UPDATE: DECEMBER 2022
The short answer is, NO. On 14th June 2022, the UK government announced that the plug-in car grant (PiCG), the UK electric car incentive scheme, was being closed for new orders. The government also clarified “All existing applications for the grant will continue to be honoured and where a car has been sold in the 2 working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale will also still qualify for the grant’.
According to the UK government, “The scheme has succeeded in creating a mature market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first 5 months of 2022 alone”. As we approach the end of 2022, it is clear, that despite the lack of the EV grant, the sale of electric cars continues to grow rapidly in the UK. BEVS AND PHEVS now command nearly a 30% market share in the country.
As of November 2022, the sale of BEVs were up 38% in 2022, compared to the same period in 2021. The total number of new pure electric cars registered in the UK, year-to-date is over 163,000.
The UK government intends to focus the £300 million in grant funding to support the uptake of electric taxis, electric vans, electric motorcycles and electric wheel chair accessible vehicles. The government will also continue to support the development of public EV charging infrastructure in the UK. To learn about the plug-in electric van grant (PiVG), follow this link.
Electric Cars: The Basics
For those of you new to zero-emission electric driving, we recommend a read of the following articles:
Sign up to the e-zoomed Electric Living newsletter
Previous Grant Updates
Though it is not surprising, it is certainly unwelcome news that the UK government has further reduced the Plug-in Car Grant (PiCG) for aspiring electric vehicle (EV) owners. With immediate effect, the PiCG grant has been slashed by 40% from £2,500 to £1,500. However, this is not the first time in 2021, that the government has reduced the grant. In March 2021, the UK plug-in car grant was reduced from £3,000 to £2,500.
Along with the reduction in the grant, the government has also changed the qualifying criteria for pure electric cars. For a battery-electric vehicle (BEV) to qualify, the electric car must have a recommended retail price (RRP) of less than £32,000, including VAT and delivery fees. In March 2021, the criteria was reduced from £50,000 to £35,000. The reason for this is that the UK government is keen to support the uptake of affordable electric cars. Put another way, if a consumer can afford a more expensive EV, a grant support is not required! Best-selling electric cars like the Tesla Model 3 do not qualify for the grant.
However, the good news is that he EV sector has seen an increase in the availability of affordable electric vehicles and you can lease a number of affordable EVs via e-zoomed, to include, the Honda-e, VW e-up!, VW ID.3 and Fiat 500e.
Electric Vehicles Eligible For Plug-In Car Grant (PiCG)
There are 8 categories of electric vehicles (EVs), eligible for a grant. EVs have to be approved by the government to be eligible. EV categories approved include:
- Electric cars
- Wheelchair accessible vehicles
- Electric motorcycles
- Electric mopeds
- Electric small vans
- Electric large vans
- Electric taxis
- Electric trucks
Qualifying Criteria For Plug-In Car Grant (PiCG) For Electric Cars
- Electric car with zero tailpipe CO2 emissions and can travel at least 70 miles (112 kms).
- Electric car must cost less than £32,000 (RRP) to include VAT and delivery fees.
- Grant up to 35% of the purchase price, capped to a maximum of £1,500.
Electric Cars Eligible For The Plug-In Car Grant
- Fiat 500e – Action
- Fiat 500e – Icon
- Fiat 500e – La Prima
- Fiat 500e Convertible – Icon
- Honda e – Standard
- Hyundai KONA Electric (39kWh) – SE Connect
- Hyundai KONA Electric (39kWh) – Premium
- Mazda MX-30 – SE-L Lux
- Mazda MX-30 – First Edition
- Mazda MX-30 – Sport Lux
- MG MG5 EV (52.5kWh)
- MG MG5 EV (61.1kWh)
- MG ZS EV – SE
- MG ZS EV – Trophy
- MG ZS EV – Trophy Connect
- MG ZS EV – SE Long Range
- MINI Electric – Level 1
- MINI Electric – Level 2
- Nissan e-NV200 (5 Seater) – Visia
- Nissan e-NV200 (7 Seater) – Visia
- Nissan Leaf – (40kWh) – Acenta
- Nissan Leaf (40kWh) – N-Connecta
- Peugeot e-208 – Active Premium
- Peugeot e-208 – Allure Premium
- Renault ZOE – i Play R110 Z.E 50
- Smart EQ fortwo
- Smart EQ forfour
- SsangYong Korando eMotion – Ventura
- Vauxhall Corsa-e – SE Nav Premium
- Vauxhall Corsa-e – SRi Nav Premium
- Volkswagen e-up!
- Volkswagen ID.3 Pro (58kWh 145PS) – Life
- Volkswagen ID.3 Pure Performance (45kWh 150PS) – Life
To claim the grant, a buyer does not need to do anything as this will be managed by the dealership and manufacturer. The cost of your purchase price will reflect the grant.