A electric vehicle charger mounted outside Green Wave, an EV dealership in North Hampton, New Hampshire. (Photo by Lauren McCauley/ Maine Morning Star)
The head of the agency spearheading Maine’s energy efficiency efforts is still hopeful about the long term shift to battery-powered and low-emission vehicles, which are a key aspect of the state’s climate goals, despite the loss of a federal tax credit and projected cost increases due to tariffs.
“I’m cautiously optimistic,” said Michael Stoddard, executive director of Efficiency Maine, the quasi-state agency that implements energy efficiency programs.
The series of federal policy changes — including a sunset of tax credits and increased tariffs on parts and products made overseas — will make the widespread adoption of combustion engine vehicles to electric and battery powered vehicles (commonly referred to as EVs) more challenging, Stoddard said. However, he also believes manufacturers will continue to improve EV options and find ways to lower prices as the rest of the world moves toward this technology.
Federal and state incentive programs have helped the state’s goal to put 150,000 light-duty electric vehicles on Maine roads by 2030 outlined in the climate action plan, given that transportation is responsible for nearly half of the state’s carbon emissions.
One major incentive has been federal tax credits, which were set to expire in 2032, but will now end on Sept. 30 due to a provision in President Donald Trump’s sweeping tax cut and spending law.
Vehicles must be acquired by that date to qualify for the New Clean Vehicle Credit, which offers up to $7,500 for new battery electric or plug-in hybrid vehicles, or the Used Clean Vehicle Credit, which offers up to $4,000 for used electric or hybrid vehicles.
While Stoddard said there isn’t data from this calendar year to see how consumers have reacted since that measure was signed into law on July 4, data shows increased demand for EVs at the end of 2024, which precipitated a change in state incentive programs.
In 2019, Efficiency Maine launched an EV rebate program that offered up to $2,000 for the purchase of a new electric vehicle or plug-in hybrid to Mainers of any income. The rebate amount increased to $7,500 for low-income consumers and included an option to get some money back for purchasing a used hybrid or electric vehicle.
Whether it happens in the next two years or the next five years is not so important, I think it’s just important that we keep moving in the right direction.
– Michael Stoddard, Efficiency Maine
But in November 2024, Efficiency Maine had to stop issuing rebates — except for those designated for low-income customers — because it exhausted the $13.5 million provided for the program.
However, Efficiency Maine will soon resume offering rebates thanks to a new law that allows the agency to tap into a new revenue stream, Stoddard said.
This summer Gov. Janet Mills signed LD 585 into law, which allows Efficiency Maine more flexibility in using certain funds that are currently only used for subsidizing heat pumps. The new law removes those limitations so the specific revenue, known as forward capacity market funds, can be used for electric vehicles as well.
The resumed rebate program will look different than before, Stoddard explained.
Consumers are required to purchase an off-peak charger to receive the incentive. A discount is available on the agency’s website, which brings the cost of the charger to $129. Stoddard said this will ensure that most charging for those EVs will happen when the electrical grid has plenty of capacity.
There are also limitations as to who can access the incentive program, which will be available to businesses, nonprofits, government entities and low- and moderate-income households. Low-income households can receive $7,500 for a new vehicle and $3,500 for a used one, while all other groups will receive $2,000 for new and $1,500 for used vehicles.
Stoddard acknowledged that there will always be a percentage of the population that doesn’t make the shift, but he thinks that despite the recent federal policy changes, sooner or later most Mainers and the rest of the country will switch.
He also pointed out that the expansion of charging infrastructure, decreased battery costs, as well as more variety in electric vehicle type — from pickup trucks to vans — could all contribute to people continuing to veer away from gasoline-powered cars.
“Whether it happens in the next two years or the next five years is not so important, I think it’s just important that we keep moving in the right direction,” he said.
Comments