Austin Energy says e-bike rebate program on track to double in size

As retailers brace for the holiday shopping season, 2023 is shaping up to be a good year for e-bikes in Austin.

Austin Energy stopped by City Council’s Mobility Committee meeting last week for an update on its e-bike rebate program, which kicked into high gear this past January with a resolution doubling rebate values. Preliminary data shows a spike from 2,606 to 3,464 participants since the increase, though staff say the final figure will likely be much higher.

“We typically run on a 60- to 90-day lag in application processing, just because of volume and a small operations staff,” said electric vehicles and emerging technologies manager Cameron Freberg. “We expect to more than double our participation since last year, just from that increase in incentive and the amount of new vehicles available in the market.”

The rebate program dates back to 2013 but has seen significant growth since the 2018 passage of Austin’s Climate Equity Plan, which aims to see 40 percent of vehicle miles traveled via electric transportation by 2030. As partners like Capital Metro and Austin’s Transportation Department make big investments in public transportation and bike infrastructure, e-bikes have become increasingly viable both as a first- and last-mile solution and primary vehicle choice.

A sea change in the vehicle market is also fueling the e-bike renaissance, with major manufacturers across the globe racing to meet demand. Like their peers in the automotive sector, industry titans like Huffy and Trek are rolling out new electric models to compete on the market.

“There’s a very robust local dealership market that’s supplying these now,” Freberg said. “When we started this program, I think we had a grand total of one or two dealerships. … We now have 32 participating in our rebate program.”

Rebates are offered to Austin Energy customers on a sliding scale based on vehicle cost, with models up to $999 awarding $200, models up to $1,999 awarding $400, and $600 offered for those priced $2,000 and higher. Those enrolled in the utility’s customer assistance program are further subsidized, receiving $300, $700 or $1,300 for the same tiers of purchases.

Bike-using businesses and organizations are also eligible for rebates on fleets. The program has seen early success at housing developments like the Ivory, a parking-free housing project in East Austin that offers e-bikes to those who sign a lease, alongside amenities like on-site charging and a MetroBike bike-share station.

Next, Austin Energy hopes to cash in on the influx of federal funding aimed at tackling infrastructure. This past June, the utility applied for a $15 million grant offered by the U.S. Department of Transportation, which if secured would fund expansion of the city’s electric vehicle charging network. The infrastructure, which currently sits at 1,600 ports across the city, is still in its infancy.

“We’re working closely with our partners at Capital Metro and MetroBike on charging,” Freberg said. “There are some simple solutions, as the batteries come off and can be charged inside on a 110-volt outlet. But for shared resources, Austin Energy will be working with them to power kiosks out in the community. We haven’t seen the full build-out yet, but we’re working on those connection points.”

Austin Energy says it’s sourcing a second contractor to help process rebate applications, which are currently sitting at two- to three-month wait times. Those interested in participating can check out the utility’s website.

Photo made available through a Creative Commons license.

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