Electric, hybrid vehicle rebates available until July

Electric vehicle. State of Delaware photo

Good afternoon,

We learned today from DNREC  that Delaware would continue to offer rebates on electric (EV) and hybrid vehicles through the end of June 2021.

This comes as signs point to more of us going the electric route for business and personal travel.


Many of the world’s automakers are rolling out new EVs, with several introductions coming in 2021. Manufacturers, such as Nissan and Volkswagen, will add crossover vehicles, with Ford offering a muscular crossover version of the  Mustang.

In 2022 we should see commercial vehicle rollouts from Ford, GM, and Rivian. 

Amazon plans to have 10,000 electric delivery vans in 2022. A few might see Delaware’s action, a state that is on track to have four Amazon fulfillment sites.

Electrics appear to be best suited to shorter in-town routes with vehicles that can be parked and recharged overnight. If battery ranges extend past  400 miles,  longer routes will work. (There are questions about the laws of physics allowing additional growth, minus battery breakthroughs).

The current state rebates range from $1,000 for a hybrid that uses a combination of an electric motor and a gasoline engine to $2,500 for an EV.

If EVs are destined to enter your fleet, the state offers up to 90 percent of the charging station’s cost with a maximum amount of $3,500 per port or $7,000 per station.

The big issue will come in costs, with gas-powered vehicles likely to remain competitive and possibly dropping in price as competition builds. Total costs are another issue.

The cost of ownership over three years may be lower with a gas-powered vehicle with a bottom-line, perhaps shifting toward EVs if the vehicle piles up the miles. Costs are also affected by gas prices, with better cost comparisons in states with high gas prices. California and Pennsylvania come to mind.

The big-time incentive, for now, is the $7,500 tax credit offered by the feds.

The tax break is available for electric vehicles that have not become top sellers. Excluded are GM and Tesla vehicles.  Both crossed the sales threshold.

The original legislation aims to wean electric vehicles off the subsidies as travel ranges increase and battery prices drop.

Tesla did drop prices for its 3 series below $40,000 after passing the tax credit sales limit.

Figures from the Delaware Department of Motor Vehicles show that 1,083 electric vehicles have been registered in the state with more than 10 times that number of hybrids. About 5,000 of those vehicles have received state rebates.

So far, electrics and hybrids amount to about one and a half percent of the total number of vehicles registered in the state. Hundreds of electric vehicles registered in neighboring states are also believed to travel on the state’s highways.

Will state and federal programs continue? The incoming Biden administration is likely to push for more incentives in a bid to reduce the impact of global warming, depending on whether Congress goes along (a big if in the current climate).

The administration may also focus on electrifying diesel vehicles that have a disproportionate effect on pollution. (See featured story).

One interesting possibility would come in adding EVs to the massive fleet of the U.S. Postal Service.

For further information on the state rebate program, click here

Here’s to less stressful drive home if you are not still working remotely. – Doug Rainey, chief content officer.