(The Canadian Press)

Feds’ electric-car rebate uses nearly half its three-year budget in eight months

Transport Canada reports that more than $134 million in rebates have already been issued to 33,000 Canadians

Transport Minister Marc Garneau is thinking about expanding the government’s rebate program for people who buy electric vehicles after eager car-buyers gobbled up nearly half the funds in just eight months.

Garneau launched the incentive payments last May, offering up to $5,000 off the price of buying new electric and hybrid passenger vehicles to try and bring their price tags closer to those on similar gas models.

Ottawa funded the program with $300 million, on a first-come, first-served basis, over the next three years.

As of Jan. 19, Transport Canada reports that more than $134 million in rebates have already been issued to 33,000 Canadians. At that rate of uptake, the funds will be entirely gone before the end of this year.

“It’s very encouraging to see how many people are now thinking about and actually going ahead and buying (zero-emission vehicles),” Garneau said outside the House of Commons Monday afternoon.

While the government expected the program to be popular, the briefing book prepared for Garneau after he was reinstated as the transport minister after the fall federal election, says “the program has induced more new sales than projected.”

According to Transport Canada, overall electric vehicle sales jumped 32 per cent after the rebates were launched, compared to the same period the year before. In 2019, electric cars made up three per cent of all vehicle sales, up from two per cent in 2018.

That is still a long way from the goals the federal Liberals set last year to have electric cars make up 10 per cent of all light-duty vehicle sales by 2025, 30 per cent by 2030 and 100 per cent by 2040. It is a significant part of Canada’s efforts to cut greenhouse gas emissions, with light-duty vehicles emitting 12 per cent of all emissions in Canada in 2017.

Garneau noted his mandate letter from Prime Minister Justin Trudeau instructs him to do more to meet those quotas, and he said looking at doing more with rebates is among the possibilities, including extending them to used cars as well.

“I’m certainly working very hard in that direction,” he said, though he wouldn’t speculate about the specifics about what an expanded program would look like. It’s likely any expansion would be included in the next federal budget.

Cara Clairman, CEO of the non-profit electric vehicle advocacy group Plug’n Drive, said a 2017 study by her organization found price to be the main deterrent for consumers when it comes to buying an electric car, so incentives are definitely helpful.

“There are people buying electric vehicles without them but definitely it helps,” she said.

READ MORE: Looking at buying an electric car? New federal rebates kick in May 1

She said a program in Ontario to offer $1,000 incentives to buy used electric cars spurred the purchase of more than 300 used electric cars since it launched in April. That program, run by Plug’n Drive with funding from the private M.H. Brigham Foundation, is expanding next month to add an additional $1,000 incentive to not just buy a used electric car but to scrap a gas-powered vehicle in the process. The scrapped vehicles will be disposed of by the Automotive Recyclers of Canada.

Canadian electric vehicle sales are still heavily concentrated in Quebec and British Columbia, which offer provincial rebates on top of the federal rebate. B.C. drivers can get up to $3,000 more back from the provincial government, and Quebec drivers can get up to $8,000 on top of the federal incentive.

Electric Mobility Canada reported late last year that 75 per cent of all electric cars sold in Canada were purchased in B.C. (29 per cent) and Quebec (46 per cent.) Twenty per cent were bought in Ontario, leaving the remaining seven provinces with just five per cent of all the sales.

Ontario had a rebate program until it was scrapped by the new Tory government in 2018, leading to a significant drop in electric car purchases in that province. Electric Mobility Canada says the sale of electric cars in Ontario fell 44 per cent in the third quarter of 2019, compared to that period in 2018.

Mia Rabson, The Canadian Press


Like us on Facebook and follow us on Twitter.

Electric vehicles

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Kitimat residents find unique ways to celebrate birthdays while practicing social distancing

The Northern Sentinel spoke with a number of parents whose children had birthdays recently

RDKS developing strategy to bring higher internet speeds to remote areas

Results of public survey will help ISPs build business case for funding

School district digs in on instruction resumption

Senior official calls the process a “marathon”

‘A positive move’: Mayor of Kitimat gives thoughts on new provincial, federal COVID-19 measures

The Province recently announced new powers for bylaw officers and bans on reselling food

Terrace dental clinic say no staff experiencing COVID-19 symptoms 22 days after dental conference

Five members of the office attended the Pacific Dental Conference from March 5-7

‘The Office’ star John Krasinski offers Some Good News in trying times

‘The human spirit still found a way to break through and blow us all away’

B.C. worker advocate group calls for more sick days, protected medical leave

COVID-19 highlights need for changes to workers legislation: Retail Action Network

New rules issued for B.C. construction projects, work camps for COVID-19

Coastal GasLink, LNG Canada, Trans Mountain and Site C carry on

Canada to spend $2B more on procuring medical supplies for COVID-19 fight

Government has signed deals with three companies

World COVID-19 updates: Putin may be exposed; 30,000 prisoners released

Comprehensive news update from around the world as of Tuesday, March 31.

Canada expands 75% wage subsidy to COVID-19 affected businesses of all sizes: Trudeau

Program will provide up to $847 per week for each worker

‘This is no joke’: B.C. woman in Alberta hospital asks people to stay home during COVID-19

‘I want people to start listening to what the doctors are saying. This is no joke, please stay home’

Most Read