The French government has announced an unprecedented conversion bonus for the purchase of electric or very low-polluting vehicles. This figure could reach €6,000 depending on income conditions, with full details yet to be confirmed. In practice, the new premium will replace the current subsidies offered in France.
Alongside this incentive, the French government has highlighted further plans to increase the prevalence of electric two-wheelers in the population. Further communication and coverage regarding the safety of two wheels will be implemented, with safety training incorporated into the B license. Additionally, from 2022 a new generation of radars will be installed with the goal to control noise emissions of two-wheelers.
A proposed federal tax credit for new electric bike purchases has passed the most recent round in Congress, with the especially positive news being that, following its reduction by the House of Representatives to 15 percent, the credit rate is back to 30 percent.
Ebikes are an invaluable tool in improving not only the health of our planet, but also the general population, and such an incentive could have a real impact on the uptake of electric powered bicycles in the United States. In an country where mass adoption of ebikes is still struggling, such a move has the potential to make a real impact on the population, and on related infrastructure.
All three ebike classes are included as eligible in the incentive, up to a wattage of 750, and with the 30 percent refund capped at $1,500. It is worth noting, that as a fully refundable tax credit, lower-income individuals would be to claim it
As for further details, the proposal would not be applicable to ebikes costing over $8,000, and the 30 percent credit is gradually reduced once the bicycles costs more than $5,000. It is also a means-tested concept, therefore according to tax status, the credit would begin phasing out $200 for every $1,000 spent on the purchase for individuals who earn $75,000, heads of household earning $112,500, and married couples who file jointly earning $150,000.
This would be a welcome move for climate and active mobility campaigners. Indeed, the cause of protecting both our environment and our health naturally go hand in had. With ebikes costing thousands of dollars as standard, such incentives can help to make real progress in these areas and change lives. In reporting on the credit, Verge noted that a recent study found that if 15 percent of car trips were made by e-bike, carbon emissions would drop by 12 percent.
Further benefits found within the lengthy, 1,600 page bill may be welcome news to cyclists, with pre-tax commuter benefits for those who cycle to work or use bikes shares, similar to those which exist for people using park-and-ride or public transit. The proposed bicycle benefit would allow cyclists to get up to 30 percent of the parking benefit — currently equivalent to $81 a month, less than $1,000 a year.
Comments Off on icct considers potential of charging methods and incentives to catalyse electric two-wheeler market
Following on from an article about state government incentives in India are making many electric two-wheeler models near equivalent in price to gasoline models, a new piece by The International Council on Clean Transportation (icct) looks in detail at Total Cost of Ownership (TCO) and charging infrastructure incentives.
Two-wheelers are a mass market in India, and lower upfront costs also equate to lower monthly costs for those who borrow. But what about running costs? Fuel is the key factor, and with gasoline prices rising, and set to continue to do so, electric two-wheelers present a very appetising alternative.
The article takes a look at range, noting that many short-range electric two-wheeler models can achieve 75 km to 100 km of real world-range in city driving conditions, while mid-range models with real-world range closer to 150 km are in the pipeline. And with these figures and general usage patterns, charging could be well managed at home only. Home charging, however, relies very much on the user’s behaviour and can present a range of particular obstacles. For these reasons, public charging infrastructure is also important in the electric mobility big picture.
It is noted that there would be a greater reliance on public charging in the earlier years of adoption, while home facilities are installed and integrated into new developments. The author goes on to break down the TCO considerations when including the impact of public charging:
“From our earlier work, we know that electric models have a lower total cost of ownership (TCO) than gasoline models at current gasoline prices and with home charging. Since the cost of public charging can be high, sometimes twice as high as residential electricity tariffs, I build here on our cost parity model to examine what happens to TCO parity under different charging scenarios. I assumed the average residential electricity tariff to be INR 7/kWh and the average public charging tariff to be INR 14/kWh. Further, I looked at the impact on TCO parity at two baseline prices for gasoline—average prices in 2021 and in 2019—and included a 5% annual escalation in both electricity and gasoline costs.”
The charts below show the timescales at which a 150km real-world range electric motorbike may reach 10 year TCO cost parity with gasoline fueled motorbikes, first without, and then with incentives. The incentives calculation “includes the revised FAME-II upfront subsidy and the preferential Goods and Services Tax (GST) benefit for the electric model.”
chart sourced from theicct.org
chart sourced from theicct.org
The figures illustrate that cost parity could be achieved by 2022 solely via home charging, and by 2023 with entirely public charging and no incentives. The charts also adjust to consider gasoline prices as they were 2 years prior, and at that rate parity is reached in 2023 with 100% home charging, and 2025 with only public charging. It can be seen that a lower gasoline price and reliance on public charging together cause the greatest delay in reaching TCO parity.
By contrast, when the chart takes purchase incentives into account, parity is already be achieved even if relying solely on the more expensive public charging. On top of this, incentives can also counteract a gasoline cost reduction to 2019 prices. There author notes that, “the current upfront purchase incentives are playing an enabling role in alleviating any charging cost related anxiety that consumers might have. That’s especially useful in the early phases of the market when the infrastructure for home charging is less mature.”
The article goes on to elaborate on some of the challenges and barriers involved in home charging, such as socket requirements, and objections from neighbours or housing associations. It concludes that achieving TCO parity is key to the adoption of electric two-wheelers by the mass market, and that it is therefore the perfect time for governments to take action in incentivising their uptake.
Comments Off on France is stingy in financing sustainable mobility
In May 2020, France introduced the so-called “Forfait Mobilité Durable”, a financial incentive to encourage employees to commute sustainably. The conditions for 2021 have been slightly adjusted. A comparison with Belgium shows that France is skimping on sustainable mobility.
In the private sector, an employer may intervene up to a maximum of € 500 per year in the purchase of a conventional bicycle or an EPAC, but also in the equipment, accessories, repair and insurance. “May”, because the measure is voluntary. The same intervention is also allowed in the use of shared e-scooters and self-balancing vehicles.
That amount is exempt from taxes and social security. The employer may contribute more, but everything above € 500 is subject to social security and tax and the employees will also have to declare it as income. Some employers grant their employees a kilometer allowance (Indemnités Kilométriques Vélos – IKV). They can continue to do so, but that fee must be deducted from the € 500.
This is a peculiar measure because it discriminates against workers who live further from their work. If you commute a decent distance with a speed pedelec, for example, you will soon reach that ceiling of € 500. And that, while it is precisely employees who live far from their work who need extra motivation to switch to sustainable mobility. In the 365SNEL project in Belgium, 20% of the test riders definitely switched to a speed pedelec. A total of 15% previously used a car. In Belgium they can enjoy a tax-free mileage allowance up to € 0.24. The project showed that they drove an average of 21.6 km per day. Assuming 220 working days per year, this results in a tax-free extra of € 1,140, a lot higher than what France is allowing.
The scheme for employees in public service is different. There, a maximum contribution of € 200 is provided for each employee who uses a bicycle or an EPAC to commute. They must do this for a minimum number of days per year, based on their working time. However, this € 200 cannot be combined with, for example, financial compensation for a subscription to rent an (e)-bike for commuting. In Belgium there is no distinction between employees in the private and public sector. It is not entirely clear to us why France makes this distinction. “L’Hexagone” appears to be willing to invest in sustainable mobility, but it should not all cost too much. Perhaps someone in Paris should carry out an in-depth study and calculation of the internalisation of external costs and benefits of the different transport modes. This will quickly show that skimping on sustainable mobility is not really a profitable policy that benefits society. Molière’s “miser” is long dead.
Below is a list of initiatives that are or will be implemented to support the uptake of light electric mobility, cycling and other forms of more sustainable forms of mobility in European Member states and Switzerland in the aftermath of the Corona-crisis.
Belgium
Bicycle ticket in trains are free of charge – from 1 July until 31 December 2020. Please find more information @Belgiantrain.
Benelux countries
Countries urge European Commission to prioritize (electric) cycling as ‘post-virus transport cure’. Please find more information @Benelux. or @Euractiv.
France
Bike repair subsidy ‘’Coup de Pouce Vélo’’- €50 for repairs – 11 May to 31 December 2020. Please find more information @Service Publice or go to @Coup De Pouce Velo.
European Parliament
MEPs urged European Parliament President David Sassoli to boost the uptake of cycling and walking. Please find more information @Euractiv.
Germany
Reduced VAT rates – 1 July and 31 December 2020 – From 19% to 16% and 7% to 5%. Please find more information @The Bundesregierung.
Italy
Mobility voucher – €500 purchase incentive (electric) bicycle, scooter, hoverboard or shared mobility services. Please find more information @Ministry of Infrastructure and Transport.
The Netherlands
The City of Amsterdam tests two heat sensing camera’s to improve flows of cyclists and reducing big queus at traffic lights. Please find more information @CityofAmsterdam.
UK
Fix your bike voucher scheme – £50 for repairs. Please find more information @Gov.UK.
Portugal
Lisbon – Purchase subsidy (electric) bicycles and cargo bicycle – €350 electric bicycle / €500 (electric) cargo bicycle. Please find more information @Lisboa.
Spain
Madrid – Purchase incentive for non-pollution vehicles – Maximum 50% of total price or financial assistance up to €150 (electric) scooters, €500 (electric) bicycles, €600 (electric) mopeds and €750 (electric) motorcycles – €2.5 million available for 2020 and €3.0 million in 2021. Please find more information @ElPais.
Below is a list of initiatives that are or will be implemented to support the uptake of light electric mobility, cycling and other forms of more sustainable forms of mobility in European Member states and Switzerland in the aftermath of the Corona-crisis.
Belgium
Bicycle ticket in trains are free of charge – from 1 July until 31 December 2020. Please find more information @Belgiantrain.
France
Bike repair subsidy ‘’Coup de Pouce Vélo’’- €50 for repairs – 11 May to 31 December 2020. Please find more information @Service Publice or go to @Coup De Pouce Velo.
Germany
Reduced VAT rates – 1 July and 31 December 2020 – From 19% to 16% and 7% to 5%. Please find more information @The Bundesregierung.
Italy
Mobility voucher – €500 purchase incentive (electric) bicycle, scooter, hoverboard or shared mobility services. Please find more information at @Ministry of Infrastructure and Transport.
The Netherlands
The City of Amsterdam tests two heat sensing camera’s to improve flows of cyclists and reducing big queus at traffic lights. Please find more information @CityofAmsterdam.
UK
Fix your bike voucher scheme – £50 for repairs. Please find more information @Gov.UK.
Portugal
Lisbon – Purchase subsidy (electric) bicycles and cargo bicycle – €350 electric bicycle / €500 (electric) cargo bicycle. Please find more information @Lisboa.
Spain
Madrid – Purchase incentive for non-pollution vehicles – Maximum 50% of total price or financial assistance up to €150 (electric) scooters, €500 (electric) bicycles, €600 (electric) mopeds and €750 (electric) motorcycles – €2.5 million available for 2020 and €3.0 million in 2021. Please find more information @ElPais.
LEVA-EU has produced a first overview of European incentive schemes for light electric vehicles such as e-bikes, speed pedelec, electric motorcycles and more. By bringing together information for different members states and different types of vehicles, LEVA-EU is providing its members with and easily accessible file on incentive schemes, thus saving them valuable time and resources.
The overview includes a broad ranges of incentives, from tax deductions over compensation for commuting with LEVs to subsidies for purchasing vehicles. Also, all the official links to the incentive schemes are included.
If you have any questions or recommendations regarding European incentive schemes for light electric vehicles, please contact Daan van Dieren, daan@leva-eu.com
To find out more about LEVA-EU and LEVA-EU membership, please contact Annick Roetynck, tel. +32 475 500 588, email annick@leva-eu.com
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