Compensation for the purchase of an electric car in 2022

  • Compensation for the purchase of an electric car in 2022

    Good news! Compensation for purchasing electric vehicles (EVs) is still available in 2022 and will continue until the allocated funds for EV acquisition under the program "Promotion of Electric Vehicle Acquisition for Individuals and Businesses" are exhausted. If you're considering buying a new vehicle, it’s worth exploring the compensation mechanism and taking advantage of this funding to acquire a cleaner, eco-friendly EV.

    Significant efforts are being made to reduce environmental pollution. The transportation sector, among others, is one of the largest polluters, accounting for 31% of total emissions globally. To mitigate this, the transition to EVs is being encouraged worldwide. Lithuania has approximately 1.8 million registered vehicles, making the reduction of pollution a critical issue.

    The transition to EVs will be slow, but it is inevitable. Currently, subsidies and compensation are available for EV purchases, but it is uncertain whether this opportunity will persist in the future. Compensation is currently offered to both individuals and businesses.

    More and more people are taking advantage of this opportunity, so don't miss your chance!

     

    How much funding is allocated for EV acquisition in 2022?

    At the time of writing, early in the spring of 2022, applications for subsidies under the call announced on 2021-05-17 are still open. Initially planned to end in late 2021, the application period has been extended to 2022-06-01 or until funds are depleted. It is anticipated that a new call for applications may be announced at the end of the year, but no official information has been released by the Ministry of Transport. Updated information will be provided on our blog as soon as it becomes available.

    Let’s calculate how much funding remains for the first half of 2022 to promote EV acquisition.

     

    For individuals

    When the call for applications was announced in May 2021, the budget for funding was €6 million. In 2021, 1,275 EVs were purchased, utilizing €4,668,500 in subsidies. Thus, €1,331,500 remains available for subsidies in the first half of 2022.

     

    For businesses

    The total funding allocated for this call is €5,000,000. In 2021, 162 applications were submitted, leading to the acquisition or planned acquisition of 384 EVs with a total subsidy amount of €2,898,400. Therefore, €2,398,400 remains available for the first half of 2022.

     

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    How much compensation is offered for EV purchases?

    The amount of compensation depends on whether the recipient is an individual or a business and whether the EV is new or used.

     

    For individuals

    Compensation for a used EV is €2,500, while for a new EV, it is €5,000 per applicant.

     

    For businesses

    Businesses are eligible for €4,000 for each new M1 or N1 class EV and €10,000 for each new M2 or N2 class EV.

     

    Scrapping polluting vehicles

    An additional €1,000 compensation is available for both individuals and businesses when scrapping an old polluting vehicle and purchasing an EV.

     

    How to apply for an EV subsidy?

    Applications for EV subsidies must be submitted via the APVIS system (Environmental Project Management Information System). The system provides all the necessary information, including current application periods, requirements, and procedures. Information is updated, and application deadlines may be extended or shortened based on budget availability. Detailed and official information is available on the APVIS portal. Before taking any actions, carefully review the information in the APVIS system.

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    According to current regulations, an electric vehicle must meet the following requirements if a private individual wants to receive a purchase subsidy:

    • The vehicle must be an M1 class electric vehicle powered solely by an electric energy storage system.
    • The applicant must register the EV in their name or, if acquired through leasing, become its official operator.
    • The vehicle’s registration certificate must indicate its first registration date or model year, as well as the first registration date in Lithuania.
    • A new electric vehicle must have been registered for the first time no more than six months prior to its registration by the applicant and must not have been registered before February 2, 2021.
    • A used electric vehicle must have been first registered on or after April 2, 2016, or have a model year of 2016 or later, and must have been first registered in Lithuania no earlier than February 2, 2021.

    For businesses, EV requirements include:

    • Purchased vehicles must be M1, M2, N1, or N2 class and fully electric, meaning they emit 0 g/km of CO2.
    • The applicant can submit only one application per year.
    • A vehicle with the same VIN can only be subsidized once.

    There are additional requirements for businesses, which can be found in the APVIS system.

     

    What Else Should You Know?

    As more people consciously choose low-emission transportation, hybrid vehicles have gained popularity. However, are subsidies available for hybrid vehicles? Unfortunately, no. As mentioned, subsidies are only granted for vehicles powered solely by electricity. A qualifying EV must have "electricity only" indicated in the "P.3 Fuel Type or Power Source" field of its registration certificate.

     

    charging station

    Another important point for those who frequently change vehicles: if you receive a subsidy, you must keep the EV for a set period before selling it. New EVs must be retained for 4 years, while used EVs must be kept for at least 2 years.

    Additionally, many new EV buyers pre-order their vehicles while they are still in production. A common question is: how do you apply for a subsidy if the car is not yet delivered? The answer is simple—subsidies are granted only after the vehicle is registered in your name, meaning you won’t receive compensation in advance.

     

    Final Thoughts

    Electric vehicles represent the future, while air pollution remains a present concern. To accelerate the transition to cleaner transportation, it is crucial to adopt eco-friendly vehicles. If you’re considering an EV purchase, take advantage of the available subsidies in 2022 and save money while reducing your environmental impact.

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