- DTE Energy proposes a $124.8 million plan to enhance electric vehicle charging infrastructure in low and moderate-income communities.
- The plan calls for increasing rebates for home chargers, businesses, and multi-unit dwellings.
- It aims to fully cover installation costs for eligible groups between 2025 and 2028.
DTE Energy submitted a plan to state regulators to provide $124.8 million for electric vehicle charging infrastructure in low and moderate-income communities by increasing rebates available between 2025 and 2028.
The proposed Transportation Electrification Plan, which will be submitted to the Michigan Public Service Commission in one or more future rate cases, will issue rebates to cover the full cost of installation for home EV chargers for those making 200% of the federal poverty level or less. Currently $500 in rebates is available for those at all income levels.
The plan will also increase the rebates available for businesses and multi-unit dwellings from $2,000 to $5,000. The company is looking to fully cover charger and installation costs for 485 landlords with low-income tenants.
Additional rebates will support fast chargers along major roads and highways in disadvantaged communities and rural areas and continue to provide these in other communities. Rebates for fast-chargers of $70,000 would be continued for school and transit buses.
DTE has also released an EV hosting capacity map intended to help municipal planners and engineers plan large-scale public charging infrastructure.
The rebates could help lower-income residents who may struggle to afford EVs and charging infrastructure realize benefits like fuel cost savings and home backup power. Laura Sherman, president of the Michigan Energy Innovation Business Council, said these rebates are also needed to get roadside charging infrastructure in places before it’s profitable, which will encourage EV adoption.
“The build-out of those chargers is absolutely critical to allow people to feel comfortable in terms of range anxiety,” Sherman said, referring to the worry many drivers have that EVs will run out of power before they return home or locate a public charger.
She said the widespread adoption of EVs and charging will increase DTE’s net revenue as more residents charge their cars overnight, which will use existing infrastructure with limited additional investments from the utility.
Sherman argues these profits should be used to lower rates for customers and pay for further investments in EV chargers. Although the rebate program will be included in upcoming rate cases to secure approval from the MPSC, the utility may not seek to recoup the cost directly from ratepayers.
Continuing rebates for school and transit bus chargers could also have a big impact, Sherman said. The 2023 Michigan state budget set aside $125 million for electric school buses, and the state has also received tens of millions of dollars in grants for buses from the Environmental Protection Agency, allowing school districts to purchase over a hundred vehicles that will need charging.
For low-income areas, widespread adoption of EVs could save residents on the cost of fuel and maintenance. Consumers Reports estimates the average EV owner saves $4,700 or more on fuels in the first seven years as well as $4,600 on maintenance over the vehicle’s lifetime.
Justin Carpenter, director of policy at the Michigan Innovation Business Council, said another important benefit could be the ability of electric vehicles to power homes during outages. With some extra hardware, EVs can be used to power appliances during power outages, which are a recurring problem in Michigan.Yet, rebates could present a hurdle for getting more chargers into the hands of low- and moderate-income residents, requiring them to pay thousands of dollars upfront. Michigan Saves, the state’s green bank, has said it offer bridge loans for rebates offered through the Inflation Reduction Act in the future. A DTE spokesperson was unaware of anyone currently offering such bridge loans for EV chargers.