EV scrappage boost

Motorists could soon receive up to €8,500 towards the cost of a new electric vehicle under a new Government-backed scrappage scheme designed to accelerate the transition to cleaner transport.

The new initiative, known as ICE2EV, will come into effect on July 1, 2026, and aims to encourage owners of older, higher-emitting petrol and diesel vehicles to switch to fully electric alternatives.

Administered by the Sustainable Energy Authority of Ireland (SEAI), the scheme will provide a €5,000 scrappage payment for eligible vehicles registered in 2013 or earlier. The incentive will be available in addition to the existing SEAI Electric Vehicle Purchase Grant of up to €3,500, bringing the total potential support available to €8,500.

The programme is specifically targeted at replacing some of the most emissions-intensive vehicles on Irish roads with zero-emission alternatives, delivering both environmental and public health benefits while helping households overcome the financial barriers associated with purchasing an EV.

As part of the changes, the maximum eligible vehicle price for the existing SEAI EV Purchase Grant will be reduced from €60,000 to €50,000 for applications received after July 31, 2026. The move is intended to focus support on more affordable electric vehicles and broaden access to the EV market.

The ICE2EV scheme will be funded through a €10M allocation from the Climate Action Fund, with 65% of funding reserved for rural applicants. Eligibility will be determined using Central Statistics Office classifications, with applicants required to provide an Eircode.

To qualify, the vehicle being scrapped must have been owned by the applicant for at least 12 months and must be taxed and insured at the time of application. The vehicle's NCT must be valid or have expired no more than six months before the application date. A vehicle registration certificate (logbook) must also be provided.

The scheme applies only to new grant-eligible battery electric vehicles registered as private passenger cars from the 262 registration period onwards. Scrappage can only be processed through a registered EV dealer, who will deduct the grants from the purchase price before being reimbursed by the SEAI.