EV fleets incentive FAQs
Below information is intended to accompany the EV fleets incentive guidelines. Both documents should be read before accessing the online bidding platform and placing a bid.
Is there any restriction on the size of my fleet?
Individual fleets must operate at least 10 vehicles to bid for the incentive.
Customers that receive funding via successful aggregators do not need to have a minimum number of vehicles in their fleets.
There is no maximum size for individual fleets or the customers of aggregators.
My organisation has several sites in New South Wales that are managed by separate fleet managers. Can we each bid for funding?
Each eligible organisation will be required to provide their ABN. The bidding platform will accept only one bid per registered ABN. This means that if an organisation has multiple sites, but only one ABN, it will need to collate all the vehicles requested across the various sites in one bid.
If successful in Round one, can my organisation apply for future rounds to obtain the incentive on additional vehicles?
Yes, you can participate in as many rounds as you wish. There are currently no limitations.
Can battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) procured with incentive funding be used interstate?
Occasional trips in other states are acceptable as long as the incentivised vehicles are registered, based, and used predominantly in NSW.
Can the BEVs/FCEVs be used for personal use?
The incentive is aimed at supporting businesses to transition their fleets to BEVs/FCEVs and is therefore only targeting vehicles that support business operations. However, it is understood that fleet vehicles are also used for personal reasons, especially if home garaged, e.g. commuting from/to work.
I’m an aggregator and lease vehicles to NSW Government agencies. Can I bid for incentives to support leasing arrangements for NSW Government agencies?
No, NSW Government fleet vehicles are not eligible under the incentive. The electrification of NSW State Government fleet vehicles is being managed through a separate initiative.
I would like to be an aggregator, gain a government incentive and on-sell vehicles to fleets at a discount. Is this possible?
No. The aggregator stream is only available to organisations that offer leasing arrangements to their customers. Aggregators have to demonstrate their past leasing experience at registration.
How would new business models like car subscription companies be classified? Individual fleets or aggregators?
Car subscription companies are not eligible to participate in the incentive for this round. The NSW Government will assess the scope of the Incentive between each funding round.
Is there a minimum or maximum number of BEVs/FCEVs I can bid for?
No, there is no minimum or maximum number of BEVs that must be bid for; only a minimum of 10 vehicles within your current fleet for eligibility purposes.
Can I bid in both streams?
If you provide fleet leasing services to customers and also operate a fleet of at least 10 vehicles for your business purposes, you can bid under both streams.
The individual stream gives applicants the opportunity to add BEVs/FCEVs to their organisation’s fleet, while the aggregator stream allows applicants to procure BEVs/FCEVs to lease to their customers.
What can be funded and what cannot be funded
Why are heavy commercial vehicles excluded from the incentive?
The incentive has been designed to encourage passenger and light commercial BEV uptake, due to greater model availability and compatibility with public charging infrastructure currently available.
Is there any plan to expand the incentive to commercial vehicles, including medium and heavy vehicles?
Medium and heavy vehicles may be considered in future rounds, pending model availability and policy decisions.
The 3.5 tonne limit on LCVs was decided after review of the Federal Chamber of Automotive Industries segmentation criteria, and in consultation with the working group, which included industry experts, that helped guide the development of the incentive.
The focus of the incentive is on available passenger and light commercial vehicles to help improve the EV market and spur second-hand demand.
Why is there a price cap on BEV/FCEV passenger vehicles and sports utility vehicles (SUVs), but not light commercial vehicles (LCVs)?
Price caps are introduced to limit the use of the incentive to buy luxury vehicles. It also encourages original equipment manufacturers to prioritise bringing more affordable BEVs/FCEVs to NSW and Australia, helping to increase market options. The RRP price cap on passenger vehicles and SUVs is $100,000 (including GST).
LCVs do not usually include prestige or luxury options, rather special purpose/fit-for-function vehicles. Encouraging new LCV models into NSW is a priority.
Can I bid for model variants? E.g. Tesla Model 3 (Standard or Long Range) or Hyundai Kona (Elite or Highlander).
Yes, fleet managers can bid for any models and variants, so long as they fall within the price cap.
Why are hybrid electric vehicles (HEVs) and plug-in electric hybrid vehicles (PHEVs) ineligible replacements under the incentive?
The NSW Government has set an ambitious target to deliver a 50 percent cut in emissions by 2030. Although both HEVs and PHEVs incorporate electric motors, they still produce tailpipe emissions, whereas BEVs/FCEVs do not.
Are fuel cell electric vehicles (FCEVs) eligible replacements?
Yes. This is because most FCEVs produce no emissions, powering the motor using oxygen and compressed hydrogen.
Hydrogen is an emerging renewable technology; the establishment of the NSW Hydrogen Strategy is set to attract more than $80 billion of investment and create a hydrogen refuelling station network across the state.
Will the incentive cover the installation costs of my smart chargers?
No, the incentive will cover some of the cost of purchasing smart charging equipment (up to $400 per vehicle for successful bidders), but not installation.
Can I replace a HEV or PHEV vehicle with a BEV/FCEV or can I only replace internal combustion engine vehicles (ICEVs)?
Yes, you can replace hybrids, plug-ins and internal combustion vehicles with BEVs/FCEVs.
Why will you only help to fund smart chargers?
Smart (networked) chargers ensure optimal use of the electricity required to charge BEVs as well as help manage electricity usage in buildings and the electricity grid. Smart chargers can monitor electricity demand and usage remotely, plan how much electricity to send to a vehicle and schedule charging for off-peak times. This can reduce peak demand on the electricity grid and can help save money.
Total cost of ownership and bidding windows
Why are you using total cost of ownership (TCO) calculations?
TCO calculations help fleet managers make informed decisions around the BEVs/FCEVs they wish to procure as they require consideration of all the factors that will contribute to the cost of a BEV/FCEV over its lifetime.
Consideration of TCO is often not familiar for organisations that have only managed petrol or diesel vehicles previously. BEVs generate savings over their lifetime due to lower maintenance costs, so comparing only the difference in the upfront price may be misleading. Having fleet managers compare the TCO against a BEV allows them to calculate what the actual funding gap is over a fixed period of time (TCO gap) and budget how much they need to make the business case viable.
Why isn’t the government funding the full TCO gap?
Co-funding is a key principle supported by NSW Government in the provision of incentives to promote new technologies. We expect successful applicants to also contribute to bridge the gap in funding to invest in new technologies such as the electric cars which are the focus of this incentive.
However, the fleet manager can apply for an incentive covering the full gap if the TCO gap is less than $3,000.
Why is the TCO term fixed at 4 years under the individual fleet stream?
The 4 year figure is based on average ownership terms for fleet vehicles. Setting a fixed term allows for a standard and fair TCO comparison between bidders. If a successful applicant owns or leases a vehicle for more or less than 4 years, this will not affect the amount of funding received or the fixed TCO term.
What if I own/lease my vehicle for more or less than 4 years under the individual fleet stream?
That will not impact the bid results or amount of incentive received if successful. The ownership/lease term in the TCO calculator is only set to 4 years to enable a fair comparison of the bids submitted, i.e. all bidders are using the same assumptions. Once procured, it is up to each fleet manager how long they own/lease each vehicle.
What happens if I calculate a negative TCO gap? In other words, if the total cost of ownership of my chosen BEV/FCEV is better than the vehicle I would otherwise have purchased?
The incentive is aimed at providing funding when there is a shortfall when purchasing a BEV/FCEV over another vehicle. If the calculation produces a negative TCO gap, no incentive is required to support the business case and the vehicle cannot be incentivised (and is therefore also not eligible to receive funds towards smart base charging equipment).
Can I change my TCO after receiving my initial bid results/ranking?
No, fleet managers can only change the requested level of incentive, delete a vehicle, or include a new vehicle. The TCO and assumptions behind it cannot be altered at this stage in the process.
Can I increase the requested level of incentive after receiving my initial bid results? Or can I only decrease it?
Fleet managers can increase or decrease the requested level of incentive in the second and final bidding window.
Why is the ceiling on the average incentive per vehicle not disclosed?
This is to ensure increased competitiveness between bids and so fleet managers only bid for a level of incentive they need to make the procurement of BEVs/FCEVs viable for them.
Some EV manufacturers have no scheduled maintenance over the first few years. How does this fit with the ranking metric?
This has been incorporated into the pre-calculated maintenance values on the bidding platform. If you have different arrangements for your vehicle, you can change the pre-set values in the platform. Remember, you will need to show evidence of any changes to the pre-set values.
Is fringe benefits tax (FBT) addressed by this incentive?
No. The NSW Electric Vehicle Strategy does not include any action to address FBT as it is a Commonwealth tax.
Note: Only vehicles used exclusively or primarily for supporting business operations are eligible for the incentive.
Can I boost my emissions abatement via additional means, such as purchasing offsets?
No, you can only boost emissions abatement by using renewable energy for charging BEVs when garaged. Accepted sources of renewable energy are power purchase agreements, green energy, or on-site renewables.
Vehicles that have high mileage will contribute to higher emissions abatement when replaced, so make sure to include vehicles that have higher mileage to increase chances of securing an incentive. Vehicles that have high annual mileage will contribute to higher emissions abatement when replaced, so make sure to include vehicles that have higher mileage to increase chances of securing an incentive.
What constitutes renewable energy?
The sources of renewable energy that apply to the incentive are the direct purchase of green energy, a power purchase agreement, or the use of onsite renewables.
What happens if an aggregator bids with renewable energy, but their customer does not implement this?
The aggregator will need to provide evidence and there will be a rigorous verification process as part of the assessment. Audits may occur to ensure incentives are provided for the intended purpose/application and that the level of renewable energy claimed at the bidding stage is occurring.
Is there an expectation on what happens to the old internal combustion engine vehicles (ICEVs) that are replaced by EVs?
No. The incentive does not demand what should happen to a vehicle replaced by an incentivised BEV/FCEV, for example, scrap or resale. It depends on your individual organisational policy.
When will online information sessions be held?
An online information session will be held at the opening of each round. Session details will be posted on the Energy Saver website. A recording of the session will be made available online for the duration of the round. Sign up to our e-newsletter to be one of the first to know about future sessions at energysaver.nsw.gov.au/electricvehicles.
Following the information session, question and answer sessions will be run until registrations close – dates and times will be published online.
I am stuck in the bidding platform and cannot progress. What should I do?
Please email [email protected] for assistance.
Can I get feedback on my unsuccessful bid?
Yes. Feedback on how final submitted bids compared to the bidder who ranked first, and what was the average incentive requested per tonne of CO2 equivalent abated ($/tCO2e) can be provided.
Details on whether a fleet submission did not meet the eligibility criteria or lodged all required supporting documentation can also be provided.
If I register just some, but not all the BEVs/FCEVs I have received confirmation of an incentive for, can I get paid for those I haven’t registered?
No. Payments will be made only for vehicles that have been registered in NSW. If a fleet manager does not purchase and register the vehicles bid for, or purchases a BEV/FCEV but does not register it in NSW, payment for the vehicles not registered will be withheld and funds will be reallocated to future bidding rounds.
What if I am successful but no longer want to use the funding or procure the BEVs/FCEVs outlined in my bid?
Successful fleet managers that are no longer interested to use the funding will need to notify the Department of Planning, Industry and Environment as soon as possible, so funding can be reallocated to future rounds.
Can I purchase my fleet’s BEVs and smart chargers before signing the funding deed?
Vehicle purchase orders cannot be dated from before the launch of the funding round.
To access the incentive, successful individual fleets and aggregators must sign the funding deed within 15 business days from notification of results. Purchase orders for successful individual fleets must be submitted after the funding deed execution and within 40 business days from notification of bid results. Purchase orders for successful aggregators must be submitted after the funding deed execution and within 60 business days from notification of bid results.
Proof of purchase of smart base charging equipment must be provided within 120 business days from notification of bid results for both individual fleets and aggregators.
Can I purchase new BEVs/FCEVs through private imports?
Yes. You can procure BEVs/FCEVs via your usual procurement channels.
Why will some applicants get different funding for the same or similar BEVs/FCEVs?
Successful applicants will receive the incentive specified in their bid, meaning different applicants may receive different levels of incentive for the same or similar BEVs/FCEVs. This reflects the fact that not all organisations have the same opportunities to integrate BEVs/FCEVs into their fleets or need the same level of NSW Government support to do so.
What if I am unable to secure the vehicle in time due to supply issues (including issues caused by the COVID-19 pandemic)?
Fleet managers that cannot secure vehicle(s) within the set timeframes will need to notify the department.
Extensions to set terms may be granted at the department’s discretion if there is a reasonable cause for delay and adequate evidence is provided. An extension will only be considered for vehicles with a purchase order in place.
Privacy and confidentiality
My application and registration will include personal information. How does the department manage this information?
We have legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information.
If collecting your personal information, we will provide you with a privacy statement at the time of collection that details how this information will be managed in accordance with privacy law.
We may publish aggregate information of round results on the Energy Saver website as well as use deidentified bid data in training materials, case studies, evaluations and other portfolio purposes.
My application and registration will include commercially sensitive information. Will this be kept confidential?
Information of a confidential nature provided as part of or in connection with any bid, will be treated as commercial-in-confidence information and only disclosed with the consent of the fleet manager. However, commercial-in-confidence information provided by fleet managers may be disclosed:
- to the Minister/the Minister’s Office
- to department staff
- to relevant parties for auditing purposes
- where authorised or required by law to be disclosed.
Please contact [email protected] if you have further questions about the incentive.
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