Regulatory barriers, limited charging networks stall EV progress despite tax incentive
Electric vehicle (EV) charging station company Zero Carbon Charge (Charge) has renewed calls for more policy support to address key barriers to electric vehicle (EV) adoption in South Africa, highlighting the need for sustainable charging infrastructure and regulatory reforms.
While Charge has welcomed recent government initiatives, such as the 150% tax incentive for electric- and hydrogen-powered vehicle manufacturers, the organisation stresses that these measures alone are insufficient to fast-track EV adoption.
“This incentive to boost local manufacturing is a positive step forward, but we also need to reduce the current high import duties for EVs – which is 25% compared to 18% for combustion engine vehicles. These taxes inflate EV prices, slow demand and limit market growth,” the company explains, calling for a six-year tax holiday on EV imports to stimulate market uptake.
Charge highlights that beyond high EV costs, the lack of sustainable, reliable, and green charging network remains a significant barrier.
The company believes that more support is needed to minimise the regulatory barriers hindering the expansion of critical charging networks.
In some provinces, such as the Western Cape, rural development guidelines contradict the development of solar-powered charging for EVs, despite the call for carbon reduction and environmental protection. This presents challenges to renewable energy and sustainable transport projects.
Additionally, the South African National Roads Agency’s administrative hurdles continue to delay the rollout of essential EV infrastructure.
Tackling these issues is key to ensuring initiatives such as Charge’s off-grid charging network can drive meaningful progress in South Africa’s EV transition.
“Without a reliable network of charging stations that operate independently of the coal-based grid, EVs cannot deliver the environmental benefits they promise,” Charge states.
Current data reveals that an EV charged from South Africa’s predominantly coal-powered grid indirectly emits 5.8 t/y of carbon dioxide, compared with 4.4 t/y for petrol cars and 8.6 t/y for diesel-powered vehicles. This means that, currently, it is less environmentally friendly to drive an EV charged from the grid than it is to drive a petrol vehicle.
To this end, Charge’s solution, which includes a network of 120 off-grid, solar-powered charging stations for EVs and an additional 120 stations for electric trucks, is vital for reducing transport emissions. These stations will ensure every EV charged is powered entirely by renewable energy, supporting the Department of Transport’s net-zero transport target by 2050.
Charge further finds that transitioning the vehicles tracked on government’s eNATIS system to zero-emission EVs powered by renewables could save 97-million tonnes of carbon emissions by 2050.
“Our charging network will also contribute significantly to the Department of Forestry, Fisheries, and the Environment’s goal of reducing 76.5-million tonnes of carbon dioxide emissions by 2030. Without off-grid charging infrastructure, these targets are unattainable,” Charge explains.
Charge’s off-grid charging network development has started with a first operational station in Wolmaransstad, North West, while it continues to advocate for meaningful policies to support EV adoption.
Charge remains committed to driving forward the infrastructure needed to support successful EV transition in South Africa.
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