As you explore the funding possibilities for your EV charging installation, it is important to consider which options could apply to your specific project.
The first thing to note is that there are four main funding types available for the equipment and installation of EV chargers: Grants, Financial Incentives, Rebates, and Tax Credits. Each of these options has its benefits and restrictions, so let’s look closely at each.
Grants
Grants are opportunities generally provided by a government entity, foundation, or corporation that reimburse the cost of installation for eligible EV charging infrastructure projects. EV charging infrastructure includes but is not limited to such things as transformers, meters, conductors, panels, boring, trenching, and conduit. Each grant varies based on location type, grid capacity, and accessibility. Property types include- but are not limited to-multi-unit dwellings, workplaces, government properties, hospitality and tourism spaces, non-profits, and educational facilities.
Grants are offered on a first-come, first-served basis at the discretion of the grantmaker. Candidates that apply will provide detailed information about their organization and the exact use of provided funding in order to have their project approved.
Note that just because you apply, and you qualify does not mean your project will be guaranteed approval.
Utility Incentives
These Incentives are funds allocated to power grid entities for distribution to fund utility-based infrastructure. In the case of EV charging, these funds are given to any organization that meets the criteria and has plans to implement EV charging solutions at their location. As such, the more conditions or qualifications you meet, the higher your percentage of coverage will be. These initiatives also generally include a pre-approval process in order to access their funding which will affect your potential project timeline.
In many cases, state governments will offer higher percentages to installation projects that meet some, or all of, the following criteria:
Regions with a high barrier to entry for EV charging installation, such as disadvantaged communities and environmental justice communities.
Projects involving level 2 or level 3 fast chargers
Chargers available for public use
Locations seeking to install standard (J1772) plugs
Multi-unit dwellings (MUDs), hotels, resorts, etc.
Rebate Programs
Much like incentives, rebate programs are generally conducted by utility companies and state governments to reimburse those who meet their list of criteria and have installed EV chargers.
Once construction finishes, your organization can provide specified documentation from the project in order to qualify and be reimbursed for portions of the installation and/or equipment. Some of these programs will pay back percentages of total cost and others are based on a set limit of cost, which is determined by the scale of your project.
The most important thing to note about rebates is that they are normally time-constrained, so it’s critical that you investigate the deadlines of the offer. This will inform you of the timeline to submit your application once construction is complete.
Tax Credits
There are two types of tax credits available for those who want to pursue EV charger installation projects: state and federal. State tax credits are dependent on each individual state’s budget and green energy investment strategy. This could mean that installing in one state versus another could be more cost-effective, even if the stations themselves generate the same amount of charging-fee revenue.
Federal tax credits, on the other hand, are available to all states in the U.S. and will fund up to 30% of set costs for any given EV project. Despite their differences, state and federal taxes can be combined with one another to increase annual savings. Additionally, tax credits can be combined with other financial incentives to save you more. It is important to check with your accountant to learn more about leveraging these credits to reduce your tax liability.
Conclusion
Choosing the most appropriate funding opportunities is a decision that will affect the overall cost of your EV installation project. Although sifting through programs to find your ‘best fit’ might seem daunting, Livingston Energy Group has a hands-on funding department that can maximize the financial opportunities available for your project and optimize your savings. In tailoring our approach to your project, we find the best funding opportunity for your location so that you make the right funding choices.
Be sure to consider all of your location’s qualifying factors on our list of possible eligibility criteria.