Support is provided for the acquisition of new fully electric passenger cars (including those equipped with hydrogen fuel cells), both through direct purchase and leasing, as well as for electric small vans and cargo e-bikes. The vehicle must be new, purchased, and received starting from 06.02.2023, and for passenger cars, it must be initially registered in the name of the applicant in the Transport Agency registry.
Applications for support can be submitted within two months of obtaining possession of the vehicle, starting from 27.02.2023. The aim of the initiative is to reduce greenhouse gas emissions in the transport sector in Estonia by promoting the wider adoption of zero-emission vehicles and encouraging their use.
Budget for the initiative:
– For individuals, categories M1 and N1 vehicles: 3,875,000 euros
– For legal entities, categories M1 and N1 vehicles: 3,875,000 euros
– For individuals, cargo e-bikes: 375,000 euros
– For legal entities, cargo e-bikes: 375,000 euros.
Conditions for support:
– Support is granted to both individuals and legal entities. Government and local authority establishments cannot apply for support (although managed institutions can).
– The support is 4,000 euros for electric cars and up to 50% (but not more than 1,000 euros) of the cargo e-bike’s price. Note! For individuals, 5,000 euros of the support amount is deducted for income tax, so the net support amount for them is also 4,000 euros.
– Support for cars acquired through leasing is paid directly to the leasing company. The initial leasing payment must be at least 4,000 euros, and the duration of the contract must be at least 4 years.
– The maximum support is provided for the purchase of category M1 vehicles, up to 60,000 euros (plus VAT), and category N1 vehicles, up to 80,000 euros (plus VAT). There is no price limit for hydrogen cars.
– The car must be purchased from a recognized dealer or manufacturer.
– The car must not have been previously registered. The initial registration must take place in Estonia, in the name of the support recipient in the Transport Agency registry (for leasing, the responsible user).
– The supported vehicle must be primarily used in Estonia and run on renewable energy.
– The vehicle must be used for four years, and in the case of early discontinuation, the support must be proportionally repaid.
– Companies can purchase up to 15 cars and up to 15 cargo e-bikes.
– An individual can purchase 1 car and 1 cargo e-bike. Therefore, an individual can submit a maximum of two applications – one for car purchase and another for cargo e-bike purchase.
The budget for the initiative allows for support for approximately 1,755 M1 and N1 category vehicles and 622 cargo e-bikes. The expected direct impact on reducing CO2 emissions over four years is around 27,000 tons, considering the amount of gasoline and diesel fuel that remains unused. The support is provided from emissions trading system funds, and the support initiative was developed by the Ministry of the Environment.
Additional Information: