Pacific Gas & Electric company announced Wednesday that its customers qualify for a discount upon purchase of a used electric car.
Titled the Pre-Owned Electric Vehicle (EV) Rebate Program, customers can receive a $1,000 to $4,000 rebate when they either buy or lease a pre-owned all-electric vehicle or plug-in hybrid EV.
The electric vehicle market in California is poised to explode within the next decade. State regulations ordered by the California Air Resources Board require that 35 percent of 2026 car models must be electric, hydrogen-powered or plug-in hybrids, and 100 percent by 2035.
Currently, electric vehicles constitute around 18 percent of new car sales.
In a statement released Wednesday, PG&E representatives said they hope to dispense more than $78 million in rebates to “promote the adoption of EVs and make EV ownership more affordable for all customers.”
“Affordability can be a barrier to EV adoption, and this program will help offset costs for our customers who want to explore pre-owned EV ownership,” said Aaron August, PG&E vice president, utility partnerships and innovation.
The rebates are paid for by California Air Resources Board’s Low Carbon Fuel Standard, a regulatory program established in 2007 with the goal of reducing the state’s greenhouse gas emissions. Transportation accounts for approximately 38 percent of California's emissions.
A representative explained that PG&E earns credits in exchange for supplying low-carbon fuel such as electricity, and redistributes funds generated from the sale of those credits through programs like the rebate offer.
“Money that PG&E generates from the sale of LCFS credits is used to fund customer programs like the Pre-Owned EV Rebate, without using ratepayer funding,” said Mike Gazda, a communications representative with PG&E.
But there aren't a lot of such vehicles.
“They are a very small part of the market right now,” said John Pitre, the chief operations officer at Motor City Buick GMC and Motor City Lexus of Bakersfield.
According to Pitre, the EV market is still in its early stages. He and other dealers in the city find and sell electric vehicles, but they’re rare, and almost exclusively Tesla.
“Tesla has had some success on the new car side here in Kern County in the past 18 months,” Pitre said.”But most people that buy those keep them. If we have, for example, 300 (cars) on inventory, maybe three are electric — mostly Tesla, occasionally Chevy.”
Pitre also made the point that the Teslas they find still sell close to their original market price. For example, Pitre said that used Model 3 sell for $50,000, while he’s seen Model Ys sell for $65,000.
“You’re not going to find a second-hand EV car in your price range,” Pitre said. “If you find one that is used, I wouldn't think a rebate is the reason to buy it.”
The conclusion: Used electric vehicles can be a legitimate alternative to gas and diesel cars. With gas prices continuing to stagger in California, one can save money by switching their ride. But the options now are limited, and the price tag is still too steep for many.
“The used EV market is still three to four years away,” Pitre said. “Electricity is not free, but you will save money with an electric vehicle driving 15,000 miles a year. The rebate is just icing on the cake.”
