Quebec's Electric Vehicle Incentive Program

Quebec has launched a new program that is designed to increase the use of its renewable energy resources to power ground transportation. Quebec gets almost all of its electricity from hydro power which is a renewable resource. Quebec is the fourth largest hydroelectric producer in the world making electric vehicles a natural fit. Quebec already has the electricity to power at least one million elelctric cars. The province's Electric Vehicles Action Plan will make transportation electrification a centerpiece of Quebec's efforts to develop a new sustainable mobility system.

Quebec has one of the most ambitious GHG reduction targets in North America and the provinces electric vehicle strategy is the cornerstone of that effort. The province wants to encourage a thriving green economy and the province's plan will see an investment of 165 million between 2011 and 2020. Quebec's program is titled Running on Green Power. It is scheduled to launch on January 1, 2012.

With its abundant hydroelectric power, Quebec is a world leader in the fight against climate change. According to Environment Canada, Quebec's electrical grid is the cleanest in the country with an electricity intensity of only 2 grams of CO2 (2g CO2e/kWh) equivalent emitted for every kilowatt-hour (kWh). Quebec also has the lowest per-capita greenhouse gas emissions in Canada.

The 4.5 million vehicles in Quebec consume 35 percent of the province's oil consumption. The goal is to make 25 percent of all of Quebec's light passenger vehicle sales electric (plug-in hybrid or fully electric) by 2020.

The province's Deputy Premiere Nathalie Normandeau said the goal of the program is to reduce oil consumption, make electricity the fuel of choice for cars, buses, and trains.

According to Clement Gignac, the Minister of Economic Develolopment, Innovation and Esort Trade, one of the goals of the Electric Vehicles Action Plan is to spur the development of innoavtvative market-driving products and thus the creation of a world-class industrty.

Pierre Arcan, the Minister of Sustainable Development Environment and Parks indicates that the transportation sector accounts for 43 percent of Quebec's GHGs. That is up 28 percent since 1990.

Sam Harnad, the Minister of Transport indicates that the province has succeeded in increasing public transit use by nearly 8 percent. According to the Minister, 50 percent of all trips on public transit already involves electrically powered equipment.

According to government figures, Quebecers could save $37 per week with plug-in hybrids and $39 per week with fully electric vehicles.

For individuals who purchased a vehicle in 2011 were offered a refundable tax credit for the purchase or lease of a new fuel efficient vehicle. As of January 1, 2012, the refundable tax credit for the purchase or lease of fuel efficient vehicles will be replaced with rebates for the first purchasers of hybrid or electric vehicles. The rebate will be deducted from the after-tax purchase or lease price.

In the case of electric vehicles the amount of the rebate will depend on the battery s elelctgrical storage capacity.

To help Quebecers charge their vehicle, those who purchase or lease eligible vehicles will also be able eligible for grants to purchase home charging stations. Quebec is the first province in Canada to provide financial assistance for these home charging stations.

A total of $50 million will be set aside for purchase or lease rebates for hybrids, electrics and charging stations.

All electric and plug-in hybrids with a minimum 4 KWH battery will be eligible for a rebate of between 5
$5000 and $8000 in 2012. Low speed electric vehicles (LSVS) and hybrids will be eligible for a rebate of $1000.

Eligible hybrids must not exceed 5.27 liters/100km for gas-powered vehicles and 4.54 liters/100km for diesel-powered low speed electric vehicles.

For more information see Quebec EV action plan.

© 2011, Richard Matthews. All rights reserved.

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