What Are The Different Types Of Incentives To Reduce The Cost Of EV Charging Stations?

What Are The Different Types Of Incentives To Reduce The Cost Of EV Charging Stations?
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Installing an EV charging station is a huge investment. Even though it offers a lucrative sustainability quotient and is a main attraction for tenants, customers, or employees, the cost gets too high that you may have to drop it. What if we tell you that there are several incentives that can indeed help you in your endeavor of installing as well as maintaining the EV station smoothly? Yes, you heard me right! This guide covers all the detailed information on these incentives properly.

3 Types Of Incentives To Reduce EV Charging Station Installation Cost

  1. Local & State Government Incentives

There are many states in the US that offer financial incentives to the owners to regain the EV charging costs. For example, the LADWP (Los Angeles Department of Water and Power) offers a rebate to all customers that invest in Level 2 and DC Fast Charging (DCFC). The commercial customers who invest in the Level 2 charging station will receive up to 5000$ for every unit on the property. The EV charging stations Los Angeles rebate for DCFC is up to 75,000$ for light-duty vehicles and 125,000$ for medium and heavy-duty vehicles.

You can search for these incentives offered by the local and state government of your region and reap the benefits of installing the EV charging station.

  1. Federal Incentives

There are several federal incentives available for interested property owners to invest and install an EV charging station to date. Moreover, the government is adding more incentives every day and upgrading the previous ones to promote the usage of EVs.

For example, under the Alternative Fuel Infrastructure Tax Credit, owners can avail up to 30% tax credit on the cost of installing an EV charging station. However, the tax credit limit should not exceed 30,000$, and the inspection and permit fees are not included in the overall covered expenses. Moreover, in case you are interested in installing the EV charging station at multiple properties or locations, then all these locations will count towards the credit. 

Recently, the 30,000$ limit has been increased to 100,000$. Besides all this, interested people who will invest in residential fueling equipment between the time frame of 1 January 2023 to 31 December 2032 will enjoy a tax credit of up to 1000$.

So, it is always beneficial to research all the federal benefits before you invest in an EV charging station and reduce the cost or enjoy the incentives.

  1. Utility Company Incentives

Several utility companies are offering lucrative incentives to interest people to install EV charging stations in their space. The incentives are more common in metro cities of the US region as they promote the use of electric vehicles among the population. The idea is to offer ease of charging space for the drivers and reduce EV range anxiety among them.

Some Last Words

Although there are a myriad of advantages when you invest in installing EV charging stations in your private space, the entire installation cost makes it a viable option! We hope these incentives come in handy and encourage you to step forward with your decision to make this investment worthwhile.