The German ministries of economics, transport and environment reportedly agreed on a new incentive program for electric vehicles that will include a €5,000 discount at the purchase starting July 1st.
Such a program has been in the work since last year after Germany joined the International Zero-Emission Vehicle Alliance (ZEV Alliance), but the three responsible ministries couldn’t agree on the cost of financing an incentive program until now, according to German newspaper Der Spielgel:
“In a joint paper, Economy Minister Sigmar Gabriel (SPD), Transport Minister Alexander Dobrindt (CSU) and Environment Minister Barbara Hendricks (SPD) calculate a financial need for the premium of a total of 1.3 billion euros.”
The newspaper adds that the €5,000 incentive would apply to EVs for personal use, while commercial vehicles would receive a €3,000 incentive.
The amount is set to decrease by €500 every year and be completely phased out by the end of the decade.
Under the new initiative, the government also plans to finance 15,000 new charging stations across the country and to subsidize battery research.
Although it sounds like the deal is done, the program will only be made official during a summit in April before it can start in July.
Featured image: German automaker Daimler’s electric vehicle models