Irish Car Owners Could Receive Up to €8,500 Towards a New Electric Vehicle Under New Scrappage Scheme
Thousands of Irish motorists could soon benefit from a major new incentive to make the switch to electric driving, following the announcement of a new EV scrappage scheme by Transport Minister Darragh O'Brien.
The new scheme will allow eligible motorists to receive a €5,000 scrappage payment when trading in an older petrol or diesel vehicle for a new electric vehicle. When combined with the existing €3,500 SEAI electric vehicle grant, drivers could receive up to €8,500 towards the cost of a new EV.
Applications for the new scheme are set to open from 1st July 2026 and will operate on a first come, first served basis, subject to available funding.
How the New EV Scrappage Scheme Works
Under the scheme, owners of older petrol and diesel vehicles can trade in their existing car and receive a €5,000 scrappage payment when purchasing a new grant eligible battery electric vehicle.
The scrappage incentive will apply only to new private M1 passenger electric vehicles registered from the 262 registration period onwards.
Combined with the current €3,500 EV grant, eligible motorists could receive a total incentive of €8,500.
A total budget of €10 million has been allocated to the initiative. The funding will be divided between rural and urban applicants, with 65% reserved for rural residents and 35% for urban residents. Once funding within either category has been exhausted, applications for that category will close.
Applicants will be required to provide their Eircode as part of the application process to verify eligibility.
Who Is Eligible?
Based on the draft rules released so far, motorists must meet several criteria to qualify for the scrappage payment.
Eligible vehicles must:
• Be a petrol or diesel passenger car registered in 2013 or earlier
• Have been owned by the applicant for at least 12 months before scrappage
• Have valid tax and insurance documentation
• Have a valid NCT or an NCT that expired no more than six months before the application date
• Be scrapped through the dealership supplying the new electric vehicle
Private scrappage arrangements will not qualify under the scheme.
The applicant's name and address must match the details shown on the scrapped vehicle's logbook, the EV purchase invoice and the grant application. Provision has also been included for cohabitants, provided proof of address can be supplied.
Important Dates for Customers
Applications for the new scrappage scheme will open on 1st July 2026.
Importantly, any vehicle scrapped before an application is submitted will not qualify for the incentive.
Motorists considering changing their vehicle should ensure they wait until the scheme officially opens before arranging scrappage.
As the scheme is funded through a fixed €10 million allocation, eligible customers may benefit from applying early once applications open.
EV Grant Price Cap Reduced to €50,000
Alongside the scrappage announcement, the Government has confirmed a change to the maximum vehicle price eligible for EV grants.
From 1st August 2026, only new electric vehicles with a list price of €50,000 or less will qualify for the SEAI EV grant.
Previously, vehicles priced up to €60,000 could qualify.
Customers purchasing an EV priced between €50,000 and €60,000 can still avail of the current grant provided their application is approved before 6pm on 31st July 2026. These approvals will remain valid for four months, provided the vehicle is registered and taxed within the approval period and all payment documentation is submitted before the expiry date.
Why This Matters for Irish Drivers
The new scrappage scheme represents one of the most significant incentives introduced to support electric vehicle adoption in Ireland.
For motorists driving older petrol or diesel vehicles, the combination of a €5,000 scrappage payment and a €3,500 EV grant could substantially reduce the cost of moving into a new electric vehicle.
With lower running costs, reduced maintenance requirements, improved driving ranges and expanding charging infrastructure, electric vehicles continue to become an increasingly attractive option for Irish drivers.
Explore Electric Vehicles at Kearys
At Kearys Motor Group, we offer an extensive range of electric vehicles from leading manufacturers including Renault, BYD, Hyundai and more.
Our team can guide you through the latest grants, incentives and finance options available and help you find the electric vehicle that best suits your needs and budget.
With applications opening from July 2026 and funding available on a first come, first served basis, now could be the perfect time to start exploring your EV options.
Contact your local Kearys dealership today to learn more about making the switch to electric.
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