Drivers of older petrol and diesel vehicles could soon qualify for grants worth up to €8,500 towards the purchase of a new electric vehicle under a proposed State-backed scrappage programme.
Transport Minister Darragh O’Brien is expected to update Cabinet on Wednesday regarding the pilot initiative, along with planned changes to the current EV grant scheme, reports Breaking News.
Under the existing grant programme, buyers can receive €3,500 towards a new electric vehicle. However, the maximum eligible vehicle price is due to be reduced from €60,000 to €50,000 from July 31.
The Department of Transport is aiming to encourage the uptake of smaller and mid-sized electric vehicles rather than higher-priced premium models, reports Breaking News.
Strong growth in EV sales this year is expected to fully utilise the current grant allocation. As a result, an extra €30 million is set to be provided through the State’s Climate Action Fund to support continued demand.
According to The Irish Times, the new scrappage scheme will launch as a pilot programme in July and remain in operation until its dedicated €10 million budget has been spent, reports Breaking News.
Motorists who own petrol or diesel vehicles that are at least 13 years old will be eligible for a €5,000 scrappage payment, in addition to the existing €3,500 EV purchase grant.
The initiative will operate on a first-come, first-served basis until all available funding has been allocated, reports Breaking News.
A source familiar with the plans indicated that, should the pilot prove successful, a larger and more comprehensive version of the scheme could be introduced next year.
It is understood that 65 per cent of the funding will be reserved for rural applicants, reflecting the greater reliance on private transport in areas with limited public transport services, reports Breaking News.
The remaining 35 per cent of the fund, amounting to €3.5 million, will be allocated to residents living in Dublin, Cork, Galway, Limerick and Waterford.
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