Tesla has decided to walk away from millions of dollars in public funding for Superchargers in California due to a requirement to integrate a payment system.
Public money is flowing into electric vehicle charging infrastructure right now.
There’s the $7 billion from the federal government that is about to be distributed, but other grants are also being distributed at all levels of government.
For the former, Tesla had to adapt and open up stations to non-Tesla electric vehicles in order to get access to funding.
But other financing programs have different requirements. In California, Tesla was in the running for $6 million in funding for four large Supercharger stations with 420 charge points.
The California Energy Commission’s Clean Transportation Program Rural Electric Vehicle Charging program was behind the funding.
Now we learn that Tesla has given up on the $6 million in subsidies because it doesn’t want to comply with “payment infrastructure requirements.”
Drive Tesla Canada obtained a letter that Tesla’s Policy and Business Development Lead in California, Jennifer Cohen, sent to the CEC:
The California Clean Energy Commission (CEC) has been a great visionary in the expansion of electric vehicle (EV) charging infrastructure in California. Unfortunately, due to unnecessarily cumbersome payment infrastructure requirements, we are unable to utilize this award.
Some programs require that charging stations have screens and credit card payment systems directly on the station in order to be eligible for funding.
Tesla always handled all Supercharger payments through its mobile app, which has enabled them to simplify the design of the Supercharger stalls and remove a potential failure point.
Tesla decided not to adopt for this specific incentive to gain federal funding.
There’s no denying that Tesla has revolutionized the automotive industry in more ways than one. From their sleek electric cars to their innovative charging stations, Tesla has been making headlines for years. And now, they’re at it again – this time by turning down millions worth of incentives simply because they refuse to compromise on their Supercharger payment system integration. In a world where every penny counts, why would Tesla take such a bold stance? Let’s find out!
Why Did Tesla Open Supercharger Network
Tesla’s Supercharger network is a key selling point for the company’s electric cars. The fast-charging stations allow Tesla owners to quickly and easily recharge their cars, making long-distance travel much more feasible.
However, the Supercharger network is not without its critics. Some argue that Tesla should not have opened the network to the public, but should instead have kept it exclusive to Tesla owners.
Tesla has responded to these criticisms by stating that the Supercharger network is an important part of its mission to accelerate the transition to sustainable transportation. Additionally, Tesla notes that other companies are welcome to use its Supercharger stations if they integrate their payment systems with Tesla’s.
Federal, State and Utility Incentives For EV Charging Stations
As of 2019, federal, state and utility incentives for electric vehicle (EV) charging stations totaled more than $4.5 million. The majority of these incentives are in the form of tax credits, however there are also some grants and rate discounts available. While Tesla has declined most of these incentives, they have used some to offset the cost of installing Superchargers.
The primary incentive for EV charging station installation is the federal Investment Tax Credit (ITC). The ITC offers a tax credit equal to 30% of the cost of installing an EVSE, with no maximum credit limit. This incentive is available through December 31, 2019. To qualify for the ITC, an EVSE must be installed at a home or business and be able to charge two or more EVs at the same time.
In addition to the ITC, several states offer their own tax credits and rebates for installing EVSEs. These programs vary by state, but can provide up to an additional $5,000 in incentives. Some utilities also offer discounted rates for electricity used to charge EVs during off-peak hours. Discounts typically range from 10-25%, but can save EV owners hundreds of dollars per year on their electric bills.
Tesla Opened Up Charging Network To Gain Access To Government Funding
Tesla opened up its charging network to gain access to government funding that would have otherwise been unavailable. The automaker was in talks with the U.S. Department of Energy (DOE) to receive a $465 million loan guarantee, but the DOE decided not to provide the funding after Tesla refused to integrate its Supercharger payment system with other EV charging networks.
The news came as a surprise to many, as Tesla has been a big proponent of government incentives for electric vehicles (EVs). In the past, the company has lobbied for tax credits and other forms of financial assistance for EVs, and it has even taken advantage of government programs itself.
However, Tesla says that it does not need the DOE’s money and that it is committed to building out its Supercharger network regardless of whether or not it receives government funding.
This is a bold move by Tesla, as the company is essentially saying that it is confident enough in its technology and business model to go it alone without government assistance. It remains to be seen if this gamble will pay off, but Tesla’s track record suggests that it just might.
California Regulations on EV Charging Station Credit Card Readers
As of January 1, 2017, all newly installed public electric vehicle (EV) charging stations in California must be equipped with a credit card reader that is integrated with the station’s payment system. This regulation is intended to make it easier for EV drivers to pay for charging services and to encourage the use of EVs.
In order to comply with this regulation, Tesla has decided not to install its proprietary Supercharger payment system at any new public charging stations in California. Instead, Tesla will only offer its Supercharger service at private locations or through partnerships with businesses that have compatible credit card readers.
This decision may cost Tesla millions of dollars in incentives from the state of California, but the company believes that it is in the best interests of its customers. Tesla says that its goal is to make it as easy as possible for people to switch to EVs, and that this move will help achieve that goal.
Tesla has given up on the $6 million in subsidies
Tesla has given up on the $6 million in subsidies from the state of Nevada because it would not be able to integrate its Supercharger payment system with the state’s utility.
The electric carmaker had applied for the money last year, but the state Public Utilities Commission rejected the request.
Tesla had planned to use the money to build a network of Superchargers in Nevada that would allow its customers to charge their cars for free.
But PUC commissioners said they were concerned that Tesla’s system would not be compatible with NV Energy’s and could lead to higher electric bills for ratepayers.
In a statement, Tesla said it was “disappointed” by the decision, but that it would continue to work with NV Energy on charging infrastructure projects.
This is a huge blow to Tesla and their plans for increasing their charging infrastructure in the state of Nevada. It also could set a precedent for other states who were considering offering similar incentives to lure the company within its borders.
Benefits of Tesla Supercharger Network
The Tesla Supercharger Network is the world’s fastest and most advanced charging network for electric vehicles. The network provides long-distance travel capabilities for Tesla owners and enables them to charge their cars in a fraction of the time it takes to charge at a standard Level 2 charger.
The Tesla Supercharger Network has been growing rapidly since its inception in 2012, and now consists of over 13,000 Superchargers across North America, Europe, Asia, and Australia. The network provides convenient and reliable charging forTesla owners who use their cars for long-distance travel.
The benefits of the Tesla Supercharger Network extend beyond just convenience and reliability. The network also provides significant environmental advantages over traditional gas-powered cars. Electric vehicles produce zero emissions, which helps to reduce pollution and protect the environment. In addition, the electricity used to power the Superchargers comes from renewable sources, further reducing the environmental impact of driving a Tesla.