As electric cars (often called electric vehicles of "EVs") become more mainstream, the costs are dropping rapidly and there are a wide variety of benefits for drivers making the switch. From fuel savings to reduced tax and maintenance costs, electric cars could help save you money and have a positive impact on the environment.
Benefits of driving an electric car
- Fuel cost savings: Driving an electric car saves you money every time you travel. Compared to traditional gas cars, electric cars are cheaper to fuel up and far more efficient to drive. Electric car drivers can save over $2,000 a year on gas alone. Calculate your potential fuel cost savings with CLEAResult’s EV Savings Calculator.
- Cheaper to maintain: While the price of an electric car may be similar to most comparable gas-powered vehicles, the cost of running one is significantly cheaper, particularly over the full lifetime of the vehicle. Electric cars are designed to be as efficient as possible, which means you'll rarely have to have your electric car serviced, and maintenance costs are minimal – including brakes that lost longer and no more need for oil changes. Calculate and compare total cost of ownership and emissions using the Alternative Fuels Data Center’s Vehicle Cost Calculator.
- Better for the environment: Fully electric cars have zero tailpipe emissions making them greener and better for the environment than gas or diesel cars. Less pollution means cleaner air and reduced greenhouse gasses, enabling San Francisco to move towards net-zero emissions by 2040.
Available incentives
Many incentives are available for electric cars and charging stations. Check out some of the available incentives below and use California’s Drive Clean Incentive Lookup Tool to search for current incentives for cars, chargers, utility savings, and carpool lane decals.
The Federal Government offers tax credits for cars and chargers:
- Tax credits of up to $7,500 are available for new battery electric, plug-in hybrid, or hydrogen fuel cell electric cars purchased by September 30, 2025. Here is a breakdown of tax credit amounts by car.
- Tax credits of up to $4,000 are available for qualified used battery electric, plug-in hybrid, or hydrogen fuel cell electric cars purchased by September 30, 2025. Here is a breakdown of tax credits by car for used cars.
- If you purchase an EV charger for your home or business, you may be eligible for the Alternative Fuel Vehicle Refueling Property Tax Credit, which covers 30% of the cost of the installation and hardware – up to $1,000 per charging port/dispenser for individuals, or up to $100,000 per charging port/dispenser for businesses/organizations – for installations completed by June 30, 2026.
PG&E offers several customer incentives:
- PG&E offers rebates up to $4,000 for the purchase or lease of a used electric car and you can qualify for up to $700 for eligible charging equipment.
- The Residential Charging Solutions program offers eligible customers a rebate on PG&E-approved electric car charging equipment.
- PG&E offers discounted utility rates for home charging. Find the best rate for you here.
The Bay Area Air Quality Management District's Clean Cars for All program offers several incentives:
- Incentives of up to $12,000 are available for income-qualified Bay Area residents to retire their older car and replace it with a plug-in hybrid, battery, or hydrogen fuel cell electric car. Additionally, up to $2,000 is available for electric car charging for qualified purchases.
- Grants of $7,500 are available to income-qualified Bay Area residents to retire their older car and replace it with an electric bicycle (e-bike).
The San Francisco Public Utilities Commission’s EV Charge SF program offers charging incentives to CleanPowerSF and Hetch Hetchy customers:
- Incentives of up to $120,000 per site are available for Level 2 EV chargers and Level 1 and Level 2 EV outlets at multifamily and commercial buildings.
- The program also offers technical assistance to help customers plan their EV charging project.
Other incentives:
- Ride and Drive Clean offers discount campaigns throughout the year for discounted new and pre-owned electric cars and e-bikes.
- You can drive your qualifying electric car in the High-Occupancy Vehicle (HOV) carpool lane anytime with a Clean Air Vehicle Sticker.
- For public or shared-private charging and clean fleet vehicles, visit the CA Energy Commission, CA Air Resources Board, and Bay Area Air District websites for up-to-date information on relevant state and regional funding opportunities.
More resources
- Electric vehicle incentives handout (English | 中文 | Español)
- Learn more about electric car benefits and charging basics at ElectricForAll.org
- Explore electric car models and incentives at DriveClean.CA.gov and AccessCleanCA.org
- Compare electric car models with PG&E’s EV Savings Calculator
- Compare electric car models, research dealerships, and get shopping assistance from Plug in America
- Check out the national network of EV charging stations and plan your trips on PlugShare
- Take a virtual test drive with the My Green Car app
- View additional federal and state incentives on the U.S. Department of Energy Alternative Fuels Data Center’s Federal and State Laws and Incentives webpage
