Umair Gaines
Alberta has a lower percentage of electric vehicle (EV) ownership than the national rate in Canada. As of March 2023, there were almost 9,350 electric vehicles registered in Alberta, up from 5,680 in 2022. This is equivalent to about 0.1% of all vehicles in the province. In 2021, only 3% of households in Alberta owned an electric or hybrid vehicle, compared to the national average of 5%. Despite this, demand for electric vehicles in Alberta is rising, with sales of battery electric vehicles increasing by 63.7% in 2022, and the number of registered electric vehicles on the road in Alberta increasing by 65% year-over-year.
| Characteristics | Values |
|---|---|
| Number of registered electric vehicles | 9,350 as of March 31, 2023 |
| Percentage increase in registered electric vehicles | 65% year-over-year |
| Number of registered hybrid vehicles | 43,648 as of 2023 |
| Percentage of households with electric or hybrid vehicles | 3% as of 2021 |
| Number of public charging stations | 255 as of January 2022 |
| Percentage of Albertans likely to purchase an electric vehicle | 54% |
| Percentage of Albertans in Lethbridge interested in buying an electric vehicle | 30% |
| Percentage of Albertans in Calgary interested in buying an electric vehicle | 31% |
| Annual tax on electric vehicles | $200 starting in 2025 |
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What You'll Learn
Alberta's $200 electric vehicle registration tax
Alberta has one of the lowest rates of electric vehicle (EV) ownership in Canada. As of March 2023, there were approximately 9,350 electric vehicles registered in the province, up from 5,680 in 2022. This represents around 0.1% of all vehicles in Alberta.
In an attempt to increase revenue, the Alberta government has introduced a $200 annual registration tax on EVs, effective from January 2025. This tax will be in addition to the existing registration fee that all vehicles must pay. The government has stated that the money raised will help cover the cost of road wear and tear, as well as make up for the fuel tax that EV owners do not pay. However, this decision has sparked controversy among EV owners, who argue that it is unfair and will discourage people from purchasing EVs. They also point out that there are many electric vehicles that weigh the same or less than their internal combustion engine counterparts.
Alberta is one of the few provinces that does not offer incentives for purchasing electric vehicles. The federal government, however, does offer up to $5,000 for the purchase or lease of light-duty zero-emission vehicles. The lack of incentives and the introduction of the new tax could potentially hinder EV adoption in the province.
The new tax is expected to generate $1 million in revenue for 2024-25 and this figure is projected to grow to $5 million in 2025-26 and $8 million in 2026-27 as more Albertans purchase electric vehicles. Despite the criticism, the government maintains that the tax is necessary to maintain road infrastructure and offset the fuel tax deficit.
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Alberta's low percentage of EV ownership
Alberta has one of the lowest percentages of electric vehicle (EV) ownership in Canada. As of March 2023, there were approximately 9,350 electric vehicles registered in the province, a significant increase from the 5,680 registered in 2022 and the 3,500 in 2021. Despite this growth, electric vehicles still only account for a small percentage of all vehicles in Alberta, with hybrid vehicles being more popular.
There are several factors that may contribute to Alberta's low percentage of EV ownership. One reason could be the lack of incentives at the provincial level for purchasing electric vehicles. While the federal government offers up to $5,000 for the purchase or lease of zero-emission vehicles, Alberta does not offer any additional incentives. This may discourage people from buying electric vehicles, as the upfront cost can be higher than that of traditional gas-powered cars.
Another factor is the limited charging infrastructure in the province. As of January 2022, there were only 255 public charging stations in Alberta, with even fewer in specific cities like Calgary and Red Deer. The lack of charging stations can cause "range anxiety" among potential EV buyers, who worry about not having access to chargers when needed. This is a significant concern raised by interest groups and is seen as a barrier to increasing EV adoption in the province.
Additionally, the upcoming $200 annual tax on electric vehicles starting in 2025 may further deter people from purchasing electric vehicles. While some argue that it is fair because EV drivers do not pay fuel tax, others see it as a hindrance to encouraging EV adoption. This tax, combined with the lack of incentives and inadequate charging infrastructure, could slow down the transition to electric vehicles in Alberta.
However, it is important to note that there is a growing demand for electric vehicles in Alberta. Sales of battery-electric vehicles rose by 63.7% in 2022, outpacing the national growth rate. Additionally, in polls conducted by the Alberta Motor Association, around 30% of respondents expressed interest in buying an electric vehicle. This indicates that, with the right incentives and infrastructure in place, Alberta could see a significant increase in EV ownership in the coming years.
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Demand for electric vehicles rising in Alberta
Demand for electric vehicles is rising in Alberta, with the number of registered electric vehicles in the province increasing by 65% year-on-year. This increase in demand is reflected in the sales figures for electric vehicles in Alberta, which are breaking records every year.
As of March 2023, there were approximately 9,350 electric vehicles registered in Alberta, up from 5,680 the previous year. This represents a significant increase from the 3,500 electric vehicles registered in the province as of March 2021, which equated to about 0.1% of all vehicles in Alberta. While Alberta households rank among the lowest in Canada for electric vehicle ownership, with only 3% owning an electric or hybrid vehicle compared to the national average of 5%, the province is experiencing a steady rise in the uptake of electric and low-emission vehicles.
This trend is further supported by the results of several polls conducted by the Alberta Motor Association. In a 2022 poll, 31% of respondents in Calgary and 30% in Lethbridge expressed interest in purchasing an electric vehicle. Additionally, in a 2021 poll by KPMG, 54% of Albertans indicated that it was "likely" or "very likely" that their next vehicle purchase would be electric.
Despite the growing demand for electric vehicles in Alberta, the province faces challenges in terms of EV infrastructure. There are concerns about the availability of charging stations, with interest groups advocating for the expansion of charging infrastructure to alleviate "range anxiety." The federal government has also announced plans to increase the number of EVs by setting production targets for manufacturers over the next decade, aiming for 100% of cars sold in Canada to be zero-emissions vehicles by 2035.
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Alberta's lack of EV charging infrastructure
Alberta has one of the lowest rates of electric vehicle ownership in Canada, with only 3% of households owning an electric or hybrid vehicle compared to the national average of 5%. While there were almost 9,350 electric vehicles registered in Alberta as of March 31, 2023, this number is relatively low compared to other provinces. One factor contributing to the low adoption rate of electric vehicles in Alberta is the lack of charging infrastructure, particularly in northern Alberta and along highways.
There are currently only about two dozen chargers on the highways north, east, and west of Edmonton, and the lack of fast-charging options restricts some electric vehicles to city driving. For example, the lack of fast-charging infrastructure along Highway 43, which connects Grande Prairie with Edmonton, has led to some drivers opting to keep their gasoline vehicles for longer journeys. The route from Fort McMurray to Edmonton has also been highlighted as an area in need of improved charging infrastructure, with fewer opportunities to charge north of the capital city.
While there are some projects in the works to improve charging options in northern Alberta, the deployment of electric vehicle infrastructure is challenging due to the high costs involved. Fast chargers can cost around $100,000 to install, which has led to a preference for installing cheaper Level 2 chargers. However, this has resulted in a lack of fast-charging options, which is a concern for potential electric vehicle owners who want to be able to travel longer distances.
The lack of charging infrastructure is seen as a barrier to the mass adoption of electric vehicles in Alberta, and it remains to be seen whether the development of charging networks will keep pace with the increasing demand for electric vehicles.
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Federal government incentives for EV purchases
Alberta has a lower percentage of electric vehicle (EV) ownership than the national rate. Only three per cent of households in the province owned an electric or hybrid vehicle, compared to the national average of five per cent. As of March 2021, there were about 3,500 electric vehicles registered in Alberta, which increased to 5,680 in 2022 and 9,350 in 2023.
The federal government offers incentives for EV purchases to make it more affordable for Canadians to switch to zero-emission vehicles (ZEVs) and reduce their greenhouse gas emissions. The Incentive for Zero Emission Vehicles (iZEV) Program offers up to $5,000 on the purchase or lease of light-duty ZEVs, including electric vehicles. This incentive is available to both Canadian individuals and businesses.
The federal government launched the iZEV Program in 2019, and it was updated in 2022 with additional funding until 2025. To be eligible, a car must have a base model Manufacturer's Suggested Retail Price (MSRP) of less than $55,000, with higher-priced versions eligible up to a maximum MSRP of $65,000. Larger zero-emission vehicles, such as SUVs, minivans, and pickup trucks, must have a base model MSRP under $60,000.
Canadian organizations and businesses can also benefit from enhanced first-year capital cost allowances on eligible ZEV purchases. This option cannot be combined with the iZEV incentives. Additionally, up to $200,000 is available to Canadian businesses and organizations for the purchase or lease of medium- and heavy-duty ZEVs, including trucks, cargo vans, and shuttles.
While the federal government offers these incentives, Alberta does not currently have any provincial incentives for EV purchases. However, Alberta municipalities provide funding for charger installations, and FortisAlberta customers can sign up for the EV Smart Charging Pilot through Optiwatt.
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Frequently asked questions
As of March 2023, there were 9,350 electric vehicles registered in Alberta, up from 5,680 in 2022. This is equivalent to about 0.1% of all vehicles in the province.
The federal government has announced plans to increase the number of electric vehicles by requiring manufacturers to hit production targets over the next decade. The strategy will require auto manufacturers to ensure at least a fifth of vehicles offered for sale in 2026 are electric or plug-in hybrids, with this number increasing to three-fifths by 2030.
Alberta does not offer any provincial incentives for purchasing electric vehicles. However, residents can receive up to $5,000 on a new electric vehicle through the federal government's Incentive for Zero Emission Vehicles (iZEV) Program.
