Ideanomics, a global company focused on accelerating the commercial adoption of electric vehicles (EV), is now enabling small businesses in New Jersey to procure commercial EVs.
While the New Jersey Zero-Emission Incentive Program (NJ ZIP) provides a significant reduction in the upfront capital needed for businesses to purchase medium-duty EVs, Ideanomics is delivering operating expense finance solutions to small businesses to support their transition to electrification.
Administered by the New Jersey Economic Development Authority (NJEDA), NJ ZIP is a pilot voucher program with a funding pool of $44.25 million to support businesses in purchasing new, medium-duty zero-emission vehicles. This pilot is funded by the Regional Greenhouse Gas Initiative (RGGI) with proceeds allocated to NJEDA for the purposes of reducing harmful emissions, especially in communities disproportionately impacted by transportation emissions, and creating economic opportunity within the state. The NJ ZIP pilot is designed to cover the incremental cost of EVs compared to their gas or diesel counterparts. According to the NJEDA, over 90% of program applicants have been small businesses and 50% have been woman- or minority-owned businesses.
Ideanomics, as an independent third party, has developed a product that will assist small businesses with financing the additional cost of such EVs, as well as enable those businesses to overcome go-to-market barriers by offering a wide range of solutions for commercial electrification.
In addition to financial support, Ideanomics can provide small businesses with support to procure vehicles, charging infrastructure and a range of commercial electrification solutions.
“Programs like NJ ZIP empower businesses to access and take advantage of zero-emission vehicles who would ordinarily be unable to afford transitioning to an electric fleet,” says Anthony Orantes, president of Ideanomics Capital. “We are thrilled to offer additional support to businesses participating in NJEDA’s pilot program as they look to make meaningful change in underserved communities under Governor Murphy’s vision for a greener New Jersey. We look forward to assisting small businesses in our own backyard by supporting their transition to e-mobility as we continue to invest in programs that transform the industry.”
This is one of the first financing solutions Ideanomics is bringing to market. With challenges such as high upfront cost and lack of readily available capital hindering the transition to an EV fleet, Ideanomics delivers financing solutions by turning capital expenditures to OPEX, which enables fleet operators to capture the favorable total cost of ownership of EVs compared to traditional internal combustion engine vehicles.
Image: Photo by Michael Fousert on Unsplash