The NSW Treasurer will commit millions of dollars in funding to entice councils and businesses to switch to using electric cars.

The second round of the $105m NSW Fleets Incentive will open on Thursday and will enable operators of car fleets – for example, taxi companies – to apply for funding to go electric.

“The future of transport is electric and NSW is leading the charge and driving Australia forward to that future,“ Matt Kean said.

The Treasurer, who drives a Tesla, said the program would lead to more electric vehicles being available for private drivers as well.

Mr Kean envisioned a trickle-down effect where electric cars bought by businesses and councils would eventually be sold off on the second-hand market.

“These incentives will help attract more electric vehicles to NSW, giving our drivers greater choice when it comes to buying their next car,” he said.

Most fleet vehicles end up being sold on the second-hand market within three or four years, the Treasurer’s office said.

The second round of funding will cost $15 million, to be doled out in the form of a reverse auction.

Fleet operators will be asked to calculate the total cost of ownership and then suggest to the government how much they need to go electric instead.

Extracted in full from: NSW to fund second $15m round of electric vehicle incentives | — Australia’s leading news site