Around €50 million in EU funding will be used to incentivise local road users to buy electric vehicles over the next three years.

Transport Minister Aaron Farrugia said the funding would come from Malta's allocation of recovery and resilience facility (RRF) funding.

A total of €15 million in funding has been earmarked for this year, with a further €15 million for 2023 and another €20 million distributed by the end of 2024.

Malta has secured a total of around €300m in RRF funding from the EU. 

The figures were divulged by Farrugia at a press conference on Friday focusing on highlighting transport-related Budget 2023 measures. 

Road users who choose to buy an EV are entitled to a grant of €11,000, rising to €12,000 if they also opt to scrap their old vehicle while doing so.  Another €1,000 is provided if the vehicle is registered in Gozo.

Grants for the purchase of electric motorcycles amount to €2,000, rising to €2,500 if one scraps another motorcycle or €3,000 if one scraps a car. 

The same applies to similar schemes incentivising the purchase of mopeds, pedelecs and electric motor-assisted bicycles.

According to National Statistics Office figures, there were 8,107 registered electric vehicles in Malta by the end of September, with an additional 2,700 plug-in hybrid vehicles.

Additional aid through bank loans

Parliamentary Secretary for EU Funds Chris Bonett noted that road users keen on making the switch to electric could also apply for a specialised loan at two commercial banks to finance the purchase. 

The Energy Efficient and Renewable Energy measure is being offered by Bank of Valletta and APS Bank and is being backed by €15 million from Malta's allocation of European Regional Development Fund (ERDF) money. 

It offers a 2.5 per cent annual interest rate subsidy for the first 10 years of the loan.

Banks are expected to generate a portfolio of loans of €45 million through the measure, Bonett said.

He said so far, 88 people have successfully obtained such loans.