Germany pulls the plug on subsidies for electric semi trucks and buses
Like it did with passenger EV rebates back in December, Germany has decided to pull the plug on subsidy programs for electric semi trucks and city buses. What happens to the nation’s commercial EV market now?
If you’re a regular Electrek reader, you probably believe that Germany acted prematurely when it cut its EV subsidy program in December (a full year earlier than expected). Combined with rapid global inflation driving up vehicle prices and governments throughout the EU pouring money into hydrogen refueling and you might think a drop in EV sales is almost inevitable that the country.
That said, this might not be bad news.
See, when the German government established the funding program for climate-friendly commercial trucks back in 2021, the subsidies were seen as a highly effective tool to drive up demand for electric vehicles in the medium- and heavy-duty truck markets. It became clear sometime last year, however, that the budget for electric truck subsidies in the 2024 fiscal year would be tight … because of high demand.
“The second round was effectively spilling over into the period of a possible third round,” writes Cora Werwitzke, for Electrive. “The budget for further funding calls had thus been uncertain for some time.”
A spokeswoman for the the Federal Ministry for Digital and Transport (BMDV) noted that previously approved projects would still be funded.
Electrek’s Take
A number of companies have announced big orders for Mercedes, MAN, and Volvo electric commercial vehicles in recent weeks, so the “high demand” claims seem to hold water. And, if the subsidies only existed to spur demand … well, they did their job. The best-selling vehicle in the world is an EV, and it seems like it won’t be long before the best-selling commercial truck is an EV, too.
The same thing is happening in France, after all, and it’s only a matter of time before fleet managers in the US come to realize that electrification’s cost benefits compared to diesel aren’t because of subsidies, too.
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A new, all electric Peterbilt 579EV is in-service at Honda’s Lincoln, Alabama assembly plant, where it’s busy transporting newly-built Honda cars from the plant to a nearby railhead for shipment to dealers across the country.
Part of a pilot program between Honda, Alabama Power, and Virginia Transportation Corp., the new electric semi truck will help stakeholders gather data about the practicality and performance of the battery-powered Pete and use it to generate case studies for broader electrification initiatives. Other supporters of the pilot project include the Alabama Clean Fuels Coalition and, of course, Peterbilt.
“We remain committed to delivering for our customers and the environment,” offered Leo Doire, owner and CEO of Virginia Transportation Corp. “Our new Peterbilt 579EV model will be tested to determine how well it performs against the high productivity demands of our operations. The partners we have at the table will help us maximize this opportunity and prepare to scale up if we get the results we are hoping for.”
The truck itself has been spec’ed to be perfect for the kind of short haul and drayage applications Honda has in mind. This particular Peterbilt 579EV is fitted with PACCAR’s 400 kWh battery and a 670 hp electric motor good for an impressive 2,050 lb-ft of peak torque at 0 rpm.
The truck offers 150 miles of operating range and can be charged in about 3 hours on a 120 kW charger installed specifically for that purpose. A charger, it should be noted, that was partially paid for by Alabama Power.
“Alabama Power’s ‘Make Ready’ program provides businesses with valuable rebates to help reduce the upfront costs of installing EV infrastructure,” says Alabama Power Electric Transportation Manager Hasin Gandhakwala. “We are committed to partnering with customers who are exploring state and federal grant opportunities. Alabama Power is dedicated to advancing EV technologies to better serve the needs of our customers.”
The electric semi is a continuation of a decarbonization project Honda initiated in 2011, when the company recruited Virginia Transport Corp. to help find ways to reduce emissions at its Alabama facilities. VTC’s efforts have led to changes that displaced more than 475,000 gallons of diesel in 2023 alone.
Electrek’s Take
With the big Pete’s 82,000 lb. GVWR and 150 miles of range between charging sessions, it seems like these guys will be making a lot of back-and-forth runs between the Honda plant and the CSX terminal to me. Here’s hoping they see the benefits of electrifying the rest of their vehicle transport fleets somewhat sooner than later.
SOURCE | IMAGES: Alabama Power.
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On today’s episode of Quick Charge, we’ve got big solar breaking ground all over, despite the incoming administration’s supposed lack of love for home-grown clean energy. Our guests today walk us through home solar, energy storage, and more.
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Read more: Saldivar’s Trucking: first owner-operator to deploy Volvo VNR Electric semi.
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Tesla is now using ‘Tesla Electric’, its electric utility service in Texas, to help sell cars with a new incentive.
After gaining experience through its virtual power plants (VPPs), Tesla took things a step further with the launch of “Tesla Electric” back in 2022.
Instead of reacting to specific “events” and providing services to your local electric utilities, as Tesla Powerwall owners have done in VPPs in California, Australia, and a few other markets, Tesla Electric is actively and automatically buying and selling electricity for Tesla Powerwall owners – providing a buffer against peak prices.
The company is essentially becoming an energy retailer.
Tesla Electric is currently only available to Powerwall owners in Texas and the UK, but the company has plans to expand its products through this new division.
The company has been growing its Tesla Electric userbase in Texas and now it plans to use it to help sell cars.
Tesla has two different plans under the program:
| Feature | Tesla Electric Fixed Plan | Tesla Electric Dynamic Plan |
|---|---|---|
| Pricing Structure | Competitive fixed rate for electricity, with a discounted rate during low-cost hours. | Competitive variable rate, with higher rates during peak demand periods. |
| Contract Term | 12-month commitment. | Month-to-month flexibility. |
| Unlimited Vehicle Charging | Available for an additional $15/month per vehicle, allowing unlimited charging. | Available for an additional $25/month per vehicle, allowing unlimited charging. |
| Powerwall Credits | Earn $400 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with Tesla managing the Powerwall to share energy with the grid when needed. | Earn $120 credit per year per Powerwall by participating in the Tesla Virtual Power Plant, with the customer managing the Powerwall to optimize earnings. |
| Energy Sharing with Grid | Sell energy back to the grid at a fixed rate per kWh. | Sell energy back to the grid at 90% of the real-time market price per kWh. |
The first one enable you to charge your electric car for just $15 a month.
With this new incentive, Tesla is brining that down to $5 a month for a year for people who take delivery by the end of the year:
Get $5/mo Unlimited Overnight Charging With Tesla
To get unlimited overnight charging for $5 per month per vehicle for a full year, you must complete the following steps by December 31, 2024:
- Order and take delivery of a new Tesla vehicle
- Sign up for the Tesla Electric Fixed Plan
To be eligible, you need to live in an area of Texas that allows you to choose your electricity provider, be a new Tesla Electric member and take delivery of a new Tesla vehicle. Promotion is subject to change at any time.
This appear to be part of Tesla’s effort to deliver a record number of more than 515,000 vehicles in Q4 in order for its annual deliveries not to be down for the full year.
ver the last few weeks, we have been reporting on a series of sale incentives that Tesla has put in place to make sure it has the demand to achieve this record quarter.
In Europe, it includes a year of free Supercharging and heavy discounts.
In the US, there are also good inventory discounts, 3 months of free Supercharger and FSD, FSD transfer, and more.
And everywhere, Tesla is heavily subsidizing loans with lower interest rates.
But it’s the first time that Tesla is using such a targeted incentive, at the state level, and using its Tesla Electric program.
It’s interesting.
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