New EV scrappage incentive snapped up within 75 minutes

Michael McAleer

The Government's €10 million pilot scrappage scheme aimed at converting drivers of old petrol and diesel cars into new EVs was open for just 75 minutes before reaching its applications limit. This timeframe includes a 10-minute period when the site was reportedly inaccessible due to high demand.

The scheme offered €5,000 to motorists who switched from a 13-year-old car to a new EV. This was in addition to the existing €3,500 EV purchase grant on offer.

The scheme, administered by Sustainable Energy Authority of Ireland (SEAI), had ringfenced 65 per cent of the allocated €10 million for rural areas. 

Although 65 per cent of the fund was reserved for rural applicants, Dublin still generated more than one in four applications, underlining the strong demand for EV incentives in the capital.

Figures from SEAI show that 26.4 per cent of applications came from Co Dublin, with just 0.4 per cent from Longford, 0.5 per cent from Leitrim, and 0.7 per cent coming from Cavan.

Applications from Connacht counties accounted for 11 per cent of applications.

Cork applications made up 11.65 per cent, while neighbouring Kerry comprised just 3 per cent, Kilkenny 2.4 per cent and Offaly 1.4 per cent.

Of the cars proposed for scrappage, 57 per cent were first registered between 2010 and 2013, 34 per cent between 2009 and 2006, and just over 2 per cent from 2003 or earlier.

The figures indicate most motorists were replacing relatively modern vehicles rather than very old cars, suggesting the incentive encouraged owners to bring forward planned vehicle changes.

A statement from the Department of Transport said the popularity of the scheme "supports Ireland’s Climate Action ambitions, including the target for 30 per cent of the national vehicle fleet to be electric by 2030."

The scheme was initially intended to cover only 1,177 cars, with both the scrappage payment and the existing purchase grant coming from the €10 million fund. However, in the middle of last month, the Minister for Transport revised the scheme so that the €10 million allocation would only cover the scrappage payment, thereby increasing the number of successful applicants to 2,000.

Even then, dealers were already reporting that their orders for cars that would qualify for the scheme exceeded that figure. It became clear that many customers who sought to apply for the scheme - and had paid deposits - would not be successful in availing of the extra €5,000 payment.

Motor industry executives say they expect a similar scrappage scheme will be reintroduced either later in the year or in the run-up to the 271 number plate switchover in January, traditionally the busiest time for new car purchases.

Meanwhile, the price cap for new cars qualifying for the ongoing €3,500 purchase grant is set to fall from €60,000 to €50,000 from July 31st.