How much the Electric Vehicle Incentive Program (EVIP) could reduce the cost of an electric vehicle such as the 2017 Hyundai Ioniq

Electric vehicles are expensive, but how much does it cost to purchase one with Ontario Government incentives?

The 2017 Hyundai IONIC Electric (EV) will come in three trim levels, costing between around $35,000 and approximately $45,000. In context, the MSRP for any electric vehicle in Ontario is eye-watering. For example, the BMW i3 (a small electric vehicle) starts at a little over $47,500 while the range-extended (200km range) i3 starts at $52,500 (if you can get the BMW "Build and Price Tool" to work on their web site). With premiums of $10,000 to $20,000 to get into the electric car market, the manufacturers depend heavily on government incentives and rebates to get these cars out of the showroom floors.

The Ontario Electric Vehicle Incentive Program (EVIP)

The Ontario Electric Vehicle Incentive Program (EVIP) was updated January 1, 2017 with the following parameters:

1. Vehicles with a battery capacity from 5 to 16 kilowatt-hours (kWh) are eligible for incentives ranging between $6,000 to $10,000 based upon the battery size of the vehicle;
2. Vehicles with a battery capacity of larger than 16kWh are also eligible for an additional $3,000 incentive;
3. Vehicles with five or more seats are also eligible for an additional $1,000 incentive; 

Although the IONIQ is a compact car, there are 3 headrests and seatbelts in the rear, which means that the IONIQ qualifies for that additional $1,000. Therefore, the Hyundai IONIQ EV will receive $14,000 in incentives. That could potentially mean an on-the-showroom-floor price on the high side of $31,000 to the low side of $21,000, which are quite affordable prices.