Compensation for the purchase of an electric car in 2021

  • Compensation for the purchase of an electric car in 2021
     

    If you’re still considering buying an electric vehicle, now is the perfect time to take it seriously and decide quickly. Currently, subsidies of up to 5,000 EUR are being offered for purchasing an electric vehicle. Here’s the information on how to obtain these funds, who is eligible, and what you need to know when applying for compensation.

     

    Application Call Announced

    The Environmental Project Management Agency (APVA) of the Ministry of Environment of the Republic of Lithuania has announced a second call for applications under the measure "Promotion of Electric Vehicle Purchase for Individuals." The first call took place from April 20, 2020, to February 1, 2021. During that period, more than 650 individuals used the opportunity to receive compensation, resulting in the purchase of 161 new and 489 used electric vehicles. Approximately 20% of participants scrapped their old, polluting cars and received an additional payment.

    This year, the call has been renewed, and from May 17, 2021, anyone interested in purchasing an EV can once again take advantage of the opportunity to offset part of the costs.

     

    Subsidy Amounts for 2021

    A budget of 5 million EUR has been allocated this year to fund subsidies for electric vehicle purchases. Applications will be accepted until the budget is exhausted or until December 31, 2021, at 12:00 PM.

    Each applicant can expect to receive 2,500 EUR for purchasing a used electric vehicle, while a subsidy of 5,000 EUR is available for purchasing a new EV.

    Additionally, like last year, a 1,000 EUR compensation is offered for scrapping an old vehicle.

    charging cables

    Requirements for New Electric Vehicles to Qualify for Compensation:

    • The vehicle must be a new M1-class vehicle powered solely by an electric energy storage device.
    • The applicant must register the EV in their name (or as the operator if purchased via leasing).
    • The vehicle registration certificate must include the first registration date or model year, and the first registration date in Lithuania.
    • A vehicle is considered new if no more than six months have passed between the first registration date (B) and the registration date under the operator's name (I.1), and the registration date under the operator's name is no earlier than February 2, 2021.

     

    Definition of a Used Electric Vehicle

    The requirements for a used EV are the same as for a new one, except for the criteria defining a used car.


    • A vehicle is considered used if the first registration date (B) is April 2, 2016, or later, or if the model year (B.2) is 2016 or later, and the first registration date in Lithuania (B.1) is no earlier than February 2, 2021.


    More detailed information about compensation options, vehicle requirements, and how to apply can be found on the official Environmental Project Management Agency website.

     

    Why Does It Matter?

    Vehicle transportation is one of the most polluting sectors, accounting for 31% of total environmental pollution. This sector receives special attention, with ambitious goals to reduce emissions to a minimum.

    The Government of the Republic of Lithuania has set goals in line with the EU Green Deal and climate change commitments. By 2030, the aim is to reduce fossil fuel usage (oil, gasoline, diesel) and transition to renewable energy sources. For the transport sector, the logical solution is to promote the adoption of electric vehicles.

    charging stations

    These subsidies for EV purchases are just one part of government-led projects to expand the electric vehicle fleet in Lithuania. Another significant step is the development of infrastructure. More EV charging stations are being installed along highways to ensure they are available every 50 km. Many public charging stations are temporarily free to use, and businesses are encouraged to expand the EV charging network.

    All of Europe and major global nations are following this green path. Reducing emissions and transitioning to renewable energy sources is accelerating, and our world is set to change significantly in the near future.

    For the latest article on EV compensation rules in 2022, check out here.
      

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