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With the vehicles that we drive today, gasoline usage is a leading detrimental contributor to the environment. Taking smart initiatives and being socially responsible when it comes to climate change can help protect our planet. With the latest technological advancement making way, a smart alternative that not only reducing your carbon footprint but also saving your money is found when you choose an electric vehicle.
What Is an Electric Vehicle?
As the name suggests, an electric vehicle (EV) is a vehicle that operates on an electric motor, instead of an internal combustion engine that generates power by burning a mix of fuel and gases. Drivers of EVs can plug in the vehicles to charge from an off-board electric power source.
The concept of EVs has been around for some time now, but it has only drawn a considerable amount of interest recently due to the rising carbon footprint and other environmental impacts of fuel-based vehicles.
There are primarily two kinds of EVs available today, namely all-electric vehicles (AEVs) and plug-in hybrid electric vehicles (PHEVs). The chief difference between the two is that AEVs run only on electricity while PHEVs run on electricity for shorter distances and then switch over to an internal combustion engine when the battery is depleted.
What Are EV Incentives in Michigan?
With all the benefits that EVs have to offer, it’s not a surprise if you want to purchase one for yourself. And if you live in Michigan, you might also wonder if there are actually any incentives that you can get for purchasing an EV.
Luckily for you, there are EV incentives in Michigan. They are as follows:
The Federal Tax Credit
The federal government provides a significant tax credit for new EVs; the tax credit ranges from $2,500 to $7,500, depending on the capacity of the EV’s battery. AEVs are eligible for the full $7,500, while some PHEVs with smaller batteries receive a reduced amount.
You should note that the federal tax credit amount is affected by your tax liability. You should also note that you shouldn’t lease your EV because if you do, the tax credit goes to the manufacturer. That said, some dealerships already factor the tax credit into the cost of the lease, thus lowering your downpayment or monthly payments. It’s better to ask a sales rep about this.
Aside from that, another thing that you should know is that once a manufacturer’s EV sales exceed 200,000, the available tax credit enters a phase-out period that begins with full rebate amounts in that quarter and the following quarter. After this grace period, the tax credit is cut in half for the next two quarters. Then the amount is cut in half again for a final two quarters before it is phased out completely.
Additional tax credits are available until December 31, 2020, for the purchase of fuel-cell electric vehicles (FCEVs), zero-emission motorcycles (ZEMs), and EV charging equipment.
Electric Vehicle Supply Equipment (EVSE) Rebate
The Consumers Energy PowerMIDrive offers rebates to residential and commercial customers who install Level 2 or direct current (DC) fast EVSE. Residential customers are eligible for a $400 rebate to install a qualified Level 2 EVSE, while commercial customers who install qualified and publicly accessible EVSE are eligible for rebates up to $5,000 per Level 2 and up to $70,000 per DC fast EVSE installed.
Aside from Consumers Energy, DTE Energy also offers a $500 rebate for the installation of a Level 2 EVSE for qualified residential customers who purchase or lease a plug-in electric vehicle (PEV) and enroll in the PEV Charging Rates.
Plug-In Electric Vehicle (PEV) Charging Rate and Infrastructure Rebate
Indiana Michigan Power offers a special time-of-use rate option to residential customers who own a qualified PEV. Aside from that, they also provide rebates of up to $2,500 to residential customers who purchase or lease a new PEV and install a Level 2 EVSE with a separate meter. This rebate is available to the first 250 qualified customers who submit a completed application.
Lansing Board of Water and Light (BWL) also offers a pilot PEV time-of-use charging rate to single- or multi-family dwellings of four units or less with separately metered Level 2 EVSE. Additionally, they offer a reimbursement of up to $1,000 for the purchase and installation of EVSE for customers who have enrolled in the PEV charging rate. This program is limited to the first 10 qualified residential customers.
Plug-In Electric Vehicle (PEV) Charging Rates
DTE Energy offers two rate options to qualified residential customers for charging PEVs. The PEV time-of-use rate is available to customers using Level 2 EVSE and requires a separate meter, which DTE provides. The flat-rate option is $46.28 per month for each PEV.
What Are the Benefits of Electric Vehicles?
Electric vehicles offer several benefits not only to you but also to the environment. The following are some of the benefits of EVs:
Fewer to Zero Emissions
EVs have significant emission benefits over fuel-based, conventional vehicles. AEVs produce zero tailpipe emissions, while PHEVs produce no tailpipe emissions when they are in all-electric mode.
Fewer emissions — and, in some cases, even zero emissions — mean reduced greenhouse gases, and reduced greenhouse gases further entails that we can avoid damaging our ozone layer much further. Reduced greenhouse gases also mean that we won’t have to inhale harmful gases into our bodies anymore, thus saving ourselves the trouble of catching respiratory diseases.
Long story short, EVs can improve the state of our planet and, by extension, the state of our well-being.
Cheaper to Maintain
The price of an EV may be the same as most comparable fuel-based vehicles, but the cost of running one is actually a lot cheaper.
EVs are designed to be as efficient as possible, and they have three primary components: the on-board charger, inverter, and motor. This means that there is far less wear and tear on the car and little stress on the motor. There are also fewer moving parts that are susceptible to damage.
Because of all this, an EV owner will rarely have to have their EV serviced. Aside from that, the running and repair costs are minimal.
Quieter, More Enjoyable Driving Experience
One of the first things that drivers notice when getting an EV is the quietness of the vehicle. This quietness allows for a more comfortable and relaxing driving experience.
Additionally, EVs have instant torque, meaning that you’ll always have power right at your fingertips. The moment you hit the accelerator, you’ll get an instant response and surge of speed from the car, thus making these vehicles ideal for city driving.
In order to put an end to climate change, all of us must do whatever we can to reduce our carbon footprint. And one way to achieve this is to invest in an electric vehicle (EV).
Electric vehicles operate on an electric motor, instead of an internal combustion engine that generates power by burning a mix of fuel and gases. Because of this, EVs produce fewer to zero emissions, which means that there will be reduced greenhouse gases in the atmosphere. Reduced greenhouse gases mean that the ozone layer won’t be damaged further and that we will be safe from respiratory illnesses.
Since EVs are incredibly beneficial, we’re encouraged to invest in one. If you live in Michigan, you’re lucky because there are incentives that you can get for purchasing an EV. So, if you’re interested in buying an EV for yourself, now’s the time to do so.