Key Takeaways:
✅ Expect to pay more for equipment, especially if your charger includes imported components.
✅ Federal incentives are disappearing, but California may step in with state-level support.
✅ Public charging stations could slow down, as local agencies struggle to replace lost federal funds.
✅ Electricity costs may rise slightly, making long-term EV savings less predictable.
Federal Incentives for EV Chargers: Rollbacks & Uncertainty
One of the biggest shifts affecting EV charger installation costs in San Jose is the federal rollback of incentives and grants for charging infrastructure. The Trump administration halted the $5 billion National Electric Vehicle Infrastructure (NEVI) program, which had been funding public charger expansion, including projects in California. States, including California, were directed to freeze previously awarded funds, leaving many planned installations in limbo (The Verge).
What This Means for EV Charger Costs:
- No More Federal Grants – Previously, public and business installations benefited from federal cost-sharing, reducing out-of-pocket costs. Without this funding, installing Level 2 and DC fast chargers may require full private financing.
- Tax Credits at Risk – The Alternative Fuel Vehicle Refueling Property Credit, which covered 30% of charger installation costs (up to $1,000 for homes and $30,000 for businesses), is on the chopping block as part of broader cuts to EV subsidies (Reuters).
- More Expensive Public Chargers – The loss of federal cost-sharing means cities like San Jose will have to cover more of the cost for public charging stations, potentially slowing their rollout.
Industry experts warn that removing these incentives will raise costs for businesses and consumers. Auto and energy groups are actively lobbying to reinstate the funding, citing increased uncertainty for businesses and states that were relying on these programs (Electrek). California officials have hinted at state-level subsidies to fill the gap, but this will depend on budget availability.
Tariffs on EV Charger Components: Rising Equipment Costs
Trump’s 2025 trade policies have introduced new tariffs on materials used in EV chargers, making installations more expensive in San Jose and the Bay Area. Key changes include:
- Steel & Aluminum Tariffs Increased to 25% – Chargers use steel enclosures, wiring, and mounts, all of which are now subject to a 25% import duty (Wall Street Journal).
- 10% Blanket Tariff on Chinese Imports – Most EV chargers contain electronic components like circuit boards, power converters, and cables, many of which are sourced from China. The new 10% import tariff directly increases charger manufacturing costs (CNBC).
How This Affects Installation Costs in San Jose:
- Higher Equipment Costs – A standard Level 2 charger that previously cost $600–$1,200 may now be $800–$1,500 due to increased raw material and electronics costs.
- More Expensive Fast Chargers – DC fast chargers (which cost $15,000+ per unit) could see even larger price hikes due to reliance on imported semiconductors and power modules.
- Supply Chain Disruptions – Manufacturers are scrambling to source non-tariffed components from domestic or alternative suppliers, which could lead to installation delays and limited availability of certain charger models.
Local electricians and charger installers are already reporting higher quotes from suppliers, meaning homeowners and businesses in San Jose should expect price increases for new installations (Green Car Reports).
Energy Policy Shifts & Electricity Costs
Beyond direct EV policies, Trump’s energy agenda is shifting federal priorities away from renewables, which could affect long-term electricity prices.
- Federal Wind & Solar Subsidies Suspended – The administration halted new funding for wind and solar projects, freezing $7 billion meant for community solar programs (Bloomberg).
- California’s Grid May See Higher Costs – Less federal support for renewables could mean higher utility costs for California as it continues its clean energy transition without federal assistance.
How This Impacts EV Owners in San Jose:
- Potentially Higher Charging Costs – If electricity rates rise due to a slower shift to renewables, the cost of charging at home could increase slightly over time.
- More Reliance on State Incentives – California may need to boost local renewable energy programs to keep rates from climbing, which could impact budgets for EV-related incentives (Los Angeles Times).
Some analysts believe these changes could stall progress toward cheaper, cleaner energy, affecting long-term savings for EV owners. However, others argue California’s energy policies are resilient enough to maintain stable rates despite federal rollbacks.
Bottom Line: Expect Higher EV Charger Installation Costs in 2025
The combination of federal incentive rollbacks, rising equipment costs from tariffs, and energy policy shifts means that EV charger installations in San Jose will likely cost more in 2025.
If you’re considering installing an EV charger at home, it may be smart to act sooner rather than later before potential further cost increases. Check with local utilities and rebate programs for state-specific incentives that could offset costs.
🚀 Need expert guidance on your EV charger installation in San Jose? Contact Wooding Electric today for the latest pricing, rebates, and best installation options.
