How Does The German Government Support EV Adoption?

Boosting EV adoption in the world has become a real trend, especially in Europe. Let’s take a closer look at the German government and its contribution to it.

As indicated in the 2030 Climate Action Programme, the Government in Germany strives to enlarge the number of EVs to 10 million and charging stations to 1 million on German roads by 2030. Encouraging individual EV drivers & companies with incentives is a powerful tool to achieve this goal.

Furthermore, in 2020 there was €130 billion funding into EVs market infrastructure development (after Covid-19).

That’s why the citizens of Germany have the ability to buy electric cars or EV chargers with a big benefit. Below are the main incentives available in Germany.

EV Charging Incentives in Germany

Most people are hesitant to buy an EV because of the poor charging infrastructure. The survey showed that about 40% of German drivers won’t buy e-car under any circumstances. The main reasons for their reluctance are:

• Low range
• Weak charging station infrastructure
• High prices for EVs

That is why encouraging businesses to install chargers on their premises is a #1 priority for the German government.

Here are some of the benefits the government offers:

Benefit #1. For SMEs, the government has put in place a new 300 million euro incentive program. Applications will be open from 12 April 2021–31 December 2021.

The subsidy covers up to 80% of the total costs for purchase and installation:

• Up to €4,000 per AC/DC charger of 3,7 to 22 kW.
• Up to €16,000 per DC fast chargers of 22 to 50 kW.
• Up to €10,000 for low voltage and up to €100,000 for medium voltage grid connections.

Benefit #2. German state-owned development bank KfW-Bank offered the subsidy too:

• €900 incentive per charging point for the purchase and installation of an EV charger

Benefit #3. Some energy companies haven’t remained on the sidelines:

• N‑ERGIE: €250 incentive for purchasing and installing a wallbox charger in Nürnberg and switching to the firm eco-energy tariff
• Stadtwerke Marburg: €4200 incentive for purchasing and installing a wallbox charger;
• Mainzer Stadtwerke: €400 incentive for purchasing and installing a wallbox charger in Mainz and switching to the firm eco-energy tariff

Benefit #4. Also, there are some interesting tax benefits for companies:

• Employers offering free charging of electric vehicles or bicycles will not be taxed for this service until 2030.
• Private and company car owners of plug-in electric vehicles that charge their cars on their employer premises are exempt from declaring this as a cash benefit in their income tax return.

EV Incentives in Germany

The government also took care of those who are on their way to purchasing a fully electric or plug-in hybrid vehicle. That’s why the list of the incentives is really wide and almost everybody can find something suitable for them.

Incentive #1. Now, those who purchase an EV can apply for a premium:

• For vehicles priced up to €40,000: Fully-electric — €9,000, and plug-in hybrid — €6,750
• For vehicles priced up to €65,000: Fully-electric — €7,500, and plug-in hybrid — €5,625

Incentive #2. Local incentives of up to €1,500 for the purchase of EVs, depending on state and city residents.

Incentive #3. As for the tax benefits and charge discounts:

• Kfz Steuer: fully-electric vehicles registered between 2011 and 2030 have a 10-year exemption from motor-vehicle tax (can save about €194 in ownership tax per car and year).
• Company car tax: private usage of a fully-electric company car with a list price below €60,000, is taxed at only 0.25% of the list price per month.

Incentive #4. Additionally, there are local perks for EV drivers( however, they can vary depending on the city):

• Free parking
• Reserved parking spots
• Bus lane use

To Sum Up

Germany is developing quite quickly and seems like EV adoption will really bloom in the country till 2030.

Thanks to all the incentives it increases the involvement and motivation of residents to buy an EV and install EV chargers. All of these perks give a bit of hope that more and more people will opt for EVs.

Moreover, I’m sure this article describes just a small part of the existing benefits for EV charging owners.

The information in the article is relevant as of November 2021