NSW Electric Vehicle Fleets Incentive - Round 4

NSW Electric Vehicle Fleets Incentive

  • Kick-Start Funding is allocating $7 million in funding. Applications are open until 30 June 2025 or once funds are exhausted.
  • The Competitive Bid Funding is allocating $8 million in funding. (Initial bids close 4 September 2024)

In 2023, almost 50% of new passenger and light commercial vehicles in NSW were purchased by business and government fleets, making fleet emissions reduction key to cutting transport sector emissions. Fleet vehicles also help boost the second-hand EV market and serve as a demonstration tool for the public, though fleet managers face challenges such as higher EV costs and limited model options. As part of the Net Zero Plan and the NSW Electric Vehicle Strategy, the Department of Climate Change, Energy, the Environment, and Water has developed the Electric Vehicle Fleets Incentive.

Key Requirements

The Electric Vehicle Fleets Incentive is a payment scheme that provides eligible fleet managers with financial support to purchase battery electric vehicles with Round 4 providing two funding options:

  • Kick-Start Funding
  • Competitive Bid Funding

Kick-Start Funding

Allocated on a first come, first served basis, Kick-start funding is providing a fixed incentive to help organisations acquire new BEVs and charging equipment. This option supports fleets piloting up to 10 EVs as a preliminary step before a larger transition, offering a streamlined application process for smaller fleets. Funding for vehicle type is as follows:

Passenger Vehicle (PV)/Sports Utility Vehicle (SUV)

  • $5,000 per vehicle
  • $1,200 for a smart charger per charging port

Light Commercial Vehicle (LCV)—up to 4.5 tonnes

  • $8,000 per vehicle
  • $1,200 for a smart charger per charging port

Light trucks—up to 4.5 tonnes

  • $10,000 per vehicle
  • $3,000 for a smart charger per charging port

Organisations can apply for Kick-start funding for a maximum of 10 vehicles and associated smart charging ports in total across all rounds. Those who have previously received funding for fewer than 10 vehicles in rounds one, two, or three of the EV fleets incentive are eligible to apply for additional funding to reach the 10-vehicle limit. Furthermore, organisations that have participated in earlier rounds can also apply for the kick-start funding option.

Competitive bid funding

The Competitive Bid Funding has two streams and is designed for organisations advancing past the pilot phase of EV transition, supporting larger volumes of vehicles and chargers (11 or more) and facilitating widespread EV adoption.

Individual Stream:
Participants apply for an incentive to cover the costs of BEVs used for business purposes, which can be either purchased outright or leased.

Aggregator Stream:
Participants apply for an incentive to provide to customers as part of a leasing or similar arrangement for BEVs used for business purposes. This stream is intended for fleet management organisations.

Fleet managers can apply for an incentive to cover part of the total cost of ownership gap between the battery electric vehicle they plan to acquire and the internal combustion engine, hybrid electric vehicle, or plug-in hybrid electric vehicle they would otherwise have purchased. The TCO is typically calculated over a standard 5-year vehicle retention period, though this can be adjusted when submitting a bid if needed. If the TCO gap is less than $3,000, fleet managers can request an incentive that covers the entire gap.

A new BEV can receive funding only once and must be funded either through the Competitive Bid Funding or the Kick-Start Funding option.

What is eligible for funding?

Funding covers:

  • Purchasing of BEVs
  • Purchasing of smart charging equipment for installation at business premises or employees’ homes

What companies are eligible for funding?

In order to be eligible, applicants must be a:

  • Private businesses
  • Non-governmental and not-for-profit entities
  • Local councils
  • State-owned corporations
  • Federal agencies operating in NSW
  • Car rental companies
  • Car share services
  • Car subscription services
  • Rideshare companies

Kick-Start Funding also includes:

  • Taxi owners, whether individuals or organisations with one or more licensed taxis

Competitive Bid Funding also includes:

  • Any organisation that offers vehicles for ridesharing services
  • For Aggregator Stream: Aggregators can be a fleet management organisation with clients in NSW or any other private business that provides financial and/or operational leasing for BEVs

Organisations may be based in NSW or elsewhere in Australia, but the incentivised vehicles must be registered and predominantly used in NSW.

In order to be eligible for Kick-start funding, applicants must provide information regarding:

  • ABN and contact information of the organisation
  • Size and structure of the existing vehicle fleet
  • Number and type of EVs (PV, SUV, and/or LCV) and smart chargers for which funding is requested, determining the total funding amount
  • Estimated average annual distance each vehicle is expected to travel, based on the current ICE vehicles in the fleet
  • A declaration of financial stability, affirming that the organisation can procure the requested vehicles within the specified timeframe

And be an:

  • Organisation with a fleet of at least 3 vehicles used for their operations in NSW
  • Individuals or organisations that own at least one licensed taxi in NSW

In order to be eligible for Competitive Bid Funding, applicants must:

  • Have a valid Australian Business Number
  • Fulfill the eligibility requirements at the time of bidding and maintain compliance throughout the operation of the incentivised EVs, if the bid is successful
  • Provide a declaration of reputable business records
  • Disclose any actual or potential conflicts of interest
  • When registering to bid, individual fleets and aggregators must submit a statement demonstrating their financial capability and commitment to cover their portion of the costs for procuring the EVs and, if applicable, the smart charging equipment.
  • Aggregators must provide a statement detailing their support services for helping customers integrate the new EVs into their operations and demonstrate their capability and experience in offering fleet leasing arrangements.

Is this grant competitive or entitlement based?

Competitive. Your application will be assessed among other applications by a judging panel.

How can I increase my chances of winning this grant?

By engaging an accredited government grants consultant, such as Avant Group.

Competitive grants often require significant business case development and project analysis to support the application, this may include detailed presentations supporting the project’s merit, projected sales, cost-benefit analysis and more.

As part of your engagement with Avant Group, your account manager will assess the required documents and will provide the following as needed to support your grant submission.

Grant application writeup including a detailed presentation illustrating how the grant funding will contribute to your project, how the funding will contribute to the project’s budget, a project milestone plan, delivery timeline, impact on employment if applicable and a breakdown of the management and leadership team for the project

  • Industry analysis presentation
  • Competitor Analysis Presentation
  • Marketing and Sales Analysis Presentation
  • 3-5 year Cashflow Forecast
  • 3-5 year Balance Sheet Forecast
  • Cost-Benefit Analysis of Grant Funding
  • End-to-end grant application including information collating, analysis and application writing
  • CAPEX (Capital Expenditure) cost-benefit analysis
  • Stakeholder relations and Risk Mitigation Plans
  • Any other relevant forecasting that will support your application

How can I get help with my application? Or know if I’m likely to win funding?

Avant Group offers a no-obligation assessment of your eligibility for funding and will assess your likelihood of a successful grant application.