The government plans to double the value of subsidies aimed at promoting electric vehicles, on condition that such vehicles are charged with renewable energy, including solar power, Jiji Press learned on Wednesday.
The maximum amount of subsidies given per vehicle will be raised to ¥800,000 from the current ¥400,000, according to informed sources.
The government hopes to include related expenses in its planned third supplementary budget for fiscal 2020, the sources said.
The move reflects the government’s resolve to further promote electric vehicles, which do not emit carbon dioxide, after Prime Minister Yoshihide Suga announced Japan’s goal of reducing its greenhouse gas emissions effectively to zero by 2050.
The subsidies will not only cover electric vehicle purchases by individuals but also those bought by companies.
The government assumes that the expanded subsidies will cover vehicles that are charged with energy generated through solar panels set up on the roofs of homes or with renewable energy-generated electricity purchased from power companies.
The planned supplementary budget will also include subsidies handed out when people buy plug-in hybrid or fuel-cell vehicles that run on renewable energy, the sources said. The upper limit of the subsidies will stand unchanged at ¥200,000 for plug-in hybrid vehicles and ¥2.25 million for fuel-cell vehicles.
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