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FREE 30-Day Returns
Trust pilot logo
Rated Excellent
Road Tax & Roadside Assistance Included
FREE & Fast Delivery
Lowest Price Guaranteed
FREE 30-Day Returns
Trust pilot logo
Rated Excellent
Road Tax & Roadside Assistance Included
FREE & Fast Delivery

What Government Grants Are Available On Electric Vehicles?

With the Government’s “Green Revolution” deadline for the end of petrol & diesel vehicle sales now set at 2030, the incentives to take on electric vehicles have changed. In this article, Vanarama takes a close look at what the grants are & what types of vehicles they’re available on. 

The UK Government’s grants on electric vehicles & low emission vehicles are designed to help customers make the switch to electric vehicles by reducing the higher up-front prices. Customers will see there are discounts applied to the prices of brand new low-emission vehicles through grants the government gives to manufacturers & those business leasing or selling the vehicles. 

Does A Customer Need To Do Anything To Activate The Grants?

Customers don’t need to do anything to activate the discounts when they buy one of these vehicles - the responsibility is with the company arranging the lease or sale to include the value of the grant in the vehicle’s price.

Which Vehicles Are Eligible For These Grants?

The size of grant a customer is able to take advantage of depends on which category the vehicle falls into. At present, there are 6 categories in which grants are available. They are: 

  • Small vans (V)

  • Large vans (V)

  • Motorcycles

  • Mopeds

  • Taxis

  • Trucks

The first 2 categories (marked with a V in brackets) are the ones Vanarama can help you with - we do not lease motorcycles, mopeds, taxis or trucks. 

Also, be aware that not all low-emission vehicles are actually eligible for a grant. Only vehicles that are on the Government’s approved list of vehicles are eligible for a grant - you can view the full approved vehicle list on the Government’s website.

What Grants Are Available On Cars?

The UK Government introduced the Plug-In Car Grant (PICG) in 2011 to encourage motorists to switch from a petrol or diesel vehicle to one that is powered partly, or fully, by electric. 

The subsidy not only acted as an incentive to encourage drivers to make the transition, the Government also recognised that this new electric technology carried a premium price point and the grant helped reduce the upfront costs for those early adopters prepared to leap in to a mobility solution that was relatively unknown.

Fast forward a decade and the grant has helped more than 500,000 drivers make the switch to electric and firmly put e-mobility on the map as a mainstream mode of travel, with electric cars outselling diesel-powered vehicles for the first time ever in 2021.

And with the ticket price of electric cars dropping year-on-year, to the point they’re now comparable to their petrol and diesel counterparts, in June 2022 the Government withdrew the grant for new electric cars with a view to improving the public changing infrastructure across the UK.

What Grants Are Available On Small Vans?

To qualify for the grant on low-emission small vans, they must have a gross vehicle weight of less than 2500kg, emit CO2 emissions of less than 50g/km & be capable of travelling at least 60 miles without any emissions at all. The grant pays for 35% of the purchase price, up to a maximum of £2,500.

What Grants Are Available On Large Vans?

To qualify for the grant on low-emission large vans, the vehicles must have a gross vehicle weight of between 2500kg & 4250kg gross vehicle weight, emit CO2 emissions of less than 50g/km & be capable of travelling at least 96km or 60 miles without any emissions at all. The grant pays for 35% of the purchase price, up to a maximum of £5,000.

Are Grants Available On Home/Business Charging Points?

If you lease your electric vehicle from Vanarama, you’ll get a FREE home charging point from ChargedEV worth £1,049.

The Workplace Charging Scheme (WCS) helps businesses with the upfront costs towards the purchase and installation of one or more electric car charge points at commercial properties. The grant covers up to 75% of the total cost of the purchase and installation of EV charge points (inclusive of VAT), capped at a maximum of £350 per socket, and up to 40 sockets per applicant.

The WCS is available in England, Wales, Scotland and Northern Ireland, but not in the Channel Islands or Isle of Man.

If you’re thinking about an electric car or van as your next vehicle of choice, find your new lease of life on our special electric offers page..**

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