Estonia endorses EUR 1.2 mln in subsidy for purchase of 232 electric cars

  • 2020-03-06
  • BNS/TBT Staff

TALLINN – The Estonian Environmental Investment Center (KIK) has endorsed 55 applications for the purchase of 232 brand new electric vehicles in the total amount of 1.16 million euros under the support arrangement for the purchase of electric vehicles. 

"The big interest in the purchase of electric vehicles is very positive," Minister of the Environment Rene Kokk said in a press release. "We decided to increase the amount available in the first application round from the amount originally planned and will find additional funds also for the second round. We hope to open the second round still before the summer," the minister was quoted by spokespeople as saying.

The manager of KIK,  Andrus Treier, said that interest indeed was big and not all applications filed in the first round were granted. He said that in the second round those whose application was not successful in the first round must file a new application and an entirely new queue of applications will be formed. 

The parties whose applications were granted in the first round included 40 businesses and 15 individuals. Ten companies received support for the acquisition of 15 vehicles. These include Eleport OU, Telia Eesti AS and Elmo Rent OU. Clients of the Haja Autokool OU driving school will soon be able to take driving lessons with 15 brand new electric vehicles, while  Eurostauto OU will make 10 electric vehicles available as substitute vehicles.

The company Tesla Rent OU will soon make 10 cars acquired with the subsidy available for rent. In total 16 companies received support for the acquisition of one electric vehicle each. These include the crematorium operator Tallinna Krematooriumi AS, which will introduce an electric car as the urn carrying vehicle at funerals. 

The amount disbursed under the first application round will be used for the purchase of 69 Nissan Leafs, 33 Hundai Kona Electric vehicles, 31 Renault Zoe vehicles, 22 VW E-UP vehicles, 17 Skoda CITIGOe vehicles, 16 Peugeot 208 GT Electric vehicles, 16 Tesla Model 3 vehicles, 15 Hundai Ioniq vehicles, 10 Nissan e-NV20 vehicles, and one Audi e-tron, Kia e-Niro and Mini Cooper each.

Eight of the recipients wish to install a GPS device in the vehicle. The rest of the recipients are prepared to present to KIK  mileage information concerning the vehicle until the completion of 80,000 kilometers, and to make it available for inspection within two days when requested by KIK. 

Accepting of applications in the first application round started at 9 a.m. on Jan. 17 and ended at 1 p.m. the same day due to big interest. During the period of acceptance of applications, 85 applications for the purchase of 297 vehicles were filed for the total amount of 1.485 million euros.

At the end of January, the Ministry of the Environment decided to make use of the entire budget of the support arrangement for the purchase of electric vehicles in the first application round and find additional funds for the second round. 

Supported from the measure are purchases of fully electric M1 and N1 category vehicles. The amount to be disbursed per vehicle is 5,000 euros and the price of the vehicle to be bought with the subsidy has been capped at 50,000 euros exclusive of VAT. The vehicles bought with the subsidy must run a mileage of at least 80,000 kilometers in four years, at least 80 percent of it in Estonia. 

The support measure was developed by the Ministry of the Environment and the funds are allocated from the revenues from auctioning carbon allowances.