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ELECTRIC VEHICLES

Electric vehicles (EVs) use electric batteries to power their wheels, rather than an internal combustion engine. There are many existing financial incentives for purchasing an EV. The video below explains EVs in more detail.

Electric vehicles can help reduce one's dependence on fossil fuels, which also helps to protect against fluctuations in the cost of oil.

Since EVs do not have the components of a traditional combustion engine, less maintenance is required to keep them running.

Using electricity for power is more cost-effective than burning fossil fuels.

Page updated January 20, 2026

TYPES OF ELECTRIC VEHICLES

Plug-In Hybrid (PHEV)

  • PHEVs have an electric motor and an internal combustion engine, allowing the driver to switch between the two sources.

  • PHEVs have an overall longer total driving range because they can be powered by gasoline energy.

    • However, this also means they have a shorter electric range than BEVs.​​

Battery Electric Vehicle (BEV)

  • BEVs run solely on battery packs that provide energy to electric motors. 

  • They do not have a backup gas engine like PHEVs, so when the battery is exhausted, the only way to continue driving is to recharge it. 

    • However, they have a much higher electric range than PHEVs. ​

POTENTIAL SAVINGS

Mainers can save up to $1,000 a year by transitioning to an electric vehicle. According to a study by Argonne National Laboratory, people who drive long distances and live in areas with expensive fuel and relatively inexpensive electricity can expect the most savings from switching to an EV.

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Based on an analysis conducted by Efficiency Maine, the fuel cost of a BEV is about $1200 less per year than that of an all gas vehicle in Maine. A plug-in hybrid is about $1000 less annually.

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To get a better idea of your potential savings, check out this fuel savings calculator!

FINANCIAL INCENTIVES

State Rebates

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Efficiency Maine offers rebates for low- and moderate-income homeowners who purchase new or used electric vehicles. This means that plug-in hybrids do not qualify for this rebate. To be eligible for the rebate, one must verify their income with Efficiency Maine and purchase an off-peak charger. An additional rebate is available for the purchase of the off-peak charger, reducing the price to $129. Learn more about the charger rebate here. Below is a breakdown of the rebates by income and type of car being purchased: 

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For new vehicles, they must be on this list of eligible vehicles, and their MSRP must be $80,000 for pickup trucks and commercial vans and $55,000 for all other vehicles. 

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For used vehicles, they must be on the US DOE List of BEVs and have a final purchase price of $40,000 or less. The vehicle must also be no older than 6 years; therefore, it must be from 2019 or later. The car's mileage must also be below 72,000 miles. 

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Federal Tax Credit

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The federal tax credits for the purchase of a new or used electric or plug-in hybrid vehicle have expired. Next June, the federal tax credit for installing a residential EV charger will also expire. However, if you install a charger prior to July 1st, 2026, you can receive up to 30% of the cost up to $1,000. Learn more about the credit here. 

Income

New Electric Vehicle

Used Electric Vehicle

Low 

Moderate 

$2,000

$1,500

$7,500

$3,500

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