April 30, 2024
Texas Electric Vehicle Incentives and Rebates
6 Min. Read
Texas has great potential in terms of making the switch to clean energy, but range anxiety and limited access to charging are resulting in a relatively low rate of electric vehicle (EV) adoption.
The state is currently leveraging federal NEVI funding to build a robust charging infrastructure to address these challenges, and utility providers are actively encouraging electrification with a number of incentives available to residential customers.
If you’re a Texas resident considering an EV purchase, it’s important to understand how to get the best value from making the switch to electric. This blog post provides an overview of the Texas EV rebate landscape and information about the programs available in your area.
Exploring Texas EV Rebate Programs
State incentives available to Texas consumers are limited, contributing to the relatively low EV adoption rate of 5% in the Lone Star State.
However, Texas offers a number of grants to public and business entities through the Texas Commission on Environmental Quality. These grants include the Alternative Fuel Infrastructure grant, an incentive that primarily supports the development of EV charging from public entities.
Public and charter schools can qualify for Clean School Bus grants to replace or retrofit school buses. The Texas Department of Transportation is currently distributing a portion of the $86 million the state received in NEVI funding for 2024 in the form of competitive grants to develop charging along major highways as well as in small cities and rural areas.
As a consumer, your best option is to take advantage of federal incentives. You can receive up to $7,500 cash-on-the-hood when purchasing an EV. You can also benefit from a 30% nonrefundable tax credit to help offset the cost of installing a home EV charger. Stacking these incentives with rebates offered through your Texas utility provider will help you maximize savings.
Important Texas EV City Incentives to Know About
Some Texas cities are encouraging electrification by offering free public charging. Dallas currently has more than 500 free charging locations, and you can find over 400 free EV charging stations in the Austin area.
San Antonio is taking a different approach by offering free street parking to battery electric vehicles and plug-in hybrid electric vehicles when charging.
Significant Upcoming Changes to Texas EV Rebate Programs
Texas lawmakers aren’t working on any new Texas EV rebate programs at the moment. However, funding for the Light-Duty Motor Vehicle Purchase or Lease Incentive Program may become available again in the future.
This program received enough funding to issue 2,000 grants during the 2022-23 fiscal year, helping consumers save up to $2,500 when purchasing or leasing an EV. These grants are currently depleted, but allocating more funding to this program could be a game-changer for EV adoption in Texas.
Utility Incentives in Texas for EV Charging
Utilities are leading the way when it comes to supporting electrification in Texas. The programs you qualify for will vary depending on your service area, but you can typically save with Texas EV rebate programs on charging stations or preferred rates for charging your EV at home.
Austin Energy EV Charger Rebate
If you’re an Austin Energy customer, you can save 50% on the cost of purchasing and installing a Level 2 EV charger, for savings of up to $1,200.
Commercial customers can access additional rebates and businesses and multifamily properties can qualify for up to $3,000 in rebates for installing a Level 2 charging station and up to $5,000 for a DC Fast Charging station.
TXU Energy Off-Peak EV Charging Incentive
TXU Energy helps customers offset the cost of charging an EV at home by offering free charging between 7 P.M. and 1 P.M.
To leverage these savings, you’ll have to connect your EV to an online platform and share your telematics data, but the platform is compatible with most EV models.
CPS Energy Off-Peak EV Charging Incentive
CPS Energy offers electrification incentives in the form of bill credits.
You can receive a one-time $250 bill credit followed by a $5 monthly credit if you sign up for a program that remotely adjusts your charging speed during peak hours, or a one-time $125 bill credit and a $10 monthly credit if you only charge during off-peak hours.
Southwestern Electric Power Company EV Charger Rebate
As a Southwestern Electric Power Company customer, you can apply for a $250 rebate if you install an Energy-Star Level 2 EV charging station.
Champion Energy Services Off-Peak EV Charging Incentive
If you get your electricity from Champion Energy Services, charging your EV between 10 P.M. and 4 A.M. will make you eligible for a lower rate.
Gexa Energy Off-Peak EV Charging Incentive
Besides offering clean energy, Gexa Energy will issue a bill credit of 100% for the energy you use to charge your EV between 11 p.m. and 5 a.m.
United Cooperative Services EV Charger Rebate & Off-Peak EV Charging Incentive
You can receive a rebate that covers 50% of the cost of installing a Level 2 charging station, up to $500, if you sign up for a program that allows United Cooperative Services to delay charging during peak hours.
AEP Texas Electric Vehicles Program
Though they don’t currently offer rebates or incentives for charging an electric vehicle, the AEP website mentions that there may be some upcoming incentive programs: We’re working together with state and local governments, regulators, economic development partners, businesses, and technology experts to seek incentives, funding and other resources for both electric car buyers as well as businesses ready to install charging stations.
Other Texas Incentives for Electrification & Driving Electric Vehicles
Combining EV ownership with other electrification projects, such as upgrading your home with solar panels or investing in a heat pump, will help you save even more while reducing your environmental impact.
As a Texas resident, you can take advantage of additional incentives for electrifying your home beyond EV charging.
There is a strong argument for going solar in Texas. The state offers a property tax exemption on the value of your renewable energy system. With most of Texas having an excellent solar coefficient, a residential solar array could be a cost-effective way to power your EV charger.
You might qualify for additional incentives through your electricity provider. For instance, TXU Energy offers an innovative solar energy buyback program, while United Cooperative Services offers rebates on heat pumps.
As an Austin Energy customer, you can receive up to $800 for installing a heat pump water heater, and you can save on solar, Wi-Fi thermostats, and more through CPS Energy.
#1 Trusted EV Charging Installer in Texas – Qmerit
EV adoption remains somewhat limited in Texas, but the state is deploying a strong charging infrastructure through grants and other projects. Several cities are also playing an active role in making EV charging more accessible.
If you’re considering an EV purchase, your best option is likely to stack EV charging rebates and tax credits with Texas EV rebate programs offered through your utility provider.
As the largest network of certified EV charger installers in North America, Qmerit is the most trusted EV charger installation partner recommended by automakers, EV charger manufacturers, utilities, businesses, and homeowners alike.
But don’t just take our word for it. Rated #1 in customer satisfaction, Qmerit’s experienced network of certified electricians has installed more than 450,000 EV charging stations in homes and businesses across the U.S. and Canada!
Give us a call at (888) 272-0090 or complete our online EV assessment today to find out why we’re North America’s most trusted EV charger installation service provider!
