E-car subsidy 2023: You should know these innovations!

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E-car promotion

Thanks to the e-car subsidy, it is possible to purchase a new or used electric car at a particularly low price. Depending on the model, it not only offsets the price difference between the e-car and the combustion engine, but actually makes e-cars significantly more attractive financially. For many people, the e-car subsidy is the main reason to switch to electromobility, along with the better environmental balance and the idea of innovation. It is therefore not surprising that the development of the e-car subsidy 2023 is being closely monitored. Very recently, the innovations of the 2023 and 2024 e-car subsidy have been published. The subsidy will continue to exist, but there are some innovations coming. Umschalten.de provides you with the latest information! The best time to switch to an e-car is now!

Table of contents

Overview table: You will receive these e-car subsidies from the federal government in 2023 for the purchase and leasing of new vehicles!

Environmental bonus for new vehicles Funding until the end of 2022 Promotion from 2023 Change
Pure battery electric / fuel cell vehicle up to 40,000 euros*.
6.000 Euro

4.500 Euro

-1.500 Euro
Pure battery electric / fuel cell vehicle between 40,000 and 65,000 euros*.
5.000 Euro

3.000 Euro

-2.000 Euro
Plug-in hybrid vehicle up to 40,000 euros*.
4.500 Euro

not applicable

-4.500 Euro
Plug-in hybrid vehicle between 40,000 and 65,000 euros*.
3.750 Euro

not applicable

-3,750 Euro

*The price quoted is the net list price.

In addition to the eco-bonus, automakers provide a subsidy that was previously equal to the federal share without the innovation bonus.

Funding until the end of 2022: 6,000 euros 

Promotion from 2023: 4.500 Euro

Change : -1.500 Euro

Funding until the end of 2022: 5,000 euros

Promotion from 2023: 3.000 Euro

Change : -2.000 Euro

Funding until the end of 2022: 4,500 euros

Funding from 2023: not applicable

Change : -4.500 Euro

Funding until the end of 2022: 3 ,750 euros

Funding from 2023: not applicable

Change : -3.750 Euro

*The price quoted is the net list price.

In addition to the eco-bonus, automakers provide a subsidy that was previously equal to the federal share without the innovation bonus.

From 01.09.2023, the subsidy will be restricted to private individuals. In addition, from 2024 only pure battery and fuel cell vehicles with a net list price of up to a maximum of €45,000 will receive funding.

E-car funding 2023: This changes!

First things first: The subsidy that buyers of e-cars will receive in 2023 will be lower than before. E-cars with a purchase price of up to 40,000 euros will only receive a subsidy of 4,500 euros from the federal government instead of the previous 6,000 euros. E-cars with a purchase price between 40,000 euros and 65,000 euros will only receive 3,000 euros instead of the previous 5,000 euros. In addition, the maximum available subsidy amount is capped. In theory, it is therefore possible that all the subsidies for the calendar year have already been allocated and some e-car buyers will go away empty-handed. A total of 2.1 billion euros is available for subsidies in 2023. However, these subsidy amounts refer exclusively to the federal government's share. The manufacturers will continue to pay an additional share. How high this will be is still open. Another important change is that plug-in hybrids will no longer be subsidized starting in 2023. If you are thinking about converting your company fleet to electric mobility, now is the perfect moment: from 01.09.2023, the subsidy will be limited to private individuals. So decide in time for a sustainable electric fleet you will additionally benefit financially!

The most important changes at a glance:

  • No more subsidies for plug-in hybrid vehicles
  • Federal share incl. innovation premium on fully electric vehicles up to €40,000 or €65,000 net list price decreases
  • Manufacturer share still unknown
  • from 01.09.2023 the support will be limited to private persons
Infographic E-car funding 2023

What is the status of e-car funding in 2024?

In 2024, we can expect even lower subsidies. For example, only e-cars with a net list price of up to 45,000 euros will still be subsidized, and with a further reduced subsidy amount of 3,000 euros. The funding pot is also capped. With a funding total of 1.3 billion euros, a full 800 million euros less is available in 2024 than in the previous year. This is presumably because the subsidy is to be abolished in the medium term. ADAC spokeswoman van Randenborgh explains: "The good news for consumers and the traffic turnaround is, of course, that the subsidy will be continued. Until recently, there was also talk of abolishing it. Finance Minister Christian Lindner (FDP) wanted to abolish the purchase premium completely. That is now off the table for the time being."

How do you apply for the environmental bonus?

Applying for the BAFA environmental bonus is quite simple. The only important thing is that your desired vehicle is on the list of eligible vehicles, because only then can you apply for the subsidy. You can find the list here on the BAFA website. It doesn't matter whether you buy or lease the e-car. In the case of leasing, you must note that you are only entitled to the full subsidy amount if the lease term is at least 24 months. If the term is 11-23 months, you will receive 50% and if the term is 6-11 months, you will only receive 25% of the subsidy amount. For purchase, you will need the invoice and a confirmation of truthful information (generated online during the application process) to apply for the BAFA environmental bonus. For leasing, instead of the invoice, you need the leasing contract, a binding order and the calculation of the leasing rate. We have explained the actual application process very simply in our step-by-step guide, including a video guide!

Is it possible to combine e-car subsidies?

Yes, it is! Since 16.11.2020, it is again possible to combine the BAFA environmental bonus with other subsidies from the state. The subsidies that can be combined with the environmental bonus are largely aimed at companies and business customers, so it is advisable to stay informed, especially in the commercial sector.

BAFA Promotion Checklist

How do you apply for the environmental bonus?

Applying for the BAFA environmental bonus is quite simple. The only important thing is that your desired vehicle is on the list of eligible vehicles, because only then can you apply for the subsidy. You can find the list here on the BAFA website. It doesn't matter whether you buy or lease the e-car. In the case of leasing, you must note that you are only entitled to the full subsidy amount if the lease term is at least 24 months. If the term is 11-23 months, you will receive 50% and if the term is 6-11 months, you will only receive 25% of the subsidy amount. For purchase, you will need the invoice and a confirmation of truthful information (generated online during the application process) to apply for the BAFA environmental bonus. For leasing, instead of the invoice, you need the leasing contract, a binding order and the calculation of the leasing rate. We have explained the actual application process very simply in our step-by-step guide, including a video guide!

BAFA Promotion Checklist

Is it possible to combine e-car subsidies?

Yes, it is! Since 16.11.2020, it is again possible to combine the BAFA environmental bonus with other subsidies from the state. The subsidies that can be combined with the environmental bonus are largely aimed at companies and business customers, so it is advisable to stay informed, especially in the commercial sector.

These subsidies are available according to the Federal Office of Economics and Export Control can be combined with the environmental bonus:

 

  • Immediate Clean Air Program - BMUV
  • Social and Mobile Fleet Replacement Program - BMUV
  • Electromobility funding guideline - BMDV
  • Funding guideline market ramp-up NIP2 - BMDV
  • Climate protection offensive for SMEs - KfW
  • Sustainable mobility investment loan for municipalities and companies - KfW
  • Economic Electric Mobility (WELMO) - State of Berlin
  • Support program Inclusion Taxi Berlin - Land Berlin
  • Climate Protection Support Guideline for Companies - State of Mecklenburg-Western Pomerania
  • BW-e-Solar voucher - State of Baden-Württemberg
  • Greenhouse gas reduction quota (GHG premium)
  • Cab charging concept for electric cabs in public spaces (TALAKO) - City of Cologne

Is there a cap on e-car funding in 2023?

Yes, unfortunately there are! The maximum disbursable subsidies are 2.1 billion euros in 2023 and 1.3 billion euros in 2024. However, there is no reason to panic in our estimation. For example, around 350,000 e-cars were subsidized in 2021. The subsidy sum of 2.1 billion euros is expected to be sufficient to support around 460,000 e-cars in 2023. Since plug-in hybrids will no longer be subsidized from 2023 and only private individuals will benefit from the subsidy from September of this year, there is currently no acute risk that the subsidy pot will run dry very early on. However, it remains to be seen how the sales figures for e-cars will develop. It is to be expected that their popularity will continue to rise. It is therefore possible that the reduced maximum subsidy of EUR 1.3 billion will be exhausted early in 2024. It is not possible to predict what will happen to the subsidy after 2024. What is clear is that now is the perfect time to switch to electromobility and also benefit financially from the subsidy.

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Is the uncertainty justified thanks to long delivery times for e-cars?

The answer is a resounding yes! The demand for e-cars is huge, and manufacturers are still struggling with very long delivery times. However, you don't really have to worry about not receiving any more subsidies at the moment. However, the deadline for applying for the new e-car subsidy in 2023 is still open. The ADAC has recognized the problem and is campaigning for the subsidy to be reserved for the date of purchase of the vehicle. After all, there are many people who firmly expect the subsidy when buying an e-car and factor in the not inconsiderable subsidy sums. We are optimistic that a fair settlement will ultimately be found.

Conclusion: 2023 e-car subsidy remains in place, but falls short

In 2023, there will be some changes in the e-car subsidy. For the first time, plug-in hybrids will no longer be subsidized, and from September 1, 2023, only private individuals will be able to apply for the subsidy. The manufacturer share has not yet been determined for 2023. It is very likely that the total subsidy per vehicle will drop significantly. Although the maximum federal funding budget is capped starting in 2023, you don't have to worry about not receiving any more of the funding. The budget is designed so that no early shortage is expected. As always, it's important to do your research before buying or leasing an e-car so you can take advantage of the current e-car incentives as much as possible. Without question, the best time to switch is now. Take the step towards electric mobility, sustainability and the future! If you have any further questions on the subject of electromobility, please feel free to contact us at frag@umschalten.de!

A contribution by Lisa Troeger

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