DNREC to Extend, Revamp Clean Transportation Incentive Program


The Department of Natural Resources and Environmental Control’s (DNREC) Division of Energy & Climate has announced an extension of its Clean Transportation Incentive Program in response to Delawareans’ rising demand for cleaner fuel and electric vehicles (EVs).

According to the government of Delaware, the current program is set to expire Oct. 31. Changes to the program – including updated rebate amounts and modified requirements – will apply to cars and equipment purchased on or after Nov. 1.

The Clean Transportation Incentive Program was launched in July 2015 to encourage Delaware drivers and businesses to purchase and lease alternative fuel vehicles (AFVs), including vehicles that run on propane, natural gas and electricity, as AFVs produce fewer or no tailpipe emissions.

The Clean Transportation Incentive Program offers rebates for the purchase or lease of AFVs and the charging stations needed to support EVs. Highlights from the updated program include the following rebates:

  • $3,500 for battery-electric vehicles;
  • $1,500 for plug-in, hybrid-electric vehicles and EVs with gasoline range extenders;
  • $1,500 for dedicated propane or natural gas vehicles; and
  • $20,000 for heavy-duty dedicated natural gas trucks.

“Drivers of electric, propane and natural gas vehicles save money on fuel and maintenance costs while knowing that they’re making an environmentally responsible choice. The Clean Transportation Incentive Program was designed to make that choice easier,” said Greenhouse Gas Mitigation Planner Morgan Ellis, in the Division of Energy & Climate.

“Electric cars in particular are cheaper to power and don’t require the high maintenance of gas cars,” Ellis added. “Many people worry that electric cars are too expensive, but with their reduced operating costs and the rebates available through the Division of Energy & Climate, many electric vehicle drivers actually pay less over time than those who drive gasoline-powered cars.”

Rebate amounts vary based on the type and cost of the vehicle and/or equipment. In addition to state rebates, manufacturer rebates and federal funding opportunities and tax incentives also may be available.

As for EV charging rebates, the program will provide a rebate for 50% of the cost of a residential charging station and up to 75% of the cost of a charging station installed in a commercial area or workplace.

According to the state’s release, the Clean Transportation Incentive Program has been well-received across Delaware during its first 14 months. More than 225 Delawareans across all three counties have received rebates for EVs – more than twice the program’s original target. In addition, seven businesses and organizations have received rebates for the addition of clean fuel vehicles to their fleets.

The Division of Energy & Climate also awarded more than $1 million in grants to projects that will add at least 10 new EV charging stations, three propane fueling stations for clean fuel school buses, and a public compressed natural gas refilling station. These new projects add to the alternative fuel network within Delaware, which currently has about 50 public charging stations.

Delaware’s Clean Transportation Incentive Program is made possible through Delaware’s participation in the Regional Greenhouse Gas Initiative (RGGI), a market-based emissions trading program designed to reduce emissions from the electricity generation sector. Delaware’s proceeds from RGGI are invested in energy efficiency, renewable energy, emissions reductions programs and programs that benefit energy consumers.

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