New €5,000 EV scrappage scheme to launch for owners of older petrol and diesel cars

The pilot scheme is designed to encourage motorists to replace older vehicles with new electric models

The payment can be combined with the existing €3,500 EV purchase grant, bringing total support to €8,500. Picture: PA

A new €10m Government pilot scheme will provide motorists with a €5,000 scrappage allowance towards the purchase of a new battery electric vehicle (EV).

The scheme, announced by transport minister Darragh O'Brien, will open on July 1 and is aimed at encouraging motorists who own petrol or diesel cars more than 13 years old to replace them.

Under the initiative, motorists who permanently scrap a vehicle that is more than 13 years old will qualify for a €5,000 scrappage allowance. The payment can be combined with the existing €3,500 EV purchase grant, bringing total support to €8,500, but it will not apply to second-hand vehicles.

Speaking at Government Buildings on Wednesday, Mr O'Brien said he was aware that, even with €8,500 in Government supports, motorists would still have to contribute around €15,000 of their own money.

CLIMATE & SUSTAINABILITY HUB

"There are financing mechanisms in place there too," he said.

"We are seeing an improvement in the second hand EV market but costs of EVs are now comparable to costs of your petrol or diesel. You can get EVs now in the low €20k's, I won’t mention names because I don’t want to give them a plug.”

Scheme to be kept under review

Mr O'Brien said the scrappage scheme would be monitored and reviewed.

“We see the cost of new EVs coming down. Five or six years ago EVs were much more expensive than your regular petrol or diesel car.

“It’s a pilot scheme, we will monitor and tweak it. People are responding to the support that is there, and people are responding to the fact that EVs are cheaper to run.”

Labour TD Ciarán Ahern said the scheme was welcome, but added that the Government must commit to expanding the programme if demand proves strong and continue efforts to reduce the cost of electric vehicles.

"We need to see a commensurate improvement in the grants available to households for EV chargers, as well as a massive expansion of our public charging infrastructure which is lagging significantly behind our European neighbours. We need a just transition that works for workers, families and rural communities alike.” 

Calls for wider EV supports

Fianna Fáil TD Shane Moynihan, the party's transport spokesperson, said the scheme was "a practical and targeted measure that will help more households make the switch to electric vehicles".

"This scheme is good for motorists, good for the environment and an important step in supporting Ireland's transition to cleaner transport."

The pilot scheme has been allocated €10m, with applications opening on July 1.