Here’s what you need to know about the suspension of the Roulez vert program

The Legault government maintains that it no longer has money to pay subsidies for the purchase of electric vehicles and charging stations, so it has decided to suspend its Roulez vert program. Here is what we need to remember from this decision in order to understand the impact on consumers.

• Also read: Subsidy for the purchase of electric vehicles: Quebec has no more money and will suspend its program

• Also read: Suspension of the Roulez vert program: this will also be the end of the subsidy for charging stations in February

1) What are the current subsidies linked to the Roulez vert program?

This is a subsidy of $7,000 for the purchase of an electric vehicle and $600 for the installation of a charging station. The program also includes financial assistance for the installation of terminals in apartment buildings, which can go up to $49,000 for a building of 20 units or more. Last year, during the 2024-2025 budget, the Minister of Finance announced the gradual end of the program. The subsidy for the purchase of electric vehicles will be reduced to $4,000 in January, then to $2,000 in 2026 before disappearing the following year.

2) When will subsidies be suspended?

All subsidies linked to the Roulez vert program will no longer be paid from 1^is February 2025, for at least two months. For example, the rebate on the purchase of an electric vehicle will no longer be eligible at car dealerships. The Ministry of the Environment hopes to resume the program in April, following the next budget and the addition of budgetary appropriations, but nothing is guaranteed.

3) What will be the impact of the suspension on consumers?

Buying an electric vehicle will cost a lot more next year, which will create inequity among consumers. According to professor at the University of Montreal and scientific director of the Trottier Energy Institute, Normand Mousseau, the government’s decision will create “confusion” and some could postpone the purchase of an electric vehicle or even return towards thermal cars, he says. This announcement “without notice” and “without clear justification” will cause uncertainty for consumers and those dependent on subsidies. Quebec has “an absence of coherence” and consistency in its electrification policies, he said.

4) Is it too late to take advantage of subsidies?

No. There are two weeks left to benefit from the full subsidy of $7,000 and the entire month of January to benefit from the assistance which will be reduced to $4,000. However, the subsidy is available for purchase and not for reserving a vehicle. To obtain the discount, the chosen model must be delivered before the deadline of February 1st.

5) Why is Quebec suspending its subsidies?

The budgetary envelope for the 2024-2025 Roulez vert program is empty due to the enthusiasm for purchasing zero-emission vehicles, argues the Ministry of the Environment. According to the experts consulted, this is an “accounting trick” because he could have drawn money from the Green Fund. Since July, 34.6% of new vehicles sold have been electric. Quebec is two years ahead of its objectives. According to Deputy Minister of the Environment Jean-François Gibeault, a two-month suspension in winter will not change consumer appetite. “It’s a 100% increase in the last seven months. In terms of growth, I don’t know of any equivalent on the planet.” At 1^is April 2024, Quebec had spent $640M on this program.

6) Was the increase in electric vehicle sales predictable?

Yes, believes Professor Mousseau. By announcing the gradual reduction and the end of the subsidy by 2027, the government has caused strong enthusiasm in 2024 for the purchase of electric vehicles. Quebec itself has caused a surge in sales of green vehicles and massive requests for subsidies.

7) Could this suspension harm transportation electrification objectives?

There is a short-term risk, argues Professor Mousseau. The government is targeting two million electric vehicles on the roads by 2030, or 30% of light motor vehicles. Currently, more than 269,000 light vehicles on Quebec’s roads are electric, which represents barely 7% of the total vehicle fleet. The suspension could temporarily slow momentum among consumers. However, he says, the zero-emission vehicle (ZEV) standard will force change. With this standard, Quebec requires car manufacturers to offer more electric models and to reach certain percentages of sales, under penalty of financial sanctions. Each year, this percentage will increase and must, for example, reach 45% in 2027 and 85% in 2030.

THE GOVERNMENT’S ELECTRIFICATION OBJECTIVES

Target: in 2035, 100% of new motor vehicles and light trucks sold would be electric, or 4,100,000 cars.

The sale of new gasoline and diesel vehicles will be prohibited.

Currently: 20.9% of new vehicles registered are electric.

Target: 40% of taxis electrified in 2030.

Currently: 14.2% of taxis circulating on Quebec roads are electric.

Target: 55% of urban buses electrified in 2030.

Currently: 1.3% of urban buses circulating on Quebec roads are electric.

Target: 65% of school buses electrified in 2030.

Currently: 13% of school buses circulating on Quebec roads are electric.