EV Access Key to Meeting California's Climate Goals and Can Help Lower Electric Prices

Rhea-AI Summary

Pacific Gas and Electric (PG&E) is accelerating electric vehicle (EV) adoption among customers with limited financial resources to meet California's climate goals and potentially lower electric rates. The company has helped over 13,000 income-qualified customers through their Pre-Owned EV Rebate Program, offering up to $4,000 in rebates.

With over 700,000 EVs in PG&E's service area (1 in 8 EVs nationwide), the company aims to serve 3 million EVs by 2030. PG&E estimates the next million EVs could reduce residential electric rates by 2-3%. Income-qualified customers can charge EVs for as low as $1.88 per gallon equivalent during off-peak hours.

Key initiatives include:

• 50-100% rebates on Level 2 residential charging equipment
• EV Charge Manager program with $75 reward
• Three Time-of-Use rate plans for cost savings
• Upcoming pilots for affordable public charging and electrical panel upgrades

Positive

• PG&E has 700,000 EVs in service area (1/8 of all US EVs), showing strong market penetration
• Next 1M EVs could lower residential rates 2-3%, benefiting revenue spread
• Successfully distributed $29M in rebates through Pre-Owned EV Program with $50M still available
• On track for strategic goal of serving 3M EVs by 2030
• California EV sales grew for 4th straight year, reaching 25% of new vehicle sales in 2024

Negative

• Significant capital investment required for EV infrastructure and rebate programs
• Heavy dependence on government subsidies and LCFS Program funding
• Limited pilot program reach - only available in select counties (Santa Clara, Contra Costa, Alameda)

Insights

Utility & Energy Sector Analyst

PG&E's EV strategy supports California climate goals while potentially lowering rates, reflecting strategic grid management despite upfront program costs.

PG&E's EV adoption initiative represents a strategic alignment with California's energy transition policies while offering mixed financial implications. The utility has already distributed $29 million in benefits through its Pre-Owned EV Rebate Program, helping over 13,000 income-qualified customers, with an additional $50 million still available.

The company's ambitious target to serve 3 million EVs by 2030 would require quadrupling their current 700,000 EV customer base within six years. This growth trajectory is supported by California's EV sales climbing for the fourth straight year in 2024, representing approximately 25% of all new vehicles sold in the state.

Most significantly, PG&E estimates the next million EVs connecting to their grid could lower residential electric rates by 2-3% by spreading fixed operations and maintenance costs across increased electricity consumption. This presents a potential positive feedback loop where lower rates could drive further adoption, though the rate reduction itself could pressure revenue unless volume growth provides sufficient offset.

The company's strategic focus on time-of-use rate plans (allowing CARE-qualified customers to charge for the equivalent of $1.88 per gallon during off-peak hours) demonstrates intelligent load management to improve grid utilization while providing customer value. The multiple programs addressing charging infrastructure barriers show PG&E is taking a comprehensive approach to accelerating adoption.

While the initiative positions PG&E well for California's mandated transition to zero-emission vehicles by 2035, the UCLA study cited in the release highlights challenges in disadvantaged community adoption rates that could impact their ambitious targets.

PG&E Accelerating EV Adoption Among Customers With Limited Financial Resources 

OAKLAND, Calif., April 29, 2025 /PRNewswire/ -- Electric Vehicles (EVs) are key to achieving California's climate goals and can help lower electric rates for customers, but research shows that the cost of owning an EV can be a challenge for drivers in lower-income communities. Pacific Gas and Electric Company (PG&E) is taking action to make EV ownership more affordable for customers with limited financial resources.

PG&E has already helped make driving an EV a reality for more than 13,000 income-qualified customers through the Pre-Owned EV Rebate Program, and thousands more have benefited from incentives to lower the upfront costs for charging infrastructure at their homes.

Closing the equity gap to help get more drivers with limited resources into EVs is critical to accelerate EV adoption throughout PG&E's service area and reach PG&E's goal to serve 3 million EVs by 2030. EVs help improve air quality by decreasing carbon emissions from transportation. Additionally, PG&E estimates the next one million EVs connecting to the grid could lower residential electric rates by 2% to 3% by spreading fixed operations and maintenance costs across more customers.

"We have made great progress to improve access to EVs and charging infrastructure for all of our customers, including those who may have thought EV ownership was out of reach because of the costs. EVs are critical to California meeting its climate goals, and they also provide a road to lower electric prices," said Lydia Krefta, Senior Director, Electrification and Decarbonization for PG&E.  

"Additionally, customers can manage their EV charging during times when energy demand and prices are lower, allowing them to charge for as low as the equivalent of $1.88 per gallon of gas for customers who receive income-qualified rate discounts, while reducing strain on the grid," Krefta added.

Making EV Ownership More Affordable

There are over 700,000 EVs in PG&E's service area, representing one in eight EVs in the country. According to recent data, California EV sales climbed for the fourth straight year in 2024, representing approximately 25% of all new vehicles sold in the state last year. However, a study from UCLA's Luskin Center for Innovation finds that disadvantaged communities are not keeping pace in the EV transition because they often don't have access to incentives and charging infrastructure.

PG&E offers a variety of resources—including rebates, incentives for income-qualified customers and EV-focused rate plans—that can help lower the total cost of EV ownership, including upfront, charging and charger installation costs.

The Pre-Owned EV Rebate Program provides up to $4,000 back when income-qualified customers buy or lease a used EV. Since launching in February 2023, the program has issued more than 13,000 rebate payments and provided over $29 million in benefits. An additional $50 million in funding is still available for PG&E customers who meet income qualifications.    

Powering the EV Transition

PG&E has programs that can reduce the cost of installing an at-home EV charger to help lower the overall cost of driving an EV.

PG&E's Residential Charging Solutions pilot provides customers with a 50% post-purchase rebate on approved Level 2 residential charging equipment that can utilize existing 240-volt outlets and eliminate the need for costly electrical upgrades. Income-eligible customers can receive a rebate valued at 100% of the equipment's purchase price. The pilot is funded by California's Low Carbon Fuel Standard (LCFS) Program.       

EV Charge Manager can help customers save on their EV charging costs by scheduling charging when electric rates and grid demand are lower. The program— currently available to PG&E customers in Santa Clara, Contra Costa and Alameda counties who meet eligibility requirements—provides a personalized dashboard with insights into charging habits, costs, battery usage and battery efficiency. Participants will receive a $75 Tango gift card after being in the program for at least three months and staying connected to the platform at least 50% of the time.

In the year ahead, PG&E plans to announce two additional EV charging pilots that were authorized for funding through California's LCFS Program.

• The Affordable Public Charging pilot offers a charging credit, via a prepaid debit card, to help income-qualified customers cover some of the costs to charge their EVs at public charging stations.
  
  
• The Panel and Flexible Electrification Support pilot offers incentives for electrical panel upgrades and other qualifying auxiliary equipment needed for low-income customers to install an EV charger at their home.

EV Rates and Additional Resources 

PG&E has three rate plans that may help EV drivers lower their electric costs. With these Time-of-Use rate plans, customers who charge their EVs during off-peak hours can reduce their overall energy costs.

On PG&E's EV2-A rate, customers who qualify for the income-eligible California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance monthly discounts can charge their EVs for the equivalent of $1.88 per gallon at the pump when they charge between midnight and 3 pm. The EV Rate Comparison tool can help customers find the best rate plan that works for them.

"There are real savings opportunities that can help lower EV ownership costs for customers with limited resources. An income-qualified customer with access to home charging could save 57% with the CARE discount and off-peak EV charging rates, compared to the cost to fuel their vehicle with gasoline. A CARE customer who only uses public charging through the upcoming Affordable Public Charging program can save up to 100% for two years," Krefta said.

Customers who want to explore EV ownership are encouraged to check out PG&E's EV Savings Calculator to browse vehicles, discover incentives and locate charging stations.

About PG&E 

Pacific Gas and Electric Company, a subsidiary of PG&E Corporation (NYSE:PCG), is a combined natural gas and electric utility serving more than 16 million people across 70,000 square miles in Northern and Central California. For more information, visit pge.com and pge.com/news.

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SOURCE Pacific Gas and Electric Company

FAQ

How much can PG&E (PCG) customers save on EV charging through the CARE program in 2025?

PG&E CARE-eligible customers can charge their EVs for the equivalent of $1.88 per gallon when charging between midnight and 3 pm using the EV2-A rate plan. Income-qualified customers with home charging can save up to 57% compared to gasoline costs.

What is PG&E's (PCG) Pre-Owned EV Rebate Program offering in 2025?

PG&E's Pre-Owned EV Rebate Program offers income-qualified customers up to $4,000 back when buying or leasing a used EV. The program has already provided over $29 million in benefits to 13,000 customers, with $50 million in additional funding still available.

How will 1 million EVs impact PG&E (PCG) customer electricity rates?

According to PG&E estimates, connecting the next one million EVs to the grid could lower residential electric rates by 2% to 3% by spreading fixed operations and maintenance costs across more customers.

What EV charging incentives does PG&E (PCG) offer for low-income customers?

PG&E offers 100% rebates on Level 2 charging equipment for income-eligible customers, a $75 gift card through EV Charge Manager program, upcoming public charging credits via prepaid debit cards, and incentives for electrical panel upgrades.

What is PG&E's (PCG) EV adoption goal for 2030?

PG&E aims to serve 3 million EVs by 2030 in its service area. Currently, there are over 700,000 EVs in PG&E's service area, representing one in eight EVs in the country.