Eamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

The Government has already committed significant funding to support low-emitting vehicles through the national development plan, which currently includes an allocation of almost €500 million for the period from 2021 to 2025 and additional support from the climate action fund.

This funding includes both capital grants to support the purchase of EVs and capital funding for the delivery of EV charging infrastructure.

Further funding has been allocated in 2023 to ensure the continued transition to EVs. This underpins the Government’s commitment to making EVs accessible to all. This funding will continue to incentivise the switch to electric vehicles as well as enabling the expansion of a fast and rapid electric vehicle charging network to stay ahead of demand.

There are currently almost 85,000 EVs registered on Irish roads as of the end of January. That number is expected to increase as the price of EVs continue to fall relative to their combustion engine equivalents. It is expected that as manufacturers ramp up EV production, costs will become more comparable to traditional combustion engine cars within the next number of years, which will make the total ownership much more attractive and competitive, particularly given fuel prices trends.

A number of new vehicles entered the market last year with a trend towards smaller and mid-size family cars. An additional number of new market entrants are expected to further expand the availability of more affordable EVs starting this year. Further affordable segment models are expected to be announced as new EV focused manufacturers enter the European market.

Our EV incentive system is weighted towards the lower cost and smaller end of the market. An EV purchase grant award is available to vehicles with a maximum cost of €60,000. This grant has been reduced to €35,000 from July this year. There is a further generous vehicle registration tax, VRT, rebate available to EVs, with the maximum amount available to vehicles costing less than €40,000, and no VRT relief available to vehicles costing more than €50,000.

As per the terms and conditions of the EV grant programme, privately purchased vehicles of category M1, that is, passenger vehicles with no more than eight seats in addition to the driver's seat, with a retail price of €14,000 or above, are eligible for grant support. Any privately purchased M1 category vehicles with a retail price of below €14,000 are currently not eligible to receive grant payments.

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