The Department for Transport (DfT) has confirmed that the Plug-in Grant will continue in some form until at least the beginning of 2020.
The Plug-in Grant (currently up to £4500 or £8,000 for a van) is provided by the Office for Low Emission Vehicles (OLEV) to encourage drivers into ultra-low emission vehicles.
While there has been no official statement from the Department for Transport, a spokesperson has told Business Car Manager magazine:
“The current grant rates will be maintained until at least the end of April 2018. We are conducting a review of PICG rates at present and will provide more information in due course.”
What are the current Plug-in Grants?
Vehicles with a zero-emission range greater than 70 miles receive a grant of £4,500.
Vehicles with a shorter zero-emission range will receive £2,500 provided they cost less than £60,000.
There is 20% off the cost of an electric van, up to a maximum of £8000.
The grant was originally created in 2011. Its rates were revised for March 2016 and qualifying cars split into three categories.
Category 1 qualifying cars
These vehicles have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any CO2 emissions at all. Includes Kia Soul EV, Renault Zoe, Hyundai IOniq Electric. The grant available is 35% of the purchase price, capped at £4500.
Category 2 qualifying cars
These vehicles have CO2 emissions of less than 50g/km and can travel at least 16km (10 miles) without any CO2 emissions at all. Includes Kia Optima, Kia Ioniq PHEV, Mini Countryman PHEV. The grant available is 35% of the purchase price capped at £2500. Cars with a retail price over £60,000 are not eligible for the grant.
Category 3 qualifying cars
This vehicle has CO2 emissions of 50 to 75g/km and can travel at least 32km (20 miles) without any CO2 emissions at all. Includes Mercedes E-350. The grant available is 35% of the purchase price capped at £2500. Cars with a retail price over £60,000 are not eligible for the grant.
To qualify for the grant, vans must have emissions below 75g/km and the ability to travel in zero emission mode for at least 10 miles. Includes Renault Kangoo ZE and Nissan ENV200.The grant available is 20% of the purchase price capped at £8000.
How to get the Plug-in Grant
It couldn’t be more simple! As your vehicle provider, we do the paperwork for you and include the value of the grant in the lease price.
Which low emission cars are eligible for the Plug-in Grant?
The DfT has a full list of the qualifying cars. Click here to visit the page