Plug-In Car Grant: A Complete Guide

A complete guide that covers what the plug-in car grant is and how it can reduce the cost of your plug-in vehicle by up to £3,500.

Summary

The plug-in car grant is administered by the Office for Low Emission Vehicles (OLEV). It is designed to encourage the uptake of electric vehicles in the UK by reducing the initial cost to drivers.

  • It offers £3,500 off the price of eligible new electric cars.
  • It is only available on the greenest plug-in models.
  • The grant is typically applied for by the car manufacturers on the customers behalf and acts as a straight forward discount to the list price.

What is the plug-in car grant?

The government’s Office for Low Emission Vehicles (OLEV) plug-in car grant is designed to promote the uptake of electric vehicles in the UK.

The grant provides 35% of the purchase price up to £3,500 towards the cost of an eligible plug-in vehicle.

  • The plug-in car grant applies at the time of purchase and is usually given as a discount off the purchase price of a vehicle.
  • No formal date has yet been given for the end of the plug-in car grant in its current form.

Tip: The plug-in car grant has got gradually less generous over the years. This means if you are looking to take advantage of preferential grants and tax advantages, it’s best to get an electric car sooner rather than later.

What does the plug-in car grant offer electric car drivers?

The plug-in car grant reduces the cost of new eligible electric vehicles by up to £3,500.

As well as electric cars, there are plug-in vehicle grants available for other vehicle categories including electric vans, motorcycles and mopeds.

How do I qualify for the plug-in car grant?

To qualify for the plug-in car grant, you must be purchasing a brand new qualifying electric vehicle.

  • Only certain plug-in vehicles are eligible for the grant.
  • The vehicle must have an electric range of at least 70 miles.
  • If plug-in hybrid, the vehicle must also have combined CO2 emissions of 50g/km or less.
  • This means all major full battery electric vehicles (BEVs) qualify, but few plug-in hybrid electric vehicles (PHEVs) are eligible.

Tip: OLEV also offer other useful grants, including the “Electric Vehicle Homecharging Scheme (EVHS)” grant for home charging points. The EVHS grant is also available for all major BEVs, but also a much wider range of PHEVs than the plug-in car grant is.

Which cars are eligible for the plug-in car grant?

OLEV maintains a list of all eligible vehicles on their website here.

How do I claim the plug-in car grant?

The grant is applied at the time of purchase and your manufacturer will usually handle the administrative leg work.

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