Plug-in Electric vehicles (PEVs) offer significant environmental benefits and help EV owners save money on fuel. There are also several incentives available to aid in the purchase of a plug-in electric vehicle.
According to the Massachusetts Department of Environmental Protection (Mass DEP), PEVs decrease greenhouse gas emissions. Even when PEVs are charged with electricity generated from fossil fuels, less greenhouse gases are emitted than a conventional gasoline fueled vehicle. Because the Northeast power grid is more reliant on natural gas and renewable energy, electricity generated in this area is among the cleanest in the country.
Over the lifetime of a PEV, an owner can save thousands of dollars in fuel costs. A good way to quantify these potential savings is to compare the cost of a gallon of gasoline to the cost of an electronic gallon (eGallon). According to the US Department of Energy (DOE), an eGallon is the cost of fueling a vehicle with electricity compared to a similar vehicle that runs on gas. Based on RMLD’s residential electric rates, RMLD customers would pay between $0.95 and $1.17 per eGallon, as compared with the average Massachusetts gas price of $2.61/gallon (as of September 2019). This equates to a savings of between $500 and $1,000 a year (depending on vehicle type, make, model, and annual mileage). Check out the chart below to see other eGallon equivalents:
|Price per kWh||Equivalent Price per eGallon|
|RMLD Residential Time-of-Use Rate||$0.13||$0.95|
|RMLD Standard Residential Rate||$0.16||$1.17|
|Average residential rate of privately owned electric utilities in MA||$0.23||$1.68|
Check out the DOE’s Fuel Savings Calculator at https://www.fueleconomy.gov/feg/savemoney.jsp to compare fuel costs by make and model and see what you can save.
Federal Tax Credit = $2,500 - $7,500 (depending on capacity of battery).
MOR-EV State Rebate = From the MOR-EV website: "Department of Energy Resources (DOER) is reestablishing Massachusetts Offers Rebates for Electric Vehicles (MOR-EV), making at least $27 million available per year in 2020 and 2021. MOR-EV eligibility requirements effective January 1, 2020:
- Only purchases and leases made on or after January 1, 2020 are eligible.
- Battery Electric Vehicles (BEVs) with a sales price under $50,000 are eligible for a $2,500 rebate.
- Plug-in Hybrid Electric Vehicles (PHEVs) with a sales price under $50,000 and an all-electric range of 25+ miles are eligible for a $1,500 rebate.
- Zero-emission Motorcycles (ZEMs) will no longer be eligible."
Green Energy Consumers Alliance Drive Green Program = amount varies widely by dealership and type of vehicle.