UK Government grants for electric cars

What is the UK plug-in grant?

A government scheme, the plug-in car grant (PiCG) is an electric vehicle grant aimed at reducing the cost of buying or leasing an electric car.

How much is the government plug-in grant?

The PiCG knocks up to 35% off any eligible vehicle's purchase price up to a maximum amount of £2,500 pounds for electric cars under £35,000.

Does the plug-in grant apply to leasing?

Yes, the scheme is also applicable to leased electric vehicles. Instead of the cost being deducted as one single lump sum, savings are spread across the lease term. For instance, if your car is eligible for the maximum amount of £2,500 and you have a 36-month contract, you could save roughly £83 per month.

Who qualifies for the plug-in grant?

In order for a car to qualify for the PiCG, you first need to determine which of these three low-emission categories it falls into. We’ve broken each of them down in the following table:

CategoryRange (without emissions) Manufacturer's figure for CO2 emissions per km
1 70 miles < 50g/km
2 > 10 miles < 50g/km
3 > 20 miles 50g-75g/km

If the car falls into Category 1 and costs less than £35,000 brand new, then you can apply for the maximum amount offended by the PiCG.

While cars in Category 2 and 3 used to qualify for a 35% reduction if they cost less than £60,000, they no longer do as of 2018, when these measures were reformed.

Which electric vehicles are eligible for the plug-in grant?

From the cutting edge BMW i3 to the highly-rated Kia e-Niro, stylish Corsa-e, compact e-Golf and, let’s not forget, the market-leading Tesla Model 3, there are several electric car models now eligible for this grant. You can view the full list of eligible vehicles on the government’s website.

How is the electric car grant calculated?

The discount available can be determined by the Recommended Retail Price (RPP) since it’s a percentage of the full purchase price, however, there is a maximum cap of £2,500 pounds. Any car over £10,000 is highly likely to be subjected to the capped rate. For vehicles listed under £10,000, the saving can be worked out through the following simple formula:

Retail Price x 35/100 = How much you can save

For more on the costs associated with EVs check out our EV hub and our guide on costs to maintain your electric vehicle.

How do I apply for the UK plug-in grant?

There’s nothing you need to do in order to take advantage of the grant. The dealer you are buying from is responsible for handling everything and should apply the discount to the car’s listed price.

What is the Workplace Charging Scheme?

Another government scheme offered by the Office for Low Emission Vehicles (OLEV) to help make EV owners' lives easier is the Workplace Charging Scheme (WCS). It lowers the cost of purchasing and installing a single socket charging station at work by 75%, capped at £350 per socket.

Benefits of the Workplace Charging Scheme:

  • Available to any business, including charities, public bodies, etc.

  • Claim for up to 40 charging points

  • Save over £1000 per year in employee fuel costs across 10 000 miles

  • Reduce benefit-in-kind tax for company cars

  • Reach sustainability goals (read about why electric cars are better for the environment)

How do I apply?

You can apply for the WCS here.

What is the electric vehicle home charging scheme?

Similar to the WCS, the Electric Vehicle Homecharge Scheme (EVHS) shaves up to £350 off the purchase and installation cost of a home charger. One chargepoint can be claimed per eligible vehicle with up to two vehicles being eligible per household.

Benefits of the Home Charging Scheme:

  • 130 models eligible

  • Claim for up to two chargers

  • Charge at home for less

How can I apply?

To qualify for this grant, you must:

  • Purchase an eligible plug-in vehicle

  • Have off-street parking

  • Have a home-charger installed by an OZEV approved installer

You can find more information on the EVHS on the government’s website.

Looking for the perfect car to take advantage of the many EV grants on offer? Why not explore our growing range of eco-friendly electric and hybrid lease offers?

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