What Canada’s EV Incentive Pause Means for You

The Canadian government’s decision to pause its federal electric vehicle (EV) rebate program, iZEV, has sparked widespread concern and speculation about the future of EV incentives. With iZEV officially depleted as of January 13, 2025, and no clear indication of a top-up, many are left asking: Are EV rebates ending for good?

What Happened to the iZEV Program?

The iZEV program, which launched in 2019, has provided up to $5,000 for battery-electric vehicles (BEVs) and $2,500 for plug-in hybrids (PHEVs). These rebates contributed significantly to Canada’s transition toward zero-emission vehicles, helping ZEVs capture 14.2% of the market share by late 2024 [1].

However, with only $71.8 million left in the fund as of January 10, 2025—enough for approximately 14,360 BEVs—the program reached its limit just days later. The government announced a "pause" rather than a definitive end, raising the question: Will the iZEV Program re-open in 2025?

Provincial Programs Are Not Immune

The federal program isn’t the only one in flux. Several provinces have already reduced or paused their rebates:

• Quebec: Cutting its rebate from $7,000 to $4,000 in February 2025 [1].
• British Columbia: Narrowed eligibility for its $4,000 CleanBC EV rebate in June 2024, limiting it to individuals earning under $80,000 [2].
• Newfoundland and Labrador: Ending its $2,500 rebate on March 15, 2025 [1].

These shifts suggest a nationwide trend of scaling back financial incentives for EVs, likely driven by budgetary constraints and high demand.

What Does This Mean for EV Adoption in Canada?

Rebates have been a cornerstone of Canada’s ZEV strategy, but their pause may have ripple effects on EV sales and infrastructure growth. Critics argue this move could slow progress toward federal ZEV mandates, which require 60% of new vehicle sales to be zero-emission by 2030. Without incentives, potential buyers may be deterred by higher upfront costs, especially as automakers like Tesla adjust prices to align with new market realities [3].

Charging Infrastructure at Risk?

Beyond passenger vehicles, the federal government also provides rebates for EV infrastructure through programs like the Zero Emission Vehicle Infrastructure Program (ZEVIP) and the iMHZEV program for medium- and heavy-duty vehicles. While iMHZEV is funded until 2026, ZEVIP’s future remains uncertain [4].

Is ZEVIP re-opening in 2025? That depends on federal priorities—and potentially, a change in government. A shift from the current Liberal leadership to a Conservative government could deprioritize climate-related initiatives, putting programs like ZEVIP at risk [1].

Provincial and Local Incentives: A Mixed Bag

In British Columbia, the provincial government offers the CleanBC Go Electric program, providing rebates for EV purchases and charging infrastructure. Income-qualified individuals can receive up to $4,000 for a new battery electric vehicle [2]. Additionally, programs like Plug In BC support the uptake of electric vehicles through various initiatives and resources [5].

BC Hydro administers several rebate programs to encourage EV adoption:

• Single-Family Home Charger Rebates: Homeowners can receive up to $350 for the purchase and installation of eligible Level 2 EV chargers [6].
• Multi-Unit Residential Building (MURB) Rebates: Stratas and property owners can access rebates up to $14,000 for installing EV chargers, with additional funding for EV Ready plans and infrastructure [6].
• Workplace Charger Rebates: Businesses can obtain up to $2,000 per charger, to a maximum of $14,000 per workplace, for installing EV charging stations for employee use [6].

However, these programs are subject to change, and funding availability can fluctuate. It's crucial for potential applicants to check the current status and eligibility criteria before making decisions.

Why This Could Signal the End of Rebates

Canada’s deficit, as detailed in December 2024’s interim financial report, adds financial pressure. Combined with upcoming elections and political uncertainty, EV incentives could face further cuts. If the Conservatives take power, their track record suggests a focus on economic pragmatism over environmental spending, meaning the current pause might turn into a full stop [1].

What Should You Do Now?

For Vehicle Buyers:

• Act Fast: Provincial rebates are still available in some regions, but they are dwindling.
• Research Eligibility: With tightened requirements, ensure you qualify for any remaining incentives.
• Explore Used EVs: A growing market for second-hand EVs may offer cost-effective alternatives.

For Businesses and Developers:

• Take Advantages of Current Rebates: Utilize the infrastructure and charger rebates, while they are still available.
• Plan for Contingencies: If you rely on ZEVIP or similar programs, consider alternative funding sources for EV charging infrastructure.
• Engage in Advocacy: Lobbying efforts from the EV sector can influence government priorities.

What’s Next for EV Rebates in Canada?

While Transport Canada and the ZEV Council have yet to confirm if iZEV or ZEVIP will resume, the use of the word pause offers a glimmer of hope. Still, a broader question looms: Can Canada maintain its EV momentum without rebates?

With the 2025 federal election on the horizon, the future of EV incentives will likely depend on who forms the next government. The coming months are crucial—not just for EV buyers, but for Canada’s climate goals.

How Electrum Can Help

Navigating the complexities of EV infrastructure and charger rebates can be challenging, especially in an evolving policy landscape. Electrum specializes in helping clients maximize their opportunities by managing the entire rebate application process on their behalf. Having successfully secured over $3 million in rebates for our clients, we are experts at ensuring your project qualifies for available incentives and is submitted correctly and on time.

Let us help you make the transition to sustainable energy seamless and cost-effective. Contact Electrum today to learn more about how we can support your EV infrastructure goals. Book a call with our team to discuss your EV charging needs.

Thanks for reading!

Sources

1. Electric Autonomy: Canada’s electric vehicle rebate program fully exhausted
2. Drive Tesla: Canada’s iZEV rebate program is nearly out of money
3. Transport Canada: Incentives for Zero-Emission Vehicles Program
4. Natural Resources Canada: Zero Emission Vehicle Infrastructure Program (ZEVIP)
5. Plug In BC: Electric Vehicle Incentives and Resources
6. BC Hydro: EV Rebates and Incentives