EIC announces a direct grant application round for the purchasing of electric vehicles

23. December 2019 | 13:50

On 18 December, the Environmental Investments Centre (EIC) opened a direct grant application round for purchasing fully electric vehicles. The amount of aid per vehicle is EUR 5000 and the price of the electric vehicle may be up to EUR 50,000 net of VAT. The process of completing applications has already begun, with submission beginning at 09.00 on 17 January.

According to Rene Kokk, Minister of the Environment, with this aid the state is looking to promote the use of more environmentally friendly vehicles. ‘Electric cars are currently a more environmentally friendly alternative to gas and diesel cars. The greater the number of electric cars in use, the more the levels of air pollutants will decline,’ noted the Minister.

 ‘In close cooperation with the Ministry of the Environment we have worked through the aspects of the aid, taking into account feedback from interest groups and doing our best to achieve balanced and good conditions. It is our hope that we will soon be seeing new, environmentally friendly vehicles on Estonia’s roads,’ explained Andrus Treier, Director of the EIC. ‘In particular, we are looking for users with a need for greater transportation, with high kilometrage vehicles and most trips taking place in cities,’ he added.

Applicants may be entrepreneurs registered in the Estonian e-Business Register and natural persons holding an Estonian personal identification code.

Main Terms and Conditions

  • We support the purchase of new, fully-electric M1 and N1 category vehicles.
  • The amount of aid for each vehicle is EUR 5000. The price of the electric vehicle may be up to EUR 50,000 net of VAT.
  • The electric vehicle must cover at least 80,000 kilometres over a period of four years, with at least 80% of that amount taking place in Estonia. The owner of a vehicle that has received a direct grant is required to provide the EIC with information on the kilometres travelled over the period of four years. The beneficiary has two options regarding the forwarding of information. Either they consent to the installation of a recorder in the vehicle, or they must report the amount of kilometres travelled to the EIC once per year.
  • Only renewable energy must be consumed when covering the first 80,000 kilometres travelled by the electric vehicle.
  • A maximum of 15 vehicles will be supported per business applicant and one vehicle per natural person applicant. Pursuant to the Income Tax Act, the EIC shall withhold income tax from the aid paid to private persons.
  • The electric vehicle must be insured with Casco insurance until the fulfilment of the kilometrage requirement.
  • To qualify for the aid, the electric vehicle must be purchased from a car dealer recognised by the Estonian Vehicle Dealers and Services Association (AMTEL). If the beneficiary does not wish to purchase the motor vehicle from a car dealer found on AMTEL’s Authorised Dealer List, the motor vehicle can also be purchased from a country within the European Economic Area or a Swiss electric car manufacturer, an authorised representative, or the manufacturer, or a reseller authorised by the authorised representative. In which case the beneficiary must submit documents to the EIC confirming the car dealer's compliance with the established requirements.
  • The application must be accompanied by a sales offer for the motor vehicle, but may also be accompanied by a contract of purchase and sale for the motor vehicle. It is important to note that the contract of purchase and sale for the motor vehicle could not be concluded earlier than the date of entry into force of the Regulation, which was 16 December 2019.

The process of entering applications in the E-support environment began on 18 December. The submission of applications begins at 09.00 on 17 January 2020 and will run until the exhaustion of the EUR 600,000 budget for the first round. The measure has a total volume of EUR 1.2 million. The 30-day gap between the announcement of the round and the submission of applications is to provide applicants with time to calmly think through their desires and opportunities and to submit a prepared application. Applications will be processed after 17 January, in the order in which they were submitted, with the process requiring a maximum of 70 days.

More detailed information on the terms and conditions of the application round can be found on the EIC’s homepage together with frequently asked questions, or you can contact the Project Coordinator Aive Haavel (aive.haavel@kik.ee, +372-627-4318).

Aid is provided from the proceeds from the scheme for greenhouse gas emission allowance trading and was developed by the Ministry of the Environment.