Electricity Bonus: What's Changing on July 1st

Starting from July 1, 2022, the eco bonus reserved for electric cars will decrease once again. And the bonus will completely disappear for plug-in hybrid vehicles.

Already favored at the time of purchase in France before this date, electric cars benefited significantly in 2020 from the implementation of a more generous eco bonus system than ever before. That year, buying a new electric car costing less than €45,000 qualified for a €7,000 grant. Of course, this grant was not intended to last forever: its amount will gradually decrease, probably until it completely disappears when electric energy accounts for the majority of new car purchases in France. In the meantime, buying a zero-emission new car still grants a nice bonus. Here’s what it will look like starting July 1, 2022.

A €1,000 reduction in the bonus for new electric cars

Currently, the eco bonus is €6,000 for purchasing a new electric car costing less than €45,000. It drops to €2,000 if the car’s value is between €45,000 and €60,000, and becomes nil beyond that amount. Starting July 1, 2022, the bonus amount will decrease to €5,000 for new electric cars under €45,000 and to €1,000 for electric cars valued between €45,000 and €60,000. For those purchasing a new electric car over €60,000, there will still be no bonus. This eco bonus remains capped at 27% of the vehicle’s new price. This means that for a new electric car like the Dacia Spring (priced at €19,920 base price), the eco bonus will be less than €5,000. Also note, if you live in an overseas territory, the eco bonus amount increases by €1,000 provided you drive the vehicle for at least six months after purchase. And if you live or work within a Low Emission Zone (ZFE) and have received aid to buy or rent a clean vehicle, you may also be eligible for an additional bonus of up to €1,000.

It’s not possible to qualify for the maximum €5,000 bonus for a Spring, as it would exceed the 27% cap. So, you will have to settle for slightly less.

Higher incentives for plug-in hybrids are ending

Until June 30, 2022, plug-in hybrid vehicles priced under €50,000 with over 50 km of all-electric range were eligible for a €1,000 eco bonus upon purchase. But from July 1, 2022, this bonus will be completely phased out. Plug-in hybrid vehicles will no longer be subsidized for purchase.

€1,000 for used electric cars

The eco bonus for used electric cars remains unchanged: it will stay at €1,000. To qualify, the vehicle must have been registered in France for at least two years and must be kept for at least two more years (via lease or purchase).

A conversion premium of up to €5,000 under certain conditions

You can still combine the eco bonus with a €5,000 conversion premium, but only if you send a pre-2011 diesel or pre-2006 gasoline vehicle to the scrap yard. Also, high-income earners are excluded: the reference tax income must not exceed €13,489. It also requires a reference tax income per share of less than or equal to €6,300, driving more than 12,000 km per year, or commuting more than 30 km daily. Combining these, you could potentially receive €10,000 in total purchase aids—an excellent boost to buy a new electric car. Remember, some regions in France also offer local aid, which can be combined with the eco bonus.