The UK Government plug-in van grant allows buyers of electric vehicles to get up to £3,000 off the purchase of small electric vans and a maximum of £6,000 for large electric vans.
Changes to the plug-in van grant brought in on 18 March 2021 mean that the previous grant limit of up to £8,000 was dropped in favour of a new two category system outlining small and large vans with limitations on C02 emissions and their usable emission-free mileage.
The plug-in van grant is a scheme backed by the UK Government to give buyers of a new vehicle a discount on the price of a brand-new low emission vehicle. The grant is paid to the dealership and manufacturer of the vehicle, giving you a discount from the purchase price. You do not need to personally apply for it, all the paperwork will be handled at the time of sale.
The plug-in van grant was changed on 18 March 2021 and now classes small and large vans separately. A small van will be eligible for a grant of 35% off the purchase price up to a maximum of £3,000. A large van will get 20% of the purchase price up to a maximum of £6,000 under the revised scheme.
For example, a Renault Kangoo E-Tech costing £25,000 will be eligible for a 35% grant, the equivalent of £8,750 however the scheme is capped at £3,000 making the purchase price of the van £22,000.
Similarly, a Mercedes-Benz eSprinter costing £52,000 will be eligible for a 20% grant which is £10,400 but will be capped at £6,000 making the actual cost of the vehicle £46,000.
There is no maximum purchase price to exclude eligibility, unlike the electric passenger car grant which is limited to cars under £35,000 with any vehicle costing more than this amount excluded from the grant altogether.
All small and large electric vans on the approved list of qualifying vehicles are eligible for a plug-in van grant.
Small vans must have a gross vehicle weight (GVW) of less than 2,500kg and have CO2 emissions of 50g/km or less. They must also be able to travel at least 60 miles (96km) completely emissions free.
Large vans are classed as those between 2,500kg and 3,500kg. They must have a CO2 emissions of less than 50g/km and must also be able to travel at least 60 miles (96km) on battery power alone without making any emissions – for this reason the some plug-in hybrid models such as the Ford Transit Custom PHEV are not eligible.
There are no government grants available for the purchase of a second hand plug-in electric vehicle, however as an electric vehicle owner you may be eligible to claim other grants for a domestic charging wall box unit.
The OLEV (Office for Low Emission Vehicles) works to support the early market for ultra-low emission vehicles and is providing £900m of funding including a grant for domestic charging units.
You must be the registered owner/lease holder of an electric vehicle in order to qualify for the Electric Vehicle Homecharge Scheme (EVHS) which is a grant for up to 75% of the cost of installing a charge point.
The OLEV Grant is capped at £350 (inc VAT) per installation.
You can apply for two charge points for a single property if you have two qualifying vehicles and you must have dedicated off-road parking.
An increasing number of electric vans are being plated at a GVW of more than 3.5-tonnes. This is to allow them to still carry the same payload of a 3.5-tonne van without the weight penalty of the heavy batteries.
Electric vehicles between 3,500kg and 12,000kg GVW fall into the “truck” category of the plug-in grant system and must have CO2 emissions of more than 50% less than the equivalent conventional Euro-6 vehicle and be able to carry the same capacity. This means that all electric vans, many of which are plated at 4.25 tonnes due to European legislation that allows you to drive an electric van of this weight on a conventional car license, will meet the criteria, providing they can travel 60 miles (96km) or more on their batteries.
The grant covers 20% of the purchase price, up to £16,000 but is only available for the first 250 orders and is limited to 10 vehicles per customer. Once the 250 orders have been reached the grant rate will be capped at £6,000.
The UK Government has today (18 March) changed the rules on the amount a new van owner is entitled to under the plug-in van grant scheme.
The total amount buyers of a new electric van can get off the purchase price of a new van has been dramatically slashed by the UK government. The changes come into effect immediately.
The plug-in grant system for new vans will now be split into two tiers covering small and large vans with a maximum grant for small vans limited to just £3000 and for large vans to £6000. There are new range criteria as well, with all vehicles now required to be able to travel emission-free for more than 60 miles.
The previous plug-in electric van grant system had covered all new electric vans with a grant for up to £8000.
The Government had previously stated its intention to lower the amount of support given to electric vehicles and had previously tightened the criteria in 2018.
Changes to the regulations covering grants for car buyers are even tighter with a maximum purchase price of £35,000 imposed on all electric cars. Any vehicle above that threshold will not be eligible for a government grant. The rule, however, does not affect commercial vehicle buyers.
Grants for new electric heavy goods vehicles have also been revised and now cover vehicles between 3,500kg and 12,000kg gross vehicle weight. Eligible trucks (or large vans over 3.5-tonnes) will have to have CO2 emissions of at least 50% less than the equivalent Euro VI standard and be able to carry the same capacity. Like the vans, they must also be able to travel at least 60 miles (96km) emission free. Grants for heavier vehicles will be £16,000.