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Ways electric vehicles can be incentivized – Report  

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Several stakeholders have called for Nigeria to set the foundation for the proliferation of electric vehicles in the country, especially following the removal of fuel subsidies and the current calls for a shift away from fossil fuels for the benefit of the environment.  

In an October 2023 Insight report, the Energy Markets Rates and Consultants (EMRC) Limited stated that taking advantage of electric vehicle incentives is a smart step towards a sustainable and eco-friendly future.

According to the EMRC report, in the world’s current climate change era, adopting a comprehensive strategy that includes building infrastructure, governmental support through policies, and spreading public awareness is crucial for achieving a greener and more efficient transportation system. 

The report also highlighted some ways incentives could be provided for the adoption of electric vehicles.

They include: 

Individual Credit: Individual credit refers to rewards in the form of tax reductions or refunds given to people buying electric vehicles (EVs).

The value of these credits varies based on factors such as where you live (state-to-state differences) and features of the vehicle like battery size, model, and manufacturer’s suggested retail price. 

High Occupancy Vehicle (HOV) Lane Access: HOV lanes are special lanes on highways meant for vehicles with multiple passengers, promoting carpooling and reducing transportation emissions.

In some places, EV owners can use these lanes, even when travelling alone, as an incentive. 

Inspection Exemption: Certain countries require vehicle owners to undergo emissions inspections periodically to assess greenhouse gas emissions. This inspection can influence the vehicle tax owners to pay.

However, EVs, being emission-free, are exempt from these inspections, especially in places like Norway. 

Registration Fee Reduction: Many countries, including Nigeria, charge annual fees for vehicle usage. EV owners often get discounts or even complete waivers on these periodic registration fees, encouraging the adoption of electric vehicles. 

Fleet Credit: Fleet credit is akin to individual credits but tailored for larger entities like businesses and universities.

These credits can be more substantial in value, but there’s usually a cap on the number of vehicles an entity can claim credit for. 

Time of Use (TOU) Rate: Electric utilities offer a Time of Use (TOU) rate as an incentive, providing EV owners with lower electricity rates during specific times of the day when demand for electricity is low.

This helps EV owners save on their electricity bills. 

Infrastructure Incentives: EV owners can enjoy subsidies for installing EV charging infrastructure at their homes, public places, or businesses.

These incentives can be in the form of grants, rebates, or loans, encouraging the growth of charging facilities. 

 

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