REFILE-UPDATE 1-Ontario rebates aim to spark electric car sales

(Refiles to correct title in 11th paragraph to market manager from marketing manager)

* Rebates range from C$4,000 to C$10,000

* Covers plug-in hybrid and battery-electric vehicles

* Ontario buying 500 electric vehicles for service fleet

* Electric car buyers to get special license plates (Adds details, quotes)

By John McCrank

TORONTO, July 15 (Reuters) - The province of Ontario moved on Wednesday to reduce the sticker shock of plug-in hybrid and battery-electric vehicles by offering rebates of between C$4,000 ($3,570) and C$10,000, starting July 1, 2010.

Ontario Premier Dalton McGuinty said the aim was to have one out of every 20 vehicles in Canada's most populous province to be electrically powered by 2020.

"This will be the most attractive rebate, certainly in North America," McGuinty said at a press conference. "It may be the most attractive rebate ... in the world."

Buyers of electric cars will also get special green license plates that will allow them to use carpool lanes, even if there is only one person in the vehicle, as well as access to public charging facilities and parking at Ontario government and GO Transit commuter lots.

The government also committed to adding 500 electric vehicles to its public service fleet.

The size of the rebate will depend on the vehicle's battery capacity. Plug-ins can be more environmentally friendly than regular gasoline-electric hybrids as they can run purely on electricity, but the need for bigger batteries makes them more costly.

McGuinty made the announcement while standing in front of a Chevrolet Volt, a plug-in electric hybrid that General Motors Corp GMGMQ.PK plans to roll out by late 2010.

The Volt is expected to cost US$40,000, with the large, lithium ion battery making up a good chunk of the cost.

"We want to make it easier to buy green cars," McGuinty said.

California-based company Better Place is partnering with Ontario to build the public charging facilities. It also plans to develop a more extensive infrastructure network for electric vehicles in the province and will be opening an electric car demonstration center in Toronto in about a year.