The British Columbia government has paused its CleanBC Go Electric rebate program for electric vehicles (EVs), citing economic instability and the need to review the program’s effectiveness. The decision comes as EV sales in the province appear to have plateaued, with the number of new EV registrations leveling off after years of rapid growth.
Impact on EV Sales
The CleanBC Go Electric program provided rebates of between $1,000 and $4,000 for the purchase of EVs and between $500 and $2,000 for plug-in hybrids for consumers with incomes under $100,000. Although buyers can still qualify for the rebate if they purchase or lease an EV by May 15, the pause is expected to raise the cost of EVs and make it challenging for car dealers to meet government-mandated targets for EV sales.
Blair Qualey, president and CEO of the New Car Dealers Association of B.C. (NCDA), expressed concerns that the pause will negatively impact EV adoption. “There is a lot to consider when weighing the cost and benefit of an electric vehicle, but typically, price is at the top of the list,” Qualey said. “Over the course of the program, when there were lapses in funding, we saw a dramatic decline in ZEV [zero emission vehicle] sales.”
Provincial EV Sales Data
According to the province’s annual report released on April 29, 2024, EV sales slightly dipped to 22.4% of new light vehicle sales, down from 22.7% in 2023. The report noted that there were 44,656 EVs out of 199,580 new light vehicles sold in B.C. in 2024. The province has been tracking EV sales since 2015, when EVs accounted for only 0.8% of sales. The rate began rising sharply in 2018 and continued to grow until 2024.
Industry Concerns
Qualey emphasized that increasing EV adoption relies on three key factors: bridging the price gap between traditional internal combustion engine vehicles and EVs, ensuring a robust charging infrastructure, and educating consumers about EVs. While the province has made significant progress in expanding its charging network to over 7,000 stations, the pause in rebates is seen as a setback.
The B.C. government has set ambitious targets for EV sales, requiring 26% of all light vehicles sold to be zero-emission by 2026 and 90% by 2030. Automakers face significant penalties of $20,000 per vehicle for failing to meet these targets. Without rebates and with potential tariffs driving up costs, Qualey warned that car manufacturers might reduce the number of internal combustion engine vehicles they supply to B.C., potentially driving up prices for all types of cars.
The pause in the rebate program has sparked concerns among industry stakeholders about the future of EV adoption in B.C. and the potential consequences for consumers and car dealers alike.
