Millions upon millions of taxpayer dollars to sell hundreds of commercial EVs?
Starting tomorrow the California Air Resources Board’s (CARB) will begin a taxpayer funded EV subsidy program for Ford Transit Connect Electric vans and other commercial EVs.
The new EV subsidy program, expected to be in effect until February 2012 given the stipulations for the taxpayer funding, offers up to $15,000 for the first Transit Connect Electric purchased by a commercial fleet or municipal fleet for use in the State of California. Bigger commercial vehicles get bigger EV subsidies.
This light commercial EV subsidy is part of a larger program – or folly, according to critics – which will it’s hoped speed the adaptation of commercial electric vehicles. Heretofore, fleet operators who keep stringent track of costs have not been willing to invest in EVs because of their absurdly high costs and limited range – in the EV Transit’s case, ~$50,000+ and 50 miles.
Subsequent purchases of Transit Connect Electric vans will qualify for an EV subsidy of up to $12,000, with a maximum of 100 vans per customer. Beginning in February 2012, the program will offer up to $12,000 for the first three Transit Connect Electric vans and up to $10,000 for subsequent purchases up to 100 vans per customer.
Coupled with other federal incentives, the payback period for the Transit Connect Electric in California is now estimated at less than two years due to the largesse of taxpayers. This EV subsidy should create a mini sales-bubble of sorts for commercial EVs – at least until the borrowed taxpayer money runs out or the Occupy Movement indeed occupies California government offices.
“On average, a Transit Connect Electric will spend about ten years in service for a commercial vehicle fleet,” said Scott Harrison, Azure Dynamics CEO, the company that makes electric powertrains for commercial EVs, including the Ford Transit Connect.
“The new incentive, in combination with the operational and maintenance savings resulting from the EV powertrain, may significantly reduce the incremental Transit Connect Electric acquisition cost and provides customers with an attractive less than two-year payback,” said Harrison, whose company sells the Transit Connect V but does not publish purchase prices.
We will see if this is arithmetic or just the latest variation of “Green Math.” One thing about fleet owners – they are good keeping track of ownership cost numbers with or without taxpayer EV subsidies.
