Rush for electric vehicle subsidy

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Authorities were flooded with nearly 1,000 applications within 24 hours of the second phase of a €30 mln incentive scheme to encourage motorists to go electric went live.

The Transport Ministry said its inbox had been overwhelmed with applications since the authority launched the scheme on Monday.

Transport Ministry permanent secretary Yiannis Nicolaides said that by Tuesday morning, 950 applications were received, with only 797 being valid.

The second phase of the incentive scheme to promote electric vehicles went live with a €10 mln budget to offer 2,518 grants.

Interested parties have until 9 March, 11 am, to submit their application.

The grants start at €10,000 for new electric vehicles, while the funding for scrapping old cars amounts to €7,500, with a total budget of €10.16 mln.

The grant for a used electric car is set at €5,000.

Under the scrappage scheme, the applicant should replace their car with a hybrid or a car with low CO2 emissions (up to 50 gr per km).

In addition, the vehicle must be at least 12 years old.

Someone with an older car in their possession could opt to withdraw it in exchange for €500 and bus rides worth €250.

Nicolaides believes the second phase is even more successful than the first one.

“The first phase was successful after 7,000 people applied for a grant and almost 100% completed obtaining their electric vehicle”.

It cost €8 mln, covering just 360 applications for new electric cars and 320 used cars and a limited number for other categories, such as taxis and vehicles for people with disabilities.

“Our national goals for electric vehicle registrations in 2022 exceeded 140%”.

He noted that the number of applications indicates that people are now interested in electric and hybrid vehicles, confirming the trend evident in the previous phase.

The scheme includes subsidies for cars charged solely with electricity and does not cost more than €80,000, including VAT, and for used vehicles, €50,000, including VAT.

It also includes funding for L-category electric vehicles, such as motorbikes and electric-assisted cycling bikes (not including scooters and roller skates).

Applications will be accepted from individuals, groups, or businesses.

Applications will only be accepted online via the ministry’s website.

Nicolaides said the ministry would incentivise businesses who want to set up charging points.

The electromechanical services department has announced a scheme for subsidising 500 charging points, while a plan for another 500 points will be announced in 2024.