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If Alabama commits to building its own EV charging infrastructure network by 2030, communities and businesses will benefit from an estimated $36 million per year from EV owners spending money while waiting to charge their vehicles. That is according to the Alabama Department of Economic and Community Affairs (ADECA). The ADECA has developed a statewide Electric Vehicle Infrastructure Plan (EVIP), which provides a guide for developing EV charging infrastructure in The Heart of the Dixie.
While Alabama has some of the lowest EV ownership rates, EV sales have continued to increase at a steady rate since 2004. According to Drive Electric Alabama, the problem is most Alabamians have never driven an EV before and educating residents about EV ownership and its benefits will lead to increased EV adoption in the state. Drive Electric Alabama holds EV events several times a year to educate Alabamians about electric cars. The growth of EVs is without question and Alabama is undoubtedly already a part of the trend.
Most U.S. car manufacturers are developing EVs and many have turned their focus solely to EVs. According to accounting and consulting firm KPMG, automotive executives expect 52% of all U.S. new vehicle sales to be EVs by 2030.
The Alabama state legislature has created three programs in supports of EVs, including an annual registration fee on EVs to replace gas tax revenue not paid by EV owners with some of the monies going towards EV infrastructure projects, an Electric Vehicle Infrastructure Grant Program, and an EV Technology Education Program. The grant program is part of the Rebuild Alabama law and is aimed at increasing the number of EV charging station installations in the state.
Additionally, the state of Alabama has also allocated $1 million for fiscal year 2021 and $2 million for fiscal year 2022 for EV charging stations.
ADECA plans to establish a DC Fast Charging (DCFC) EV charging network along Alabama’s major highway corridors. ADECA is providing robust EV charging incentives for government and non-government entities along the major corridors. Utility Alabama Power will match up to 20 percent of the cost to install the DCFC stations.
At the same time, the federal Infrastructure Investment and Jobs Act will deliver around $79 million for EV charging stations on federally designated routes.
The Cotton State offers many different EV charging incentives. Unfortunately, EV charging incentives are not available forever, they all have deadlines based on amount of funds or dates. That is why it is imperative for you as an Alabama resident or business to act now and take advantage of EV charging rebates instead of wishing you could have saved money on equipment you will need in the future.
The EVSE Grant program is a part of the Rebuild Alabama law. As mentioned earlier the law requires an annual registration fee to be paid by EV owners. A quarter of the funds will be used for EV charging support grants. The Alabama Department of Transportation, which administers the grant program, will provide funds to municipalities, counties, universities and other public institutions to help offset the costs of EV charging station installations.
ADECA will provide grants for EV charging equipment with priority given to projects located on the I-120/I-459 corridor from Tuscaloosa to the Georgia state line. The grant priorities will be on DC Fast Charging infrastructure along interstate corridors that meet the Federal Highway Administration (FHWA) Alternative Fuel Corridor designation criteria for electrification. The ADECA Energy Division will issue not more than $4,148,823.40 in grants. The program is funded by Alabama’s portion of the Volkswagen Environmental Mitigation Trust.
Alabama Power offers discounted Time-Of-Use (TOU) rates for commercial and residential customers who drive a plug-in electric vehicle.
The residential TOU rate is available to single residences and individual family apartments. The discounted EV charging period is from 9 p.m. – 5:00 a.m. CT. The customer will receive a monthly discount of 1.7155¢ per kWh during the EV charging period.
The commercial TOU rate is available to businesses with EV charging. The EV charging load is separately metered from all other electrical loads. Business customers will pay a base charge of $100 and then be charged for energy used to charge EVs based on different times of the day and two monthly periods – June 1 through Septment 30 and October 1 through May 31.
The federal government offered a tax credit for EV charging stations known as the Alternative Fuel Infrastructure Tax Credit, which expired at the end of 2021. This tax credit is an example of why you should not wait to complete your EV charging installation.
The tax credit covered equipment and installation costs. Commercial EV chargers, infrastructure, and installation costs could receive a tax credit of up to 30%, or up to $30,000. Residential installation could receive a credit of up to $1,000.
As you can see from this detailed list of EV charging incentives, each one provides a different kind of benefit and some require you to apply while others do not. Either way you will need an EV charging station at your home as an EV driver or EV charging stations for your customers or employees if you’re a business. Let us help you install the EV charging station best suited for you, your customers, or your EV.
Connect with our dedicated electrification specialists at Wattlogic. WattLogic’s comprehensive turnkey EV charging solution for residential and commercial installations, includes a stress-free bidding process, product selection, design and build, permitting, rebate management where we find rebates available for your project and apply on your behalf, and installation by a certified and licensed electrician. Start by taking a simple online digital survey so you can receive your quote in no time!
Federal, state, and local governments are investing in electric vehicle infrastructure projects. This means there are more opportunities than ever before to install an EV charging station at your home or business.