By Kirk Mathieson
iZEV Program to continue
The Incentives for Zero Emission Vehicles (iZEV) Program was paused in January when payouts surpassed the funding limit earlier than anticipated, but at a recent press conference on auto tariffs, Minister of Industry Mélanie Joly told reporters that the program is being re- instated. This is good news for consumers who want to make a difference by investing in an EV but find the higher initial purchase price difficult to juggle with the rest of their budget.
The program currently offers a $2500 rebate for short-range hybrid vehicles (under 50km) and $5000 for longer range vehicles (50km and over). The rebate can be combined with any provincial incentive program; for example, Manitoba and PEI both offer additional rebates of up to $4000 on BEV purchases. With the price of EVs in Canada starting at around $40k, this represents a significant saving.
The iZEV program is part of a broader strategy to reduce overall carbon footprint. In 2022, the federal government set an ambitious target for Canada’s roadways: By 2035, 100% of new passenger vehicles sold in Canada must be zero-emission, with a goal of 60% by 2030.
“Switching to an electric vehicle is one of the most impactful things Canadians can do to help fight climate change,” says Steven Guilbeault, Minister of Environment and Climate Change.
“Our government will continue supporting the full supply chain of electric vehicles in Canada so that we can reduce our dependence on fossil fuels.”
One concern about the iZEV program interruption was the impact on electric vehicle sales. In a recent survey published by J.D. Power, 42% of new vehicle shoppers who were likely to consider an EV say it had a negative effect on their decision, while 28% said the pause was more or less neutral in terms of the effect on their decision. Moreover, a majority (75%) of new vehicle shoppers say they are “not at all confident” or “not very confident” that the government’s sales targets will be achieved.
The slight dip in enthusiasm may be only a temporary lapse within the larger trend towards sustainable mobility in Canada. The likely return of the incentives program this year is itself an indication that more consumers are planning to make the switch to electric; this points to a potentially high demand for EVs that will likely peak in the near future.
EV/VE Conference to take place in Vancouver this October
Electric Mobility Canada, an organization dedicated to enabling and accelerating sustainable mobility throughout the country, will be hosting the EV/VE conference from October 1-3 with the goal of sharing insights and strategies to ensure the success of Canada’s transition to electric transportation. The event will feature speakers from a broad range of industries, including government, engineering, transportation and environmental groups.
One focus of the event will be Canada’s EV charging network. Building and sustaining charging infrastructure in a country this large has been a challenge, but one that has paid off: as of 2024 there are more than 11,000 charging stations from coast to coast, an increase of over 25% from the previous year. Several sessions will focus on reliability and accessibility, urban vs rural charging station design, and energy management.
The event will also feature exhibits by industry partners and advocacy organizations. The list of sponsors includes BC Hydro, Hitachi Energy Canada, and the National Research Council.
Program details and registration info can be found at https://evve.emc-mec.ca/
Gearing up for long-term savings
EVs are currently more expensive than gas powered vehicles, but savings in fuel and maintenance costs over time can mitigate the higher price tag. Charging an EV is less expensive than pumping gas into a traditional car or truck – some estimates put the cost at less than half in a given month – although the numbers can vary depending on the vehicle model and the prices of fuel and electricity in the province or city where it’s being driven.
Lower maintenance costs are another advantage enjoyed by EV owners. A Consumer Reports survey from 2019/20 found that the lifetime maintenance cost for an EV is less than half that of an ICE (internal combustion engine) vehicle – $4,600 versus $9,200. This is primarily because an EV engine has fewer moving parts and does not require oil or transmission fluids.
The survey concluded that “Lifetime ownership costs for all nine of the most popular EVs on the market under $50,000 are many thousands of dollars cheaper than the best-selling and top-rated ICE vehicles in their class, with typical savings ranging between $6,000 and $10,000.” Although these are US figures, Canadian EV owners can expect similar value from their investment.
Read the complete report at https://advocacy.consumerreports.org/wp-content/uploads/2020/10/EV-Ownership-Cost-Final-Report-1.pdf