PG&E accelerates EV adoption by low-income customers
Oakland, California. Electric vehicles (EVs) are key to meeting California’s climate goals and can help lower customers’ electricity rates, but research shows that owning an EV can be difficult for drivers in low-income communities. Pacific Gas and Electric Company (PG&E) is taking steps to make EV ownership more affordable for low-income customers.
PG&E has already helped more than 13,000 income-qualified customers become EV owners through the Used EV Rebate Program, and thousands more have benefited through incentives to lower the upfront costs of installing charging infrastructure at their homes.
Closing the equity gap to help more low-income drivers access EVs is critical to accelerating EV adoption throughout PG&E’s service area and achieving the goal of serving 3 million EVs by 2030. EVs improve air quality by reducing carbon emissions from transportation. Additionally, PG&E estimates that the next million EVs connected to the grid could lower residential electricity rates by 2% to 3% by spreading the fixed costs of maintenance and operations across more customers.
“We have made great strides to improve EV access and charging infrastructure for all of our customers, even those who may have thought EV ownership was out of reach due to cost. EVs are key to achieving California’s climate goals and also provide a way to lower the price of electricity,” said Lydia Krefta, senior director of Electrification and Decarbonization at PG&E. “Furthermore, customers can manage their EV charging during times of lower energy demand and lower prices, allowing them to charge for as little as $1.88 per gallon of gasoline for customers who receive income-qualified rate discounts, while reducing the burden on the grid,” Krefta added.
We’re making EV ownership more affordable
There are more than 700,000 EVs in PG&E’s service area, representing one in eight EVs in the country. According to recent data, EV sales in California increased for the fourth consecutive year by 2024, representing approximately 25% of total new vehicle sales in the state last year. However, a study by the UCLA Luskin Center for Innovation revealed that disadvantaged communities are not keeping pace with the transition to EVs because they often lack access to incentives and charging infrastructure.
PG&E offers a variety of resources, such as rebates, incentives for income-qualified customers, and EV rate plans, that can help lower the total cost of EV ownership, including the initial costs of charger installation and charging.
The Used EV Rebate Program offers a rebate of up to $4,000 for income-qualified customers who purchase or lease a used EV. Since its launch in February 2023, the program has issued more than 13,000 rebates and provided more than $29 million in benefits. Another $50 million in financing is still available for PG&E customers who meet income requirements.
Driven the EV Transition
PG&E has programs that can reduce the cost of installing residential EV chargers to help lower the overall cost of driving an EV.
PG&E’s Residential Charging Solutions pilot program provides customers with a 50% post-purchase rebate for approved Level 2 residential charging equipment that can use existing 240-volt outlets and eliminate the need for costly electrical upgrades. Income-qualified customers can receive a 100% rebate on the equipment purchase price. The pilot program is funded by California’s Low Carbon Fuel Standard (LCFS) program.
EV charging managers can help customers save on EV charging costs by scheduling charging during times with lower prices and lower grid demand. The program, currently available to PG&E customers in Santa Clara, Contra Costa, and Alameda counties who meet eligibility requirements, offers a dashboard with personalized information on charging habits, costs, consumption, and battery efficiency. Participants will receive a $75 Tango gift card after participating in the program for a minimum of three months and remaining connected to the platform at least 50% of the time.
In the coming year, PG&E plans to announce two additional EV charging pilot programs with funding approved through California’s LCFS Program.
- The Affordable Public Charging pilot program offers a charging credit, via a prepaid debit card, to help income-qualified customers cover part of the cost of EV charging at public charging stations.
- The Flexible Electrification Panel and Support pilot program offers incentives for qualifying electrical panel upgrades and other ancillary equipment needed by low-income customers to install EV chargers in their homes.
EV Rates and Additional Resources
PG&E has three rate plans that can help EV drivers lower their electricity costs. With these time-of-use rate plans, customers who charge their EVs during off-peak hours can reduce their overall energy costs.
With PG&E’s EV2-A rate, customers who qualify for monthly discounts through the California Alternate Rates for Energy (CARE) Program and the Family Electricity Rate Assistance Program can charge their EV for the equivalent of $1.88 per gallon of gasoline if they charge between midnight and 3 p.m. The EV Rate Comparison Tool can help customers find the best rate plan for their needs.
“There are real savings opportunities that help lower the cost of EV ownership for customers with limited resources. An income-qualified customer with access to residential charging could save 57% with the CARE program discount and off-peak EV charging rates, compared to the cost of charging with gasoline. A CARE customer who only uses public charging through the future Affordable Public Charging program can save up to 100% over two years,” Krefta said.
We encourage customers who want to explore electric vehicle ownership to check out PG&E’s EV Savings Calculator to search for vehicles, discover incentives, and locate charging stations.
