Plug in Grant

The government wants to achieve net zero emissions by 2050. It also plans to bring forward a ban on the sale of new petrol and diesel vehicles to 2035 and support the uptake of battery electric vehicles. The Plug-in Grant is a crucial component in the affordability of BEVs. The Plug-in Grant directly impacts the lease cost of a vehicle for both an individual or a company.

What is the Plug-in Grant

You can get a discount on the price of brand new low-emission vehicles through a grant from the government.

You do not need to do anything if you want to buy a vehicle the value of the grant will be included in the vehicle’s price.

How much is the Plug-in Grant?

The amount of the grant depends on which category the vehicle is in. The six categories are:

  • Cars - Please see the updated information below
  • Motorcycles - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £1,500
  • Mopeds - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £1,500
  • Vans - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £8,000
  • Taxis - the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £7,500
  • Large vans and trucks - for the first 200 orders the grant will pay for 20% of the purchase price for these vehicles, up to a maximum of £20,000. The number of these higher grants that each customer can claim is a maximum of 10. After the first 200 the grant will then pay for 20% of the purchase price for these vehicles, up to a maximum of £8,000

Plug-in Grant levels and eligibility criteria updates Mar 2020

  •  The Plug-in Car Grant rate will reduce from £3,500 to £3000.
  • Premium cars, costing £50,000 or more, will no longer be eligible to receive the Plug-in Car Grant.

The Office for Low Emission Vehicles (OLEV) has updated the price definition it will use to ascertain whether a car can qualify for the Plug-in Car Grant (PICG) under its’ new £50,000 price cap.  

Under the new definition, the following things must be INCLUDED in the price: 

  • VAT, including VAT reclaimable by a business  
  • vehicle manufacturer or dealer’s mandatory extras including delivery charges or administration fees 
  • the battery cost (including where the battery is leased) 
  • any non-standard option fitted by the manufacturer or dealer affecting the powertrain

Meanwhile, the following items must be EXCLUDED: 

  • any non-standard option fitted by the manufacturer or dealer which does not relate to the powertrain 
  • modifications such as ‘police packs’, ambulance/fire engine modifications  
  • modifications for disabled users 
  • warranty/Insurance and service packages etc 
  • first registration fee and cost of first licence 
  • discounts