Explained: Monaco adjusts its electric vehicle subsidy

The Monaco government has made some changes to the subsidies it offers residents who purchase electric vehicles, rewarding less-emitting vehicles and increasing the bonus for electric two-wheelers.

Monaco has been offering subsidies for the purchase of ecological vehicles since 1994. Half of the government’s own fleet is electric.

Now, as of 26th June, the government is changing its support system to help fund the most ecological vehicles purchased by individuals and professionals.

In order for people to receive a government subsidy for their private vehicle, it must now be electric or an electric-petrol hybrid with a value of less than €60,000, base price including tax.

The amount of aid also varies according to the level of CO² emissions, falling into three categories:

– vehicles emitting less than 21 g/km of CO² benefit from an aid of 30% of the base price including tax of the vehicle, capped at €10,000;

– vehicles emitting 21 to 50g/km of CO² benefit from a fixed bonus amounting to €5,000;

– and those emitting 51 to 98 g/km of CO² benefit from a fixed bonus of €1,500.

An incentive system has also been put in place for professionals and associations who acquire, as part of their activity, better performing electric or electric-petrol hybrid vehicles. For the acquisition of light utility vehicles ≤3.5 tonnes emitting less than 21 g/km of CO², an additional fixed aid of €3,000 is added to the bonus for purchase amounting to 30%, capped at €10,000, of the price of the vehicle.

For the purchase of electric goods trucks >3.5 tons emitting less than 21 g/km of CO², a premium amounting to 20% of the price of the vehicle, capped at €40,000, is applied.

The government also wants to boost the use of electric two-wheelers in Monaco by increasing the subsidy to 40% of the price of the vehicle, capped at €4,500.

People wanting to buy an electric bicycle will also receive a flat-rate cash back of €400, provided that the purchase is made from a merchant located in the European Union and that the delivery is made in Monaco.

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Photo credit: Eren Goldman on Unsplash