(de-news.net) – The Federal Minister for the Environment, Carsten Schneider (SPD), has presented the finalized agreement on a new incentive program designed to accelerate the uptake of electric vehicles and selected plug-in hybrids. The initiative sets out detailed eligibility criteria and graduated funding levels intended to facilitate the registration of an estimated 800,000 vehicles over the period from 2026 to 2029 in an euqitable manner. Directed explicitly at private households, the program seeks to broaden access to electric mobility among lower- and middle-income consumers while aligning industrial policy objectives with Germany’s climate protection agenda.
Under the framework, subsidies are available to households with a taxable annual income of up to 80,000 euros, with the eligibility ceiling increasing by 500 euros for each child (up to two). Depending on household income, family composition, and vehicle category, grants range between 1,500 and 6,000 euros. For 2026, the base level of support is set at 1,500 euros for qualifying plug-in hybrids and 3,000 euros for battery electric vehicles. Households earning no more than 60,000 euros are entitled to an additional supplement of 1,000 euros, while those below the 45,000-euro threshold may receive a further increase of the same amount.
Schneider signals policy shift as subsidies move beyond company cars
The incentive applies irrespective of a vehicle’s list price and covers both the purchase and leasing of new electric cars. Applications may be submitted retroactively from January 1 once the online application portal becomes operational in May 2026. To finance the measure, the Federal Government has allocated a total budget of three billion euros, an amount calculated to support the targeted volume of approximately 800,000 vehicle registrations during the 2026–2029 period.
According to the Environment Ministry, the program represents a deliberate shift in emphasis toward private consumers, following earlier policy measures that largely focused on enhancing the attractiveness of electric vehicles as company cars. Speaking in Berlin on Monday, Minister Schneider indicated that the initiative is intended to provide a substantial boost to electric mobility. He further emphasized that the program is designed to advance climate protection objectives, reinforce the national auto industry, and lower financial barriers for those who have so far been unable to afford an electric vehicle.
