Generous rebates will soon be available in New Zealand for zero and low-CO2 emission vehicles, and an added fee on the purchase of high-emission cars is on the horizon.
New Zealand has set a goal of carbon neutrality by 2050, with an interim target of slashing greenhouse gas emissions 30% below 2005 levels by 2030. Transport is the fastest growing source of greenhouse gas emissions in NZ. Around half of the country’s CO2 emissions come from transport, and approximately two-thirds of this are emitted by light vehicles – cars, SUVs, vans, utes and light trucks.
To help tackle transport emissions and starting from the beginning of next month, a “Clean Car Discount” will come into effect in the form of a rebate of up to NZD $8,625 (~ AUD $7,987) for imported new and used light electric vehicles and plug-in hybrid electric vehicles (PHEVs) newly registered up until the end of this year.
The rebates in NZD:
- Battery electric vehicle: $8,625 new/ $3,450 used
- Plug-in hybrid electric vehicle: $5,750 new / $2,300 used
The rebates will be available for vehicles with a purchase price of less than $80,000 (AUD ~$74,000) including GST and on-road costs, and with a 3-star safety rating or better.
It’s intended for the programme to continue in 2022, subject to legislation being passed. From next year the programme will work a little differently, with other low emission vehicles eligible for rebates and the rebate amount tied to CO2 emission levels.
Penalties For Polluting Vehicles Ahead
Another important aspect of the 2022 programme is the purchase of higher CO2 emission vehicles will cop a fee in recognition of the increased environmental and economic costs they impose. The higher the CO2 rating, the greater the fee. How much those fees will be isn’t clear at this point.
Commenting on the need for the Clean Car Discount scheme, NZ Transport Minister Michael Wood said:
“New Zealand is actually lagging behind on the uptake of EVs, so we are playing catch up internationally. Our monthly registrations of EVs are around half the global average and sales are well below the 50 per cent of monthly sales seen in some European countries.”
and, on that note…
EV Incentives In Australia
Well, this is a little embarrassing. It appears Australia has the lowest uptake of electric vehicles in the developed world and we’ve been labeled “a bit of a backwater” in terms of the range of EVs available here due unfavourable policies. The Morrison Government’s plan for electric vehicles is pretty crap.
That leaves things to the states and territories, but there’s not a lot of support currently on offer:
In the ACT, there’s zero stamp duty on new electric vehicles, plus two years of free registration on new or used EVs.
In Queensland, stamp duty is reduced on new electric and hybrid vehicles.
In Victoria, EV’s are exempt from the luxury vehicle rate of stamp duty and receive a $100 annual discount on vehicle registration. There’s also a $3,000 rebate for electric cars and other zero emissions vehicles. But there’s also an EV tax based on the number of kilometres travelled – it’s a crazy situation of robbing Peter to pay Peter.
Australian governments could probably learn a thing or two from the Kiwis regarding how to approach supporting electric car uptake and funding EV incentives – by penalising the purchase of higher-emissions vehicles.
Related: The Homeowner’s Guide To Solar Power And Electric Cars.
About Michael Bloch
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Is the low uptake due to cost, performance, or infrastructure?
Here for instance there are no charging options as far as I’m aware so any vehicle would need the range for a round trip, then be able to sit in the garage for a couple of days whilst charging off the solar panels – usually possible but not guaranteed.
According to something called ev-database which lists 172 EV options, 20 simply don’t have the range to complete the trip.
According to Ergon however you need to factor in mountain driving, highway driving, headwinds, weight, AC use and battery capacity degradation of 2.3% per year.
So scratch a couple more because battery degradation would cut battery capacity below the required range. How do you quantify mountain driving, highway driving, headwinds, weight, or AC use though?
Note too Ergon state that batteries should only be charged to 80% to avoid stressing them which would eliminate 55 of the 172 EV options listed at the above database – again not factoring mountain driving, highway driving, headwinds, weight, or AC use.
Then too there’s the question of what’s the relationship between the official range that occurs under controlled\unrealistic conditions, and that of the real world when dealing with standard issues?
And this ignores the fact that cheap EVs are twice the price of a traditional vehicles, and costs tend to soar as you look at more luxury models with higher ranges. Electronic vehicles tend to also be far more expensive to repair than older more mechanical models. Are EVs thus a viable option for ordinary Australians?
EVs are an interesting idea, and certainly one which could reduce Australia’s vulnerability and reliance on imported fuel supplies – an increasing concern I admit, but are they a good fit for most people? For those living in cities and doing limited driving? Sure maybe, if you can afford them, but what about for the third or so of all Australians who don’t live in one of the five main (capital) cities? I’d suggest not.
Seem reasonable?
Most of the ideas in your post are 10 years old. EVs and infrastructure have moved on apace. Where is “here” BTW?
“There are no charging options”.
You could drive from Cairns to Adelaide with no range anxiety whatsoever. There are literally hundreds of fast chargers along the way. And thousands of level 2 chargers at shopping malls and hotels, for example. A level 2 charger will top up your battery in anywhere from 4-8 hours depending on model, so are installed at places where you plan to stay at least a few hours.
“then be able to sit in the garage for a couple of days whilst charging’.
Wow. If I ran my car down to 0% battery (which I never do) and then wanted to charge up to 100% from a 3-pin plug, it would take about 16 hours. Not great I grant you. But then I’ve never had to charge from empty to full from a 3-pin plug. That would be a last resort for me. I do have a level 2 charger at home and top up a couple of days a week when the sun is shining. Non EV people tend to focus on the time to charge from 0% to 100% but this is rarely required.
“20 simply don’t have the range to complete the trip.”.
What trip are you talking about?
“battery capacity degradation of 2.3% per year.”
I think this is an old stat based on 10 year old Nissan Leafs with limited battery management. Modern EVs have active cooling and charging control to increase longevity.
“batteries should only be charged to 80%”
This is a general recommendation but it doesn’t say you should never charge over 80%. Just like any battery – like your phone or laptop – keeping the battery in the middle of the range is better for the battery’s health. But if you need to get to 100% for a journey, then just do it. It’s fine. The trick is to charge right before you start driving so it doesn’t stand at 100% for long.
“Then too there’s the question of what’s the relationship between the official range that occurs under controlled\unrealistic conditions, and that of the real world when dealing with standard issues?”
Well yes this is an ongoing issue, in that some manufacturers claim mileage which would be difficult to achieve in real world. They really don’t do themselves or the industry any favours. But then there’s the likes of Hyundai. Hyundai drivers typically get at least – and often significantly better than – the claimed range.
“And this ignores the fact that cheap EVs are twice the price of a traditional vehicles, and costs tend to soar as you look at more luxury models with higher ranges. Electronic vehicles tend to also be far more expensive to repair than older more mechanical models. Are EVs thus a viable option for ordinary Australians?”
Yes and no. Yes EVs are expensive still. Not really double the ICE equivalent usually but certainly significantly higher. EVs typically come with a decent warranty (e.g. 5 years on the car and 8 years on the battery) but servicing is significantly cheaper (no moving parts, no oil and coolant, significantly reduced wear on brakes, etc) and repairs .. well there is only really one moving part in an EV so there is a whole lot less chance of something going wrong.
“are they a good fit for most people? ”
Honestly, even today I reckon 60-70% of the population could switch over to an EV with no issues. Many don’t because they believe there are massive issues like you posted. Most of those issues are just not real. I do about 400km a week commute and will often do the same again on a weekend and I’ve never once been concerned about not getting there or not getting home.
I love having an EV. Smooth, quiet and no stink out of the tailpipe – no tailpipe. And charging for free from the sun is a huge bonus. I reckon I’ve saved just shy of $1000 in fuel costs the last 6 months. Extrapolate that over a few years and it brings the TCO right down vs an ICE. And that’s before you consider cheaper servicing and all the other good stuff. We need to break down these dated attitudes on EVs. They are coming rapidly. and they need to despite what Scomo and his oil-funded kickbacks tell you. They are good enough NOW and with a little bit of government policy, more manufacturers will bring them here, which brings the prices down. When we get rid of those attitudes, more people buy them which brings the prices down. As more people buy them, investors see the returns on investing in infrastructure are profitable. More infrastructure gives people confidence to buy more EVs and the price comes down.
It’s only a matter of time
“.. (no moving parts, no oil and coolant, significantly reduced wear on brakes, etc) and repairs .. well there is only really one moving part in an EV so there is a whole lot less chance of something going wrong …”
Some of us will only ever be able to afford an EV when they are older and trickle down to us in the secondhand market. That’s when all those other moving parts like suspension, wheel bearings and door hinges etc. will be of concern. Especially the gimmicky ones with electronic suspension and self opening/closing doors. As well as non moving parts like electronic modules, display screens and the big one – the battery itself. They still wear out.
My recently purchased luxo barge was north of $170k 20 years ago and it is only now that I can afford it. The EV equivalent would ne the Model S. By the time that is 10 grand I’ll be to old to drive.
Maybe there should be a tax on new tyres for “ on road” use, at a rate designed to pay for road wear, tear and construction costs. This would be unpopular but fair. It would replace the fuel excise. And heavy users of tyres / roads would pay more. And hoons would have a reason not to hoon.
But I suspect the thought of a new tax will cause avoidance behaviour in our ruling classes.
But they think that the pioneering mugs who have adopted EV’s are not to be counted as voters.
Thanks for your considered and well balanced response here Wayne.
We need to regard long distance travel by vehicles as a thing of the past: trains and buses to take over. Maybe the high-speed rail lines are more environmentally acceptable.
You say the Victorian situation is “crazy” with a Road User Charge, but have failed to acknowledge the exact structure exists in New Zealand. From 1 Jan EVs will be charged 7.5c/km in a similar structure to Victoria (albeit at three times the rate).
It’s not crazy, it’s entirely sensible on the basis that the EV continues to use the road, which means the road continues to need to be built and maintained – and therefore paid for.
In any case, in the interest of balance, you should acknowledge that the place the are lauding has the same structure as the place you are lamenting.