NiCAD and NiMH chemistries.

Hope their utilities install charging stations every 50 km and also in every apartment building. This will help the EVs get charged.

If Germany gets 500,000 cars by 2020 then it will save on the fuel that these cars will burn, thus there will be enough money to “double up” on the incentives program.

Money savings will be for individuals, and not for government.

Even when factoring circulation in economy of that moneys, as gas is more heavily taxed then other goods.

So government budged will be worse for it 😉