For Written Answer on : 17/01/2024
Question Number(s): 306 Question Reference(s): 2080/24
Asked by: David Stanton T.D.
To ask the Minister for Transport to outline the rationale behind the reduction in the home charger grant scheme which came into effect on 1 January 2024; and if he will make a statement on the matter.
Electric vehicles (EVs) are the most prominent transport mitigation measure in the Climate Action Plan and Ireland has set an ambitious target of 945,000 EVs on our roads by 2030. This target is challenging but indicates the scale of the transformation that is needed across all sectors if Ireland is to achieve its climate targets in the coming years.
Demand for electric vehicles is rising year on year. As of end 2023, there are over 110,000 electric vehicles on Irish roads. This year we are also seeing the arrival of newer EV models on the Irish market that are lower in cost. Normalisation of E-charging technology is inevitable for both vehicles and infrastructure.
The Government’s investment strategy for electric vehicles will therefore begin a rebalance towards supporting public charging infrastructure starting this year. This is the rationale behind the reduction in the grant available for home chargers.
It is important to emphasise that Government support for the transition to EVs remains a key action in meeting our climate targets. There is no change to the existing generous VRT relief which is available to a maximum of €5,000 to purchasers of electric vehicles up to the selling price of €40,000, with a reduced scale for vehicles up to the selling price of €50,000. In addition, EV drivers can avail of additional incentives including a low rate of motor tax, favourable BIK rates and a generous vehicle purchase grant, as well as the reduced grant amount for home charging. €102m was allocated in 2024 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 include:
- A purchase grant for battery electric vehicles (BEVs);
- A home charging grant of €300;
- Benefit-in-Kind tax relief for battery electric vehicles;
- Vehicle Registration Tax (VRT) relief of up to €5000 for BEVs;
- eSPSV grant scheme – a grant for taxi drivers to make the switch to an EV;
- ZEHDV grant scheme – a grant for HDVs to bridge the gap between a low emission vehicle and a fossil fuel vehicle; and
- Low rates of annual motor tax.
Government is in 2024 moving funding from supporting private home charging to funding more charging on public infrastructure, and will begin delivery of public infrastructure on the motorway and national roads networks, destination charging in sports clubs and community charging facilities, and supporting Local Authorities with the development and delivery of Local EV charging networks.
This is consistent with our Climate Action Plan targets and EU regulatory requirements whereby supports for fleet electrification are now rebalanced towards building out public charging infrastructure. This change also aligns with similar polices in European nations, where countries including Norway, Germany and France have begun to taper vehicle subsidies and shift government investment towards provision of charging infrastructure.
Continued public charging infrastructure investment will 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.