A NSW Government website
NSW Climate and Energy Action

Electric vehicle fleets incentive

In Australia, the transport sector accounts for almost 20% of total emissions. 

We’re working to support NSW to transition to electric vehicles (EVs), and help fast track the transport sector to net zero emissions by 2050. 

EV fleets incentive

We are investing $105 million in the Drive electric NSW EV fleets incentive. This will help NSW organisations accelerate their shift to EVs and reduce emissions.

The incentive will support the purchase of battery electric vehicles (BEVs) or fuel cell electric vehicles (FCEVs), with additional funds available for smart base charging. 

This will help you bridge the cost of transitioning your fleet’s passenger, light commercial or sports utility vehicles to BEVs or FCEVs through a reverse auction process. 

NSW businesses, not-for-profits, hire companies and local councils will not want to miss this opportunity!

If your organisation leases vehicles and does not have the in-house capability to apply, you can benefit from the incentive by going through a fleet aggregator. 

Aggregators can place bids on behalf of multiple fleets, and if successful the savings from the incentive must be passed on to their customers. 

This takes out a lot of the leg work for organisations applying for the incentive, and helps create a smoother journey for business transition to EVs.

There will be multiple funding rounds until 2024. Round 2 is scheduled to open on 14 July 2022. 

Make sure to sign up below to be one of the first to know when the bidding platform will open.

The guidelines have been updated with minor changes for round 2.

Round 1 results

851 BEVs will hit NSW roads following round one of the incentive. There were 19 successful bidders, including fleet management organisations, car hire companies and councils. Financial support was also provided to co-fund chargers.

Round 2

Round two of the incentive is open from Thursday 14 July till Tuesday 25 October 2022. 

The initial bidding window opens at 10am on Thursday 14 July and closes at 5pm on Friday 14 October 2022.

The final bidding window opens at 10am on Tuesday 18 October and closes at 5pm on Tuesday 25 October 2022. 

Please note – an initial bid must be placed during the initial bidding window, in order to place a final bid.

Eligibility

There are two funding streams with different eligibility requirements. Bids will be assessed against other bids in the same stream.

  • Individual fleets – you must operate a fleet of at least 10 vehicles in NSW to support your organisation’s purposes. Eligible organisations include - but are not limited to - business, local council and non-government organisations. 
  • Aggregators – you can offer incentive funding to NSW customers as part of the vehicle leasing arrangements you provide. This includes fleet management organisations and private businesses that offer fleet leasing arrangements to NSW customers. 

Bidding platform

Once you have read the guidelines and supporting documents, sign up to access the online bidding platform and participate in the reverse auction. A summary of the bidding process is detailed below.
 

 

Stage 1 – Prepare for the bid

The first step will be to select the type and number of BEVs or FCEVs you’re looking to procure.

The platform will calculate the difference in the total cost of ownership (TCO) compared to vehicles that would have otherwise been purchased or leased, as well as the emissions (CO2 equivalent) saved. 

Once these amounts are calculated you will be able to request funding per vehicle, and the $/tonnes CO2e (which is how you will be ranked against other bidders), will be automatically determined. Once finalised this information will be used for your initial bid. 

Stage 2 – Register and place your initial bid

Formalise your bid with the information from Stage 1 with evidence:

  • of annual driving distances 
  • to support changes made to pre-set values of the TCO calculation
  • if you plan to use renewable energy to charge the new BEVs.

You will also be confirming your organisation meets eligibility requirements, is committed to any procurement costs and will meet all funding requirements.

Stage 3 – View ranking and place your final bid

At the beginning of the final bidding stage, bidders will be provided with their current ranking compared to the most competitive bidder in the stream. You can either confirm or update your bid. You will only have a week to make your final bid.

Stage 4 – Results and funding deed for successful bidders

We will contact bidders to let them know whether they have been successful. 

If successful, the incentive funding deed must be signed by an authorised representative of your organisation and the department before your organisation is entitled to receive the incentive. 

BEVs/FCEVs will need to be purchased and registered within 9 months and evidence provided as noted in the guidelines before funding is provided.

 

What support is available?

To guide you through the reverse auction bidding process, we invite you to view these recordings:

Additional tools are available to also assist you in developing your bid. These tools include:

  • A renewable energy calculator, to help bidders estimate the percentage of renewable energy used to charge BEVs, and;
  • For aggregators, a TCO gap report designed to help collate and submit a list of vehicles for consideration within their bid.

To receive access to these tools, please contact electric.vehicles@environment.nsw.gov.au.

If you have any further questions after reading the guidelines and FAQs, please contact electric.vehicles@environment.nsw.gov.au.  

To stay updated on future EV announcements, sign up below

Why EVs for business?

Corporate and government fleets account for over half of new vehicle sales in Australia (and are a significant source of second-hand vehicles). They often drive more kilometres and have higher expenses for fuel and maintenance.

When organisations electrify their fleets, they have a huge opportunity to reduce their emissions and save operating costs. It can also have a powerful impact on the national market, spurring demand for, and increasing supply of EVs, both new and used.  

Cheaper to run

EV are significantly cheaper to run and to maintain. An average NSW fleet driver is likely to save around $3,100 in running costs per year by switching to an EV. 

These savings are even higher for vehicles that are on the road more often, including taxis, buses, freight and rideshare vehicles. For example, a taxi driver can save up to $4,500 per year by switching from a hybrid petrol car to a battery EV or even more if switching from a traditional petrol vehicle.

Great driver experience and better for the environment

A fleet of BEVs/FCEVs are quieter, smoother and cleaner for the environment. They produce no tailpipe emissions and so are superior for air quality and human health. They are also considered by experts and users to have greater technical performance than internal combustion engine vehicles.  

Information about EVs

Whether you’ve already started your EV transition journey, or you are still planning, there is a suite of NSW Government resources available. These will help you figure out costs, driving range, charging and more. 

Why buy an electric vehicle?

Which electric vehicle should I buy?

List of available EVs in Australia

Cost to own and drive an EV

Charging an electric vehicle

Find out where to charge your electric vehicle

Register your interest

If you wish to receive updates on BEVs and other NSW Government initiatives, fill in your details below:

About you
I'm particularly interested in:
 

The information you provide in this form will only be used for the purpose for which it was collected. By submitting, you consent to storage, use, and disclosure of your personal information in accordance with our privacy statement.