Written answers
Tuesday, 3 October 2023
Department of Transport, Tourism and Sport
Electric Vehicles
Richard Bruton (Dublin Bay North, Fine Gael)
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200. To ask the Minister for Transport, Tourism and Sport the supports in subsidies and VRT concessions which will be available to the purchaser of electric vehicles from the start of 2024, both hybrid and fully electric. [42424/23]
Eamon Ryan (Dublin Bay South, Green Party)
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The Government has committed significant funding to support zero and low emitting vehicles through the National Development Plan, which currently includes an allocation of almost €500 million for the period 2021-2025 and additional support from the Climate Action Fund, the Shared Island Fund and the EU Just Transition Fund.
€110m has been allocated in 2023 to ensure the continued transition to electric vehicles which includes funding for EV grants and EV charging infrastructure. This underpins the Government’s commitment to making electric vehicles accessible to all.
Current financial supports from ZEVI, and where applicable with support from the Department of Finance, for the transition to electric vehicles and for the rollout of electric vehicle charging infrastructure include:
- A purchase grant for battery electric vehicles (BEVs);
- A Home Charger purchase grant scheme - up to €600;
- An apartment charger scheme;
- Benefit-in-Kind tax relief for battery electric vehicles;
- eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
- AFHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle;
- Low rate of annual motor tax; and
- Tolling reductions of 50% for battery electric vehicles and 25% for plug-in hybrid electric vehicles.
There is currently a €5,000 VRT relief for BEVs and electric vans only that is due to expire at the end of 2023. The relief begins to taper off at an Open Market Selling Price (OMSP) of €40,000, ending at €50,000; this allows for a fairer VRT system in-keeping with the polluter pays policy that also ensures that the relief is focused on the more affordable price end of the market. Revenue statistics from 2022 show that the majority of BEVs registered had an OMSP of less than €50,000, meaning 53 per cent were able to avail of the relief. There is not an equivalent relief for plug-in hybrid vehicles however as they are low emission vehicles, they pay a lower rate of VRT compared with higher emission vehicles.
Regarding any future decisions, as the Deputy will be aware, it is a practice of the Minister not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.
Brian Leddin (Limerick City, Green Party)
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201. To ask the Minister for Transport, Tourism and Sport the progress in the development of the residential neighbourhood charging scheme; when he expects the scheme to launch; and if he will make a statement on the matter. [42458/23]
Eamon Ryan (Dublin Bay South, Green Party)
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The Government is fully committed to supporting a significant expansion and modernisation of the electric vehicle (EV) charging network over the coming years. Having an effective and reliable charging network is an essential part of enabling drivers to make the switch to electric vehicles.
Home charging is the primary charging method for most Irish EV owners as it’s convenient and cheaper for the consumer as well as assisting in the overall management of the national grid. Over 80% of charging is expected to happen at home.
However, there is also a need for a seamless public charging network that will provide for situations or instances where home charging is not possible, such as on-street and residential charging, destination charging and workplace charging.
Zero Emission Vehicles Ireland (ZEVI), a dedicated Office which oversees and accelerates Ireland’s transition to zero emission vehicles, has significant funding available in 2023 for the installation of EV charging across Ireland.
In January, I launched the national Strategy for the development of EV charging infrastructure, covering the crucial period out to 2025, alongside an Implementation Plan. The strategy sets out the government’s ambition regarding the delivery of a public EV charging network to support up to 195,000 electric cars and vans by the middle of the decade.
A range of new charging infrastructure schemes are being developed which will help provide another critical link in the overall network for public charging.
Destination Charging is a strong priority for ZEVI in 2023. In addition to a general scheme, a number of bespoke schemes are also in advanced stages of development and delivery, including
- A shared Island funded Sports Club scheme, which will install up to 200 fast chargers
- An EU Just transition Fund supported scheme, which is planned to install 60-80 chargers
ZEVI has been engaging extensively with Local Authorities to develop their EV Infrastructure Strategies for Destination and Residential neighbourhood chargers. Local Authorities as part of their strategy development and implementation planning will identify locations and optimum sites where these types of chargers are required. ZEVI is currently engaging with Local Authorities and looking at potential direct multi annual funding options for Local Authorities to install both Destination and Local neighbourhood Charging Projects. We anticipate Phase 1 projects will commence roll out in 2024.
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