Owning an EV in Maryland: Charging Cost, Incentives, and More

EV ownership is still rising significantly in Maryland. Lower car costs and state and federal incentives promote this expansion. Maryland has ambitious plans and now has more than 12,000 EVs. By 2025, Maryland hopes to have 300,000 electric vehicles on the road after joining a nine-state initiative to promote EV adoption.

Through the deal, the nine states want to increase the number of EVs by 3.3 million. PEPCO and BGE are among the utilities that have joined the initiative by starting pilot projects to research how EV owners charge their vehicles, how to design rates to encourage EV use, and how to build public charging infrastructure.

In the grid modernization proceeding (PC-44) context, stakeholders and utilities have advanced an ambitious proposal to meet state ZEV and emissions targets with a progressive EV charging infrastructure strategy. This article will delve deeper into the details concerning EV ownership in Maryland. Read on.

EV Charging Infrastructure in Maryland

Charging an EV in Maryland is as simple as fueling a gasoline car. When, where, and how long it takes depends on the charging equipment you have. Three categories of EV chargers exist, levels 1, 2, and 3 (DC Fast charge). 

The chargers are categorized according to power and the pace at which they charge the EVs. Let’s look at each level in detail.

Level 1

Level 1 chargers hook into a standard 120v outlet, which is almost ubiquitous, using the car’s charging cord. If charged at home overnight, an electric automobile can go over 40 miles each day. It usually takes 11 to 20 hours to fully charge at a level 1 charger. A driving range of 2 to 5 miles is added every hour. 

Level 2

Level 2 chargers require extra equipment that an electrician can install. Public charging stations also offer level 2 charging for a cost based on the number of kWh utilized. Usually, it takes 3 to 8 hours to charge a 7.2 kWh level 2 charger fully. Every charging hour adds about 20 miles of range.

Level 3 – DC Fast Chargers

DC Fast Chargers are mostly available in business locations and on highways. Level 3 chargers can charge some EVs to 80% in as little as 20 to 30 minutes, depending on the battery size. Every charging hour adds about 100 miles of driving range.

Public Charging Networks

Maryland has over 500 EV charging stations across the state. Several companies run these public charging networks. In most cases, payments can be made with a card at the charging station or through an operator account. The majority of networks include both pay-per-use and monthly membership alternatives. 

Other networks also include mobile applications that you can use to manage your charging and find stations. Charging network providers include Blink, Sema connect, EVgo, charge point, and Tesla.

Maryland Transport Authority has 15 public charging stations spread across its facilities. There are five each at the Fort McHenry Tunnel in Baltimore, the Baltimore Harbor Tunnel, and the Bay Bridge in Annapolis. These charging stations are part of the ChargePoint network.  

ChargeHub can help you easily locate charging stations in Maryland. Plugshare is another great website for locating charging stations on the go. They even have a very convenient app.

Cost of Owning an EV in Maryland

As mentioned above, owning an EV may be cheaper than a conventional car. According to the U.S. Energy Information Administration, Maryland residents can expect to pay 16.12 cents per kWh, which puts them 17th in the rankings for the highest average electricity costs.

We’ve researched a few examples to get a clearer picture of how much it would cost you to charge your EV. The following numbers are based on average US Energy Information Administration Calculations.

Volvo XC40

The Volvo XC40 is a chic and cutting-edge SUV with a sleek Scandinavian style inside and out and various powertrain choices. It’s the smallest SUV in the Volvo family. Charging the Volvo XC40 will cost you $8.70.

Ford F-150 Lightning

The F-150 Lightning is a great truck. All F-150 Lightning variants have an all-wheel drive and two electric motors. The combined horsepower of the motors is 452 with the Standard-Range battery and 580 with the Extended-Range battery. It will cost you about $14.61 to fully charge the F-150 Lightning.

Tesla Model Y

The Tesla Model Y is a five-passenger crossover SUV. It’s the most popular EV from Tesla. It will cost you roughly $14.23 to fully charge the Model Y Long-Range.

State Incentives for Owning an EV in Maryland

Maryland gives several incentives for those who intend to switch to EVs. Before making a purchase, it’s important to check current incentives or speak with a tax expert to make sure you are eligible for a refund or tax credit because incentive programs change over time. Let’s go through some of them.

Credits for Home Charging Stations

At the end of 2022, Maryland’s state home charging station funding ended. However, in the event that financing is revived for the subsequent fiscal year, which starts on July 1, 2023, the state urges those interested to apply. 

Additionally, a few utility companies provide discounts for off-peak charging and rebates for eligible home charging stations. Among the utility firms participating are Delmarva, Pepco, Potomac Edison, and BGE. The requirements and incentives differ depending on the utility company.

Excise Tax Credit

Residents who buy qualifying plug-in EVs are entitled to a one-time excise tax credit worth up to $3,000. Plug-in electric car owners can also make applications for free permits to use HOV lanes. 

Non-profit organizations, businesses, state agencies, and local governments can apply for state grants of up to $200,000 to install solar PV and EV chargers in their parking spaces. 

Commercial EV and Fuel Cell Electric Vehicle (FCEV) Tax Credit

Businesses will get a tax credit for buying new EVs and FCEVs starting on January 1, 2023. Battery capacity requirements are as follows: vehicles with a GVWR under 14,000 lbs. must have a battery capacity of at least 7 kWh, and those with a GVWR over 14,000 lbs. must have a capacity of at least 15 kWh.

The lesser of these quantities constitute the tax credit amount:

• 15% of the cost of plug-in hybrid electric vehicles’ initial purchases
• 30% of the cost of an EV or FCEV’s initial purchase
• The difference in price between the car and one with a similar internal combustion engine.

Maximum tax credits for vehicles below 14,000 lbs should not exceed $7,500. For those weighing more than 14,000 lbs, the tax credits must not exceed $40,000. 

Fuel Cell Electric Vehicle (FCEV) and Electric Vehicle Tax Credit

The Qualifying Plug-in Electric Drive Motor-Vehicle Credit, now known as the Clean Vehicle Credit, was modified by the 2022 Inflation Reduction Amendment (Public Law 117-169). A new condition for final assembly in North America was imposed. 

This change became effective on August 17, 2022. Additional requirements apply for vehicles put into service or delivered on or after 1st January 2023, and the credit amount will depend on whether the vehicle satisfies new standards for essential minerals and battery components for vehicles put into service after April 17, 2023. The maximum tax credit available to taxpayers who buy an eligible vehicle is $7,500.

Utility Incentives

Utility companies in Maryland have not been left behind in encouraging residents to buy EVs. Here are some incentives from the companies.

Baltimore Gas and Electric Company 

Residential customers who own or rent an EV can get time-of-use (TOU) rates from Baltimore Gas and Electric Company (BGE). Customers that qualify must have a Level 2 charging station capable of tracking EV charging information separately.

Residential customers are also eligible for a $50 annual credit from BGE toward buying and installing a Level 2 EV charging station. Residential users must charge their EVs off-peak to qualify. 

Delmarva Power

Customers of Delmarva Power who purchase qualifying Level 2 EV charging stations for their homes or multifamily buildings are eligible for incentives. They are eligible for a $300 reimbursement. The only eligible EV charging stations are those bought and installed after 1st July 2019.

Customers who own or manage multifamily buildings may get reimbursement from Delmarva Power for up to $15,000 worth of approved Level 2 smart EV charging stations, covering 100% of the cost of purchase and installation. Customers who qualify may get incentives for as many as two EV charging stations.

Potomac Edison

Through the EV Driven Program, Potomac Edison gives home customers a $300 incentive for buying and installing a qualifying Level 2 EV charging station. They also have an Off-Peak Rewards Program, where the company gives residential customers a chance to earn two cents per kilowatt-hour when they use qualifying EV charging stations off-peak.

Additionally, Potomac Edison offers a multifamily rebate of $20,000 for installing level 2 or DC fast chargers on their property. Customers are only eligible if they buy and install qualifying EV charging stations between January 1, 2020, and December 31, 2023. 

Pepco

Pepco provides rebates to companies that purchase and install level 2 charging stations. The rebates offered by the company are about $30,000 per property and $5,000 per port. Maryland-based small enterprises and charity organizations are eligible applicants. Residents who buy and set up qualifying Level 2 EV charging stations are eligible for a $50 gift card from Pepco. 

Maryland State Incentives

Maryland Energy Administration provides rebates to companies, individuals, and state and local government bodies. The rebate offsets 40% of the price of purchasing and installing an eligible EVSE.

The setting up or operation of a certified EV charging station is subject to local, state, and/or federal legislation, which applicants must show compliance with. Other conditions can apply. MEA may grant a total of $1,800,000. 

Up to 18% of the program’s overall budget may be awarded to each entity that submits a commercial rebate application each fiscal year. First-come, first-served rules will apply to the distribution of rebates. 

Final Thoughts

People who adopt an EV lifestyle rapidly discover that there are a number of other factors for which they don’t miss driving gas-powered vehicles. EV ownership in Maryland is getting more affordable as automakers continue to release more EVs at various pricing points, and recharging gets faster and simpler.