Rebates and incentives could be provided from several potential sources:
Austin Energy, the City of Austin’s community owned electric utility, has set aside $1 million for PHEV rebates for Austin Energy customers when PHEVs are made available. Utilities are a logical source for rebates since the utility industry stands to receive substantial revenues if PHEVs achieve significant market penetration.
Utility rebates could be provided to local governments for the purchase of fleet PHEVs. Part of the Austin Energy fund will be designated to City of Austin fleets to pay the additional cost of PHEVs above the cost of a regular hybrid. The campaign encourages innovation and flexibility. But here are just a few examples: a larger business might offer an employee rebate, perhaps as a match to a utility rebate or tax incentive. Organizations such as non-profit groups or foundations might offer grants for purchase of PHEVs, perhaps to cover the additional cost of a PHEV above a regular hybrid.
Tax incentives for PHEVs included in the National Energy Bill should be considered when developing rebates and incentives. Rebates from any source that matches tax incentives could substantially bring down marginal costs.