The State’s scheme aimed at helping taxi drivers to buy electric vehicles (EVs) has been paused just a month after applications opened due to record numbers seeking grants.
Grants of up to €25,000 have been available in recent years for taxi, hackney and limousine operators who wish to buy EVs under the eSPSV Grant Scheme.
With a budget of a €12.5 million, the goal of the scheme is to accelerate the transition to EVs in the small public sector vehicle (SPSV) industry and support those who are scrapping older, more polluting or high-mileage vehicles to make the switch to electric.
The Department of Transport announced on Thursday that the National Transport Authority (NTA) – which administers the scheme – will be temporarily pausing it because it is fully subscribed.
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The pause is taking place while the NTA reviews and processes the applications that have been received. After this assessment, the scheme may reopen later in the year.
Minister for Transport Darragh O’Brien said: “The sheer volume of applications received is a strong endorsement of the EV transition, particularly among high-mileage taxi, hackney and limousine drivers who are eager to embrace a cleaner, more efficient technology.
“The surge in interest highlights not only the attractiveness of the grant offering but also the significant shift in the market towards greater EV adoption.”
The Minister said the response is “a clear indication that Ireland’s taxi, hackney and limousine industry is ready for change”.
“High-mileage drivers, at the forefront of daily operations, have shown strong support for transitioning to EVs,” he said.
Mr O’Brien said this “not only helps reduce carbon emissions but also positions the small public sector vehicles as leaders in the nation’s broader environmental initiatives.”
According to the department, the scheme has seen more than 2,800 SPSV operators make the switch to electric since its introduction in 2018.
[ Electric vehicle grant scheme for taxis hits budget limitOpens in new window ]
The scheme provides grants of varying levels towards new and second-hand EVs, with a higher level of funding on offer where an older existing vehicle is scrapped.
The highest level of grant – €25,000 – is available to those who scrap an eligible older vehicle and buy a new wheelchair-accessible EV.
Applicants must purchase a vehicle that appears on the NTA’s list of approved EVs.
The list includes EVs made by Kia, Mercedes, Nissan, Tesla and Volkswagen among several others. The only plug-in hybrid model listed is the wheelchair-accessible black cab made by the London Electric Vehicle Company.
A Department of Transport spokesman said more than 1,850 grant applications have been received this year and they are currently being processed.
He said that in previous years, not all applications have met the eligibility criteria and there is also a two-month validity period for successful applicants to draw down the grants.
“Following assessment of these initial applications, the scheme may reopen later in the year,” he said.
A spokesman for the NTA said not all applicants choose to complete the process.
Based on past performance of the scheme the NTA estimates that around a third of applicants will choose to complete the process and the average grant level will be approximately €18,000.
The latest figures from the NTA show there are more than 2,600 fully electric taxis, hackneys or limos on the road and over 5,400 hybrids.
