Have you heard that the electric vehicle (EV) revolution is coming? Consumers now view electric cars such as Tesla as the new status symbol. The Biden administration is planning to replace the entire US government fleet of cars with electric vehicles. In California, Governor Newsom is planning to ban sales of gasoline vehicles by 2035.
As a result, there are fantastic incentives for Southern California Edison customers who want to purchase an electric vehicle or go solar. Let’s check out each of the incentives in SCE territory and in the state as a whole. When you combine both local and state incentives – you’ll start to realize how much of a financial no-brainer purchasing an electric vehicle can be.
There are a total of five incentives that you can utilize if you purchase an electric vehicle, a solar system, or both.
Let’s check them out:
1. California Clean Vehicle Rebate Project (CVRP)
What is the CVRP?
In a nutshell, the California Clean Vehicle Rebate Project offers rebates to California residents who purchase electric vehicles. It’s impressive: California residents can get up to $7,000 for purchasing or leasing a new, eligible zero-emission or plug-in hybrid light-duty vehicle.
The California Clean Vehicle Rebate Project is administered by the Centers for Sustainable Energy for the California Air Resources Board, which is part of the California Environmental Protection Agency (CalEPA). CalEPA is similar to the federal EPA, and it exists to protect the environment by reducing air pollution while also considering the economy.
Who is eligible for the CVRP?
The eligibility requirements for CVRP are:
- Be a California resident or California business
- Meet income eligibility requirements
- Submit an application before available rebate funds are depleted, and within 3 months of purchasing or leasing the vehicle.
CVRP Eligible Vehicles
You can check out the CVRP website for a full list of eligible vehicles. There are many different types of clean vehicles that are eligible, including hydrogen fuel-cell, battery electric, plug-in hybrid EV’s, and zero-emission motorcycles.
That’s right – there are a multitude of electric motorcycles on the list – it’s impressive that they offer incentives for every type of driver. CVRP funds aren’t going to be around forever, and there is already a high demand. It’s a good idea to apply sooner than later.
CVRP Rebate Amounts
CVRP rebates vary based on the type of vehicle you purchase. Fuel-cell vehicles can currently receive a $4,500 rebate whereas battery electric vehicles are eligible for a $2,000 rebate. Hybrid vehicles can receive $1,000, and zero-emission motorcycles can also receive $750.
There are also increased rebates for applicants that are financially eligible. Based on your situation, it’s worth looking into on the CVRP website.
2. California Clean Fuel Reward in SCE Territory
What is the California Clean Fuel Reward?
The California Clean Fuel Reward is available to SCE customers. It is a rebate made available to California residents who purchase or lease eligible new Battery Electric (BEV) or Plug-in Hybrid (PHEV) vehicles at participating automotive retailers.
There are two SCE rebates available:
Pre-Owned EV Rebate: This is a $1,000 rebate for California residents who have recently purchased or leased a pre-owned electric vehicle.
New EV Instant Rebate: This is the California Clean Fuel Reward, a point-of-sale incentive worth up to $1,500 on new EV purchases.
Check out the SCE website for details on both programs and to view participating manufacturers and dealerships.
Is there a catch?
Only a few details: battery capacity must be greater than 5kWh in order to qualify, and rewards are granted on a sliding scale with the largest batteries getting the $1,500 reward.
Which Vehicles Qualify?
In order to qualify for the incentive, you must purchase or lease an eligible vehicle from a participating dealer in a participating utility such as SCE.
Do I Qualify in My County?
SCE is a participating utility, and there are dozens of participating dealers across the various counties in the territory. We have seen participating dealers in:
-Los Angeles County
-San Bernardino County
3.Clean Vehicle Assistance Program
The Clean Vehicle Assistance Program is a program paid for by California Climate Investments, a CA clean energy initiative that invests billions of dollars to reduce emissions.
In short, the CVAP offers grants and affordable financing to assist qualified California residents to buy or lease used or new hybrid or electric vehicles. This program is about making electric vehicles more accessible to lower income Californians.
4. EV Federal Tax Credit
Now, we’ve already listed quite a few substantial EV incentives in California. But wait, there really is more: the Federal Tax Credit. The credit is currently $7,500 per vehicle, and that is reduced once as automakers sell more than 200,000 vehicles in the US.
As a result, Tax Credits are available based on the popularity of the model and manufacturer. As you would expect, Tesla’s tax credits ran out in late 2019. Subsequently, GM’s EV tax credits also ran out in March 2020.
But don’t let that dissuade you. There are a plethora of other manufacturers who still have the full $7,500 credit available. Many such as Audi, Chrysler, Ford, Hyundai, and Honda are producing state-of-the-art EVs.
The full list of available credits can be found here.
Congress is pushing green initiatives that would bring back Tax Credits for manufacturers whose credits have already been exhausted. The GREEN Act is being reintroduced and would replenish Tax Credits for those manufacturers whose credits have already been exhausted.
If legislation proceeds, the maximum credit would be $7,000 instead of $7,500. Furthermore, the credit cap would be increased to 600,000 sold vehicles and plug-in hybrids would also qualify for credit under the Act. Regardless, there are a plethora of high-quality electric vehicles that still qualify under the scheme.
5. Clean Air Vehicle Decals
This is a small but fun bonus incentive: if you drive an eligible clean air vehicle you might be able to get a DMV decal that gives you single-driver access to California state HOV lanes.
If you’ve ever been stuck in California traffic, this is a beautiful bonus to look forward to. It almost sounds like a cheat code or a California life hack. Visit the DMV website to learn more.
Combine to Get Huge Savings
As we can see, there are a surprising amount of incentives available. There is potential for a ton of savings when purchasing Electric Vehicles in SCE territory.
Let’s check out the maximum (potential) savings for an electric vehicle buyer:
That equals = $16,000 in total savings.
That’s a shocking number! It’s $16,000 in potential rebates and incentives towards your EV purchase. Imagine how much money on fuel you could save on top of this.
It’s money on the table that is there to be taken. Whether you’re fiscally or environmentally minded, a deal is a deal.
Now, there’s one more piece of the puzzle that you should consider. If you choose to purchase a solar system in addition to your EV: there are separate incentives that you can take advantage of. Plus, you can charge your EV with your solar system and save even more money.
Purchasing Solar in SCE Territory
Here is a solid financial tip for 2021: if you’re purchasing an electric vehicle: you should also invest in a solar system if you have the option. Purchasing an EV means serious potential incentives, rebates, and grants. If you add solar and pair it with your electric vehicle, you can run your entire life on sunshine.
This is a long-term and short-term financial move.
You’re saving on incentives in the short-term, and you’re virtually eliminating SCE electric rates that are consistently projected to rise in the future.
Oh, and what type of incentives are available for solar? To start with, the Federal Solar Tax Credit for solar installation. This is currently a 26% tax credit: a hefty amount of taxes that you can save if you install solar by the end of next year.
Let’s calculate an example:
You purchase a $20,000 solar installation and receive 26% credit, which equals $5,200 that you save on taxes for this year.
What’s great is that the Tax Credit is available to anyone who purchases a solar system via cash or a loan. You can also roll your tax credit over to next year if you owe less than the amount of your tax credit.
All in all, if you live in Southern California Edison territory and are thinking about purchasing an Electric Vehicle or solar system – now is the time to do it. You’re looking at a vast plethora of incentives and rebates on a state and federal level that won’t last forever.
Remember, this is a short-term and long-term investment. Save now on the incentives and save long-term on your electricity and gasoline costs. If you’re considering an EV or solar system, remember that Stellar Solar installs both electric car chargers and solar panels.