Plug-in Car Grant SLASHED to £2.5k and cap REDUCED to £35K: Everything you need to know
Back to 'Expert guides'The Plug-in Car Grant has been through a variety of changes since its initial launch in 2011. By providing a discount on the price of an electric vehicle, it has slowly helped motorists reduce emissions and take their first step into the future of cleaner driving.
As more and more electric vehicles have come to market in the decades since its launch, the grant has undergone various changes, whether that’s adjustments to the amount available or plug-in hybrids no longer being eligible.
From 18 March 2021, the government will now provide grants of up to £2,500 for electric vehicles on cars priced under £35,000. Although this will mean the funding will last longer and be available to more drivers, grants will no longer be available for higher-priced vehicles, typically bought or leased by drivers who can afford to switch without a subsidy from taxpayers.
What if I have just ordered my EV?
The government is allowing dealers or vehicle manufacturers to claim for any orders that were placed by customers in the 28 days before the grant rate change on 18 March, which were not logged on the portal. The advice from Office for Zero Emission Vehicles is that vehicles should be entered onto the portal as soon as the order is received. If the vehicle has not been put on the portal the dealer will need to provide evidence to OZEV that the vehicle order was placed within the last 28 days.
Which lease cars qualify for the Plug-in Car Grant?
Compared to when the grant was launched, there’s a huge variety of choice on offer in the electric vehicle segment. The number of electric car models priced under £35,000 has increased by almost 50% since 2019 and more than half the models currently on the market will still be eligible for the grant, including spacious family cars, such as the Hyundai Kona 39kWh and the MG ZS EV.
Also eligible is the VW ID.3 Pro (from £32,000 RRP) with a 263-mile range – more than the distance between London and Middlesbrough. This is more than three times the typical range available when the plug-in car grant first launched, thanks to steep falls in battery costs.
Unfortunately more premium models such as the Tesla Model X, Jaguar I-Pace and Audi e-tron are not eligible for the grant due to exceeding the £35,000 limit.
Here’s the full list:
- Citroen ë-C4 – Sense Plus
- Citroen ë-C4 – Shine
- DS 3 Crossback E-Tense – Prestige
- DS 3 Crossback E-Tense – Performance Line
- Honda e
- Hyundai IONIQ Electric – Premium
- Hyundai KONA Electric (39kWh) – SE Connect
- Hyundai KONA Electric (39kWh) – Premium
- Kia e-Niro (39kWh) - 2
- Mazda MX-30
- MG MG5 EV
- MG ZS EV
- MINI Electric – Level 1
- MINI Electric – Level 2
- MINI Electric – Level 3
- Nissan e-NV200 (5 Seater) – Visia
- Nissan e-NV200 (7 Seater) – Visia
- Nissan Leaf (40kWh) – Acenta
- Nissan Leaf (40kWh) – N-Connecta
- Nissan Leaf (40kWh) – Tekna
- Peugeot e-2008 – Active Premium
- Peugeot e-2008 – Allure
- Renault ZOE
- SEAT Mii electric
- Skoda Citigo-e iV
- Skoda ENYAQ iV 60 Nav – Loft
- Skoda ENYAQ iV 60 Nav – Lodge
- Smart EQ fortwo
- Smart EQ forfour
- Vauxhall Corsa-e
- Vauxhall Mokka-e – SE Nav Premium
- Volkswagen e-Golf
- Volkswagen e-up!
- Volkswagen ID.3 Pro (58kWh 145PS) – Life
- Volkswagen ID.3 Pro Performance (58kWh 204PS) – Life
Compare all electric lease deals here.
Are options, packs and modifications included in the £35,000 eligibility cap?
When the cap was previously £50,000, the Office for Low Emission Vehicles (OLEV) updated the definition of the price of an electric vehicle for the grant, and said eligible cars must be priced below £50,000 RRP. With the cap now reduced to £35,000, it is expected that this definition still stands. The following can and cannot be used to calculate this price:
Included:
- VAT, including VAT reclaimable by a business;
- Vehicle manufacturer or dealer’s mandatory extras including delivery charges or administration fees;
- The battery cost (including where the battery is leased);
- Any non-standard option fitted by the manufacturer or dealer affecting the powertrain.
Excluded:
- Any non-standard option fitted by the manufacturer or dealer which does not relate to the powertrain;
- Modifications such as ‘police packs’, ambulance/fire engine modifications;
- Modifications for disabled users;
- Warranty/Insurance and service packages etc;
- First registration fee and cost of first licence;
- Discounts.
How much of the Plug-in Car Grant am I eligible for?
If your electric vehicle fits the requirements of the grant – namely it has a zero-emission range of 70 miles between charging, CO2 emissions of less than 50g/km, and costs less than £35,000 – then you can benefit from the full grant.
How much will the Plug-in Car Grant reduce my lease costs?
Rather than being deducted in one lump sum, the Plug-in Car Grant is deducted and spread evenly across the term of the lease. This can reduce the monthly cost of a 24-month contract by around £100 a month.
This often helps bring the cost of a new EV in line with the price of an equivalent petrol or diesel model.
How do I apply for the Plug-in Car Grant?
When you place your order with the broker or dealer advertising the EV you want, they will handle the paperwork on your behalf and ensure the Plug-in Car Grant is requested and applied to your lease.
With the grant deducted from the car’s initial purchase price, everything should be in hand for emissions-free motoring.
