Governor Newsom announces $3,500 instant rebates now available for Californians buying their first zero-emission vehicle
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Aug 7, 2026

Governor Newsom announces $3,500 instant rebates now available for Californians buying their first zero-emission vehicle

Driving forward the newest chapter in California's climate leadership: the largest battery arsenal in the country, solar outpacing natural gas, and real savings for drivers going electric

What you need to know: Buying your first zero-emission vehicle in California just got a lot cheaper. Shoppers can now get $3,500 off a new zero-emission vehicle (ZEV) or $1,750 off a used one, knocked off the price. It's the newest chapter in the story of California's clean energy leadership. This month, California's arsenal of battery storage systems, which soak up solar power during the day, just passed 21,000 megawatts, enough to power roughly 15.75 million California homes for about four hours after the sun goes down.

OAKLAND – Governor Gavin Newsom today announced that automakers are now offering instant rebates of up to $3,500 to Californians buying their first zero-emissions vehicle (ZEV), savings that come off the price before you drive it off the lot, no applications or waiting required. The Governor also announced that California now has more battery storage hooked up to its power grid than any other state, over 21,000 megawatts worth of batteries that soak up extra solar power during the day and are available as the sun starts to set, helping to reduce the use of natural gas.

While Donald Trump is hellbent on burning more expensive fossil fuels and raising costs for Americans, California is proving there's a better way — from new instant rebates putting thousands of dollars back in the pockets of first-time electric car buyers, to an arsenal of batteries across the state that just topped 21,000 megawatts, the nation's largest, helping power the world's fourth-largest economy.

California is showing the world what real economic security looks like. It's one that can't be held hostage by foreign conflicts and Big Oil. The Golden State is leading the charge on building a reliable, affordable clean future.

Governor Gavin Newsom

Together, the announcements tell an important story: families don't have to choose between saving money and protecting the air we breathe. Foreign conflicts keep exposing how dependence on global oil markets threatens America's economic and national security, driving up prices at the pump and at the register with every new overseas crisis. As the world's fourth-largest economy, California is determined to break that cycle.

Here's which automakers are plugged in and offering rebates

Today, Governor Newsom announced that three automakers are now offering instant rebates through California's MyFirstEV instant rebate program. As of today, Californians can walk into any Hyundai, Lucid, or Tesla dealer or sales center in the state and buy or lease their first ZEV. Additional automakers are planning to launch soon, including:
  • August: Ford, Rivian, Chevrolet, Kia
  • September: Toyota/Lexus, Honda, and Subaru
  • November: Mitsubishi
  • TBD: Nissan and Volvo are still determining launch timelines.

"MyFirstEV makes EV ownership possible for more Californians," said Yana Garcia, California's Secretary for Environmental Protection. "With this program, we continue to lead through innovative policies that clean our air, protect health and provide more affordable options for working people."

"California is once again leading with bold, decisive action and expanding access to the benefits of zero-emission vehicles with the launch of the MyFirstEV program," said California Air Resources Board Chair Lauren Sanchez. "This program means more than just new technology for California families – it means cleaner air for their children, lower fuel and maintenance costs and the opportunity be part of California's clean air future."

How it works

For California families who have been waiting for the right moment to go electric, that moment is here. The MyFirstEV program will deliver $3,500 off the price of a new zero-emission vehicle right at the dealership. California's $135.5 million state investment is matched dollar-for-dollar by participating automakers, delivering a combined $271 million in total savings to California families at the point of sale.

Here's what buyers need to know:
  • $3,500 off new zero-emission vehicles with an MSRP up to $50,000
  • $1,750 off used zero-emission vehicles sold for up to $25,000 through manufacturers' pre-owned vehicle programs
  • The rebate is open to any Californian buying their first ZEV

Interested Californians should contact participating automakers for more information. Links to manufacturer websites are available on the MyFirstEV program webpage, and information will be added as it becomes available.

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Why it matters

California has made great progress in cleaning the air. Still, nearly 18 million residents live in areas with unhealthy air, and 1,500 die from air pollution every year in Southern California alone.

With transportation accounting for 60% of California's smog-forming pollution and 40% of its greenhouse gas emissions, the state must continue cutting vehicle emissions to meet national air quality standards, fulfill state goals, and fight climate change.

Cleaner vehicles will also save Californians billions of dollars in fuel, maintenance, and healthcare costs as the state continues to advance ZEV deployment.

California's grid just hit two records, reducing reliance on fossil fuels

Think of California's battery fleet as a giant rechargeable power bank for the whole state. All day, while the sun is out, solar panels generate cheap, clean electricity, sometimes more than everyone needs in that moment. Batteries store that power. Then in the evening, right as everyone gets home, turns on the lights, and the sun goes down, the power in those batteries is available for use.

That timing matters. The evening is exactly when California has historically leaned on expensive natural gas plants to keep the lights on. Every time a battery does that job instead, it means less air pollution and more cost-effective electricity on the grid.

When Governor Newsom took office in 2019, fewer than 700 MW of battery storage served the California grid. Today, that number stands at 21,112 MW, including roughly 18,000 MW of grid-scale storage that discharges directly onto the grid, plus another 3,000 MW of smaller batteries at homes, schools, farms, and businesses that help offset demand on-site. That's an increase of over 2,500% in just seven and a half years. Thanks to the Legislature's partnership and sustained state investment and policy, California is the nation's clean energy leader and a global model for the energy transition.

"California has always prioritized innovation, investing in the science and technology of the future and advancing the goalpost on what is possible," said CEC Chair David Hochschild. "We are seeing renewables and batteries perform like never before, proof that our vision of a 100% clean energy future is absolutely possible."

The California Public Utilities Commission (CPUC) has played the central role in building the nation's largest battery storage fleet by requiring utilities and other load-serving entities to procure thousands of megawatts of energy storage, helping ensure our reliable, affordable, and increasingly clean electric grid.

"California's battery storage success is the result of thoughtful planning and sustained investment," said CPUC President John Reynolds. "The CPUC has worked to ensure these resources are brought online in a way that strengthens grid reliability, supports the integration of more clean energy, and delivers long-term benefits for California customers, especially for affordability. As we continue planning for the grid of the future, battery storage will remain a critical part of keeping the lights on while advancing our clean energy goals."

Solar and batteries: a winning formula

California leads the nation in solar and battery power because of our commitment to a carbon-neutral future by 2045. It's also because solar power and batteries make economic sense. Twenty-five years ago, solar panels cost about $5 per watt. Today, that number is down to just 15 cents per watt. Lithium-ion battery prices have also dropped more than 90% over the last ten years.
  • Solar takes the lead: For the first time ever, solar power has surpassed natural gas as the largest source of electricity in California during the first half of 2026. While seasonal factors play a role — solar production is strong, and electricity use is relatively moderate in spring — the trend highlights how the growing contribution of solar and battery storage is changing how California's grid operates. That shift means less air pollution, fewer costly natural gas plants firing up, and long-term cost savings for Californians.
  • Solar growth by the numbers: Comparing January through June of 2024 to that same stretch in 2026, solar power usage grew by 22%, while natural gas usage dropped by 51%, according to a California Energy Commission (CEC) analysis of state grid data. Meanwhile, grid battery storage capacity grew by 80% over that same period, giving solar power somewhere to go even after the sun sets. California's solar energy capacity breaks new records regularly, reaching over 23,000 MW in June 2026.
  • Largest energy storage capacity: California's battery storage system has the most capacity of any system in the nation. California's fleet is dominated by 4-hour-duration systems interconnected to the bulk electric grid, allowing it to deliver stored power for roughly twice as long as systems like in Texas. California isn't stopping there: the state is procuring and building even longer-duration storage, and recently celebrated its first 8-hour battery project, the Tumbleweed Energy Storage facility in Kern County.

This shift reflects years of Newsom administration and legislative investments and a whole-of-government approach to building an economy that creates good-paying jobs, lowers costs for families, and positions California to win the global clean energy economy.

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California's clean energy leadership

Since Governor Newsom took office in 2019, California has added more than 37,000 megawatts of utility-scale clean and renewable energy to serve the California grid. That's helped make the grid more reliable and pushed the state further along its path in the clean energy transition.

Batteries play a key role in California's goal of getting all of its electricity from clean sources by 2045. The most recent numbers, from the end of 2024, show real progress: 67% of retail electricity sales in the state already come from clean energy. Last year, clean energy met 100% of the state's electricity needs for at least part of the day on 279 separate days. So far in 2026, that's happened on more than nine out of 10 days during the first half of the year.

California is building this fleet safely. In 2024, Governor Newsom launched a State Battery Storage Safety Collaborative that has already delivered updated fire codes, new state oversight of battery facilities, and stronger safety standards statewide. The CPUC helps maintain electric grid reliability for the public by ensuring power plants and energy storage systems comply with CPUC standards for operations and maintenance.

Clean energy is also good for the economy. California leads the nation in total clean energy jobs, with 552,300 workers employed across clean energy technologies, nearly twice as many as the second-ranked state, Texas, according to a 2025 report from E2. California's clean energy workforce grew by nearly 7,300 workers in 2024, outpacing job growth in the rest of the state's economy by more than three times.

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