Just €109,000 of an €3.9 million overpayment to car dealerships under an electric vehicles (EVs) support scheme has been recovered so far, according to spending watchdog.
The overpayment arose in relation to a Government-backed scheme to promote the sale of EVs through the payment of grants to buyers. It was introduced in 2011.
The scheme was extended in 2020 to EVs purchased by dealerships for use as demonstration models. The expectation was that these cars would subsequently be sold to private customers after a period of use.
The scheme is still in place with dealers able to claim grants ranging from €500 for a moped to €2,700 for a passenger car and up to €7,600 for a van in instances where the vehicles are to be used for demonstration models.
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In 2025, €9.9 million of the €66.5 million paid out in EV grants were in respect of demonstration vehicles. Since 2020, more than €35 million in such grants have been paid.
Because these grants amount to state aid to private enterprises under European Union rules, however, strict limits had to be attached to the total amounts individual enterprises could receive.
Up to December 31st, 2023, the regulations prohibited payments totalling more than €200,000 during any rolling three-year period. From the start of 2024 the figure was increased to €300,000.
A key issue, however, was whether dealerships were linked by ownership or control and the process relied on a system of self-declaration, which “did not result in full identification of all such groups”, according to a report by the Comptroller and Auditor General (C&AG) published on Wednesday.
“Following an investigation, SEAI [Sustainable Energy Authority of Ireland] has estimated that payments over the permitted limits for individual commercial undertakings totalled up to €3.9 million. This represents an excess payment rate of up to 11 per cent of the amount paid to undertakings.”
Those believed to have received payments in excess of the threshold were said to include 80 individual dealers linked to 15 car-dealership groups.
The SEAI is obliged under EU rules to seek recovery of any overpayments, but up to September 18th just €109,400 had been returned, the C&AG said.
“Of the remaining dealer groups, some accept SEAI’s determination regarding their linked status, whereas others are contesting SEAI’s determination that they constitute linked enterprises,” it said.
The SEAI “states it continues to rely primarily on these self-declarations, with responsibility resting with applicants for their accuracy and compliance. While further verification of individual declarations can be undertaken, SEAI states that this is resource-intensive and may require engagement with dealer groups to establish their status”.
