Germany mulling €2 billion incentives for electric vehicles

Published by

CleanTechnica

A BMW i3 electric vehicle is charged at a public charging point in Munich, Germany. Shuttershock
A BMW i3 electric vehicle is charged at a public charging point in Munich, Germany. Shuttershock

Germany is considering providing 2 billion euros to subsidize the purchasing of more electric cars. German Economy Minister Sigmar Gabriel is behind the idea, which also includes adding more EV charging stations and supporting the acquisition of more electric vehicles for federal offices.

One might expect it would be an individual from an environmental government department who came up with such an idea, because electric vehicles are better for the environment, but the German government in general is getting more supportive of EVs. It wants one million of them on the roads by 2020, which is obviously just four years away. (One source estimatedthat there may be another 950,000 which need to be sold to reach the goal.)

As was mentioned before, Gabriel’s idea is not only something which is environmentally conscious, because presumably many of the newly purchased electric vehicles would be German-made. Encouraging the purchase of vehicles manufactured in Germany with a subsidy would be good for companies like BMW and Volkswagen, which already make EVs but are planning to introduce a lot more models.

Of course, EVs are better for human health too because they produce no tailpipe emissions, so German urban air quality would most likely improve. In fact, if a household had enough solar power, it might generate enough electricity to charge an EV at home with clean, renewable electricity.

Scenarios involving clean electricity to charge the batteries of vehicles that produce no tailpipe emissions might sound idealistic or fantastic. However, areas within Germany already generate high levels of clean, renewable electricity, so there is no reason why it can’t be used to power electric vehicles.

Electric cars are part of the energy puzzle that Germany has been working steadily to solve by reducing the use of fossil fuels and nuclear power.


One fascinating thing about a scenario where there are one million electric vehicles in a nation is that they can function as a sort of energy storage system. In other words, they can store electricity when they are not be driven. Additionally, if a homeowner has a solar power system but no battery storage, the battery in her or his EV could store some of the excess electricity generated by it (theoretically).

If 2 billion euros are invested in this EV subsidy, there are likely to be a number of wins: reducing air pollution which contributes to smog, reducing climate change emissions, moving the nation further along a path towards clean electricity, and supporting German auto manufacturers and their employees.

Source: CleanTechnica. Reproduced with permission.

Recent Posts

Open the grid: Why Australia needs power availability maps now

Applying for grid connections is like a fishing expedition. You lower your hook into the…

30 March 2026

Why the “generational” data centre opportunity feels a lot like the coal and gas debates of old

Australians have spent decades fighting over how much multi-national investors should pay for our resources.…

30 March 2026

Floods, inflation, insolvency: Transgrid says blowout in transmission costs “entirely” out of its control

Transgrid details causes of the "contract failure" that has blighted delivery of Project EnergyConnect, as…

30 March 2026

Stand-alone solar and battery-powered level crossings deliver an Australian first for regional rail

Stand-alone solar and battery systems used to upgrade upgraded remote rail crossings from “passive” –…

30 March 2026

Forty-eight concrete pours down, 21 to go: Construction powers ahead on huge Forrest wind farm

Progress update on a wind farm being developed by Andrew Forrest's Squadron Energy says the…

30 March 2026

Federal Labor bends to pressure and slashes fuel excise tax for petrol and diesel cars

Federal Labor slashes fuel excise in half for petrol and diesel cars, and will cut…

30 March 2026