€1.2 Billion For German EVs, Hybrids, & Chargers

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€1.2 billion in funding will be put towards electric mobility in Germany, with half coming from the federal government and half from the auto industry, according to a recent decision from Germany’s political leaders.

Tesla-Model-S-11Buyers of EVs will receive €4,000 and plug-in hybrids €3,000. There is a cap on the cost of EVs, though, which is €60,000. So, it seems this stipulation might have been designed to eliminate Tesla EVs, which currently cost more than that. Perhaps it makes sense that, if €600 million in funding is coming from the German auto industry, it would want the incentives to be for its own vehicles and not for the Tesla Model S or Model X. Notably, though, the Model 3 might be eligible, if it is launched during the period when the incentives are available.

€200 million will be for growing the fast-charging network, with €100 million for normal chargers. €100 million will also be for adding more EVs to the German federal government’s fleet, with a goal of 20% EVs (presumably, by 2020).

It is great news that Germany is expanding its charging network, because doing so obviously allows more EV drivers to have better access to electricity when they need it. Range anxiety becomes less of an issue if consumers know there are charging stations all over the place. The funding also demonstrates the country’s commitment to a greener society, which has been considerable for some time.

Germany is well known as a leader in solar and wind power, and might have been content to remain so, but it appears that is not the case. With investments like these, and with growing energy storage capacity, it seems to be embracing a full complement of cleantech opportunities.

One million EVs on the roads by 2020 is a national goal there, but the current total is nowhere near that. Angela Merkel has said government support will be needed in order for there to be a chance of reaching it. Wisely, this latest round of funding doesn’t only focus on the vehicles. Seeing new charging stations of various speeds sprout up in many areas might have some kind of persuasiveness attached to it. One detail that seems to be missing is whether or not the electricity from some of these stations will come at a lower cost or for free.

Image by Zachary Shahan | EV Obsession | CleanTechnica (CC BY-SA 4.0)

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Jake Richardson

Hello, I have been writing online for some time, and enjoy the outdoors. If you like, you can follow me on Twitter: https://twitter.com/JakeRsol

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16 thoughts on “€1.2 Billion For German EVs, Hybrids, & Chargers

  • That’s tax money. Tax money should not go to people buying private cars. Much less to luxury car buyers. It also excludes Hybrid Porsches and Mercedes which are more common than Teslas.
    It would help more to use the money to buy electric busses….you know public transport that moves millions of people.

    The money would also be better used in battery research.
    People don’t buy EVs because they are too expensive.

    • I agree with you but car manufacturers have been burning tax money *for years* on alternate vehicle research which was all complete BS.

      I’d love to know how much government money they burn’t through on fuel cell research. It was just a way of maintaining the status quo while being paid tax payer money to do so.

      At least you will get a public charging infrastructure, which will hasten the switch to EVs which will give the public cleaner air and cities. Which if you’re going to spend public money then that’s exactly the sort of thing it should be spent on as it’s for the public good.

      • … and more people buying/driving EVs, which will have numerous positive effects on the supply and demand side.

    • You mean like that money that went to Mercedes for their cell production which they closed a few years later? Yeah that made sense…
      Car manufacturers need demand to ramp up production und make EVs cheaper. Incentives may not be the best method (carbon tax is better), but it will work.

      • I mean like 200m/a to Fraunhofer, 100€ cheaper puplic transport passes. I am fine with the charging infrastructure.

        It’s a stupid idea just like the Abwrackprämie..

        Gehen die 600m von der Industrie eigentlich in einen Fond oder werden die als Rabatt auf Neuwagen gegeben?

    • Its a fine use of tax money if it serves to jumpstart something worthwhile, which might otherwise have a problem reaching critical takeoff mass. So many of our most important modern technologies only came to be because of a long government funded incubation period. Electronics and computing, Solar power, Wind Turbines, Internet… Its just not the case that private financing will ever have a long enough planning horizon to push these sorts of advances through.

      • 4000 Hybrids is not a fine use of tax money. It’s just 4000 new cars on the road. Nice for the German Industry though.

    • The German car industry employs 600.000 people I think.. no wonder they subsidize their bread & butter biz.

    • “That’s tax money. Tax money should not go to people buying private cars…People don’t buy EVs because they are too expensive.”

      That may have been the government’s thinking as well. Do something to prime the pump now – then reap the benefits later, to make the whole effort of compromises worth it in due time.

  • Doesn’t matter if it was designed to eliminate Tesla or not, it still makes sense. Someone who can afford a +60k€ car doesn’t need incentives.

    • If it creates a market niche which gets Benz and Beemer off their Butts to produce a luxury EV that people want to buy, it’s fine. Tesla can’t keep up with demand from the rest of the world.

  • The very successful programs in Norway and the Netherlands included a range of benefits, both financial and ‘convenience’. The proposed German program is unfortunately quite meager by comparison. It is nonetheless possible that it will get enough cars and chargers on the road for the next stage of adoption. I certainly don’t agree with the mindset that tax dollars aren’t allowed. Lower electricity rates would be a big psychological plus, but I see it as politically extremely difficult to find an implementation which not be perceived as grossly unfair by a considerable number of people. I hope that there is nonetheless an attempt to try something.

  • Oh this one will be a cracker to watch and unfold with the current opinions at the ‘Stammtischen’ being that BEVs won’t work (just read some comments on the internet at any German news website that has public comments).
    Wonder how they are going to win the ‘Michel’ over on that one – or better how they are going to re-train him to not expect and embrace FCEVs but BEVs now, after he’s been told the opposite for the last 15 years.

    • Fortunately, getting started doesn’t require 50% acceptance. The Stammtisch crew is indeed rather conformist but we can leave them sitting there for now. I just hope that the auto manufacturers are in for real this time, and behave accordingly. Not yet fully clear.

  • “Seeing new charging stations of various speeds sprout up in many areas might have some kind of persuasiveness attached to it.”

    Perhaps so. At least one OEM, Tesla, has said at least some portion of its chargers fall under its marketing budget.

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