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.
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 (ZEHDV) which are supported by the Scheme instead of buying 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:
- the power-train or fuel-type of the vehicle that the applicant intends to buy;
- the size of the enterprise or company applying for the grant; and
- 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
| SIZE OF UNDERTAKING | SMALL | MEDIUM | LARGE |
|---|---|---|---|
| Staff head-count; turnover/balance sheet total | Fewer than 50 staff; ≤ € 10 m/≤ € 10 m | Fewer than 250 staff; ≤ € 50 m/≤ € 43 m | More than 250 staff; > € 50 m/> € 43 m |
| Maximum aid intensity per vehicle per size of undertaking | 60% of price differential | 50% of price differential | 30% 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
For EVs 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 ZEHDV 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 2. Baseline diesel purchase prices (ex VAT) and vehicle categories for calculation of BEV, PHEV, FCEV grants.
| EU CATEGORY | VEHICLE TYPE | WEIGHT RANGE (GVW) | BASELINE DIESEL PURCHASE PRICE EX VAT |
|---|---|---|---|
| N2 | Van/light truck | Over 3.5t to c. 5t | €31,000 |
| N2 | Van/light truck | c. 5.5t to 8.5t | €56,000 |
| N2 and N3 | Truck | Over 8.5t to 16t | €73,000 |
| N3 | Truck | Over 16t to 19t | €105,000 |
| N3 | Truck | Over 19t to 46t | €131,000 |
| N3 | Refuse collection truck (refuse rear end loader or ‘bin lorry’) | (Finished vehicle consisting of a c. 26t+ chassis plus bodywork) | €259,500 |
| M2 | Mini bus | c. 11-17 seats (Approx. indicative weight range of 3.5 to c. 5t) | €45,000 |
| M3 | Midi bus | c. 21-32 seats (Approx. indicative weight range of c. 8t to 10t) | €197,000 |
| M3 | Single deck bus | c. 40+ seats (Approx. indicative weight range of c. 11t to 14t) | €191,500 |
| M3 | Single deck coach | c. 40+ seats (Approx. indicative weight range of c. 13.5t and over) | €317,000 |
| M3 | Double deck coach | c.75+ seats Low floor with ramp access | €470,000 |
| M3 | Double deck bus (Euro VI diesel) | c 65+ seats | €279,000 |
How to apply for the Grant
To begin the application process, the applicant shall complete the Application Form and submit it by email to: zehdvgrant@pierse.ie
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.
How to drawdown approved funding
To begin the drawdown process, the applicant shall complete the Drawdown Form and submit it by email to: zehdvgrant@pierse.ie with the required supporting documentation as follows:
- Logbook per Vehicle,
- Invoice per Vehicle,
- Insurance per Vehicle / Fleet Insurance,
- Tax Disk per Vehicle,
- Company Tax Clearance Number
Contact
For further details of the Scheme please contact Pierse Fitzgibbon Solicitors, the Scheme Administrator, at:
- Email: zehdvgrant@pierse.ie
- Phone: 068 56789