Electric vehicle rebate among staff proposals to speed up Toronto’s target to become a carbon neutral city by 2035
This year, a team led by former Toronto city council member, Councillor Kristyn Wong-Tam, is proposing a new incentive to encourage electric vehicle ownership and support alternative fuel vehicle adoption. The proposal would provide each household in Toronto with up to $7,000 in rebates per year towards a clean energy rebate. The total rebate amount would range from $20,000 to $40,000 and would be available for electric vehicles that fall under the same size and capacity as that used for electric cars.
The proposal includes the following:
The cost of electricity per kilowatt-hour would be reduced by up to 30 per cent, relative to the current price for residential electric vehicles;
The cost of gasoline for residential vehicles would be reduced by up to 45 per cent relative to the current price and;
There would be a $5,000 rebate for electric vehicles that are 25 kW or less. Residential electric vehicle rebates for 25 kW or less electric cars will be capped at $2,500 each. The maximum cap on the rebate is $5,000;
Eligible electric vehicle rebates will be tied to a home’s existing credit and up to $7,000 in rebates may be applied to eligible EVs;
The rebate will be funded by the energy sector through the Ontario Climate Change Leadership Plan; and
The maximum rebate value will be available to Toronto households as soon as 2021 and until the end of 2035. After 2035, a full list of eligible vehicles and applications will be available from the City of Toronto website.
In addition to the rebate, Toronto is also looking at ways to use the money to encourage the adoption of alternative fuel vehicles. The rebate amounts have not yet been made public but a spokesperson for the Mayor’s Office told GoLocal that the $7,000 cap was chosen from a range of $2,500 to $15,000 to encourage a range of use cases. The spokesperson did not indicate that the maximum rebate would be available after 2035.
More details on Toronto’s proposed rebate program can be found here.
Toronto is facing a number of important climate targets for greenhouse gas emissions reduction. The City is currently in the process of developing the required data to inform