More than 3,000 grants for electric cars
2nd April 2025
A new type of grant for electric car purchases took effect in 2023-2024. The grants are intended to support energy exchange and promote more environmentally friendly transport.

With digital solutions, the administration of over 3 thousand grants is fully automated, from application to grant processing.
Since January 2024, 3020 electric car grants have been granted. The grants range from ISK 400 to 900 thousand, with a total ISK 2.5 billion having been granted.

Electric car grants are one example of a number of public processes where technology has been successfully used for cost-effectiveness reasons. For example, an application for an electric car grant on paper form would require at least two visits by the applicant with documentation to institutions and a processing time of approximately 20 minutes per application. The attached figure shows the estimated annual benefits of an automated process (in Icelandic).

But how does an automatic process work?
Applications for electric car grants can be found on Ísland.is, where the applicant logs in with electronic ID. The application retrieves all related data on the actual owner of a car from the Icelandic Transportation Authority using web services and also returns results to the Energy Authority using web services. The results then automatically go to the Financial Management Authority, which pays out the grant to the applicant. The automatic process ensures that the application automatically transfers data between locations instead of people handling the transfer.
The digital process of electric car grants was a collaboration between the Energy Authority, the Icelandic Transport Authority, the Financial Administration, and Digital Iceland.