Plug-in Car Grant

Plug-in Car Grant extended to 2018 – but cut back for hybrid drivers

Plug-in Car GrantThe government has extended the Plug-in Car Grant incentive with a £400 million boost that guarantees it until at least March 2018.

Ministers claim this will treble the number of greener vehicles on British roads – up from 50,000 Plug-in Car Grant beneficiaries today to more than 150,000 by 2018.

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Plug-in Car Grant extended to ‘at least February 2016’

There is one significant change with the revised grant though: plug-in hybrid cars will no longer benefit from the full incentive; that’s reserved for cars with an emissions-free range of over 70 miles.

The top rate of grant has also been reduced from £5,000 to £4,500.

“The UK is a world leader in the uptake of low emission vehicles and the Plug-in Car Grant has been key to that success,” said transport minister Andrew James.

“Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support.”

How does the Plug-in Car Grant work?

From March 2016, the Plug-in Car Grant will consist of two rates, each benefitting from a different level of financial support.

  • Category 1: vehicles with a zero emission range of over 70 miles = £4,500 grant
  • Category 2 and 3: vehicles with a shorter zero emission range = £2,500

In practice, this means that full EVs will benefit from the full £4,500 grant, while plug0-in hybrid vehicles with a supplementary petrol or diesel engine get a lower £2,500 grant.

The government has lowered the Category 2 and 3 grant partly to reflect the popularity of such vehicles and try to restore the appeal of fully electric vehicles.

Technically, the grant offers 35% off the cost of a car, up to a maximum of £4,500: in reality, because ultra low emission vehicles are generally expensive, most automatically qualify for the top rate of grant.

Which cars are eligible for the Plug-in Car Grant?

The government has a full list of cars eligible for the Plug-in Car Grant, which is constantly updated. Currently, 29 vehicles are eligible – that’s five times as many as when the scheme was first launched.

As of December 2015, eligible cars are:

  1. Audi A3 e-tron
  2. BMW i3
  3. BMW i8
  4. BMW 225xe
  5. BMW 330e
  6. BYD e6
  7. Citroen CZero
  8. Ford Focus Electric
  9. Kia Soul EV
  10. Mercedes-Benz B-Class Electric Drive
  11. Mercedes-Benz C350 e
  12. Mercedes-Benz S500 Hybrid
  13. Mitsubishi iMiEV
  14. Mitsubishi Outlander
  15. Nissan e-NV200 5-seater and 7-seater
  16. Nissan LEAF
  17. Peugeot iON
  18. Porsche Panamera S E-Hybrid
  19. Renault Fluence
  20. Renault ZOE
  21. Smart fortwo electric drive
  22. Tesla Model S
  23. Toyota Mirai
  24. Toyota Prius Plug-in
  25. Volkswagen e-up!
  26. Volkswagen e-Golf
  27. Volkswagen Golf GTE
  28. Volvo V60 D6 Twin Engine
  29. Volvo XC90 T8 Twin Engine
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