Electric car grants and incentives

EV charging icon painted on floor

The government continues to offer electric car grants and incentives to encourage more fossil-fuelled drivers to switch to greener electric vehicles.

However, there is some confusion as to what the government electric car incentives UK currently are, especially following the recent funding cuts and changes in eligibility for electric cars grant.

If you’re thinking of going electric, here’s what you should know about the very latest government incentives for electric cars in 2022.

In this guide:

Government electric car grant 2022 UK

Is there an electric van grant?

Electric car grant Scotland

Electric Vehicle Homecharge Scheme UK

How do I apply for electric car charge home installation UK?

The Workplace Charging Scheme (WCS)

Electric car tax benefits

PiCG qualifying new electric cars 2022 UK

Government electric car grant 2022 UK

In December 2021, the UK government electric car grant, also known as the government Plug in Car Grant (PiCG), was further reduced to £1,500 (it was £2,500 in 2021) and can now only be applied for on brand new purely electric cars with zero emissions and a sale price of less than £32,000 (previously £35,000).

The government grant for electric cars is paid directly to car dealers or manufacturers, not consumers, so any eligible car you buy will most likely already have £1,500 deducted from the sale price.

After a sale, the dealership then has to claim the PiCG payment from the Office for Zero Emission Vehicles (OZEV), formerly known as the Office for Low Emission Vehicles (OLEV).

The OZEV plug in grant for electric cars is available to the whole of the UK (i.e. England, Scotland, Wales and Northern Ireland). However, Scotland solely and additionally offers grants for electric cars by way of subsidised loans to help consumers afford to buy new electric cars.

Is there an electric van grant?

Yes, manufacturers and dealerships can apply for plug-in grants on vans and a few other types of commercial and domestic vehicles, including motorcycles and mopeds, as long as the vehicles meet the eligibility criteria.

Cars

Eligibility criteria: Must have a recommended retail price (RRP) of £32,000 or less (including VAT and delivery costs) and zero tailpipe CO2 emissions and travel a minimum of 70 miles with no emissions whatsoever.

Grant amount: 35% of purchase price up to a maximum of £1,500.

Small vans

Eligibility criteria: Van’s gross vehicle weight must be less than 2,500kg, generate less than 50g/km of CO2 emissions and be able to travel a minimum of 60 miles with no emissions whatsoever.

Grant amount: 35% of purchase price up to a maximum of £2,500. Businesses can claim up to 1,000 plug-in van and truck grants, every financial year.

Large vans

Eligibility criteria: Van’s gross vehicle weight can be between 2,500kg and 3,500kg, must generate less than 50g/km of CO2 emissions and be able to travel a minimum of 60 miles with no emissions whatsoever.

Grant amount: 35% of purchase price up to a maximum of £5,000. Businesses can claim up to 1,000 plug-in van and truck grants, every financial year.

Small trucks

Eligibility criteria: Vehicle’s gross vehicle weight can be between 3,500kg and 12,000kg, must generate 50% less CO2 emissions than a conventional Euro VI equal capacity vehicle and be able to travel a minimum of 60 miles with no emissions whatsoever.

Grant amount: 20% of purchase price up to a maximum of £16,000. Businesses can claim up to 1,000 plug-in van and truck grants, every financial year. Businesses can claim up to 1,000 plug-in grants, every financial year. There are a limited number of 250 grants at £16,000 and a maximum of 10 grants per business at the £16,000 rate.

Large trucks

Eligibility criteria: Vehicle’s gross vehicle weight can be over 12,000kg, must generate 50% less CO2 emissions than a conventional Euro VI equal capacity vehicle and be able to travel a minimum of 60 miles with no emissions whatsoever.

Grant amount: 20% of purchase price up to a maximum of £25,000 on an Electra e-Star 27-350 vehicle only. Businesses can claim up to 100 plug-in grants, every financial year. Businesses can claim up to 1,000 plug-in grants, every financial year. There are a limited number of 100 grants at £25,000 and a maximum of 5 grants per business at the £25,000 rate. If either limit is reached, you can only apply for a maximum of 10 grants for £16,000 each.

Wheelchair accessible vehicles (WAVS)

Note: This grant can help towards the cost of converting a passenger vehicle into a WAV and there are a limited number of grants (250) until 31 March 2022 and 1,000 between 1 April 2022 and 31 March 2023.

Eligibility criteria: Must be converted from a passenger vehicle, have a RRP of £35,000 or less (including VAT and delivery costs) and zero tailpipe CO2 emissions, and be able to travel a minimum of 70 miles with no emissions whatsoever.

Grant amount: 35% of purchase price up to a maximum of £2,500.

Taxis

Eligibility criteria: Must be purpose-built taxis and generate less than 50g/km of CO2 emissions and be able to travel a minimum of 70 miles with no emissions whatsoever.

Grant amount: 20% of purchase price up to a maximum of £7,500.

Motorcycles

Eligibility criteria: Must have a RRP less than £10,000 (including VAT and delivery costs), have zero CO2 emissions and be able to travel a minimum of 31 miles between charges.

Grant amount: 35% of purchase price up to a maximum of £500.

Mopeds

Eligibility criteria: Must have a RRP less than £10,000 (including VAT and delivery costs), have zero CO2 emissions and be able to travel a minimum of 30 miles between charges.

Grant amount: 35% of purchase price up to a maximum of £150.

For a full list of eligible electric vehicle makes and models click here.

You might like to read: How to charge an electric car

Electric car grant Scotland

In Scotland only and in addition to the UK-wide government grant for electric car sales, you can also apply to Transport Scotland for a loan to purchase an electric vehicle:

  • up to £28,000 to cover the cost of buying a brand new, pure electric vehicle
  • up to £10,000 to buy a new electric motorcycle or moped

In line with the recent electric car grant changes by the UK government, these Scottish loans can only be applied for to purchase a zero emission, purely electric vehicle listed on the UK government’s website.

Electric Vehicle Homecharge Scheme UK

In addition to the electric car government grant, there is another incentiviser for potential EV buyers: an electric car charger grant.

The Electric Vehicle Homecharge Scheme (EVHS) offers up to 75 per cent (up to a maximum of £350 including VAT) off the cost for the installation of an EV charger at home.

How do I apply for electric car charge home installation UK?

A government-approved installer can apply for a grant for electric car charger to install a charging point at your home if:

  • You own, lease or have pre-ordered a qualifying [zero emission/purely electric] vehicle
  • You have off-street parking for your sole use such as a private driveway or garage. However, if you don’t have dedicated off-street parking or a private driveway/garage, you must show that you are legally entitled to use a standalone parking space by producing a copy of the Land Registry’s registers of title and title plan as evidence.
  • You must use a government approved EHVS installer who will apply for the grant on your behalf.

If you have more than one eligible vehicle, you can apply (or rather the installer can apply) for more than one charging point installation grant.

In Scotland, you can apply via the Energy Saving Trust to get an additional £250 extra funding on top of the £350 offered by OZEV.

The Workplace Charging Scheme (WCS)

Another electric vehicle grant offered by the UK government is The Workplace Charging Scheme.

The WCS [electric car grant] is a voucher-based electric car scheme that provides financial help and assistance to organisations and businesses to afford the cost of buying and installing EV charging points for staff.

You can apply for up to 40 charging points per organisation with a maximum contribution of £350 per point. It is an OZEV approved installer who will need to apply for the grant.

Full WCS guidance, including eligibility and how to apply, can be found on the government’s website.

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Electric car tax benefits

Other incentives for buying an electric car include:

  • Road tax exemption (no CO2 emissions means no Vehicle Excise Duty is payable)
  • WCS tax exemption (staff can charge their EVs at work tax-free)
  • Company car tax (personal use of a company car is treated as a Benefit in Kind (BIK) for tax purposes and even a Tesla BIK tax rate is the same [nominal] 1%)

PiCG qualifying new electric cars 2022 UK

According to the RAC, the following 21 brand new electric cars that are currently on the market qualify for the recently reduced UK electric car grant (the RAC-rated ‘best electric cars’ are shown in bold):

Car model and make
RRP for basic model (with grant applied)
Smart EQ Fortwo £20,200
Smart EQ Forfour £20,795
Seat Mii Electric £21,300
Fiat 500 £21,495
Volkswagen e-Up! £22,055
MG5 Ev £25,495
MG ZS EV £26,495
Mini Electric £27,000
Mazda MX-30 £27,045
Peugeot e-208 £27,225
Vauxhall Corsa-e £28,140
Honda-e £28,660
Nissan Leaf (and Leaf+) £29,345
Vauxhall Mokka-e £29,365
Renault Zoe £29,495
Volkswagen ID.3 £30,170
Nissan e-NV200 Combi £31,255
Hyundai Ioniq Electric £31,450
DS 3 Crossback E-Tense £31,500
Skoda Enyaq iV £31,585
Hyundai Kona Electric 39 kWh £31,625