One of the primary challenges toward an electrified future in
the transportation sector is the limited access to electric vehicle
(EV) charging infrastructure, according to a S&P Global
Mobility consumer survey conducted in 2022. Few EVs on the road
meant a low return on investment for charging station operators,
leading to inadequate deployment, which in turn dissuaded potential
customers from buying EVs. To break the circle, it has been
imperative for authorities to support and incentivize the
deployment of charging infrastructure to instill confidence in
buyers and accelerate the EV uptake in their region.
Several governments across the world have taken responsibility
to expand the EV charging infrastructure, private and public, which
has started showing results. The number of AC and DC chargers
installed globally grew from 9 million in 2019 to more than 30
million in 2022. In 2023, this will increase to more than 44
million globally, reaching 196 million in 2030.
The recently published Electric Vehicles Supply Equipment (EVSE)
incentive tracker by S&P Global Mobility captures all the key
EVSE incentive programs in leading EV markets. The tracker looks at
incentives offered for all the domains, ranging from domestic,
workplace, public and semipublic for both AC and DC charging
stations.
The report also covers the type of incentives offered and what
aspects of a charger installation are eligible for the incentives,
which might range from only installation costs to installation and
hardware costs and more comprehensive eligibility covering
installation, hardware, and grid connection costs. The tracker
highlights that the incentive programs vary significantly from one
country to the other, depending on the prevailing market
priorities.
Along with the subsidy amount, it is also important for the
beneficiaries to know how the incentives are being offered.
Different strategies are being adopted by the countries and the
incentives are offered in different forms such as direct cash
benefits, grants, equipment rebates, and tax deductions.
As visible in the chart above, not all countries are pursuing
the same strategy when it comes to promoting charging-station
deployment. Countries such as Switzerland see the strategic
importance of domestic infrastructure with a level of subsidization
that is on average twice that of the following countries,
specifically targeting the consumer who wants to invest in
bidirectional chargers.
In the AC and DC public and semipublic domain, Germany is in the
lead with maximum incentives of €13,000 and €120,000, respectively,
for AC and DC infrastructure. Significant attention is paid to the
coverage of grid connection costs, which sometimes can be higher
than the charging station itself. The European country has
announced several policies to quicken the pace of electrification
of the automotive industry, especially after the COVID-19 pandemic,
which can also be seen in the countries following Germany in the
list that are offering incentives ranging from about $1,000-$9,000
for AC chargers to more than $100,000 for DC chargers.
For more information on the various incentive
programs that are active across the major EV markets, download the
EVSE Incentive Tracker.
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This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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- Source: http://www.spglobal.com/mobility/en/research-analysis/charging-infrastructure-incentives-gain-momentum.html
