For years California’s state government has acted to spur growth in the electric vehicle industry. As a parking lot owner, this can make it a lot less expensive for you to generate more revenue from lots by installing EV chargers and catering to the ever-growing segment of EV motorists.
One of the key benefits available to lot owners is a generous electric car charger rebate offered through the Electric Vehicle Charging Station (EVCS) Financing Program, administered through the California’s California Capital Access Program (CCAP).
The EVCS Financing Program in a Nutshell
This EV charger rebate takes the form of a loan rebate. You first apply for a loan from an eligible lender. You then use this loan, in accordance with EVCS guidelines, to purchase and install an EV charger on your parking lot. Then you repay the loan.
Once you do so, or after 48 months with on-time payments, you will qualify for a loan rebate of up to 15 percent of the full loan amount.
The Purpose & Benefit of the Program
“The goal of the CalCAP Electric Vehicle Charging Station Program is to expand the number of electric vehicle charging stations installed by small businesses in California,” writes the California Pollution Control Financing Authority.
“Millions of consumers in the state do not buy zero emissions electric vehicles because these vehicles have an average range of 80 – 100 miles and there is a dearth of charging stations. This $2 million financing program provides incentives to small business owners and landlords to install electric vehicle charging stations for employees, clients and tenants.”
In essence, with its EV charger rebate the State of California is trying to solve the chicken-and-egg problem of electric vehicles needing charging stations in order to become convenient alternatives to conventionally-powered cars, and charging stations needing a critical mass of EVs already on the road in order to be economically viable.
EVCS Financing Program Details
The first step to getting the EV charger rebate is to understand the terms of the underlying loan.
The actual loan is limited to $500,000 per qualified borrower. Lenders will set the terms and conditions of the loan and its repayment.
How the Rebate Works
For qualifying loans, the EVCS pays 20 percent of the loan balance into a loss reserve account, to protect lenders against loans that go bad. CalCAP will pay up to another 10 percent (for a total of 30 percent) if the charging station is located in a disadvantaged community as designated in the CalEnviroScreen 2.0.
After successfully repaying the loan or making payments on-time for 48 months, for the EV charger rebate you will receive half this amount, for a total value between 10 and 15 percent of the loan balance.
Choosing an Eligible Lender
The next step is to secure a loan through an eligible lender. Per the state of California, any “federal or state-chartered bank, savings association, certified Community Development Financial Institutions (CDFI), or credit union” can participate in this program. A lender needs to certify that it is in good standing with its regulatory body.
Terms & Restrictions on the EV Charger Rebate
There are a number of restrictions on the loan rebate in place to prevent misuse of the funds, including additional limits on how you can use the loan, what hardware you can buy, and more.
Small businesses can apply if they:
- Are located in California.
- Have 1,000 or fewer employees.
- Have legal control over the site where the EV charging station will be installed.
- Will maintain control of that site for at least as long as the enrolled loan.
Moreover, the EV charging stations must meet technical specifications outlined here.
The good news is that, generally speaking, while the terms and restrictions are extensive, if your goal is to add EV chargers to your parking lot, you’ll likely be able to comply with these terms and qualify for the loan and associated electric car charger rebate.
Let EV Connect Guide You Through the Process
As is often the case with government rebates and incentives, there are a lot of hoops to jump through, but the value is real. That 10 to 15 percent EV charger rebate can make the difference in turning an EV charger investment profitable.
EV Connect is based in California and we are fully up-to-speed on navigating the minutiae of the EVCS program. We regularly guide clients through this process when they don’t want to tackle it alone. Contact us today for a free consultation, and get on the road to upgrading your lot with EV charging facilities.