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.

The Zero-Emission Heavy Duty Vehicle (ZEHDV) Purchase Grant Scheme is funded by the Department of Transport. The Scheme is administered by Transport Infrastructure Ireland, with the assistance of Pierse Fitzgibbon Solicitors LLP which acts as the Scheme Operator. All communications in connection with the Scheme will come from Pierse Fitzgibbon.

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

Applications to the scheme will be accepted from 1st of November of each year and will be valid until the 31st of October of the following year.

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 a 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 the size of an applicant’s undertaking. 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

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.

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.

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

It is only possible to make one grant drawdown per application. If the grant drawdown does not make a claim for all the vehicles on the application, the vehicles not claimed will be permanently removed from the application and the grant offer will no longer apply to these vehicles. The grant is calculated using the price of the vehicle excluding VAT and optional extras.

Contact

For further details of the Scheme, please contact Pierse Fitzgibbon Solicitors, the Scheme Administrator, at:

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