Dublin: The Irish government is set to introduce a new scrappage scheme aimed at accelerating the transition to electric vehicles (EVs), with grants of up to €8,500 available for owners of older petrol and diesel cars.
The updated incentive package was announced following a Cabinet meeting by Transport Minister Darragh O’Brien and forms part of the government’s broader efforts to increase electric vehicle adoption and reduce transport-related emissions.
Up to €8,500 Available for Eligible Drivers
Under the new scheme, motorists who scrap petrol or diesel vehicles that are more than 13 years old will be eligible for:
- €5,000 scrappage grant for retiring an older vehicle
- €3,500 grant towards the purchase of a new electric vehicle
The grants will be awarded on a first-come, first-served basis.
The pilot programme is scheduled to begin in July and will remain open until the allocated €10 million fund is exhausted. Officials have indicated that the scheme could be expanded in 2027 if demand proves strong.
Focus on Rural Communities
Recognising the greater dependence on private transport in rural areas, the government has earmarked 65 percent of the funding for rural regions where public transport options are more limited.
The remaining 35 percent (€3.5 million) will be available to residents of Ireland’s five main cities:
- Dublin
- Cork
- Galway
- Limerick
- Waterford
The allocation is intended to ensure that rural households, which often have fewer transport alternatives, receive priority access to the scheme.
Changes to Existing EV Grants
As part of the revised support package, the government is also reducing the maximum vehicle price eligible for the existing EV purchase grant.
From 31 July, the current price cap will fall from €60,000 to €50,000. The change is designed to encourage the purchase of smaller and more affordable electric vehicles rather than larger premium models.
The standard EV purchase grant of €3,500 will continue to be available for qualifying vehicles within the new price threshold.
With electric vehicle registrations expected to increase significantly this year, the government has decided to provide additional support for the programme.
An extra €30 million is being allocated from the State’s Climate Action Fund to help meet growing demand and support Ireland’s climate and transport objectives.
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