Amid Sluggish Sales, ComEd Offers EV Rebates

---

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Amid something of a plateau in the adoption of fully electric vehicles (EV), Illinois utility company Commonwealth Edison Company (ComEd) (Chicago) said it would offer its consumers rebates to support new purchases.

"Making the switch to electric vehicles shouldn't be a challenge, which is why ComEd is committed to offering resources, tools and programs to remove barriers to EV adoption," said Melissa Washington, a senior vice president for customer operations at the Commonwealth Edison Company.

Eligible fleet owners within ComEd's territory would qualify for a base rebate of between $5,000 and $180,000, depending on vehicle type.

Click on the image at right to view ComEd's rebate categories.

The Chicago Transit Authority would automatically receive the select rebate for its transit buses. Other requirements include specifications that a customer lives in a low-income community.

ComEd said its rebate program has helped fund more than 100 electric vehicles to date, including heavier-duty vehicles such as school buses.

The incentives come amid something of a slowdown in the adoption of fully-electric vehicles. Ford Motor Company (NYSE:F) (Dearborn, Michigan) in August said it plans to delay production at an EV assembly plant under construction, halt production of a new electric SUV and cut its annual mix of capital expenditures devoted to EVs by 10% to 30%.

Later in September, Toyota Motor Corporation (NYSE:TM) (Toyota City, Japan) opted to cut its EV production by around 30% from current levels by 2026, favoring hybrid models instead.

Despite widespread incentives toward purchases, including federal funds for consumers, analysis from the U.S. Energy Information Administration (EIA), the data arm of the Energy Department, finds EV purchases may be leveling off.

Data compiled by the EIA show total sales of hybrids, plug-in hybrids and battery electric vehicles accounted for 18.7% of all new light-duty vehicle sales during the second quarter, about 1% more than during the three months ending in March.

The increase, however, was driven almost entirely by hybrids, which saw new vehicle purchases increase 31% year-on-year. Battery-powered vehicles accounted for 7.1% of new vehicle sales, similar to 2023 levels.

That comes as the cost of a battery-powered vehicle declines, though the prices are still about 15% higher than a conventional vehicle.

Broad-based adoption has been less than expected due in part to sticker shock and range anxiety. Globally, EVs account for only about 1% of all the vehicles on the road.

Megha Lakhchura, the electric vehicle officer for the state of Illinois, said widespread adoption requires collaboration between business, industries and governments.

"Initiatives like the ComEd EV rebate programs, one of the largest investments in electrification in the state, and the new point-of-purchase initiative, are an important step in making it financially feasible for fleets of any size to explore electrification," she said.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).