The government has announced that the Plug-In Van Grant has been extended for at least another 2 years. This is great news for anyone thinking of leasing a brand new electric van - Vanarama Van Expert Tom Roberts explains why.
Government priorities shift on a daily basis, but promoting the uptake of electric vehicles has been a prominent aim of the UK Government for the past 3 years (with varying levels of success to-date).
Financial incentives often play a large part in the acceptance of new business technologies, which is why the extension of the Plug-In Electric Van Grant is such welcome news. Let’s take a look at what it is, how it works and how you can benefit from it.
What Is The Plug-In Van Grant?
The Plug-In Van Grant (PIVG) is a government scheme which is intended to encourage us to switch over to electric vans. As almost 5% of the UK’s Co2 emissions are generated by vans, ministers have stated that a swift move to greener, fully-electric vans is necessary to help achieve climate change and air quality targets. There’s also a Plug-In Car Grant (PICG) for those who want to go electric for their next car.
How Much Is The Plug-In Van Grant?
The Plug-In Van Grant reduces the cost of the vehicle by 35% up to a maximum of £2500 for small vans up to 2500kg GVM (Gross vehicle Mass), and the same percentage up to £5000 for large vans between 2501kg and 4250kg GVM.
Is The Plug-In Van Grant A Cashback Scheme?
No. The dealer invoices the customer for the net amount, after the grant has been deducted. The customer doesn’t have to do a thing.
Will I Get The Grant If I Lease An Electric Van?
The price that the leasing company pays for your new van directly affects your monthly payments. All Vanarama electric van leasing quotes take into account the PIVG. If the grant wasn’t there, you’d be paying quite a bit more per month.
Can I Lease A Fleet Of Electric Vans & Still Access The Grant?
Yes. There is a limit per customer, but as it’s 1000 you probably don’t need to worry about that limit. And the end user is the customer as far as the government is concerned, so Vanarama or their funders aren’t going to run out of qualifying deals.
Is The Plug-In Van Grant Extension Good News?
Yes it is. Earlier this year, OZEV (The Office For Zero Emission Vehicles) stated that they wouldn’t give any advance notice of grant reductions or even its withdrawal. This news wasn’t welcome because customers who had been planning to place orders were now uncertain as to how much they would actually be paying for the van once built, as in the meantime the grant could have been taken away.
This decision means that at least some element of doubt has been removed and that there will definitely be a grant available (although OZEV still appears to reserve the right to amend the level of grant on offer).
What Should I Do Next?
Head over to the Vanarama electric van hot offers page, see what takes your fancy, and enjoy the benefit of the newly-extended Plug-In Van Grant with nice, low monthly rentals.
If you enjoyed this article, take a look at this one that puts* electric vans and hydrogen vans head to head.