For the promotion of electromobility, higher premiums are currently available for both pure electric vehicles and plug-in hybrids. Currently, the state contribution to the environmental bonus increases temporarily to twice the amount. Thus, a buyer can now save a maximum of EUR 9,000 via the environmental bonus when buying a new electric vehicle, with this advantage only until 31.12.2021. In addition, the subsidy is also possible for leasing an electric car to the same extent as for a purchase. This benefits both individuals and companies, corporations, associations or foundations that want to make the switch to electromobility. The promotion applies on the one hand as before to new cars, but on the other hand also to used vehicles that received their first registration after 03.11.2019 and their second registration after 03.06.2020. As a further condition, it should be noted that the promoted vehicle remains registered to the applicant for at least six months.

In general, when buying a new vehicle with an electric drive, federal funding is only considered if the respective car manufacturers also participate in the funding. So far, the state and the manufacturer each shared half of the subsidy. Since 01.09.2020, the legislature has supplemented the previous state funding by an equally high amount as an innovation premium. This now applies to new cars with first registration from 03.06.2020, but can also be used retroactively for used vehicles under certain conditions. The first registration of the vehicle must have taken place after 04.11.2019 and received its second registration after 03.06.2020. This also applies if the electric vehicle has previously received its first registration in other EU countries.

Particularly important in this context is the list of eligible vehicles that the Federal Office for Economic Affairs and Exports (BAFA) draws up and continuously updates. It determines which vehicles according to the current state may actually receive the state support. Although the majority of the vehicles included in the list are passenger cars, the promotion also includes a number of vans and other commercial vehicles. One of the conditions to be considered in the list was that the net list price of the respective vehicle is a maximum of EUR 65,000. Furthermore, the environmental bonus can be claimed both for purely electrically driven vehicles or vehicles equipped with a hydrogen-based electric energy converter (fuel cell drive) and for externally chargeable plug-in hybrids.

2nd level of funding for the environmental bonus

Both the electrically driven vehicles and the plug-in hybrids have two different conveyor classes. The two classes are distinguished according to the net list price. The limit here is a net list price of EUR 40,000 valid in Germany.

To anticipate, vehicles in the class with the lower net list price, receive a slightly higher promotion than vehicles in the other price category. This is intended to support buyers with lower assets in particular when switching to electromobility. After all, the purchase promotion via the environmental bonus is based on the intention to replace as many vehicles with an internal combustion engine as possible with those with a more environmentally friendly drive.

2.1 Environmental bonus for vehicles with a net list price up to EUR 40,000

Electric cars that cost a maximum of EUR 40,000 will receive the previous manufacturer’s premium of EUR 3,000 and now twice as much state funding. This means that the total environmental bonus is EUR 9,000, which represents the maximum amount of funding.

On the other hand, plug-in hybrids in this price range receive a lower purchase promotion. Thus, the amount of funding of the manufacturers is EUR 2,250 and that of the state at EUR 4,500, thus a total of EUR 6,750.

2.2 Environmental bonus for vehicles with a net list price between EUR 40,000 and EUR 65,000

Now we consider the promotion of electric vehicles in the price range over EUR 40,000 up to a maximum amount of EUR 65,000. Both the premiums granted by the federal government and the manufacturers are slightly lower than in the previously presented price class. Nevertheless, the level of funding is also considerable here. For electric vehicles with a manufacturer premium of EUR 2,500, it is only slightly lower than that granted for electric vehicles with a net list price of less than EUR 40,000. Consequently, the state support is EUR 5,000. So you get an environmental bonus of a total of EUR 7,500.

For the plug-in hybrids, the manufacturers promote the purchase with a premium of EUR 1,875, which the federal government increases by EUR 3,750. Therefore, even the smallest environmental bonus with EUR 5,625 is still a respectable advantage that you like to take advantage of.

Who is eligible to apply for an environmental bonus?

As another important decision support regarding the environmental bonus, the question is to clarify whether one even belongs to the circle of those who can receive it. Fortunately, there is a pleasing answer for many interested parties. Because with a few exceptions, basically everyone can apply for the environmental premium. Only state institutions and the car manufacturers themselves are excluded for obvious reasons. But no matter whether private person, company, corporation, association or foundation, they can all save a lot of money with the environmental bonus when buying an electric vehicle.

In addition, you are also entitled to apply for the environmental bonus if you sign a lease agreement for the desired electric vehicle instead of a purchase contract. However, the support only applies in cases where the lessee intends to use the vehicle himself. As a result, the previous regime continues to exist in this respect.

Furthermore, it should be noted that the funding is excluded if an applicant has filed for insolvency or is even involved in insolvency proceedings (relative to their own finances). Generally speaking, the promotion of vehicles that receive other public support when they are purchased is also excluded.

Now our readers would certainly like to know how long the promotion of electromobility via the environmental bonus applies. For this purpose, the legislature has set a deadline of 31.12.2025. However, the double funding level by the federal government through the innovation premium only applies until 31.12.2021. So if you want to benefit from the higher innovation premium, you should quickly take action. After all, some manufacturers have longer delivery times for their products due to the now increasing demand for electric cars and the recently increased environmental premium.

5th Conditions for receiving the environmental bonus

An important condition that must be met in order to receive the environmental bonus is that the purchased electric vehicle remains approved to the applicant for at least six months.

Further conditions are attached to the purchase of a used electric vehicle. When claiming the purchase premium, the used electric vehicle must have participated in the traffic for a maximum of twelve months with the first registration, the mileage must not exceed 15,000 km. In order to receive the double federal support premium, you have to submit the application for the environmental bonus no later than 31.12.2021. Otherwise, it is sufficient to submit the application within 12 months of the secondary authorisation. But also very important is the purchase price of the used electric car. If the purchase price is more than 80 % of the gross list price minus the gross support of the manufacturer, then support via the environmental bonus is also excluded.

The last point to be raised here is also of crucial importance, albeit moderately assessable. The federal funds available to promote electromobility are limited to EUR 1,200,000,000. So if the subsidies are exhausted, you can not expect an environmental bonus from the state when buying an electric vehicle. Therefore, and because the environmental bonus has actually attracted many buyers recently, one should, if one actually intends to switch to electromobility, the acquisition of an electric car into action soon.

6. Two calculation examples for the environmental bonus

To demonstrate the financial benefit of the environmental bonus, we want to present two calculation examples. On the one hand, we take a new vehicle, which is in the BAFA list for the vehicles with a net list price below EUR 40,000. On the other hand, we want to look at what you save when purchasing an electric car that has a net list price in the range between EUR 40,000 and EUR 65,000.

6.1. Calculating example of environmental bonus: net list price below EUR 40,000

Since the environmental bonus allows the greatest savings potential to be achieved with the cheapest possible electric vehicle, we choose the Citroën C-Zero with a net list price of exactly EUR 15,000. If you add the sales tax with the currently still valid sales tax rate of 16 %, the gross price that a private person would pay is EUR 17.400. Now we subtract the environmental bonus for this all-electric car. With a total amount of EUR 9,000, only EUR 7,920 for this electric car remains. Here we have taken into account the manufacturer's share of the environmental bonus as subject to VAT. Thus, the subsidy for this exemplary electric vehicle amounts to more than 50% of the acquisition costs including sales tax.

6.2. Calculating example of environmental bonus: net list price over EUR 40,000

In comparison, we calculate the advantage that the environmental bonus means when buying an electric vehicle in the price segment over EUR 40,000. Because we also want to give an example of a commercial van, we choose the Renault Master Z.E. for a net list price of EUR 64,000. Since commercial use is in the foreground, we can easily neutralize the sales tax via the input tax and thus save their calculation. Thus, the delivery truck with the environmental bonus of EUR 7,500 costs in the end only EUR 56,500. So with the environmental bonus in this example, which is deliberately located at the upper end of the net list price, you save a share of just under 12%.

7. State support for the AVAS facility

For the sake of completeness, it should be mentioned that, in addition to the environmental bonus, there is also a support for the installation of a so-called AVAS system. AVAS stands for Acoustic Vehicle Alerting System and refers to a device that is installed in low-noise vehicles, such as electric vehicles, so that other road users, especially pedestrians, can better perceive them. The grant for the installation of an AVAS system amounts to a flat rate of EUR 100.