In Wakayama Prefecture, the leading EV (electric vehicle) subsidy is Wakayama City's 150,000 yen. The prefecture has no purchase subsidy for individuals (only a loan program), and Wakayama City's subsidy comes with a renewable-energy requirement: either home solar power generation or a contract for a 100%-renewable electricity plan is mandatory. Applications are online only, the budget covers about 60 vehicles, and as of the end of July 2026, funding for 31 vehicles remains, according to the city — so checking the remaining slots in real time is decisive. Here is how to stack it with the national CEV subsidy (up to 1.3 million yen for EVs).
Think of Wakayama's EV Subsidies as a "Two-Story Building"
CEV subsidy (the main player)
A national subsidy available to individuals and companies alike. In FY2026 it offers up to 1.3 million yen for EVs — the largest amount by far.
Wakayama City: 150,000 yen with a renewable-energy requirement
Wakayama City pays a flat 150,000 yen. Home solar or a 100%-renewable electricity plan is mandatory. Funding for 31 vehicles remained as of the end of July.
No prefectural subsidy for individuals
The prefecture only provides information on the national CEV subsidy and loans for small businesses. There is no purchase subsidy for individuals.
[National] CEV Subsidy FY2026 (the Main Player)
"Up to 1.3 million yen" is a cap. The actual amount is set per model based on the vehicle's environmental performance and other criteria. Applications close once the budget runs out, and subsidized vehicles carry a mandatory holding period of 4 years in principle — disposing of the car earlier may require repayment. Check the exact subsidy amount for your model in the figures published by the Next Generation Vehicle Promotion Center.
For the full picture of the CEV subsidy and the situation nationwide, see our guide to EV subsidies in all 47 prefectures.
[Wakayama Prefecture] No Prefectural Subsidy for Individuals
Wakayama Prefecture has no EV purchase subsidy for individuals. The prefecture's official page mainly provides information on the national CEV subsidy and a loan program for small businesses (a loan, not a subsidy). Individuals build their package from the national CEV subsidy plus municipal subsidies.
[Municipalities] Wakayama City Pays 150,000 Yen — Only for Those Who "Charge With Renewables"
| Item | Wakayama City's program (FY2026) |
|---|---|
| Amount | Flat 150,000 yen (EVs and FCVs; HVs and PHEVs are excluded) |
| Mandatory requirement | Renewable-energy sourcing via home solar power generation or a contract for a 100%-renewable electricity plan |
| Eligibility | City residents, no delinquent municipal taxes, first-ever EV/FCV purchase (new vehicle registered on or after April 1, 2026) |
| Applications | Online only. Until February 28, 2027. Budget of 9 million yen (about 60 vehicles); as of July 31, 2026, 4.65 million yen remained = funding for 31 vehicles |
The key point about the renewable-energy requirement is that it can be met not only by installing solar panels but also by switching to a 100%-renewable electricity plan. A plan switch requires no construction work, and it is well worth considering for the sake of 150,000 yen. Note that the holding obligation is 4 years for standard vehicles (shortened from the previous 6 years).
Check the "Taxes" on EVs Too (Automobile Tax Reductions)
Separately from subsidies, EVs are exempt from the environmental performance excise on automobile tax (the FY2026 tax reform has also decided to abolish the levy itself), and the following year's automobile tax (type-based levy) is reduced by roughly 75% under the green tax special measure. For details, see EV taxes and the 2026 automobile tax reform.
Are Subsidies Taxable?
EV subsidies received by individuals are treated as occasional income (ichiji shotoku). Because a special deduction of 500,000 yen per year applies, no tax arises as long as your total occasional income for the year — including other items — stays at or below 500,000 yen. National and local subsidies combined usually fit within this, but be careful about the total in a year when you receive several large subsidies. Business use is treated differently, so consult a tax accountant or other professional.
What to Do Today
What to do today
- Check the national CEV subsidy amount for your candidate models in the Next Generation Vehicle Promotion Center's list (the figure for your specific car, not "up to 1.3 million yen")
- Search your municipality's official website for "EV subsidy"; for Wakayama City, the remaining slots are published, so check the latest remaining count, budget balance, and application status
- Work backward from your delivery date to build an application schedule (check three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. Can I use Wakayama City's subsidy if my home has no solar panels?
A. Yes. The requirement is either "home solar power" or "a contract for a 100%-renewable electricity plan," so switching your electricity plan also qualifies. A plan switch requires no construction work, making it a fairly low hurdle for 150,000 yen.
Q. Are PHEVs eligible?
A. Wakayama City's subsidy covers EVs and FCVs only; HVs and PHEVs are excluded. For a PHEV, use the national CEV subsidy (up to 850,000 yen).
Q. Is there still budget left?
A. As of July 31, 2026, the city reported a remaining balance of 4.65 million yen (funding for 31 vehicles). Since the city publishes the remaining slots, check the latest count on the official page before applying.
Q. Can I apply for my second EV?
A. No — the requirement is a "first-ever EV/FCV purchase," so replacements and second vehicles are not eligible. The national CEV subsidy has no such restriction.
Reference Links (Sources)
* Subsidy amounts, requirements, and application status are as of August 2026. Programs may end early depending on budget consumption. Always check the latest information on each official website before applying.