Grants

The purpose of the grant is to decrease the pollution load of transport and increase the use of renewable energy in transport through wider commissioning of electric cars in transport. The present grant uses the following terms in the following meanings:

  • Electric car – an EU type-certified M1 category vehicle driven solely and constantly by an electric engine;
  • Calculated energy consumption – the calculated energy consumption of an electric car in the New European Driving Cycle test according to the information of the producer, expressed in kilowatt-hours per kilometre;
  • Electric car charger – a charger of an electric car is an electrical device for charging electric cars meeting the charging mode 3 defined in standard IEC 61851-1;
  • Green certificate – certificate of origin of electricity confirming the production of electricity from renewable energy sources.

Terms of the grant are established by regulation "Terms and procedure for using the green investment scheme “Grant for Electric Cars" by the Minister of Economic Affairs and Communications dated July 12th, 2011.

 

Terms of the grant

The following is supported:

• purchase of an electric car, including the down-payment of leasing;
• procurement of one charger of electric car per one electric car, including the necessary installation work.

The cost of procurement of an electric car can be supported, if the electric car meets all the conditions below:

  • the maximum speed of the electric car exceeds 60 km/h;
  • the electric car is purchased from a country belonging to the European economic area or Switzerland;
  • the buyer of the electric car is its first owner or the period of the first registration does not exceed 6 months;
  • the electric car shall have a warranty of at least 2 years, excluding the battery. In addition, the battery of the electric car shall have a warranty of at least 5 years;
  • the electric car has an EU type certificate.

Grant amount

In determination of the grant amount the difference between the current market price of electric cars and ordinary cars with similar parameters has been considered. To facilitate the commissioning of electric cars, the price of supported electric cars is brought to a comparable level with ordinary cars with similar parameters.

  • the grant amount for purchase of an electric car and down-payment of leasing is up to 50% of the purchase price of the electric car, but not more than 18,000 euros for a person, who is not a VAT payer;
  • the grant amount for purchase of an electric car for a VAT payer is 35% of eligible costs, but not more than 18,000 euros per car;
  • the maximum grant amount for purchasing of a charger of an electric car, including the installation work connected therewith, is 1000 euros.

The VAT is eligible, unless the applicant is a VAT payer.

KredEx shall allocate green certificates to grant recipients within 5 MWh.

Supported actions include those for which a grant application is submitted from the entry of the regulation into force until November 30th, 2014. The date of the agreement concluded for procurement of an electric car must not be earlier than the date when the regulation entered into force.

As the grant provided to entrepreneurs is aid of minor importance according to regulation No. 1998/2006 of the European Commission regarding the application of articles 87 and 88 to aid of small significance (ELT L 379, 28.12.2006, pages 5–10), the total grant amount may not exceed 200,000 per applicant and 100,000 euros per enterprise of road transport.

Application for the grant

Grant applications may be submitted by:

  • Estonian citizens or foreigners living in Estonia, who have a long-term residence permit or permanent right of residence;
  • Legal persons registered in Estonia, excluding entrepreneurs operating in the area of fishing and aquaculture regulated by the regulation of the Council (EC) No. 104/2000 and entrepreneurs operating in the area of production of agricultural products listed in Annex I to the agreement.

An application shall be submitted to KredEx electronically (confirmed by digital signature) or by mail.

The application shall include the following:

  • general information about the applicant;
  • sales offer of the electric car and also leasing offer in the event of leasing;
  • in the event of purchase of home charger for electric car and installation service thereof the price offer for the charger and the installation work;
  • a copy of the vehicle’s EU type certificate;
  • a copy of a public description of the vehicle, where it is confirmed that the maximum speed of the vehicle exceeds 60 km/h;
  • a confirmation of the applicant regarding the correctness of the submitted information;
  • for an entrepreneur as an applicant, a notice regarding aid of minor importance provided to him within the current and two previous financial years according to the form provided in the annex to Regulation No. 80 of the Minister of Finance “Procedure and form for submission of a notice regarding aid of minor importance”;
  • confirmation of a legal person that 
  • the applicant has paid state taxes;
  • in the event of payment of tax arrears in instalments the payments shall be made according to the schedule;
  • the applicant shall have duly fulfilled the liability of submitting tax declarations provided in the Taxation Act;
  • the entrepreneur’s confirmation that
  • no liquidation or bankruptcy proceedings have been started nor a bankruptcy decision has been made in regard to the applicant or a person having significant influence over the applicant;
  • the equity capital of the applicant meets the requirements established in the Commercial Code.

Payment of the grant


The grant recipient shall submit an application for payment of the grant to KredEx within 3 (three) working days from mutual signing of the sales or leasing agreement of an electric car. Payment shall be made according to the terms provided in the decision of satisfaction of the application and agreement of allocation of the grant.

Prerequisites for payment:

  • submission of an expense receipt proving the payment of the applicant’s self-financing to KredEx;
  • submission of signed sales and/or leasing agreement(s) to KredEx;
  • for charger and installation thereof, the grant shall be paid when the grant recipient has submitted documents proving the costs (copies), which are source documents of accounting proving the relevant transaction (including invoices, payment orders with archiving ID, instruments of delivery and receipt of work and contracting agreements).

A document proving green certificates allocated by KredEx is provided to the grant recipient with the payment.

Green certificate

To ensure the use of green energy by the purchased vehicles, receiving of the grant includes an obligation to purchase green certificates according to the kilometres of driving per year. A green certificate helps to calculate the usage of renewable energy in transport. It is not the green energy package of energy sellers or the amount of green energy purchased.  Historically (2010) the prices have been 1-2 euros per MWh for a green energy certificate. By estimation, an owner of an electric car may use about 1-2 MWh of electricity per year. KredEx shall allocate green certificates to a grant recipient for 5 MWh. If the user drives more, additional green certificates need to be bought. Example: 15,000 kilometres passed, calculated energy consumption of Nissan Leaf (NEDC) indicator 0.150 kWh/km = 2,250 kWh of green certificates. Thus, with the car in the example, 5 MWh enable driving of 33,000 km.