Electric Vehicles (EVs) and Hybrids
Driving an electric car results in the largest financial savings and carbon footprint reduction even when charged from the grid. It is even better when combined with a solar system which is 90% cleaner than our PA electricity grid. Image source: afdc.energy.gov
Plug-in Hybrid
Federal Tax Credit: up to $7,500 for new vehicles, up to $4,000 for used vehicles (conditions apply)
PA State Rebate: $1,500 on new and used vehicles (income limits apply)
Plug-in hybrids, sometimes called Plug-in Hybrid-Electric Vehicles (PHEVs), are hybrids with high-capacity batteries that can be charged by plugging them into an electrical outlet or charging station. They can store enough electricity to significantly reduce their petroleum use under typical driving conditions
Benefits:
- Less Petroleum Use. Plug-in hybrids use roughly 30% to 60% less petroleum than conventional vehicles. Since electricity is produced mostly from domestic resources, plug-in hybrids reduce oil dependence.
- Less Greenhouse Gas Emissions. Plug-in hybrids typically emit less greenhouse gas than conventional vehicles. However, the amount generated depends partly on how the electricity is produced. For example, nuclear and hydroelectric plants are cleaner than coal-fired power plants.
Challenges:
- Higher Vehicle Costs, Lower Fuel Costs. A plug-in hybrid can cost roughly $4 to $8 thousand more than a comparable non-plug-in hybrid. Using electricity is usually cheaper than using gasoline, sometimes much cheaper. However, fuel savings may or may not offset the higher vehicle cost. It depends on the vehicle, the share of miles operating on electricity, fuel costs, and ownership length. Federal tax incentives up to $7,500 are currently available for qualifying plug-ins.
- Re-charging Takes Time. Re-charging using a 120-volt household outlet can take several hours. Re-charging using a 240-volt home or public charger can take about 1 to 4 hours. A "fast charge" to 80% capacity may take as little as 30 minutes. However, these vehicles don't have to be plugged in. They can be fueled solely with gasoline but will not achieve maximum range or fuel economy without charging.
There are two basic plug-in hybrid configurations
- Parallel or Blended Plug-in Hybrids. Both the engine and electric motor are connected to the wheels and propel the vehicle under most driving conditions. Electric-only operation usually occurs only at low speeds. (current technology)
- Series plug-in hybrids, also called Extended Range Electric Vehicles (EREVs). Only the electric motor turns the wheels. The gasoline engine only generates electricity. Series plug-ins can run solely on electricity until the battery runs down. The gasoline engine then generates electricity to power the electric motor. For short trips, these vehicles might use no gasoline at all. (previous technology, e.g. Chevy Volt (not Bolt))
Estimating Fuel Economy for Plug-in Hybrid
Some plug-in hybrids have higher-capacity batteries and can go further on electricity than others. PHEV fuel economy can be sensitive to driving style, driving conditions, and accessory use.
Since a plug-in can operate on electricity alone, gasoline alone, or a mixture of the two, EPA provides a fuel economy estimate for gasoline-only operation and an estimate for electric-only or gas-and-electric operation—both for combined city-highway driving.
Rebates & Credits
Federal Credits up to $7,500 for EVs
All-electric and plug-in hybrid cars purchased new 2023 may be eligible for a federal income tax credit of up to $7,500 or up to $4,000 for used vehicles. Eligibility subject to income, MSRP, Final assembly, and general requirement.
Pennsylvania applicants whose total household income is below 200 percent of the Federal Income Poverty level, as defined by the U.S. Department of Health and Human Services https://aspe.hhs.gov/topics/poverty-economic- mobility/poverty-guidelines will be eligible to apply for an additional $1,000 rebate.
The section 30C tax credit–officially referred to as the Alternative Fuel Vehicle Refueling Property Credit—has been extended for ten years, and will expire on December 31, 2032. Taxpayers are eligible for a credit of 30% of the hardware and installation costs for EV chargers installed at their homes. It’s a one-time, nonrefundable tax credit for a maximum of $1,000. Instructions HERE.
Peco Rebates for EVs and Chargers
- With PECO Driver Rebates, we offer a rebate for customers that invest in electric vehicle technology. PECO customers can earn $50 per car just for letting us know you have purchased a plug-in electric vehicle.
- If you are a PECO commercial customer, installing a Level 2 EV charger and have been approved for the PA DEP Level 2 Electric Vehicle Charging Rebate, you may be eligible for a $500 rebate.
- PECO is offering a pilot discount on distribution charges for commercial customers installing fast charging infrastructure. Both Level 2 and DCFC chargers are eligible, and projects can receive rebates for 50% of the total eligible project costs up to $60,000.
- Through our EV toolkit, you can learn the basics of EV charging, use savings calculators to compare the cost of gas versus electric-powered vehicles, view state and federal tax incentives available for EV owners and locate an EV dealer in your area.
PA State Rebate up to $2,000 for EVs
The Alternative Fuel Vehicle Rebate program is currently accepting applications.
Rebates are offered to Pennsylvania residents only. (Companies, nonprofit organizations, and government agencies are invited to apply for Alternative Fuel Incentive Grants.)
Rebates are offered on a first-come, first-served basis as long as funding is available. Rebates are subject to the Alternative Fuel Vehicle Rebate Guidelines in effect at time of application, not date of vehicle purchase.
How to Apply
All applicants should read the Alternative Fuel Vehicle Rebate Guidelines for important details on eligibility and rebate amounts and the AFV Rebate instructions on how to submit an application.
You must submit your rebate application no later than 6 months from the date of vehicle purchase.
To apply, use the eGrants electronic application submission process. Please be sure to select Alternative Fuel Vehicle Rebate Program in the application system. No forms or documentation need to be sent to DEP. All information is contained in the online application submission.
Email confirmation will be sent to you when your application is processed. Please check your spam folders as this email may be caught by your spam filters.
For assistance with the eGrants system, please contact:
Customer Service
1-800-379-7448
M-F 8:30 – 5:00
ra-dcedcs@pa.gov
Instructional video: How to Submit an AFV Rebate Application (MP4)
For information on the AFV Rebate Program call: (717) 705-0374
Charging Station Rebates - Up to $8,000
Funding Level 2 Electric Vehicle Charging Stations for Healthier Air Quality
Organizations and businesses around the state are increasingly installing Level 2 electric vehicle (EV) charging stations to support clean energy transportation choices and healthier air quality. If your organization or business plans to install a Level 2 charger, the Driving PA Forward program can help defray your costs with a rebate.
Driving PA Forward has approximately $7.7 million available for rebates for Level 2 chargers over a 5-year period that began in 2018.Up to $4,000 per plug is available.
(Note: DEP may periodically adjust the rebate amount; check website for current amount.)
All projects for which a rebate is requested must be approved in advance by DEP. PA organizations that submit complete and eligible applications will be provided rebate vouchers on a first come, first served basis. Complete applications that meet eligibility criteria will receive a voucher to hold their rebate funding for their project for 180 days.
DEP will only accept rebate applications submitted through the Department of Community and Economic Development’s (DCED) Electronic Single Application website, eGrants, at: https://www.esa.dced.state.pa.us/Login.aspx.
Please see the Level 2
EV Charging Rebate Program Application Instructions guide for detailed, step-by-step instructions for registering in eGrants and applying for the rebate.