EV grants to be cut by 30% this summer

The electric vehicle grant, which is administered by the Sustainable Energy Authority of Ireland (SEAI), has been a godsend for those looking to make the switch to an EV in the search of cheaper fuel costs.

A princely €5,000 sum was taken off the price of new battery electric vehicles (BEVs) with a value of over €20,000, which is pretty much every new BEV available on the market.  

However, Zero Emission Vehicles Ireland (ZEVI), a department within the Department of Transport, has revealed that this grant will be cut by 30% from 1 July - the start of the 232 registrations.  

With EVs enjoying such a roaring success in recent times, why was this decision taken?  

Background of the EV grants  

The EV grant was established in 2011 to encourage more drivers to adopt electric vehicles, at a time when their high costs were prohibitive to the majority of drivers.  

The grant has since gone on to help 40,000 people switch to EVs, with an estimated €200 million granted over the past 12 years.  

The grant covers fully-electric cars only, so it doesn’t cover hybrid vehicles - nor does it cover secondhand BEVs, only new.  

There are also existing grants for taxi drivers wishing to purchase an EV, as well as commercial vehicle owners, and these aren't changing.   

EVs and the Government  

EVs are also a key cornerstone of the Government’s Climate Action Plan 2023 (CAP23), which aims to have just under 1 million EVs on the road by 2030.  

Public charging units from ESB were free until 2019, before a series of price increases were introduced due to rising electricity prices. 2022 saw two public charging price rises alone.  

However, the Government has committed to investing more on public charging units across the country, with hopes to have a charging station every 60 km along motorways and at tourist sites and taxi ranks.  

There are currently around 2,000 charging stations around the country but the plan is to increase that to 5,000. As such, the Government announced that the EV grant would be getting cut this summer with a desire to free up more funds for this future investment.  

Why is the SEAI cutting the grant?

The EV grant is perhaps a victim of its success, with huge numbers of motorists opting to use it to cut down the price of a new vehicle.  

This has really escalated in the last year, with 2022 seeing a 60.7% increase in BEVs bought compared to 2021, according to the CSO.  

And this trend is continuing into 2023, with BEVs accounted for 15.5% of all vehicles sold in February 2023. This was the third highest after diesel (23.1%) and petrol 35.4%. 

As such, with such high amounts flocking to EVs, the Government rationalised that a 30% reduction in the grant value is hardly likely to dissuade a large proportion of potential drivers. Especially when the Government’s plan to increase EV infrastructure and charging stations is coming in at a €100 million price tag. 

Are there any other changes to EV supports?  

The change to the amount of the EV grant was the only change that the Department of Transport announced.  

There were changes to the lower grant amounts, but as mentioned before, the max amount should apply to most potential EV owners.  

However, all other existing EV supports remain in place. These include:  

• Vehicle Registration Tax (VRT) relief of up to €5,000. 
• Home charging grant. A grant of up to €600 is offered to those who wish to install a home charger for their EV. This can be especially beneficial when combined with a night tariff on a smart meter for super cheap overnight charging. 
• Apartment charging grant, which is open to the owners of multi-unit residential properties who wish to install chargers for their residents. It is not open to individual residents. 

The future of EVs in Ireland  

This change, although anticipated, shows a clear strategy change from the Government. Instead of subsidising new EV purchasers, they are instead opting to make there be offer more incentives and facilities to enable motorists over.

The Department of Transport said that these plans are in line with other European countries who have adopted similar practices.  

“This change aligns with similar policies in European nations, where countries including Norway, Germany and France have begun to curb vehicle subsidies and government investment in EVs is moving towards infrastructure”.  

However, with just under 80,000 EVs on Irish roads, we are still a long way from the 2030 goals set out by the current Government. But, if they can cure the dreaded ‘range anxiety’ and offer a range of facilities for motorists, it might persuade more and more to make the change.  

Learn more about EVs 

We have a range of articles on our site covering everything there is to know about electric vehicles, supports and Government plans.  

• Read here for a detailed breakdown of the grants and incentives available to you from the Government. 
• Considering an EV for your next vehicle? Have a gander at the 10 things you should consider before making the leap.
• Will we reach our climate goals, and can we fully transition to an EV Ireland? Find out here. 

Also check out our February podcast, where we break down everything there is to know about EVs - plus, we get a little bit of help from some great guests. 

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