Ontario Announces Rebates of Up to C$10,000 for Plug-in Electric Drive Vehicles
15 July 2009
The government of Ontario (Canada) is targeting a vehicle parc with one out of every 20 vehicles (5%) having electric drive by the year 2020 (“1 in 20 by 2020”).
Ontario (Canada) Premier Dalton McGuinty announced several measures in support of that goal, including rebates of between C$4,000 and C$10,000 (US$3,575 to US$8,938) for plug-in hybrid and battery electric vehicles purchased after 1 July 2010, based on the vehicle’s battery capacity. The high-end of the rebate would be the highest in Canada and amongst the highest in the world.
| “Electric vehicles are the way to go in Ontario. This plan helps get more people behind the wheel of a green vehicle to create jobs, reduce smog and equip Ontario for the 21st century.” —Dalton McGuinty Premier of Ontario. |
The government will also provide Green Vehicle Licence Plates for plug-in vehicles. The green plate will enable drivers to use Ontario’s High-Occupancy Vehicle (HOV) lanes for a limited time (5 years starting 2010), even if there is just one person in the vehicle. Vehicles with green plates will also be allowed access to public recharging facilities at select Ontario government and GO Transit parking lots. The University of Toronto and private companies such as Walmart Canada will designate priority parking spots for vehicles with green plates.
The provincial government will also integration electric vehicles into the Ontario Public Service (OPS) vehicle fleet. Twenty per cent of eligible new Ontario Public Sector passenger vehicle purchases will be electric by 2020.
Ontario intends to build infrastructure for charging electric vehicles through a combination of private sector companies and Ontario’s existing electricity utilities. The government will ensure recharging capacity is integrated in parking facilities owned by the Ontario government and GO Transit parking facilities for public to use. Ontario is also working with the private sector and electricity organizations to develop business models for recharging facilities that will work within Ontario’s regulated electricity market.
In January, Better Place entered a partnership with the government of Ontario to help bring an electric car network to the province and create a model for the adoption of electric cars in Canada. (Earlier post.)
States in the U.S. would do this, but they are so broke from the CDO/CDS reckless mess recession that they can not.
Posted by: SJC | 15 July 2009 at 08:55 AM
$10000 canadian is not very many euros.
Posted by: Bryan | 15 July 2009 at 10:05 AM
Bryan:
As of today, $10 000 CAN is equivalent to 6326.93 Euro or 8 944.94 USD. It is not peanuts. Ontario should be praised.
It is one of the most generous incentive in existance.
If all provinces, states and countries would do the same, family type (not race e-cars) HEVs, PHEVs and BEVs may sell much better and could certainly help the world to pull out of the current recession.
Revenues to cover this type of incentives could be from:
1) progressive liquid fuel tax (2 to 5 cents per month per liter would do. A limit could be set, i.e. something like $1 USD/L or so after 20 to 50 months.
2) with millions going back to work worldwise, government revenues would go up and expenditures to support the unemployed would go down.
A similar program (up to $10 000 per home) for energy used on domestic and commercial HVAC could also give excellent results.
Posted by: HarveyD | 16 July 2009 at 11:40 AM
It seems like public expenditures to put a country in a better position makes sense on the merits. It benefits everyone to have cleaner air and less dependence on oil imports and fossil fuels.
Posted by: SJC | 16 July 2009 at 03:53 PM
I hope they have something to grandfather in existing PHEV owners in ontario - such as myself. Including all the green stuff .. I have been waiting to be able to charge in Toronto for a year and a half now ..
Posted by: jerktaculus | 16 July 2009 at 10:07 PM
I'm not really a fan of subsidies. It doesn't really accomplish a market-friendly solution. I think that PHEVs are great, and I think we're seeing an explosion in investment of battery technology... however, remember what happened with irrational exhuberance for ethanol? You have to allow these technologies to mature so the average consumer will adopt them, otherwise you risk making them a punchline.
Posted by: Bryan | 19 July 2009 at 05:23 PM
Bryan:
Direct and/or indirect incentives are often required to preserve equilibrium and accellerate essential changes, such as: to reduce air pollution growing rate, to reduce fresh water usage and mismanagement, to reduce fossil fuel usage and imports, to reduce the number of over-sized polluting monsters on the streets, the protect our health and intelligence (children living in highly polluted areas have lower IQ and lower health condition etc), to create local jobs specially during recessions, to correct life threatning conditions (and other debacles) created by free enterprises etc etc.
Unchecked free markets and free enterprises can easily (regularly?) turn to calamities such as 1929 (and 2008/2009) style long lasting depressions and Ponti style endeavours.
A balanced approach is essential to stop the strongers from crushing the weakers.
Posted by: HarveyD | 20 July 2009 at 09:21 AM
I don't think the United States currently operates under a free market system. Our current system favors large corporations which gives a disproportionate amount of control to a small group of people. We have banks so large that their mere existence is a matter of national security; yet there have been dozens of small banks allowed to fail.
Aaaanyhoo.. I am really excited to see what sorts of PHEVs come out in the next few years. I think that creative financing/leasing otpions may make the cost of ownership reasonable enough to directly compete with traditional powertrain cars. The jury is still out on the viability of the Volt, but I think car makers are on the right track.
Posted by: Bryan | 21 July 2009 at 12:21 PM
Additionally, you should pick up a copy of 'The Road to Serfdom' by F.A. Hayek. The 'balanced approach' is good for no one. The government can not distribute wealth that has yet to be created.
Posted by: Bryan | 21 July 2009 at 12:22 PM
The "yet to be created" part is value added innovation. If we can not form capital investment because we are so broke from the CDS mess, then we are stuck with low growth and high inflation....stagflation.
Posted by: SJC | 29 July 2009 at 10:28 AM