Washington to see fuel savings and cleaner air as popular electric vehicle rebate program concludes

Participation in Commerce’s Electric Vehicle (EV) Instant Rebate Program was three times higher than expected, driven by easy-to-access rebates and low-cost leases

OLYMPIA, WA – More than 6,000 residents drove away in a new EV since August thanks to the Department of Commerce’s Electric Vehicle (EV) Instant Rebate Program, which provided on-the-spot rebates at the point of sale or lease. The successful statewide program concluded today after maxing out $45 million in funding. Low-income drivers across Washington benefitted significantly, receiving an average rebate of $7,400. Once the program’s data is finalized, the total number of rebates is expected to reach more than 6,100.

“The huge popularity of this program reflects Washingtonians’ enthusiasm for moving beyond gas-powered cars.” said Governor Jay Inslee. “They want to be a part of the work we’re doing statewide to slash pollution and emissions, while drawing their gas costs down to $0. I want to thank the Department of Commerce for successfully implementing this rebate for consumers.”

“The program’s higher-than-expected participation shows many Washington residents are eager to make the switch to EVs,” said Commerce Director Mike Fong. “By removing the up-front cost barrier for those who can least afford it, we leveled the playing field. Now thousands of people and their families all across the state will have access to the many benefits of driving electric.

The program opened Aug. 1, and Commerce staff initially estimated that funding would last until next spring. Participation surged to three times the forecasted rate, with funding spent out in less than 90 days. The unexpectedly high demand was largely driven by the popularity of Washington’s innovative low-cost EV lease option, which provided a $9,000 rebate for new EVs. The state is the first to offer a higher rebate amount for leases, which will broaden the program’s impact in a few years when many of the vehicles will be available to buy used after their current term.

“We’re thrilled to help move so many customers into electric vehicles,” said Commerce Energy Division Assistant Director Michael Furze. “The low-cost lease option was a real catalyst to helping customers try EVs, and we’ve heard great feedback about what it means to drivers now saving on fuel.”

Based on current data, program manager Steven Hershkowitz estimated that the program will create $3.10 in benefits within five years for every $1 spent on the program. This is due to the social cost of carbon avoided (which includes positive health outcomes from cleaner air), fuel savings from switching from gasoline to electric, and upfront vehicle cost savings now and in three years when leased vehicles enter the used market or are kept by current drivers. This estimate takes into account a key indicator of program success: 89% of rebate recipients say they couldn’t have bought or leased an electric vehicle without the rebate.

Program success based on savings, easy access and environmental health benefits

EVs offer a variety of benefits, including more affordable and often more convenient refueling, enhanced performance and reduced emissions. One reason the program has achieved its goal so quickly is the fact that some residents said they dreamt of owning an electric car, but just couldn’t afford it until the program opened. Individuals and households making up to 300% of the federal poverty level qualified for the program, which provided point-of-sale rebates from $2,500 to $9,000, depending on the type of transaction and the terms.

“Washington helped me realize my dream of owning an electric car,” said one driver from Everett. Another driver from Burien added, “I can’t believe that it was so easy … the rebate was part of that reason why I went for a new car.”

The speedy convenience of on-the-spot rebates also motivated residents to go electric. One driver said that Washington has the best program in 50 states.

The program is also achieving its intended goal of increasing access for low-income households. According to program data through September, the average rebate recipient comes from a household making an annual income of $51,200.

Three out of four rebate recipients who have shared information with Commerce say their monthly transportation costs have gone down, with 42% saying they went down significantly. “I was able to attain a new safe vehicle for less than what I was paying for gas every month,” said a driver from Marysville.

Commerce’s program team asks customers, “How likely are you to recommend the Washington Electric Vehicle Instant Rebates Program to a friend or colleague? Provide a rating of 0 – 10, zero being not at all likely and 10 being extremely likely.” The average response as of Oct. 18, from 221 respondents, was 9.69 out of 10.

Ultimately, the program has been an investment in communities and residents who want to make a positive difference. “The program’s focus on making EVs more affordable aligns with my commitment to sustainable transportation. This support encourages more residents to switch to cleaner vehicles, contributing to a greener Washington state,” remarked a Seattle driver.

Effective program administration through partnership with small businesses

Many car dealerships are franchise operations run by small businesses. The top performing car dealers participating in the EV Rebate program were located in Auburn, Bellevue, Burien, Puyallup, Renton, Seattle, Spokane and Tacoma.

“We’re a family-owned business,” said Jim Walen from Seattle Hyundai. “I’m a huge supporter of the program, because it has helped working families purchase EVs. People in WA are generally environmentally conscious, and with more EVs on the road, it will bring down prices. It’s a good thing for all of us.”

Mark Oliver of Rairdon Automotive Dealerships agrees. “The EV rebate program has been a game-changer for both Rairdon Automotive Dealerships and the local Washington community we serve. It has empowered many residents to make the switch to electric vehicles, helping us meet growing demand and foster a more sustainable future. We’re proud to have been part of a program that makes clean transportation more accessible for everyone.”

With the EV Rebate program funds fully exhausted, Commerce will seek additional ways to help drivers transition to EVs. Commerce will continue analyzing the rebate program and provide more details to assist legislators in evaluating its potential for future funding.