ENERGY company AGL is set to launch an electric vehicle subscription service that includes home charging facilities, maintenance and registration costs and no lock-in contracts. Prices will start at $299 a week.

The deal is being offered under AGL’s “Next” program to customers within 50km of Sydney and Melbourne CBDs in partnership with car subscription business Carbar and EV charging supplier JET Charge.

AGL’s executive general manager of future business and technology, John Chambers, said the Australian EV market continued to grow but many customers were reluctant to commit to buying an EV.

He said the reluctance was based on the purchase price of an EV, access to charging points and concerns about technological changes.

“AGL’s EV Subscription Service eliminates these concerns allowing customers to access the latest technology as it hits the market,” he said.

“It’s a convenient option, with the latest EV model delivered to the customer’s home and at-home charging facilities installed but with the flexibility to swap, upgrade or cancel the service at any time.”

AGL said customers will have access to EVs from brands like Tesla, Jaguar, Hyundai and Nissan. The service will include registration, insurance, tyres, repairs, roadside assistance and carbon-neutral credits.

The company’s website lists four models – Nissan Leaf ($299/week), Hyundai Ioniq ($299/week), Hyundai Kona ($359/week) and Tesla Model 3 ($599/week). The cars are used but low mileage, AGL said, adding that more models will be added in the future.

Customers are required to make a one-off $800 set-up fee and can change to other EVs, where available, at no cost every six months.

There is no lock-in contract at the moment and customers who leave the program within six months will have to pay $150 to remove the home charging equipment.

Mr Chambers said the reason behind the EV subscription service was based on strong market fundamentals.

“Over the next few years, more models will hit the market, prices will fall in line with petrol vehicles and fast charging facilities will allow even greater distances to be travelled,” he said.

In line with the EV service, AGL last month became the first Australian signatory to EV100, committing to making its 400-strong corporate fleet entirely EV by 2030.

“These changes will transform how Australia drives and we anticipate that by 2030 half of all new cars sold could be electric,” Mr Chambers said.

Carbar, which started in 2018, operates in Sydney, Melbourne and Brisbane and has a range of used cars available through participating car dealerships.

By Neil Dowling