Spain is poised to make significant strides in electric mobility with a series of strategic initiatives aimed at bolstering the growth and competitiveness of its electric vehicle (EV) charging industry. Aligned with the nation’s commitment to promoting electric mobility, these propositions hold the promise of transforming Spain’s transportation landscape. In this comprehensive guide, we explore the key proposals set forth by the Spanish EV charging industry for 2023 and how they are poised to shape a more sustainable future.
Elevating Standards for Charging Infrastructure
One of the cornerstones of Spain’s vision for a robust EV charging ecosystem is the elevation of standards. The proposal seeks to extend pre-installation rules to the installation phase, a move that aligns with established norms for other equipment such as thermostats. By implementing standardized installation practices, Spain aims to ensure the seamless and efficient deployment of EV charging stations across the country.
Reducing VAT for Charging Point Installations
To incentivize the installation of EV charging points, Spain is considering a reduction in Value Added Tax (VAT). This reduction would be akin to the VAT rates applied to photovoltaic installations. By lowering the financial barriers associated with setting up charging stations, Spain intends to make EV charging infrastructure more accessible and attractive to both individuals and organizations.
Supporting Investment in Manufacturing and R&D
In a bid to secure the competitiveness of the Spanish EV charger industry, investment support is proposed for manufacturing enhancements and research and development (R&D) initiatives. This backing aims to stimulate innovation, improve the quality of domestically produced charging equipment, and position Spain as a leading player in the global EV charging market.
Subsidies for Point of Sale (POS) Hardware
Spain’s EV charging industry envisions the introduction of subsidies for Point of Sale (POS) hardware. These subsidies would facilitate the integration of credit card and contactless payment options at charging stations, enhancing the convenience and usability of EV charging infrastructure. This move not only fosters a value-added proposition for tenders but also aligns with evolving consumer preferences for seamless transactions.
Promoting European Standards
Spain’s proposal calls for a mandate on European standards in the design, assembly, validation, and post-sale technical service of charging points in public tenders and within the framework of the MOVES Plan. By enforcing these standards, Spain aims to ensure the compatibility and reliability of its charging infrastructure with European counterparts, enhancing interoperability and facilitating cross-border travel for EV users. Spain recognizes the strategic importance of EV charging infrastructure in generating economic prosperity and employment. To underscore this significance, the proposal advocates for awareness campaigns targeting both public administrations and society at large. These campaigns serve to highlight the role of charging infrastructure as a catalyst for wealth creation and job opportunities.
MOVES III: A Game-Changer for EV Adoption
The Spanish government introduced MOVES III in April, a groundbreaking €800 million initiative slated to run until 2023. In conjunction with the planned €3.75 billion aid package for the local automotive industry, Spain is actively working to make EV technology more affordable and accessible. These initiatives not only promote the adoption of electric vehicles but also bring Spain closer to its target of carbon neutrality by 2050.
Incentive Scheme (MOVES III) Overview:
- For self-employed individuals, communities, and administrations: Eligible for up to 70% of the eligible cost.
- For companies and public charging points (power ≤ 50 kW): Eligible for 35% of the eligible cost for large companies, 45% for medium-sized companies, and 55% for small companies.
- For companies and public charging points (power > 50 kW): Eligible for 30% of the eligible costs.
- Applicable to home and commercial setups. Deadline for applications: December 31, 2023.
Local Tax Rebates
Spain’s Royal Decree Law 29/2021 empowers local governments to provide tax discounts, known as « tax rebates, » for approved EV charging stations. These rebates are facilitated by amendments to Royal Decree Law 2/2004. The rebates encompass:
- Real Estate Tax (« IBI ») discount (up to 50%): Property owners with EV charging stations may receive a discount of up to 50% on their real estate tax, which is based on property value.
- Business Activity Tax (« IAE ») discount (up to 50%): Businesses with EV charging stations can benefit from a discount of up to 50% on taxes related to their business activities.
- Construction, Installation, and Works Tax (« ICIO ») discount (up to 90%): Those involved in constructing, installing, or preparing EV charging stations may receive a substantial discount of up to 90% on a specific tax related to these activities.
Funding Opportunities in Andalusia
In Andalusia, financing applications for EV-related measures have been open since September 20, 2021. This includes citizens, community owners, professionals, and public institutions. Service stations aiming to install EV charging stations can also benefit from MOVES III, with support available for land preparation, cabling, electrical work for station installation, and associated communication services.
Steering Towards a Green Future
The introduction of MOVES III represents a pivotal moment in Spain’s journey towards sustainable and efficient electric mobility. By actively encouraging the adoption of EVs and the expansion of charging infrastructure, Spain is taking significant steps towards a cleaner and more sustainable transportation ecosystem.
These initiatives are not only pivotal for the environment but also for Spain’s economic growth, positioning the nation as a hub for cutting-edge EV technology and charging infrastructure.
