The Cabinet of Ministers has approved a support programme developed by the Ministry of Environmental Protection and Regional Development for the purchase of electric cars for individuals, which specifies the allocation of 4,500 euros for the purchase of new electric cars and 2,250 euros for the reduction of greenhouse gas emissions.

You can find out what you need to consider in order to receive state support and how to choose an electric car at the webinar "Recommendations for Purchasing Electric Car with the State Support" organised by the Elektrum Energy Efficiency Centre on 9 March.

TO WHOM WILL THE SUPPORT BE GRANTED AND HOW?

Gints Kārkliņš, Chief Financial Officer of Vides investīciju fonds SIA, explained that a support programme for the purchase of zero-emission and low-emission vehicles with a total funding of 10 million euros has been announced.

The programme provides support for the purchase of electric cars and externally chargeable hybrid cars. The maximum support is 5,500 euros, of which 4,500 euros are intended for the purchase of a car, and 1,000 euros as additional support for writing off a used vehicle.

Natural persons - permanent residents of the Republic of Latvia - can apply for support until 31 December 2023 or until the end of the funding.

The regulations also include certain conditions in which it is not possible to apply for support, for example, if there are tax debts, if the applicant is registered as a debtor, or if sanctions have been imposed on him or her, etc.

Applicants may not use the electric car purchased with support for economic activities and will also have a 5-year monitoring period.Atbalstam var pretendēt fiziskas personas – Latvijas Republikas pastāvīgie iedzīvotāji, un pieteikties var līdz 2023. gada 31. decembrim vai kamēr beidzas finansējums.

NEW AND USED ELECTRIC CAR

Cabinet Regulation No. 896 provides:

• New electric car - an industrially produced electric car of categories M1 and N1, in which the only driving force is the electricity stored in it. Greenhouse gas (GHG) emissions are zero. The mileage between full charges is at least 150 kilometres (specified in the certificate of conformity in accordance with the laws and regulations regarding the conformity assessment of wheeled vehicles and their components). The maximum driving speed is at least 90 km/h, the selling price in the base set does not exceed 60,000 euros (excluding VAT), it is purchased from the project implementer, used for less than six months and driven less than 6,000 kilometres.
• Used electric car - is a car with the same parameters, except that it has not been registered in Latvia for more than six months and the sale price is not lower than 5,500 euros (excluding VAT).
• Externally chargeable hybrid car - these cars have a total GHG emission of up to 50 g CO2/km according to the WLTP combined cycle, and the mileage of the electricity stored in the vehicle alone is at least 50 kilometres between full charges. The other parameters are similar to the listed requirements for electric cars.

ADDITIONAL SUPPORT

The support scheme provides for an additional support of EUR 1,000 for the write-off of one M1 and N1 vehicle. This car must be equipped with an internal combustion engine only, has covered an average of at least 5,000 km per year in the cycle between the last three basic inspections, has been handed over to a treatment company registered by the Road Traffic Safety Directorate, and a vehicle disposal certificate (copy) has been received.

It should also be noted that the vehicle has been used on the road for the last three years and had a valid road traffic permit, and the vehicle was registered in the name of the beneficiary on 28 December 2021, and the certificate of destruction is not older than 6 months.

The regulations also stipulate that the car seller offers an additional discount or other incentive solution in the amount of the financial equivalent:

• in the amount of at least EUR 1,000 (excluding VAT) for the purchase of new cars,
• in the amount of at least EUR 500 (excluding VAT) for the purchase of used cars.

CONDITIONS FOR THE USE OF VEHICLE

From mid-March 2022, it will be possible to apply for support electronically on the website www.ekii.lv in the section of tenders, by performing the following activities:

1. The natural person fills in the application for support (in electronic form by signing with an electronic signature).
2. The seller evaluates it within 5 working days and, if it meets the requirements, a contract for receiving support is concluded.
3. The natural person or the lessor pays the seller the purchase amount, minus the Seller's support (if any) and ECAI financing.

CONDITIONS FOR THE USE OF VEHICLE

Within five years from the date of purchase of the vehicle, the mileage of 52 000 km must be reached and until the vehicle has reached the required mileage (from the time the vehicle is registered as owned or held by the beneficiary):

• the permanent registration of the vehicle in the territory of the Republic of Latvia must be ensured, the natural person is the holder of the purchased vehicle; it is prohibited to sell, change, invest in the capital company and transfer it free of charge;
• it is not used for the performance of economic activity;
• the operation of the vehicle must be ensured in accordance with the laws and regulations regarding the state technical inspection and technical control of vehicles on the road;
• vehicle insurance against the risks of death must be obtained.

LIST OF SUPPORTED CAR MODELS

A total of 59 car dealers are participating in the competition, offering 288 cars of different electric car models. The lowest price of a new model is 13 990 euros, but the average price is 37 909 euros.

• In the price range up to 20,000 euros - 7 models from 2manufacturers (Dacia, Hyundai).
• In the price range from 20,000 to 30,000 euros - 55 models from 12 manufacturers (Volkswagen, Fiat, Nissan, Opel, Hyundai, Renault, Peugeot, BMW, Citroen, DFSK, Mazda, Honda).
• In the price range from 30,000 to 40,000 euros - 111 models from 16 manufacturers (Peugeot, Opel, Cupra, Honda, Nissan, Citroen, BMW, Hyundai, Škoda, Volkswagen, KIA, Renault, Tesla, Toyota, Audi, Volvo).
• In the price range from 40,000 to 50,000 euros - 308 models from 13 manufacturers (BMW, Tesla, Audi, Peugeot, Volkswagen, Škoda, Lexus, Hyundai, Citroen, Mercedes-Benz, Toyota, Opel, KIA).
• In the price range from 50,000 to 60,000 euros - 38 models from 8 manufacturers (Audi, Mercedes-Benz, Hyundai, Peugeot, Tesla, Citroen, Ford, Jaguar).

CAR SELECTION AND DRIVING HABITS

Latvenergo AS electromobility expert Edgars Korsaks-Mills explained to the participants of the webinar that we are currently seeing a rapid increase in electric car models in all segments. In addition, all the leading car manufacturers have announced ambitious plans to develop the production of various electric cars - from small city cars to sports models.

How does the choice of electric cars affect our travel habits? Before making a choice, it is recommended that you honestly answer a number of questions about your current travel habits:

• how often do you use a car?
• how far do you drive on a typical working day?
• how often do you make longer trips and how far are they?
• when, where and for how long is the car parked?

Identifying needs and habits allows you to not only prepare for the transition from an internal combustion engine car to an electric car, but also to choose the most suitable electric car model for your needs. Not everyone needs an off-road car and not everyone needs a compact car. If you travel around the city on a daily basis, a small electric car may be more suitable, or an electric sports SUV (SUV) if used by the whole family.

When choosing an electric car model, it is also important to choose a battery with a suitable capacity, which ensures autonomy or total mileage with one full charge. “A bigger battery means more mileage between charges, but also a higher purchase price and vice versa. If we drive short distances every day, and charging is available at home or at work, a large battery is not needed, so the purchase price of electric cars will be lower,” said Edgars Korsaks-Mills.

Before purchasing electric cars, it is useful to look at the database of electric car tests developed by Elektrum electromobility experts, which is unique in the Baltics. It already contains 24 models of electric cars available in Latvia, the efficiency of which has been tested in practice by Elektrum experts in the climatic conditions and traffic of Latvia. When testing cars, the catalogue contains data on their maximum mileage, average consumption in different driving modes, as well as extensive charging information and a 50 kW DC charging station capacity schedule, which will give everyone in fast charging stations of Latvia the opportunity to save on charging time. You can find the electric car test catalogue here.

It would be just as important to find out where we will charge the car. Cars spend 95% of their time being parked, and this time should also be used for charging.

• If you live in a private house, you need to understand how fast it will be necessary to charge the electric car, what the capacity available in the house is, and which charging device solution will be most suitable for our needs.
• On the other hand, for residents of apartment buildings, charging at home is currently a challenge. If the property has a car park, you can consider installing a charger. If parking is not available or the installation process is complicated, alternative charging options should be explored, such as charging electric cars at the workplace or at public network charging stations available on a daily route, close to work or home.

TYPES OF CHARGING STATIONS

There are slow, medium and fast electric car charging stations. In a private house, it is most often possible to install slow and medium charging devices, while fast charging stations are used when a larger amount of energy needs to be charged in a short time. Of course, it is possible to charge an electric car from a normal socket, but such charging will be very slow and inefficient. It will be possible to do this much faster by installing an electric car charger that matches the capacity of your home and home electrical network

"The profitability of a car is not determined by the purchase price, but by the cost of use: purchase and leasing interest, insurance, taxes, fuel costs, parking, maintenance and other costs related to the maintenance of the car. It should also be noted that electric car owners have several advantages:

• no motor vehicle tax is payable;
• lower maintenance and service costs;
• lower bank leasing interest rates, for example, the loan interest rate for the purchase of environmentally friendly cars in the bank is around 1.5%, while for the internal combustion engine it is 2.3%;
• Free Rīgas Satiksme parking spaces;
• a possibility to drive in public transport lanes;
• Free entry into Jūrmala;
• and other advantages.

Regardless of the electric car model you choose, it must meet your everyday needs, so when buying an electric car, you must take into account not only the aesthetics of the car, but also the researched daily driving habits and charging options,” explains Edgars Korsaks-Mills.

TRIP TO THE BANK FOR MONEY

In most cases, it will not be possible to buy an electric car with your own means, even with state support. Sergejs Romaņuks, the Head of Consumer and Car Financing at Swedbank AS, explained the possibilities of more environmentally friendly car financing.

The specialist emphasised that last year, Lithuania and Estonia financed twice as many purchases of environmentally-friendly cars, as the state support for the purchase of such cars started earlier in these countries. 25% of all new passenger vehicles purchased by means of Swedbank leasing in Latvia are the most environmentally friendly. Electric car TOP 3 is as follows: BMW i3/i3S, Nissan Leaf and Škoda Enyaq.

“For example, when buying a new Nissan Leaf for EUR 29,690 with five years of bank financing with a 15% down payment, which also includes state support and an interest rate of 1.49%, the monthly lease payment for the finance lease is EUR 437 and the total repayable amount is 31,101 euros, while in the operating lease, the monthly payment is 295 euros, the total repayable amount is 22,516 euros, the remaining value of the car - 30%,” explains Sergejs Romaņuks.

WHAT ARE THE POSSIBILITIES TO CHARGE THE CAR AT HOME?

Deniss Kiseļovs, the Head of the Energy Management and Mobility Unit of Latvenergo AS, clarified this matter to the participants of the webinar.

"No matter how hard you try to standardise all the solutions, they are not always perfect for the specific car. An engineer's consultation is needed to choose the most suitable charging solution," emphasises Deniss Kiseļovs.

For example, "medium" speed charging consumes 22 kW (32 A), so one charger consumes more than any other household appliance. It consumes more than all other appliances when turned on at the same time, and often the existing home power distribution is not ready for it and needs to be changed. However, the 22 kW unit is at the same time the most suitable solution for households.

It is important to balance energy use without a very large investment. Such manual balancing, by limiting the power consumption of the charger, allows the programming of 80-90% of the chargers. There are also devices that can dynamically divert the power not used at home for charging and thus operate more efficiently using all the current available at the time.

elektrumveikals.lv has a large range of charging equipment available. It is possible to get the advice that will be most suitable for the particular household. It is also possible to purchase an installation service. AC or alternating current chargers, which cost from 150 to 3,500 euros, are suitable for households. There are models with a charging cable or socket, a possibility to charge one or two cars, install the charger on the wall or in the yard.

When choosing a charging solution, it is important to understand for how many kilometres a car can be charged in one hour and how often the car will have to be charged. When charging from a socket or with a special cable, it will not be possible to charge more than 20 kilometres in one hour, and you will need to purchase charging equipment that allows you to charge significantly more energy for a further journey in the same charging hour.

When choosing the equipment itself, you should also pay attention to the price, protection against residual current, protection against precipitation and vandalism: IP/IK class, for convenient application, possibility to balance the device, other additional options.

Extensive information and references to articles in the media room and recommendations from Elektrum experts on electric transport and its charging solutions are published on the additional electric car page.