Have you always wanted to make the switch to an electric vehicle? With the newly announced Electric Vehicle Affordability Program, you might be able to sooner than you think. With electric vehicles becoming increasingly advanced, it’s no surprise that many Canadians are looking to switch to electric. For some, the switch might be to save on soaring fuel costs. Others may wish to reduce their carbon footprint. Regardless, those looking to make the switch have long been hindered by the high cost of electric vehicles. However, with the new Electric Vehicle Affordability Program (EVAP), many more Canadians may be able to take that step.
Let’s take a look at everything you need to know when it comes to the new Electric Affordability Program, and how you may be able to save up to $5,000 on your next vehicle.
What Is The Electric Vehicle Affordability Program?
The Electric Vehicle Affordability Program, or EVAP, is a $2.3 billion initiative designed to make electric vehicles more accessible to Canadians across the country. In the past, previous programs focused on the manufacturer’s suggested price (MSRP). EVAP is strictly focused on the transactional value of an electric vehicle. Their goal? Encourage the sale of electric vehicles while supporting Canadian-made manufacturing.
Though the program has not officially launched, transactions signed on or after February 16th, 2026, will be eligible for this new incentive. On March 31st, 2026, the official Electric Vehicle Affordability Program will open, and dealerships will begin processing applications. The program will then run from April 1st, 2026, to March 31st, 2031, or until funding dissipates.
Who Is Eligible For The Electric Vehicle Affordability Program?
If a Canadian or Canadian Business plans to purchase or lease an electric vehicle priced at $50,000 or more, they can receive an incentive of up to $5,000. This is the case for any battery-electric or fuel-cell electric vehicles. The Electric Vehicle Affordability Program also covers plug-in hybrid electric vehicles, though the incentive is only $2,500.
Each Canadian can receive only one incentive during the 5-year life of the program. Businesses and non-profits, on the other hand, can apply for up to 10 incentives. To add to this, approved carsharing companies are eligible to receive up to 50 incentives per year. Transport Canada will be monitoring the implementationof these incentives. If an individual or their business does not meet the eligibility criteria or provides false or misleading information, they must repay the dealerships that granted the incentives.
Other Limits Regarding EVAP Incentives
There are a few other limits depending on the different types of buyers. Let’s take a look at all of them to make sure we know what the limit is for you or your business.
- Individual Canadians can receive one Electric Vehicle Affordability Program incentive over the program’s five-year time frame.
- Organizations and businesses can receive up to 10 EVAP incentives over the five-year program. If the same individual owns multiple organizations, they will be treated as a single entity. Collectively, they can use the program to purchase up to 10 vehicles through EVAP.
- Not-for-profit organizations, including charities, can receive up to ten EVAP incentives overthe five-year program.
- Provincial, territorial, and municipal governments with fleets can receive up to ten EVAP incentives over the five-year program
- Eligible carsharing companies that get approved can receive up to 50 EVAP incentives per calendar year.
How Much Can I Save With The Electric Vehicle Affordability Program?
The exact amount a driver or business can save with the Electric Vehicle Affordability Program may vary. It will depend on the type of vehicle that is chosen. As of 2026, the maximum rebates are:
- $5,000 for Battery-Electric (BEV) and Fuel Cell Electric Vehicles
- $2,500 for Plug-in Hybrid Electric Vehicles (PHEV)
It is important to note that these incentives are designed to decline over time. To minimize market disruption, the rebate amounts will decrease annually starting on January 1st, 2027.
The most important change with EVAP is the eligibility cap. To qualify for a rebate, the vehicle’s final transaction value must be $50,000 or less. This $50,000 must include the base price, optional features, dealer fees and accessories. For electric vehicles that are made in Canada, there is no cap on the final transaction value. These vehicles will still qualify even if they cost more. It is important to note that taxes, freight/PDI charges, winter tires, warranties and insurance do not count towards the $50,000 limit.
How Can I Get My EVAP Incentive?
As mentioned above, if you purchase or lease an electric vehicle with a final price of $50,000 or less on or after February 16th, 2026, you may be eligible for the incentive.
To check, your dealership must apply to Transport Canada to determine your eligibility. From there, you will need to sign a Consumer Consent Form to allow them to complete this process on your behalf. Once your application is approved, it will be applied directly to your sale or lease agreement after taxes and fees are accounted for. Keep in mind that you are unable to apply for the incentive on your own. Only dealerships are authorized to submit claims for the Electric Vehicle Affordability Program.
What Vehicles Are Eligible For The EVAP Incentive?
Luckily, finding out what vehicles are eligible for the EVAP incentive is simple. The EVAP Vehicle List will include all models that manufacturers claim have a suggested retail price (MSRP) of $50,000 or less. It is important to keep in mind that if an EV is not on this list, it may still qualify for an incentive if the program criteria are met. As mentioned above, Canadian-made EVs have no cap on the final transaction value and can qualify even if their price exceeds $50,000.
Conclusion
At the end of the day, the Electric Vehicle Affordability Program makes it easier than ever to own an electric vehicle. Remember, whether you already own an EV or are looking to purchase one, having the right insurance is critical. Don’t hesitate to reach out to us at isure for all your insurance needs, including electric vehicles and beyond!
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