New Brunswick is now offering rebates worth up to $5,000 on the purchase or lease of certain new and used green vehicles.
The province on Thursday launched the New Brunswick Electric Vehicle Incentive Program, designed to encourage people to choose zero-emissions or hybrid vehicles.
Buyers who purchase or lease new qualifying battery-electric vehicles and long-range, plug-in hybrid-electric vehicles can receive up to $5,000. People who purchase or lease new short-range, plug-in hybrids can receive up to $2,500.
Those who buy used battery electric vehicles may receive up to $2,500 and purchasers of used plug-in hybrid-electric vehicles can receive up to $1,000.
“This incentive program will help New Brunswickers purchase an electric vehicle and it will help us meet our target of 20,000 electric vehicles by 2030,’’ New Brunswick Natural Resources and Energy Development Minister Mike Holland said in a news release. “This really is where the rubber meets the road.”
The province has earmarked $1.95 million for the program for the 2021-22 fiscal year. It will be funded through the Climate Change Fund.
NB Power will initially administer the rebate program, which will provide rebates retroactively to individuals and organizations, purchasing qualified vehicles. Later this fall, dealers will provide the rebate directly to those purchasing qualifying vehicles.
Consumers who buy an eligible new electric vehicle in New Brunswick can also apply to the federal government’s Zero-Emission Vehicles (iZEV) Program, worth up to $5,000, resulting in up to $10,000 in combined rebates.
“Today’s announcement is a positive step in the right direction to increase zero-emission vehicles uptake in the province,” Ian Hatheway, president of the New Brunswick Automobile Dealers’ Association, said in a statement. “The provincial incentive stacked with the federal incentive will certainly help address a key barrier to electric vehicles adoption, which is cost.”
People who receive a provincial electric-vehicle rebate are also eligible for a rebate of up to $750 for the purchase and installation of a Level 2 home charging station.
“As New Brunswickers, we believe the electrification of transportation is key to a sustainable energy future,” Keith Cronkhite, president and CEO of NB Power, said in the release. “We are proud to encourage this shift by providing information and advice to our customers while supporting a charging network that enables EV drivers to travel all across New Brunswick.”
David Adams, head of the Global Automakers of Canada, which represents the interest of all overseas automakers in Canada, said that incentives, not sales mandates, are the way to entice EV buyers.
“We view this as a positive initiative,” Adams said in a statement. “Fundamentally it is these types of activities that will drive EV adoption and not ZEV supply mandates.” Many are currently concerned that there will very soon be too many EV models on the market for percentage that are interested in buying them.
Adams said incentives are one of three keys to EV adoption. The others, he said, are charging infrastructure and education, “to better help people understand EVs the savings associated with them, the performance etc.
Brian Kingston, head of the Canadian Vehicle Manufacturers’ Association, called incentives “critical to boosting adoption.”
“The higher purchase price of electric vehicles is a key barrier to widespread consumer uptake and today’s announcement will help to address this,” he said.