The Subsidy Schemes have been formulated from experiences in Malta and in other EU countries who have tried to increase the uptake of EV vehicles.
The Scrappage Subsidy Scheme is intended to incentivise the purchase of Electric Category M1 and N1 vehicles, electric quadricycles, pedelecs, electric motorcycles, electric mopeds and electric tricycles falling under categories L1e, L2e, L3e, L5e, while at the same time reducing the number of older conventional motor vehicles from the road. From this year (2018), the incentives are also being extended to include electric motorbikes, electric motor scooters and pedal electric cycle bicycles (pedelec).
The scheme applies to any person residing in Malta , Local Councils, commercial undertakings who can register up to an amount of grant as stipulated in the De Minimis Rule, including a mix and match of possible replacement of ICE vehicles and purchase of new electric vehicles with a total maximum grant of €200,000 (or €100,000 in the case of undertakings performing road freight transport for hire or reward) , as well as non-governmental organisations and if that private individual or entity is applying for the €7,000 grant, that private individual or entity shall be the registered owner of an M1 or an N1 vehicle which is at least 10 years old from year of manufacture, provided that such vehicle shall continue to be so registered, garaged or licensed until the date of application for the grant, and is de-registered at the time of the registration of the electric vehicle.
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The scheme shall be automatically terminated when the total amount of the grants reach the amount of €500,000 in the case of electric vehicles and electric quadricycles, and €100,000 in the case of pedelecs, electric motorcycle, electric mopeds and electric tricycles.
Evidence of success
Throughout these years, the Scheme have at times been taken up and sometimes even oversubscribed.
Difficulties encountered
If Governments can incentivise prospective EV purchase by offering subsidy assistance to the citizens at any point of the business model, the citizen will make his business case and ‘by word’ recommendation to other citizens will take place.
Potential for learning or transfer
Realizing the potential in alternate energy transport and in fullfillment of the obligations to install 500 ev Charging Points as well as ensuring 5,000 EV regustrations by 2020, Transport Malta has launched schemes to provide incentives for two wheelers and four wheelers. These schemes form part of MNEP Action Plan (2013). It can be stated that, infusion of capital support and government subsidies can play a key role in acquiring the new customers and establishing the market for electric vehicles in the market. Various subsidies such as exemption from local and state tax, waiving the road tax, exemption from toll taxes and parking charges, access to bus lanes can push the demand for such vehicles. Such experiences could/should be replicated.
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