The UK government has invested millions in EV grants. Electric vehicles (EVs) are proving to be one of the most popular choices for environmentally conscious motorists who want to help reduce air pollution without compromising on their motoring needs or lifestyle. This is borne out by the high number of registrations for EVs in the UK.
The main reason for this surge in demand is the plug-in car grant, which has made purchasing one of these cars considerably more affordable. This has also seen a decline in the purchases of petrol and diesel cars. The electric vehicle grant reduces the cost of an EV by up to £4,500. In this guide, we will look at some pertinent issues about the electric car grants. Let us start with the basics.
What Is An Electric Car Grant??
The electric vehicle grant is a government initiative aimed at encouraging the uptake of EVs in the UK. The grants are available across all types of cars, whether new or used. It doesn’t even matter if you buy the car outright, lease it or go for a PCP finance option through your car dealership. You can still qualify for this grant.
You will be pleased to know that all types of EVs qualify for the electric car grants. This means you can move away from traditional cars and go green with a full-electric Nissan Leaf, BMW i3 or even a plug-in hybrid such as the Mitsubishi Outlander or VW Golf GTE. You will have an eligible vehicle for the exciting grants.
The UK government wants to invest in low-emission vehicles because they are currently one of the main causes of air pollution. It is estimated that poor air quality costs the NHS £6billion each year and contributes towards more than 40,000 premature deaths across the UK every year.
Office for Zero-Emission Vehicles (OZEV) Grants
This is an initiative started by the Office for Zero-Emission Vehicles (OZEV) to encourage more drivers to choose EVs. The OZEV is part of the UK Department for Transport (DfT).
How does the electric car grant work?
There are 2 ways that motorists can use to take advantage of this scheme:
1. Contact your car dealership directly and ask about the grant in the price of their EVs
2. The other option is to apply directly to the OZEV at https://www.gov.uk/plug-in-car-van-grants.The application form is very easy and straightforward. Down below we will look at how much you can expect to gain from the electric car grant.
Who Qualifies for OLEV Grant?
Initially, you will need to ensure that the electric car you intend to buy qualifies for OLEV Grant. You can start this process by checking if your local dealership sells any EVs on the OLEV website. The vehicles listed range from full-electric cars like Nissan Leaf and BMW i3 to plug-in hybrid models such as Mitsubishi Outlander or VW Golf GT.
What Government Electric Vehicles Grants Are There?
At the moment, the OZEV has four main types of grants that it offer EV owners. These grants cover both electric cars as well as chargers. The types of grants available are:
- Plug-in Car Grant (PICG)
- Electric Vehicle Homecharge Scheme (EVHS)
- Workplace Charging Scheme (WCS)
- On-street Residential Chargepoint Scheme (ORCS)
Plug-in Car Grant (PICG)
The plug-in grant is the main way for motorists to reduce the cost of owning an electric vehicle. It works by reducing the purchase price of a new EV by up to £4,500 if you buy one that emits CO2 emissions of less than 50g/km.
If your new or used EV costs more than £60,000, then you don’t qualify for this grant. You can use the government’s online tool to find out more about how much you stand to gain from the PICG.
You might be wondering what happens if you buy a used EV instead of a brand-new one? The good news is that your car dealer will still be able to apply the plug-in grant scheme to your used car purchase in addition to the other cars sold.. This is one of the best advantages of owning an electric vehicle. You get all the benefits of a new car but at a fraction of the price!
Electric Vehicle Home Charge Scheme (EVHS)
The electric vehicle home charge scheme applies to EV owners who own their homes outright and have designated off-street parking. The scheme provides up to 75% off the cost of installing a dedicated charge point at your home. It also offers 25% off the cost of buying and installation of an eligible charge point if you live in rented accommodation.
Workplace Charging Scheme (WCS)
The workplace charging scheme is for business owners and employees who own or lease EVs. This scheme offers 75% towards the cost of installing a dedicated charge point at your workplace.
The scheme even covers 100% for those cases where employers don’t have access to central government funding and instead need to fund the full cost of such installations themselves. The amount you can claim as tax relief is £500.
On-street Residential Chargepoint Scheme (ORCS)
This scheme covers the full cost of installing a charge point for an on-street residential location. This means locations such as car parks, residents’ parking bays and even public charging points where you have free access to electricity while parked. The amount you can claim is capped at £500.