Suspension of ‘My Electric’ Subsidies May Slow Demand for Electric Cars Among Entrepreneurs

The suspension of leasing subsidies in the “My Electric” program may temporarily reduce the demand for electric cars, particularly among entrepreneurs. The experts emphasized during the Congress of New Mobility that for further development of electromobility, a stable support system is needed. Additionally, a harmonization of payment, charging, and fleet management systems in the context of the further development of electromobility is crucial. By the end of July 2024, there were over 70.5 thousand fully electric cars registered in Poland.

“Companies are more frequently incorporating various types of changes into their strategies that reduce emissions. One of these fields is electromobility,” says Adam Sar, Chairman of the Board of ING Lease Poland. “The ‘My Electric’ program helped companies improve their fleet emissions. The program was recently suspended by the National Fund for Environmental Protection and Water Management, but had previously facilitated a six-fold increase in the number of registered new electric vehicles.”

The Electromobility Counter, launched by PZPM and PSNM, states that by the end of July 2024, the fleet of fully electric passenger cars (BEV) reached over 63.5 thousand, over 70.5 thousand in total when including utility vehicles. The majority of new vehicles in Poland, including zero-emission ones, are bought or leased by companies.

“The suspension of the program increases uncertainty among entrepreneurs and may result in them delaying purchases until next year. In turn, this will impact the final value of currently used electric cars, 90% of which were registered during the program’s existence,” explains Adam Sar.

The total budget of the “My Electric” program was PLN 960 million, out of which PLN 660 million was allocated for subsidies for zero-emission vehicle leasing. The remaining funds were allocated for subsidies to purchase vehicles by individuals or entities other than individuals. Altogether, the NFOŚiGW funded about 25 thousand electric vehicles from the program.

As stated in the NFOŚiGW’s announcement, the fund and the Ministry of Climate and Environment are actively seeking to increase the budget of the “My Electric” program. This requires arrangements at the European Commission’s level. Due to the degree of work advancement, recruitment could be resumed from January 2025 and include the second half of 2024.

Adam Sar adds, “The ‘My Electric’ program contributed to the improvement of emissions from Polish fleets. 70% of funds went to customers via banks and leasing companies that have programs encouraging zero-emission solutions.”

ING Lease Poland offers a lease supporting sustainable development with a lower interest rate compared to conventional leases. It supports not only the financing of electric cars but also photovoltaic panels, charging stations, and electric bikes.

“We also have other programs, such as Sustainability Linked Loan or Leasing. We make a deal with the company that if their emissions fall by a certain percentage, they receive a bonus in the form of a price reduction for a given product,” adds Adam Sar.

As emphasized by the expert, approximately 12% of registered new cars are electric in Europe, compared to only 3% in Poland. Other countries introduced various facilities earlier on, such as the use of bus lanes for electric cars, lower parking fees in city centers or other benefits in the form of subsidies for purchases.

The dynamic development of technology related to zero emissions in transport suggests that the number of zero-emission (BEV) cars will grow. Various regulations contribute to this as well, such as clean transport areas in cities, which are increasing throughout Europe. The technology behind electric vehicles in the form of batteries is improving, and the infrastructure will allow better travel planning, concludes the Chairman of ING Lease Poland.