Solar Power for EV Charging? Stop, Says German Bank

Germany’s state owned KfW bank was caught on the wrong foot with the response to a solar subsidy plan for EVs. the plan, which sought to offer subsidies to users who opted to use solar power to charge their EVs, met with an overwhelming response on day 1, with 33,000 applications. That meant the funds earmarked for the plan, Euro 300 million, were potentially exhausted on day 1 itself.

A total of 500 million Euros was actually provided for, but 200 million has been set aside for year 2 of the scheme.

The move, that was meant to support EV adoption without waiting for a large enough public charging network to develop, puts into focus the challenges the EV transition faces, with many aware customers realising that real impact will happen only when charging is also done using green energy.

Germany has been in the news for the wrong reasons otherwise, as the country stumbles on its net zero plans too. The shutdown of nuclear power plants despite inadequate power from other sources has meant the country had to go back to coal powered electricity in 2022-23.

Even EV subsidies are being reduced to provide support and time to it’s world beating but mostly ICE based auto sector.

Starting in January 2023, car buyers will receive €4,500 for EVs with a list price of up to €40,000. Vehicles that are listed at prices between €40,000 and €65,000 will qualify for a €3,000 incentive. The program will change once again the following January, as the first month of 2024 will see the elimination of incentives for any vehicle price at €45,000 and over. €3,000 rebates will be given for vehicles priced up to €45,000.

Funding could also be capped, after the €3.4 billion set aside for 2023 and 2024 is exhausted, the program will be terminated altogether.