Plug-in Car Grant

Motorists purchasing a qualifying ultra-low emission car can receive a grant of 25 per cent towards the cost of the vehicle, up to a maximum of £5,000. The 2010 Spending Review confirmed that Government has made provision to support the Plug-in Car Grant for the life of this Parliament.

The Government is adopting a ‘technology neutral’ approach to reducing emissions from transport. This means that cars with tailpipe emissions of 75g C02/km or less, including electric, plug-in hybrid and hydrogen-fuelled cars, are all potentially eligible for the subsidy. However, consumers will find that hydrogen vehicles are, as yet, less available on the open market than electric and plug-in hybrid options.

The Plug-in Car Grant has been designed to help make the whole-life costs of a qualifying car more comparable with petrol or diesel equivalents. Over time, as manufacturers begin to make these cars in greater volumes, the costs of production should begin to fall. This will help to make an ultra-low carbon car a realistic option for anyone looking to buy a car.

Both private consumers and businesses can benefit from the Plug-in Car Grant when purchasing a qualifying ultra-low emission car and registering it in the UK.

The cars eligible for the Plug-in Car Grant are:

Table of eligible cars
Make and Model Availability
Chevrolet Volt 2012
Citroen CZero On sale now
Mia May 2012
Mitsubishi i-MiEV On sale now
Nissan Leaf On sale now
Peugeot iOn On sale now
Renault Fluence ZE March 2012
Smart fortwo electric drive On sale now
Toyota Prius Plug-in Hybrid 2012
Vauxhall Ampera 2012

As of 31 March 2012, 1276 claims have been made through the Plug-in Car Grant scheme, with Society of Motor Manufacturers and Traders (SMMT) data showing that 1,412 cars eligible for the Grant were registered over the same period.

Relative to the number of ultra-low emission cars registered in previous years, this is a step change and is part of a wider trend in the uptake of alternatively fuelled vehicles. SMMT data also shows that alternatively-fuelled vehicles represent a growing share of the total market, reaching 1.5% in quarter one 2012, with volumes up 5.6% on 2011 levels.

The number of claims made through the Plug-in Van Grant scheme will be published from July 2012 onwards.

Car eligibility

Vehicles must have been confirmed by the Office for Low Emission Vehicles (OLEV) as eligible under the rules of the scheme in order to receive subsidy:

Eligibility rules for grant
Criteria type Explanation
Vehicle type Only new cars are eligible (vehicle category ‘M1’). This includes pre-registration conversions (normal, internal combustion engine cars that were converted to battery or hybrid versions by specialist convertors before the car’s first registration). Motorbikes and quadricycles are not covered.
Carbon dioxide exhaust emissions Vehicles must emit less than 75 grams of carbon dioxide (CO2) per kilometre driven.
Range Electric vehicles (EVs) must be able to travel a minimum of 70 miles between charges. Plug-in hybrid electric vehicles (PHEVs) must have a minimum electric range of 10 miles.
Minimum top speed Vehicles must be able to reach a speed of 60 miles per hour or more.
Warranty Vehicles must have:

  • a 3-year or 60,000-miles vehicle warranty (guarantee)
  • a 3-year battery and electric drive train warranty, with the option of extending the battery warranty for an extra 2 years

‘Drive train’ means the parts that send power from the engine to the wheels. These include the clutch, transmission (gear box), drive shafts, U-joints and differential.
Battery performance Vehicles must have:

  • either a minimum 5-year warranty on the battery and electric drive train as standard
  • or extra evidence of battery performance to show reasonable performance after 3 years of use
Electrical safety Vehicles must comply with certain regulations (UN-ECE Reg 100.00) that show that they are electrically safe.
Crash safety To make sure cars will be safe in a crash, they must either have:

  • EC whole vehicle type approval (EC WVTA, not small series)
  • or evidence that the car has appropriate levels of safety as judged by international standards

Frequently asked questions

I am thinking about buying a qualifying ultra-low emission car – how do I apply for the Grant?

If you are looking to use the Plug-in Car Grant to purchase an eligible car, the good news is that there are no application forms to fill in. The dealership or vendor you are buying your car from will complete all the paperwork on your behalf as you buy the car; and the amount of your grant will be automatically deducted from the price of your car at the point of purchase.

Before you purchase your car, the dealer will ask you a few questions about your decision to purchase an ultra-low emission vehicle. This data will help inform policy decisions about ultra-low emission cars and supporting infrastructure.

I am a vehicle manufacturer looking to see whether a model is eligible for subsidy under the terms of the scheme. How do I apply for Plug-in Car Grant eligibility?

Vehicle manufacturers who want to apply for their vehicle model to be eligible for subsidy under the scheme will need to make a formal application. To do this, you will require an application pack and associated guidance. You can request this by submitting a request to olev.enquiries@olev.gsi.gov.uk