Guidance

Plug-in Car Grant

Grant funding to support private and business buyers looking to purchase a qualifying ultra-low emission car.

Detail

Latest update figures

As of 31 March 2014, 8724 claims have been made through the Plug-in Car Grant scheme.

Overview

Since January 2011, motorists purchasing a qualifying ultra-low emission car have been able to receive a grant of 25% 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.

Private consumers and businesses with a UK address can claim the Plug-in Car Grant when purchasing a qualifying ultra-low emission car and registering it for the first time in the UK. For these purposes registration is defined as contemplated in section 21 of the Vehicle Excise and Registration Act 1994 and licensed for use on UK roads, or registered under the terms of the Diplomatic Privileges Act 1964, and licensed for use on UK roads.

The government has a technology neutral approach to reducing emissions from transport. This means that all cars that meet the criteria set out below are potentially eligible for the Plug-in Car Grant. This includes, but is not limited to, electric, plug-in hybrid and hydrogen-fuelled cars. 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.

The Plug-in Car Grant is not designed to support research and development projects: any funding for this would be delivered by the Technology Strategy Board.

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