The Irish Government is putting together a new scrappage scheme for drivers of older cars who are looking to buy a new electric vehicle.
How much will you get for your scrap car?
This is all still TBD - the proposal is due before cabinet imminently, and it's expected that the Department of Transport will officially announce the scheme in the next few days, but it looks very much as if the scheme will offer €5,000 off the price of a new EV, up to a maximum list price of €40,000.
That seems pretty tempting…
It does, but hang on, there's a bit more to all this. First off, you have to be scrapping (not trading in - scrapping) a car that's 13 years old or older. Secondly, you almost have to be a rural dweller. Initially, this new scrappage scheme will be a pilot project, funded to the tune of €10 million, with €6.5 million of that ring-fenced for those living outside the major urban centres of Dublin, Cork, Galway, Limerick and Waterford.
Why are those cities getting less of a grant?
Mostly because the Government feels that public transport in those cities is good enough that people don't need to use their car as much (debatable…). The idea to push the rural angle is that rural public transport isn't up to much, so those living in the countryside rely on their cars far more. Equally, those living in the countryside are much more likely to have a driveway or off-street parking, so it's easier for them to charge up at home.
€10 million doesn't sound like a lot
It's not. In fact, divide €10 million by €5,000, and you get 2,000 cars, which is about 1.6 per cent of the total annual new car sales figure. Considering that EV sales more than doubled in May 2026 compared to May last year, this pilot scheme isn't covering a lot of ground.
Are the other existing grants staying in place?
That's still to be confirmed when the full plans for the scheme are published, but it looks like it, so you'll be able to add this €5,000 to the existing €3,500 SEAI grant and the maximum €5,000 VRT rebate. Apparently, the existing EV grant funding would have run out soon, so it's being topped up to the tune of €30 million.
The plan is that, assuming this pilot scheme proves popular, it will be extended into next year, possibly with a broader remit.
UPDATE (03/06/2026)
The Department of Transport has now officially confirmed the scheme, snappily titled ICE2EV, which will be open to applications from 1 July 2026.
There's also confirmation that the €5,000 grant will be in addition to the existing €3,500 SEAI grant, so that's a total of €8,500 that could be wiped off the cost of a new EV for car buyers who qualify. The SEAI will also manage the roll-out of the ICE2EV scheme.
Why is the Government introducing the grant?
Minister for Transport, Darragh O'Brien Said: "There are almost 235,000 EVs on Irish roads today, and we are on course to reach many multiples of that figure in the coming years. I want to support even more households to switch away from older, more polluting cars and on to electric vehicles. So for anyone considering changing an older car, I encourage you to make the move from ICE to EV. It is a practical and effective step towards reducing emissions and improving air quality across Ireland. Older vehicles are among the highest emitters in our transport system, and many households face real financial barriers in moving to cleaner alternatives. ICE2EV is designed to bridge that gap, helping people make the switch while delivering immediate and measurable reductions in emissions.”
William Walsh, CEO at SEAI, said: "At SEAI, we've seen first-hand how much of a difference switching to an electric vehicle can make to the cost of running a household, while improving everyone's quality of life through improved air quality and reduced emissions. I really welcome today's announcement, which will help even more people make the change.”
How do I qualify for the ICE2EV grant?
To qualify for the grant, buyers will have to prove that the car they're trading in is at least 13 years old, and has been registered in their name within the State for at least 12 months prior to the application; that it holds a valid NCT certificate, or one expired by no more than six months; and that it has been taxed and insured for road use during the six months prior to the application.
Any catches?
There's one catch announced by the Minister, and that's a cut to the ceiling of the existing SEAI grant, which had been available for cars priced at up to €60,000, but which from the 31st of July will be limited to cars up to €50,000. Orders for cars made up to the 31st of July, but delivered afterwards, will be honoured at the existing €60,000 price cutoff.