As the electric vehicle (EV) market continues to grow in North America, the need for charging infrastructure is more critical than ever. For businesses, municipalities, and property owners, investing in Electric Vehicle Supply Equipment (EVSE) opens up valuable opportunities for growth in the rapidly expanding EV market, but investments are costly. Fortunately, rebate programs exist to help offset installation costs, making these projects more feasible.
Navigating the complexities of these programs can be challenging, and without careful attention, you risk missing out on valuable financial incentives that could enhance your project's profitability. Here are some common pitfalls to avoid when applying for EVSE rebates and strategies to ensure a smooth process.
1. Missing Program Deadlines
One of the most frequent issues with EVSE rebates is missing critical deadlines. It's easy to see why; over 500 rebate programs for EV chargers span North America and they're constantly changing. In fact, in 2024 alone, there have been nearly 400 changes in the programs. While some programs may seem relatively stable, others, like competitive grants, might be open for just a couple of weeks.
It's not only essential to know when a program is open. Even after a project is pre-approved, installation deadlines and program closing dates can still impact your eligibility. EVSE installations are often time-consuming, and without close monitoring, projects may not be completed by the required deadline, causing the rebate to be forfeited.
Solution: The key to avoiding this pitfall is to give yourself plenty of time in all phases of the project. As soon as you start considering a location, investigate the potential rebates and their fine print. You can see what's available currently, but it’s just as important to look for programs that might be coming soon and may influence the timing of your project. If the program is currently closed, get all your paperwork and documentation prepared so you can submit it as soon as the program reopens in order to secure the funding.
Then, once a project begins, make sure you note all the program deadlines in your project timelines. If you run into problems like permitting issues or long lead times on equipment, be sure to notify the program administrators early to mitigate any potential issues.
2. Not Focusing on the Crucial Pre-Approval Process
For most commercial EV charger installations, and some residential rebate programs, pre-approval is required before installation begins. If work begins before the proper paperwork is submitted and approved, you might miss out on the rebate altogether. The process can be lengthy, easily taking 4 to 5 months for approval and in cases like competitive grants, the decision might not be made for many months. The approval process typically involves a good deal of correspondence with the program, supplying required documentation, and answering any questions.
Solution: Before starting any work, confirm the specific requirements for pre-approval. Ensure that your installer and project manager are aware of this step to avoid costly mistakes if the work begins too soon. Also, be sure to allow enough time for the pre-approval. The process for EV Chargers typically takes much longer than energy efficiency rebates.
3. Failing to Meet Eligibility Requirements
Each rebate program has specific eligibility criteria that must be met to qualify for an incentive. Sometimes, the slightest little thing can throw a wrench in the rebate process. Forgetting about required signage/labels, not closing out the permits, and even something as simple as painting the parking space incorrectly can lead to a problem.
Common Requirements to Watch For:
- Approved Chargers List
32% of active rebate programs require that projects use a charger on an approved list in order to qualify for an incentive. - Reporting Capabilities
Some programs stipulate that chargers must provide certain data back to the utility or be capable of demand response. In addition, 13% of programs have an Approved Network List indicating which networks the equipment must be connected to. - Site Accessibility
Certain rebates require that chargers be accessible to the public or installed in specific facility types (e.g., multi-family residences and businesses open to public use). - Compliance with Standards
Make sure to adhere to all installation stipulations in the rebate program. Some programs include language that projects “must adhere to all state and local laws” but don’t specify what those are, so you must investigate the local requirements yourself.
Solution: Read the fine print. Make sure the equipment you plan to install meets all the eligibility requirements of the rebate program. Work closely with your EVSE vendor to select approved hardware and installation partners, and ensure that your installation site aligns with the rebate requirements.
4. Not Accounting for Rebate Caps and Limits
When estimating rebates for EV Chargers, many people quickly look at the base published rebate amount and don't consider any cost caps or limits. For example, in Palo Alto, California, a multi-family project could receive $8,000 per port, but that incentive is limited to 75% of the project cost. If an apartment installed one dual-port charger for a total cost of $5,000, they'd only receive $3,750, rather than $16,000.
Caps may not only apply to the incentive per charger, but also the overall project. A program might provide a sizable incentive for installing four Level 2 chargers in a multi-family project but nothing for any number of chargers over that limit.
Solution: Verify the rebate program's cost caps and charger limits while estimating the incentives and making a proposal.
5. Missing Out on Additional Funds
Rebates for EV chargers are often complex, and focusing on a single program can lead applicants to overlook other opportunities. Stacking rebates—combining incentives from multiple programs—is a powerful way to reduce installation costs. For example, in New Jersey, it's possible to combine a state-level rebate with a separate program from the local utility provider to cover the make ready costs. In addition, if the project is located in an applicable census tract, it can also qualify for the Federal 30C tax credit. By just looking at one source, you're severely limiting the potential.
Solution: Conduct comprehensive market research to identify every available rebate, incentive, and grant that applies to your project. By combining multiple funding sources, you can maximize your rebates and significantly increase your financial return.
Hard Work and Due Diligence Will Help You Succeed with EV Charger Rebates
Navigating the EVSE rebate landscape can feel daunting, but with careful planning and attention to detail, you can avoid common pitfalls and take full advantage of the available incentives. The key is having the right knowledge and excellent project management. You need to know where the rebates are, the applicable rules, and where all the projects are in the process. Starting your research early and constantly monitoring the rebate situation will help you be successful.
By following these steps, you can ensure a smooth process and a successful rebate application and turn the intricate rebate landscape into a competitive advantage.
The Rebate Information You Need At Your Fingertips
RebatePro for EV Chargers is the industry-leading tool that gives you everything you need to take advantage of these valuable incentives. It was built specifically to make rebate estimating and filing EV charger rebates easier than ever with powerful features like:
- Receive an email notification when your favorite programs open, close, or make announcements.
- Instantly see which programs have approved charger and network lists.
- Quickly understand cost caps and charger limits.
- Run a multi-location search for up to 10,000 locations at once.
- Search through all 5 sources of rebates (Municipal, Utility, State, County/Regional, and Federal) with one click.