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Germany Confirms New EV Subsidy Will Cover Only New Cars, Up to €5,000 From 2026

The environment ministry says second-hand incentives are excluded for now pending further review.

Overview

  • Households with taxable income up to €80,000 qualify for a base €3,000 grant, plus €500 per child (capped at €1,000) and an extra €1,000 for net monthly income under €3,000, totaling up to €5,000.
  • The scheme will apply to purchases and leases of new battery-electric cars and plug-in hybrids, with implementation targeted for 2026 as ministries finalize details.
  • A ministry spokesperson confirmed that grants for used EVs are not part of the initial program, though proposals may be considered later.
  • ICCT/Mercator data show average 2024 prices of €45,900 for new EVs and €34,800 for used, and that EV owners have higher average household net incomes (€4,300) than gasoline (€3,200) or diesel (€3,600) owners.
  • ICCT reports EV running costs are lower—up to about €2,000 a year saved for high-mileage drivers with home charging—and urges clearer public-charging prices and more targeted support, as used-market uncertainties persist and many lease returns were exported.