Guide to Electric Vehicles in California

In California, electric car ownership is taking off like never before. Boasting the highest number of electric vehicle (EV) registrations in the country, the Golden State is sparking a revolution on the road. California has prioritized EV adoption since introducing initiatives to improve the environment and encourage EV drivers to go green.

Find out everything you need to know about electric cars in California, including rebates, ownership fees and charging stations with our guide. Get ready to explore California emission-free with Hertz.

• How Many EVs Are There in California?
• Are There Incentives for Electric Cars in California?
• EV registration, licensing, and fees in California 
• California EV charging network

How Many EVs Are There in California?

Boasting more than 1.5 million EV sales as of March 2023, California paves the way as the leading state for electric car ownership.

California isn't just participating in the green movement, it's leading the charge. As a proud part of the Zero-Emission Vehicle (ZEV) program, the state is on a mission to clear the air and cut down greenhouse gas emissions. The goal?

To turn every single car in the Golden State into a zero-emission or plug-in hybrid by 2035. Electric car ownership in California isn't just about getting from
A to B—it's about pioneering a greener future, mile by mile.

California is not just revving up electric car sales; it's setting new records. With a staggering 124,053 new electric cars flying off lots between January and March 2023, 40% of all EVs sold nationwide in that quarter now call California home.

California is not just meeting its electric car ownership goals, it's surpassing them. The ambitious aim to have 1.5 million EVs on the road was achieved two years ahead of schedule - a testament to the state's relentless pursuit of sustainable living. 

Are There Incentives for Electric Cars in California?

Imagine cruising down the iconic Pacific Coast Highway, the wind in your hair, the ocean at your side – all while leaving zero emissions in your wake. That's the reality for Californians embracing the electric revolution. But the benefits don't stop at guilt-freeroad trips. Electric car ownership in California brings a host of rewardingincentives. And while certain conditions need to be met for most tax credits and rebates, the perks of driving electric are well worth it.

Electric Car Rebates in California

• The California Clean Vehicle Rebate Project (CVRP) can offer
  rebates between $1,000 and $7,000 when you buy or lease EVs.
• The Pre-Owned Electric Vehicle Rebate Program can offer
  Pacific Gas and Electric (PG&E) customers up to $4,000 in rebates when they buy or lease a used EV.

For more information, you can find a list of local electric car rebates and incentives in California on the government-run website Drive Clean.

Electric car tax credit in California

California offers several tax credit programs to help incentivize EV car ownership. These include: 

• Leased .Vehicle Tax Credits are available as a federal incentive. If you qualify, you may receive up to $7,500 when you lease a new plug-in EV.
• PurchasedVehicle Tax Credits are available as a federal incentive. You may be able to qualify for up to $7,500 in credit under Internal Revenue Code Section 30D when you buy a new plug-in EV. 
• The Used Clean Vehicle Credit is a federal incentive that could offer you a vehicle tax credit of up to $4,000. You just need to buy a used EV or fuel cell vehicle (FCEV) for $25,000 or less from a licensed car dealer.
• Alternative Fuel Infrastructure Tax Credit is a federal incentive that allows customers to receive a tax credit of up to $1,000 when they buy equipment such as a home electric car charger in California.

Electric Car Grants in California

The main electric car subsidy in California comes from the California Air Resources Board (CARB). Grants and financing plans apply to income-qualifying customers when they buy new or used EVs.

These include grants of up to $5,000 for EVs and plug-in hybrid electric vehicles (PHEVs) and $2,500 for hybrid electric vehicles (HEVs).

Other location-based incentives in California include the Clean Cars for All program in the Bay Area. This allows income-eligible residents to swap older vehicles for an EV, HEV, PHEV or FCEV with grants up to $9,500.

Everyday Perks for Driving Electric in California 

There are plenty of other extra benefits to going electric in California, such as:

• Reduced fuel costs – Electric car charging costs half as much as
  gasoline for the same mileage.
• Single driving in the carpool lane – The Clean Air Vehicle (CAV) program allows qualifying solo electric car drivers to skip traffic in most carpool lanes in California.
• Free parking – In some locations such as Santa Monica, EV drivers benefit from free street parking and metered parking spaces when they display Clean Air Vehicle and ZEV decals.

EV Registration, Licensing, and Fees in California

While California grants various electric vehicle subsidies and rebates, there are other costs to consider when you drive an EV. Let’s take a closer look.

Registration Fees for Electric Cars in California

If you drive an electric car in California, you can expect to pay an annual registration fee of up to $175. However, this can vary as fees are matched to the consumer price index, which can be affected by a wide variety of factors, including consumer spending habits.

Despite these fees, California’s gas tax system – a charge that goes towards funding maintaining and constructing roads – means EV drivers typically won’t pay more than the average gasoline car driver.

Electric Car Insurance Costs in California

Car insurance for EVs can vary depending on how expensive your car is. According to Forbes, the average premium for EVs is around $2,300 – though this can be as low as $1,780 for cheaper vehicles.

Wherever you are in the country, other factors that can influence your insurance include:

• Driving history
• Claims history
• Driving experience
• Location
• The extent of your coverage
• The cost of insurance deductibles

Among other states such as Massachusetts, Michigan and Hawaii, California bans the use of credit-based insurance scores to determine the price of your car insurance.

If you drive a Tesla in California you’ll also have access to Tesla Insurance, giving you wider options. 

California EV Charging Network

You'll never be short of a charge in California. Leading the nation with a whopping 14,000 electric car charging stations and over 37,900 ports, finding a spot to power up your EV is as easy as catching a wave on a California beach. But don't think the Golden State is hitting the brakes there.

The California Energy Commission plans to fund the installation of even more charging stations in chosen areas of California, with a $30 million incentive program called the Golden State Priority Project.

The program will allow businesses and site owners in central and eastern California to qualify for up to $100,000 of rebates toward direct current (DC) fast chargers. 

How Much Does Electric Car Charging in California Cost?

The cost of charging your electric car in California can vary depending on whether you get a boost at home or on the road. The average cost of public charging can cost between 30 cents per kWh for Level 2 charging and 40 cents per kWh for DC fast charging.

Public charging costs can be subscription-based, pay-as-you-go – and even free of charge. Some vehicle companies such as Hyundai, Nissan and Tesla provide complimentary public EV charging at particular stations.

As you might expect, the cost of charging an EV at home relies on average utility costs. While exact figures can vary, California EV drivers might expect to pay approximately 18 cents per kWh. 

Government incentives can help support EV drivers set up their own electric car charging systems with grants for alternative fuel equipment.

Need to find an electric car charger in California on the go? Visit Electrify America to locate a charger near you. 

Let’s Go!

Without a doubt, California is the driving force behind the surge in electric car ownership in the US. Echoing President Biden's ambitious target to make 60% of new passenger cars zero-emission by 2030, the Golden State is not just stepping up—it's blazing the trail.

Generous incentives and rebates are making EV driving not just a dream, but an affordable reality for Californians.

Thinking of joining the electric revolution? Ready to put your foot on the accelerator and explore more about electric vehicles? Your journey starts right here on the Hertz blog. Get ready, the road to a greener future awaits.