A scrappage scheme for old diesel and petrol cars and jeeps to encourage people to buy an electric vehicle will open next month.

The €10 million pilot ICE2EV scheme, announced by Minister for Transport Darragh O'Brien, will open on July 1.

It is aimed at encouraging motorists to replace older, more polluting petrol and diesel vehicles with cleaner alternatives.

Fianna Fáil spokesperson on transport, Shane Moynihan TD, has said the scheme will provide motorists with a €5,000 scrappage allowance towards the purchase of a new battery electric vehicle.

Under the scheme, motorists who permanently scrap a vehicle that is more than 13 years old will qualify for a €5,000 scrappage allowance.

This can be combined with the existing €3,500 EV purchase grant, bringing the total support available to €8,500.

Deputy Moynihan said: "This is a practical and targeted measure that will help more households make the switch to electric vehicles.

"There are now more than 230,000 electric vehicles on Irish roads, but we know that many motorists are still weighing up whether they can afford to make the transition.

"The €5,000 scrappage allowance, together with the existing EV grant, will make that decision easier for many families while also helping to take older, higher-emitting vehicles off our roads."

Scrappage

The aim of the scrappage scheme is to support the continued uptake of electric vehicles and help accelerate the transition to cleaner transport across the country.

Deputy Moynihan added: ""I want to commend Minister Darragh O'Brien for bringing forward this targeted scheme.

"It is exactly the kind of practical support needed to encourage more motorists to consider making the switch to electric vehicles."

William Walsh, CEO at SEAI said: "At SEAI, we've seen first-hand how much of a difference switching to an electric vehicle can make to the cost of running a household, while improving everyone's quality of life through improved air quality and reduced emissions.

"I really welcome today's announcement, which will help even more people make the change."

The initiative is backed by €10 million in funding from the Climate Action Fund under the Department of Climate, Energy and the Environment.

To ensure balanced access, 65% of the funding will be allocated to rural applicants and 35% to urban applicants, based on Central Statistics Office (CSO) Census 2022 definitions.

Criteria

Applicants must demonstrate on the date of application that the ICE vehicle:

Has been registered in their name within the state for at least 12 months prior to the application;

Holds a valid NCT certificate, or one expired by no more than six months;
Has been taxed and insured for road use during the six months prior to the application. 

In addition, Minister O’Brien announced a change in the existing SEAI Electric Vehicle Purchase Grant.

The maximum eligible vehicle price threshold for grant will now be €50,000, rather than €60,000.

The minister has made the change to target funding for EV transition towards lower price bracket cars, enabling a greater proportion of the funding available within the National Development Plan to support the roll-out of public charging infrastructure.