The good news is, the plug-in car grant (PiCG) provided by the Office for Low Emission Vehicles (OLEV) to encourage drivers into ultra-low emission vehicles will still be available to until 2020. However, it has recently been confirmed that the Government plug-in car grant (PICG) will be changing. 100% electric vehicles will qualify for a reduced grant, although plug-in hybrids (PHEVs) will no longer be eligible. There will be no impact from the grant changes on electric vans and motorbikes. These changes were set to come into effect from the 9th November 2018, however the grant limit was reached early on the 19th October.
This isn’t the huge blow to the electric vehicle world that some news outlets are portraying it as. We knew the pot of funding for this government grant wouldn’t last forever, the fact that it’s run out weeks ahead of what was predicted is really a positive sign of strong electric vehicle adoption. Losing the grant completely on PHEVs has been on the cards for a while – and for us that’s not really a bad thing. We aren’t the biggest fan of PHEVs, see our ‘A PHEV is always greener than a petrol or diesel, right? Wrong.‘ post to find out why. We are firm believers that 100% battery vehicles are the way forward, now that new electric vehicles like the Hyundai Kona EV can comfortably travel 250-300 miles range anxiety really is a thing of the past.
What changes are being made to the Plug-in Car Grants
- Cars with a zero-emission range greater than 70 miles will now receive a grant of 35% of the vehicle’s list price, up to a maximum £3,500 (previously £4,500).
- There are no changes being made to the grant for electric vans and will receive 20% off the cost, up to a maximum of £8000.
- Plug-In Hybrid Electric Vehicles are no longer eligible for the grant (previously £2,500).
What vehicles will qualify for the grant?
Cars (previously ‘category 1’)
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 £3,500.
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 £8,000.
Category 2 and category 3 electric and hybrid vehicles will no longer eligible for the grant.
- Category 2: CO₂ emissions of less than 50g/km and a zero emission range between 10 and 69 miles
- Category 3: CO₂ emissions of 50 to 75g/km and a zero emission range of at least 20 miles.
You can see a full list of the qualifying cars on Gov.uk
How to get the Plug-in Grant
It couldn’t be simpler… as your vehicle provider, we do the paperwork for you and include the value of the grant in the lease price.