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December 29, 2023

Electric Mobility in Germany: EV Subsidies 2024

Electric Mobility in Germany: EV Subsidies 2024

Since their introduction in 2016, the subsidies for electric vehicles in Germany have evolved significantly. The aim is to promote the sales of EVs while simultaneously supporting climate protection efforts. Important changes will come into effect in the year 2024, which potential buyers of electric vehicles should take into consideration.

Detailed EV Subsidy Information for 2024

With the onset of the year 2024, the structure of the subsidies for electric vehicles in Germany will change. These adjustments are part of the efforts to further promote electromobility while ensuring the efficient use of subsidy funds.

  1. Reduced Federal Contribution for New EVs: For newly acquired electric vehicles with a net list price up to 45,000 euros, the federal contribution will be reduced to 3,000 euros. This is an adjustment compared to the higher subsidy rates of previous years.
  2. Manufacturer Contribution: The manufacturer's share remains at half of the federal contribution. This means that for a new electric vehicle with a net list price of up to 45,000 euros, the manufacturer's share is 1,500 euros.
  3. Subsidy for Used Vehicles: Young used EVs will continue to be subsidized. The maximum subsidy here is 3,600 euros, provided that the vehicle was first registered in an EU state less than one year ago and has driven no more than 15,000 kilometers.
  4. Leasing Vehicles: The same subsidy structure applies to the leasing of new and young used EVs. The amount of subsidy depends on the duration of the lease contract. A full subsidy is granted for lease agreements with a minimum duration of 24 months.
  5. No Subsidy for More Expensive Models: It is important to note that from 2024, EVs with a net list price over 45,000 euros will no longer receive subsidies. This is a significant change compared to the previous regulation, which included vehicles up to a net list price of 65,000 euros.
  6. Time Limitation of the Subsidy: The subsidy is time-limited. To receive the environmental bonus, it is crucial that the subsidy application is submitted within one year of the vehicle's registration.

Eligibility and Application Process

  • Since September 1, 2023, only private individuals can apply for the environmental bonus. Commercial purchases, leasing, or employee leasing are excluded. The applicant must have either purchased or leased the vehicle and be registered as the owner in the documents.
  • For information on the environmental bonus and to apply for the subsidy for electric vehicles, the Federal Office of Economics and Export Control (BAFA) is the responsible authority. The application is made via the BAFA website, where a fully digital process is available. Note that the application can only be made after the purchase and registration of the vehicle.
  • The processing time for applications at BAFA is now quite swift. Typically, the process from the submission of the application to the approval and subsequent disbursement of the subsidy amount takes between four and eight weeks. Applicants have the option to track the status of their applications online. For this, the specific transaction number of the application and the postal code are required.

Combining with Other Subsidy Programs

The environmental bonus can be combined with various other subsidy programs, although most of these programs are aimed at companies and municipalities.

Here are all possible combinations:

  • Immediate Action Program for Clean Air – BMWK
  • Fleet Replacement Program Social and Mobile – BMUV
  • Subsidy Directive for Electromobility – BMDV
  • Subsidy Directive for Market Ramp-up NIP2 – BMDV
  • Climate Protection Initiative for SMEs – KfW
  • Investment Credit for Sustainable Mobility for Municipalities and Companies – KfW
  • Business-related Electromobility (WELMO) – State of Berlin
  • Inclusion Taxi Funding Program Berlin – State of Berlin
  • Climate Protection Subsidy Directive for Companies – State of Mecklenburg-Western Pomerania
  • BW-e-Solar Voucher – State of Baden-Württemberg
  • Greenhouse Gas Reduction Quota (THG premium)
  • Taxi Charging Concept for Electric Taxis in Public Spaces (TALAKO) – City of Cologne

Conclusion

The support for electric vehicles in Germany continues to be a crucial part of the mobility transition in 2024. However, the adjustments in subsidy rates and the restriction to private individuals require careful planning by potential buyers. Given the ongoing support for EVs, electromobility remains an attractive and sustainable mobility concept.

FAQs

1. Who is eligible for the environmental bonus from 2024?

From 2024, only private individuals can apply for the environmental bonus for purchasing or leasing electric vehicles. Commercial purchases and leasing are excluded from this subsidy.

2. What is the subsidy amount for new electric vehicles in 2024?

For new electric vehicles with a net list price of up to 45,000 euros, the federal subsidy is 3,000 euros. The manufacturer's share is 1,500 euros, making the total subsidy up to 4,500 euros.

3. Is there a subsidy for used electric vehicles?

Yes, young used electric vehicles that are less than a year old and have driven less than 15,000 kilometers can receive a subsidy of up to 3,600 euros.

4. How can I apply for the environmental bonus?

You can apply for the environmental bonus via the website of the Federal Office of Economics and Export Control (BAFA). The application can only be submitted after the purchase and registration of the vehicle.

5. Can the environmental bonus be combined with other subsidy programs?

Yes, the environmental bonus can be combined with various other subsidy programs. These include the Immediate Action Program for Clean Air, fleet exchange programs, and regional subsidy initiatives.

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