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?
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?
The federal program isn’t the only one in flux. Several provinces have already reduced or paused their rebates:
These shifts suggest a nationwide trend of scaling back financial incentives for EVs, likely driven by budgetary constraints and high demand.
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].
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].
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:
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.
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].
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.
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.
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