April 16, 2021

The Government approves subsidize with 5,000 euros the purchase of electric vehicles

The Government approves subsidize with 5,000 euros the purchase of electric vehicles

The Council of Ministers has approved, at the proposal of the Ministry for the Ecological Transition, two plans, with a joint amount of 60 million euros, which will be used to promote sustainable mobility, by encouraging the purchase of alternative vehicles and infrastructure and also to support unique projects in World Heritage cities or islands.

The first is a Royal Decree regulating the foundations of the Efficient and Sustainable Mobility Incentive Program (MOVES), endowed with 45 million euros and directed to encourage the purchase of alternative vehicles, install electric vehicle charging infrastructures, the development of incentives to implement lending systems for electric bicycles and the implementation of measures included in transport plans to work centers.

Additionally, a line of 15 million euros is set up to support singular sustainable mobility projects in World Heritage cities, municipalities with high pollution index or located on islands, or innovation initiatives in electromobility.

The amounts of aid for the purchase of vehicles range from 700 euros for electric motorcycles and 15,000 euros for the purchase of trucks and buses with alternative propulsion. The aid for the purchase of light electric vehicles is around € 5,000.

In parallel, manufacturers, importers of vehicles or points of sale will be required a minimum discount of one thousand euros on the invoice, except for purchases of quadricycles and motorcycles. Thus, potential beneficiaries of state aid will have an additional incentive to bet on sustainable mobility.

The incentives for gas vehicles are reserved for trucks and vans, given that the electrical alternatives do not have enough development.

As for the electric recharging points of electric vehicles (public and private) and the electric bicycle loan systems, the aids will be 30% or 40% of the eligible cost, depending on the type of beneficiary, establishing a limit of 100,000 euros.

Finally, MOVES sets a limit of 200,000 euros of aid per beneficiary for the implementation of Transport Plans to the Work Centers with a 50% subsidy of the eligible cost.

The aid may be co-financed with resources from the European Regional Development Fund (ERDF) and they are not compatible with other aids, of any other administration, that have the same purpose.

Territorial distribution

They can be beneficiaries of MOVES grants independent professionals, individuals, communities of owners, private companies, local entities and public entities linked to its, the administrations of the autonomous communities and other public entities of the General State Administration.

Both aid programs, which will be coordinated by the Institute for Energy Diversification and Saving (IDAE), will be managed by autonomous communities and cities, which must hold calls in their respective territories. The distribution criteria agreed by the Energy Sectoral Conference, coordination body between the Ministry for Ecological Transition and regional administrations in energy matters.

The budget assigned to each community or autonomous city must be divided among the different actions included in the Royal Decree. Thus, between 20% and 50% must be devoted to the acquisition of alternative vehicles; and between 30% and 60% to the implementation of recharging infrastructure. From this last percentage, a minimum of 50% must be directed to fast or ultra-fast charging points.

On the other hand, The implementation of electric bicycle loan systems can be between 5% and 20% of the budget allocated and support for transport plans in work centers can count up to 10%.

The 45 million item destined to MOVES was consigned to the IDAE in the budgets of 2018 in order to finance "actions to support mobility based on criteria of energy efficiency, sustainability and promotion of alternative energies, including the provision of electric vehicle charging infrastructure".

On the other hand, the 15 million line dedicated to singular budgets comes from a finalist game of 10 million allocated for this purpose to the IDAE in the budgets of 2017, and that was not executed at the time, and a second game of 5 million forecast in the budgets of last year.


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