New Jersey pauses EV rebates as demand surges
The program has been so popular that it is running out of money, but will resume with new fiscal year in July
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New Jersey is putting the brakes on their government rebate program for residents looking to buy or lease an electric vehicle.
The program is a victim of its success, proving so popular that it is running out of money, according to officials.
The Charge Up New Jersey program has been put on hold temporarily.
The program has given out an estimated $35 million for the fiscal year ending this July, according to the state's Board of Public Utilities.
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A motorist charges his electric vehicle at a Tesla Supercharger station in Detroit. New Jersey residents looking to buy or lease an electric vehicle won’t be able to get a government rebate — at least temporarily — because the state program has been … ( (AP Photo/Paul Sancya, File) / AP Newsroom)
The earmarked funding will soon be disbursed, based on the current rate of application approvals and eligible vehicle orders.
The program has been operating for three years and provides state residents up to $4,000 right when they buy or lease a new electric vehicle.
Federal tax credits and other incentives are designed to bring prices down and attract more buyers.
On average, EVs now cost more than $58,000, according to Kelley Blue Book.
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FILE: Electric cars are parked at a charging station in Sacramento, Calif. (AP Photo/Rich Pedroncelli, File / AP Newsroom)
The program is expected to be back up and running again once the new fiscal year starts July 1.
Since the program's launch in May 2020, $90 million in incentives has been provided for leasing or buying nearly 25,000 EVs.
EVs made up 8% of all new car sales in New Jersey last year.
New Jersey is not the only rebate program that has been put on pause.
OREGON PUTS REBATES FOR ELECTRIC VEHICLES TEMPORARILY ON HOLD
A car is parked by an electric charging station in downtown Portland, Ore. The state will temporarily suspend rebates for buying or leasing an electric vehicle for a year starting in May. ((AP Photo/Rick Bowmer, File) / AP Newsroom)
A program in Oregon giving rebates for buying or leasing electric vehicles has also become a victim of its success.
The state temporarily suspended rebates for a year starting in May because too many people are applying, and the program is running out of money
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A new poll released last week shows that many Americans aren’t yet sold on going electric for their next cars, with high prices and too few charging stations being the main deterrents.
The Associated Press contributed to this report.