The government wants the electric car to be attractive and affordable to every motorist in the long term through a subsidy scheme. It has therefore been agreed in the Climate Agreement to make these cars more attractive to private individuals and to strengthen the development of the used car market. Under this scheme, a subsidy scheme can be granted to private individuals for the purchase or lease of a new or used electric passenger car.

For 2020 and 2021, private individuals will receive, under certain conditions, a subsidy of € 4.000 for a new electric passenger car. For new passenger cars, this amount will be reduced annually to an amount of € 2.550 in 2025. The subsidy for used cars is available in the period from 2020 to 2024 and amounts to € 2.000.

In determining this subsidy amount, the average difference in purchase price between an electric passenger car and a passenger car that runs on fossil fuel was examined. Subsidies in other European countries were also examined and previous experiences with the promotion of electric driving were included. EUR 252 million has been reserved for the scheme (152 for new and 100 for used electric passenger cars). This is the maximum amount that will be available in total in the years until the end of 2025, so no more money can be paid out in subsidies under the scheme.

This subsidy applies to electric passenger cars with a catalog value of € 12.000 to € 45.000 and a range of at least 120 km. No subsidy can be requested outside this bandwidth. It is an explicit commitment to stimulate the middle segment for private individuals with this scheme in accordance with the agreements in the Climate Agreement. To prevent the subsidy for passenger cars with a very low purchase price from being subsidized for a substantial part of the purchase price, the lower limit of € 12.000 determined.

Also read: Climate expert asks to stop government support

Mini Hatch Electric
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