Zero-Emission Heavy Duty Vehicle Purchase Grant Scheme

Ireland has committed to transitioning to a low carbon economy by 2050 and the transport sector has a significant role to play. To date, in Ireland, the transport sector is heavily dependent on imported oil. Reducing this reliance and switching to alternative fuels and technologies will be essential to decarbonise the sector. Major changes to our conventional fuel choices will be needed to achieve this goal.

To promote the decarbonisation of the freight sector and to encourage companies towards this path, the Department of Transport has appointed TII to administer the Zero-Emission Heavy Duty Vehicle Purchase Grant Scheme (Scheme).

The Scheme is intended to assist the purchase of heavy-duty vehicles (HDVs) that are alternatively fuelled and exceed applicable European Union (EU) environmental standards that would not otherwise have been purchased without the Scheme’s support.

If you have already ordered, purchased, or registered a zero-emission vehicle, it is NOT eligible for support under the Scheme.

Applications to the scheme commenced from January 2024.

What is the Zero-Emission Heavy Duty Vehicle Purchase Grant Scheme?

The Scheme awards grants to assist companies and enterprises who wish to buy zero-emission heavy duty vehicles supported by the Scheme (ZEHDVs) as opposed to the diesel equivalent. Grant amounts are calculated as a percentage of the difference in price between an ZEHDV and its diesel equivalent.

Grant levels awarded to applicants depend on:

1. the power-train or fuel-type of the vehicle that the applicant intends to buy;
2. the size of the enterprise or company applying for the grant; and
3. whether applicants have already received grants under the Scheme.

What fuel types does the Scheme support?

The Scheme supports a specified number of ZEHDVs with the following power trains and as described in more detail in the Scheme Rules. The supported fuel-types are:

• Battery Electric Vehicles.
• Fuel Cell Electric Vehicles; and
• Plug In Hybrid Electric Vehicles that emit less than 1 g CO2/kWh; or 
• Plug In Hybrid Electric Vehicles that emit less than 1 g CO2/km.

The vehicle categories and weight ranges listed below and in the worked examples document are eligible for potential grant support under the Scheme. Future iterations of the Scheme may include more vehicle types and categories as more zero-emission heavy duty vehicles enter the market.

How do I find out the size of my business or undertaking?

Undertaking size is determined by definitions developed by the EU and based on staff head count and turnover.

According to EU state aid rules, ‘small’ enterprises are eligible for higher levels of aid than ‘medium’ or ‘large’ enterprises. More information on determining the size of your enterprise can be found in the Scheme Rules, link here, and the latest edition of the EU’s User guide to the SME definition.

The following table summarises how the sizes of undertakings are defined under the Scheme and how this relates to the total maximum aid intensity available to eligible applicants. It also shows the maximum possible funding intensity per vehicle depending on what size an applicant’s undertaking is.

It is important to note that the total maximum aid intensity per undertaking (including affiliates) is €500,000.

 

Table 1. Size of undertaking and percentage of price differential

What is the price differential?

The price differential is the difference between the purchase price (exclusive of VAT and any other discounts) of the ZEHDV and the purchase price (ex VAT and discounts) of its diesel equivalent.

 

Calculating price differentials and grant levels

• Battery Electric Vehicles (BEV) and Fuel Cell Electric Vehicles (PHEVs)

For BEVs and FCEVS within the weight ranges set out below, the price differential is the difference between the baseline diesel price listed in Table 2 and the purchase price (ex VAT and discounts) on the vehicle purchase invoice to be supplied by the applicant as part of the application process.

This calculation can be summarised as:

Price differential = (ZEHDV purchase price ) - (baseline cost of equivalent diesel HDV)

where the ZEHDV purchase price and the baseline cost of the equivalent diesel HDV do not include VAT or any added discounts.

Table 4. Baseline diesel purchase prices (ex VAT) and vehicle categories for calculation of BEV, PHEV, FCEV grants

More information on the ZEHDV Grant Scheme

More details on the Scheme Rules can be found here.

Worked examples of Grant Amount calculations can be found here.

Scheme Data Protection Notice can be found here.

How to apply for the Grant

To begin the application process, the applicant shall complete the Application Form and submit it

by email to: zehdv@pierse.ie

The full high-level application process is set out in the following diagram. Indicative timeframes for the different steps in the process can be found in the Grant Offer Letter template which includes the Scheme's terms and conditions.

Contact

For further details of the Scheme please contact

Pierse Fitzgibbon Solicitors, the Scheme Administrator, at:

• Email: zehdv@pierse.ie
• Phone: 068 56789