New EV Scrappage Scheme Could Offer Drivers Up to €8,500 Towards a New Electric Vehicle

The Government is set to introduce a new electric vehicle (EV) scrappage scheme that could provide motorists with up to €8,500 in support when trading in an older petrol or diesel vehicle for a new electric car. The initiative is expected to launch in July 2026 as part of Ireland's ongoing efforts to accelerate EV adoption and reduce transport emissions.

Under the proposed pilot scheme, drivers who scrap a petrol or diesel vehicle that is at least 13 years old will be eligible for a €5,000 scrappage payment. This can be combined with the existing SEAI EV purchase grant of up to €3,500, bringing total potential support to €8,500.

The programme will operate on a first-come, first-served basis and will be funded through an initial €10 million allocation. If demand proves strong, the Government is expected to consider expanding the scheme in 2027.

Focus on Rural Drivers

A significant portion of the funding—65%—will be reserved for rural motorists, recognising the greater dependence on private vehicles in areas with limited public transport options. The remaining funding will be available to drivers in Ireland's five major cities.

Supporting Ireland's EV Transition

The announcement comes as electric vehicle sales continue to grow strongly across Ireland. Government figures show EV registrations have increased significantly in 2026, driven by improved vehicle choice, lower running costs and growing consumer confidence in electric mobility.

In addition to the scrappage incentive, the Government has confirmed further investment in existing EV grants to ensure continued support for buyers making the switch from petrol and diesel vehicles.

What This Means for Car Buyers

For motorists considering a move to electric driving, the new scheme could make EV ownership more affordable than ever. Combined with lower running costs, reduced maintenance requirements and annual motor tax benefits, the proposed scrappage programme represents a significant opportunity for drivers to upgrade to a cleaner, more efficient vehicle.

Further details, including eligibility criteria and application procedures, are expected to be announced before the scheme launches later this summer.

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