What Does the Moves III Plan Offer for Electric Vehicles?

On Tuesday, the government approved the reactivation of the Moves III Plan for electric vehicle subsidies during a Cabinet meeting. This decision comes after more than two months of inactivity following the rejection of the 'omnibus decree' in the Spanish Congress last January.

The fund's allocation has been increased by 400 million euros, reaching a total of 1.7 billion euros. The plan's validity has been extended until December 31 of this year, retroactively effective from January 1. The Plan will be presented to the Congress for ratification this Thursday, April 10.

This subsidy program offers between 7,000 and 9,000 euros for scrapping commercial vehicles up to 3,500 kilos. For passenger cars, the subsidy amounts to 4,500 euros per vehicle (7,000 euros with scrapping).

So far, Moves III has resulted in 245,542 actions involving 153,340 electric vehicles, 122,716 charging points, and impacted 4,856 municipalities, with over 1.7 billion euros, including the 400 million from the reactivated plan this month.

The new Moves Plan includes two types of actions: subsidies for the purchase of plug-in electric and fuel cell vehicles, and subsidies for the implementation of electric vehicle charging infrastructure.

Regarding subsidies for the purchase of plug-in electric vehicles, eligible vehicles include plug-in hybrid electric vehicles (PHEV), extended-range electric vehicles (EREV), battery electric vehicles (BEV), and fuel cell electric vehicles (FCV and FCHV).

Individuals, self-employed persons, homeowner associations, companies, and public entities can access these subsidies. The amount varies depending on the applicant, the vehicle's engine type, category, or range, ranging from 1,100 euros to 7,000 euros (or 1,300 euros to 9,000 euros if accompanied by the scrapping of a vehicle over seven years old). Details are outlined in Annex III of the Royal Decree regulating the subsidies.

For subsidies aimed at implementing electric vehicle charging infrastructure, the amount also varies depending on the applicant type. Individuals can request up to 70% of the cost, while companies can receive up to 35%. In municipalities with fewer than 5,000 inhabitants, these percentages can increase to 80% and 40%, respectively.

The Moves III Plan initially had a budget of 400 million euros, which has been increased several times. The allocation for 2025 is another 400 million euros, bringing the total funds for Moves III to 1.735 billion euros.

Including other Moves programs, such as Fleets, Singulars, or Charging Corridors, the government has mobilized a total of 2.735 billion euros to promote electric mobility and charging infrastructure.

The allocation of Moves III Plan subsidies is managed by the autonomous communities and the cities of Ceuta and Melilla, which oversee distribution within their territories. This decentralized approach aims to tailor the program to the specific needs of each region.

Therefore, applications must be submitted to the autonomous communities or the collaborating entities they designate.

Following the program's latest extension, applications can be submitted until December 31, 2025. The regulation also states that applications submitted between January 1, 2025, and the entry into force of the royal decree-law will be valid due to its retroactive nature.

According to initial estimates by the Ministry for Ecological Transition and the Demographic Challenge, the Moves III Plan will prevent the emission of more than 450,000 tonnes of CO2. Additionally, it is projected to generate over 40,000 jobs and contribute an additional 2.9 billion euros to the GDP.