In Colorado, the electric vehicle (EV) market is witnessing significant growth. In the first nine months of the year, nearly one in four registered vehicles were battery-powered or a plug-in hybrid. However, the incentives available for these environmentally friendly vehicles are undergoing changes. The federal tax credit of $7,500 could be modified by a Republican Congress and a President Trump administration. Additionally, the state tax credit of $5,000 will decrease from January to $3,500.

Unraveling the Impact of Electric Vehicle Rebates on Low-Incomes

Electric Vehicle Rebate for Low-Income Xcel Customers

Earlier this year, the Colorado Public Utilities Commission (PUC) approved Xcel's $264 million Transportation Electrification Plan. This plan, funded by Xcel customers, aimed to enhance EV infrastructure and offer rebates for EVs and charging stations. Low-income Xcel customers were eligible for $5,500 off a new EV or $3,000 off a used EV. According to Xcel, the $5.3 million fund covered 1,176 rebates for new and used EVs. An Xcel spokesman revealed that nearly 100 customers would receive notice that their qualified rebate was no longer funded. As of Saturday, November 9, 2024, the program had reached its capacity. If customers had not received an email confirming their rebate check was mailed, it meant the program had run out of funds before their application could be approved and paid out.Travis Madsen, the Transportation Program Director for Southwest Energy Efficiency Project, expressed amazement at how quickly the funds were distributed. His mission is to assist people in saving money, reducing pollution, and promoting equity. Madsen and his group were involved in the PUC hearings that led to the inclusion of rebates for low-income customers. He believes that without this support, a segment of the population, particularly lower-income people and families, might not choose to buy an electric vehicle.

Fund Limitations and Customer Expectations

What remains unclear is whether any customers bought an EV expecting to receive the rebate after the purchase. In most cases, the rebate is provided at the point of sale at the dealership. However, the three-page rebate form clearly warned that the fund was not unlimited. On page three, it stated that there were limited funds available to support the Xcel Energy EV Rebate program. Rebates would be issued on a first come, first served basis, and Xcel Energy could refuse to provide a rebate if the funds were exhausted.Madsen emphasized that losing the rebate could prevent some people from making a purchase they otherwise would have. He expressed a desire to expand the rebate program but was unsure of its likelihood. An Xcel spokesman stated that Xcel would not approach the PUC to seek additional funds as it would ultimately come from customers. Xcel is also not using its own funds for this purpose.Madsen remains committed to expanding support, particularly for those on the lower end of the income scale, to ensure more people can participate in the EV market.