Spain’s Electric Bike Subsidies: The US Shares a Similar Model
Written by: Maxime Renson | October 31, 2025 | Time to read 6 min
From Madrid to Minneapolis, governments are putting their money where their pedals are— powering a quiet e-Bike boom on both sides of the Atlantic.
More about the Author: Maxime Renson, General Manager at Upway
Graduated in engineering and business, I spent 6+ years at Uber across six countries before joining Upway’s founding team in 2022 to launch the U.S. business. Outside work, I bike, run, play golf and padel, and swim with my son.
Spain, a leader in renewable energy, has set its sights on electric bikes and micromobility as part of its green vision. While the country doesn’t enjoy ridership numbers as high as other European heavy hitters, its various regions have been launching bike subsidies to encourage life on two wheels. These rebates— typically around a few hundred euros— represent a similar approach to that of many US states and cities that offer e-Bike vouchers. In this last installment of my series on policies for e-Bike adoption, I’ll compare the Spanish and US subsidies and investigate their effectiveness.
Spain is embracing rebates for electric bikes
In previous articles, I’ve discussed Germany’s bike leasing program, Belgium’s cycling commute allowance, France’s long-term e-Bike rental, and the UK’s Cycle to Work scheme. Spain is encouraging bike and e-Bike adoption via a different strategy, mainly purchase rebates.
Admittedly, on a smaller scale than many of its European neighbors, Spanish regional governments offer essentially what is a direct cash transfer to incentivize buying a bike or e-Bike. Here are a few of the programs across Spain’s regions, or autonomous communities:
Admittedly, on a smaller scale than many of its European neighbors, Spanish regional governments offer essentially what is a direct cash transfer to incentivize buying a bike or e-Bike. Here are a few of the programs across Spain’s regions, or autonomous communities:
- Xunta de Galicia: Galicia’s EBici program has been active since 2023, with 1 million euros allocated for 2025. Residents are eligible for €500 or up to 50% of the value of the bike, with a higher amount for large families.
- Bono Bizikleta: The Basque Country offers a split voucher, where residents receive €200 from the city hall after they contribute €200 themselves, essentially a matching program.
- Madrid: Madrid’s Cambia 360 plan provides a maximum of €600 or up to 50% towards an e-Bike purchase, part of Plan Mueve Madrid 2025.
- Bono Bici VLC: Valencia’s rebate was active in 2022, offering €100 vouchers for bikes.
- Balearic Islands: Rebate of up to €500, or €750 for adaptive bikes.
- Barcelona: The Catalonian capital offered €250, but the program is not currently active at the moment.
Most of these subsidies operate as a rebate, meaning the customers will receive money back after the purchase. And just today, La Moncloa (the Office of the President) announced new projects for sustainability, including four programs for electric bike lending. It’s fair to say we can expect stronger cycling subsidies and infrastructure plans across Spain in the coming years.
US states & cities also offer e-Bike vouchers
The US currently has a similar approach when it comes to encouraging people to ride bikes or electric bikes. Like Spain, the strategy is decentralized with regional governments, the US states, provide subsidies, as well as certain cities or counties. At the moment, there is no federal tax rebate or subsidy in either country for e-Bikes.
Unlike Spain, however, most of the e-Bike incentives in the US are vouchers. These are point-of-purchase rebates that apply the discount immediately, rather than having to wait for the government to reimburse you.
But are e-Bike vouchers an effective strategy?
Direct subsidies like vouchers or rebates are attractive policies because of their relative simplicity. They operate basically as a direct cash transfer to residents from the government, providing a discount price on e-Bikes. This can be a powerful tool for states or local governments to put subsidies into action without the need for a countrywide program, employer buy-in, or a compatible tax system, as is the case with other e-Bike incentive structures.
The good news is that these kinds of incentives can be effective. Large subsidies can convince people to buy an e-Bike when they otherwise wouldn’t have, changing consumer behavior in a real way and getting more people on bikes. Of course, the larger the subsidy, the more motivation it gives a consumer to make the purchase— small rebates or vouchers may not make a meaningful difference.
The good news is that these kinds of incentives can be effective. Large subsidies can convince people to buy an e-Bike when they otherwise wouldn’t have, changing consumer behavior in a real way and getting more people on bikes. Of course, the larger the subsidy, the more motivation it gives a consumer to make the purchase— small rebates or vouchers may not make a meaningful difference.
Targeting, effectiveness, and lower emissions
The distribution of subsidies can also be targeted relatively easily. For example, the rebates in Galicia, Spain are higher for large families who may need more economic support. And in the US, nearly all vouchers are income-qualified, prioritizing the mobility of low-income earners. This is an especially important point when considering transit equity in cities and the accessibility of micromobility. This approach is called by some researchers the “targeted universalism approach”, helping those who need it most to get people on e-Bikes who otherwise wouldn’t ride.
But not all subsidies are created equal. A recent 2024 study explored this exact point, finding that “point-of-purchase discounts are the most influential at shifting behavior, followed by tax credits, then mail-in rebates. Point-of-purchase discounts are 30% more effective than mail-in rebates”. Simply put, vouchers are much more effective than later-date rebates in encouraging e-Bike purchases.
But not all subsidies are created equal. A recent 2024 study explored this exact point, finding that “point-of-purchase discounts are the most influential at shifting behavior, followed by tax credits, then mail-in rebates. Point-of-purchase discounts are 30% more effective than mail-in rebates”. Simply put, vouchers are much more effective than later-date rebates in encouraging e-Bike purchases.
Researchers at UBC's Research on Active Transportation (REACT) Lab surveyed participants in an e-Bike incentive program in Canada. They discovered that “most new e-Bike users continued to regularly use their bikes as a substitute for car travel, even a year after purchase. Low-income households reduced their car trips and decreased carbon emissions the most. And incentives are a cost-effective way of reducing carbon emissions.” The result of the subsidy was multi-tiered benefits. There are far-reaching social and environmental benefits from these incentives beyond the economic discount.
Bottom line: vouchers are effective, but can be expensive
As direct cash transfers, there’s no way for the government to disguise or distribute the financial burden across other players. This unilateral approach is an effective and mighty tool, but comes with large costs. This is revealed when considering what it actually costs to subsidize e-Bikes enough for people to change their behavior.
The researchers from the aforementioned 2024 study reported that “a public agency using a point-of-purchase discount would have to distribute about $4,000 in incentives to generate one additional e-Bike purchase. This is because over 80% of people who buy an e-Bike would likely have bought one even without the discount”. Actually making a splash requires a lot of drops in the bucket. However, all those incentivized purchases deliver diverse benefits and are far more cost-effective than EV subsidies (electric cars are far more expensive than e-Bikes).
Well, the bottom-bottom line is that direct subsidies like vouchers can be an effective tool to influence consumer behavior, but require smart program design to avoid ballooning costs. National bike advocacy group, PeopleForBikes, even provides a toolkit for policymakers and advocates to design successful bike incentive programs.
As the studies acknowledge, there is limited understanding of the full impacts of these incentives, especially due to the relative newness of the subsidies. We’ll have to keep a keen eye on the success of and data behind these policies in relation to other strategies, such as bike leases and commuting allowances, for a better picture of the future of e-Bike adoption on either side of the Atlantic.
The researchers from the aforementioned 2024 study reported that “a public agency using a point-of-purchase discount would have to distribute about $4,000 in incentives to generate one additional e-Bike purchase. This is because over 80% of people who buy an e-Bike would likely have bought one even without the discount”. Actually making a splash requires a lot of drops in the bucket. However, all those incentivized purchases deliver diverse benefits and are far more cost-effective than EV subsidies (electric cars are far more expensive than e-Bikes).
Well, the bottom-bottom line is that direct subsidies like vouchers can be an effective tool to influence consumer behavior, but require smart program design to avoid ballooning costs. National bike advocacy group, PeopleForBikes, even provides a toolkit for policymakers and advocates to design successful bike incentive programs.
As the studies acknowledge, there is limited understanding of the full impacts of these incentives, especially due to the relative newness of the subsidies. We’ll have to keep a keen eye on the success of and data behind these policies in relation to other strategies, such as bike leases and commuting allowances, for a better picture of the future of e-Bike adoption on either side of the Atlantic.
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Key Takeaways
- Spain’s regional rebates—ranging from €100 to €750—mirror U.S. state-level e-Bike incentives, showing a shared strategy for micromobility growth.
- Vouchers beat rebates: Studies show point-of-purchase discounts are 30% more effective at boosting e-Bike adoption than mail-in programs.
- Targeted equity matters: Income-based or family-size subsidies make e-Bikes accessible while cutting emissions and car dependence.
