Purchasing an electric vehicle (EV) can help lower your energy costs while being better for the environment. However, the upfront vehicle price may still give some buyers pause. If you live in the San Diego area and are served by San Diego Gas & Electric (SDG&E), there are several rebates and incentives that can help offset the cost of your new EV. In this article, we will explore the various SDG&E EV rebate programs and provide tips on how to maximize your savings.

SDG&E Clean Vehicle Rebate Program

One of the most well-known SDG&E EV rebates is their Clean Vehicle Rebate Program. ThisCalifornia rebate offers up to $2000 for purchasing or leasing an eligible new plug-in hybrid or electric vehicle. To qualify, your vehicle must be solely electric or plug-in hybrid with an electric range of at least 25 miles. Some recent models that would be eligible include the Chevrolet Bolt, Nissan Leaf, Tesla Model 3, and Toyota Prius Prime.

The Clean Vehicle Rebate is available on a first come, first served basis and funds do typically run out each year. SDG&E recommends applying as soon as you purchase or lease your EV to ensure you receive the full rebate amount. You can check the program website for current rebate levels and to see if funds are still available.

In addition, SDG&E offers an increased Clean Vehicle Rebate of up to $2500 for income-qualified applicants in specific zip codes. To be eligible, your gross annual household income must be at or below 300% of the federal poverty level guidelines. This extra $500 rebate can help make electric transportation even more accessible.

Federal Tax Credit

Purchasing a new EV also makes you eligible for the federal electric vehicle tax credit. The credit is currently up to $7500 and is based on the capacity of the EV’s battery pack. Some popular models that qualify for the full $7500 credit include the Tesla Model 3, Chevy Bolt, and Nissan Leaf.

You’ll claim the federal EV tax credit on your federal tax return the year you bought the vehicle. So essentially, this tax credit acts as a point-of-purchase discount. However, do note that the full $7500 credit begins phasing out once a manufacturer sells over 200,000 qualifying vehicles in the US. For example, the credit for new Tesla and General Motors vehicles started phasing out in 2019.

HOV Lane Access

Purchasing an electric vehicle can also provide special single-occupant access to high-occupancy vehicle (HOV) or carpool lanes in California. To qualify for the HOV lane sticker, your vehicle must meet California’s definition of a Zero-Emission Vehicle (ZEV). This includes battery electric and fuel cell vehicles.

Having the HOV lane access can offer significant time savings, especially during rush hour traffic periods. Just be aware that you’ll need to renew your clean air vehicle decal every 1-3 years depending on your vehicle model to retain this driving benefit.

SDG&E Electric Vehicle Pricing Plans

To make home charging even more affordable, SDG&E offers several Time-Of-Use (TOU) pricing plans tailored specifically for electric vehicle owners:

EV-TOU-5 Plan

• Charging is cheapest from 12AM-6AM at 6.3¢/kWh
• Rates range from 6.3-26.4¢/kWh based on time of day
• Best if you can charge mostly overnight

EV-TOU-2 Plan

• Super off-peak charging 12AM-6AM all year at 17.5¢/kWh
• Two pricing periods instead of three
• Slightly higher rates but more flexibility

EV-TOU Plan

• Requires separate meter for home charging
• Same prices as EV-TOU-2

By enrolling your household in one of these EV-specific plans, you can save 25-50% on electric fueling costs by charging when rates are lowest. Be sure to use the SDG&E savings calculator tool to find the best plan for your typical charging habits.

Additional Advice

To maximize the incentives and rebates available to SDG&E electric customers:

• Do your research early in the vehicle shopping process and calculate potential savings upfront
• Time your EV purchase to receive both the Clean Vehicle Rebate and Federal Tax Credit in the same year
• Apply for rebates and tax credits as soon as possible to ensure funds are still available
• Enroll in an SDG&E EV-specific pricing plan to save on home charging costs long-term
• Consider getting pre-approved for financing through an partner program
• Ask your tax advisor if you can utilize additional EV-friendly tax deductions or credits

With the right strategy and by tapping into available rebates and incentives, you may find an electric vehicle’s total cost of ownership is on par or even lower than an efficient gas-powered car. Don’t hesitate to contact an SDG&E energy advisor if you have any other questions about going electric in San Diego. Their goal is to make the switch as seamless and affordable as possible for local drivers.

By following the tips in this guide, San Diego residents stands to benefit enormously from sustainable transportation while also lowering energy bills. If you’re ready to make the switch to an EV, take advantage of these substantial savings programs before funds expire. Contact CubEnergySaver if you need any assistance navigating the application or enrollment process.