Monday, November 20, 2023

What Government Grants Are Available For Electric Cars

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Kentucky can get millions in grant funds to create electric car charging infrastructure

At We Power Your Car, we have been supplying and installing dedicated charging systems to the domestic and commercial markets for years. In that time, with over 7000 successful installations across the UK, we have been recognised by OZEV as an authorised installation company. OZEV provide online access to their list of authorised installers and you can check us out by going HERE

Guide To Federal Funding Financing And Technical Assistance For Plug

  • Vehicle Technologies Office
  • Guide to Federal Funding, Financing, and Technical Assistance for Plug-in Electric Vehicles and Charging Stations
  • The U.S. Department of Energy and the U.S. Department of Transportation have published a guide to highlight examples of federal support and technical assistance for plug-in electric vehicles and charging stations. The guide provides a description of each opportunity and a point of contact to assist those interested in advancing PEV technology. It also provides a list of current tax credits and incentives applicable to PEVs and EV charging.

    The Department of Energys Alternative Fuels Data Center provides a comprehensive database of federal and state programs that support plug-in electric vehicles and infrastructure.

    What Government Grants Are Available On Electric Vehicles

    With the Governments Green Revolution deadline for the end of petrol & diesel vehicle sales now set at 2030, the incentives to take on electric vehicles have changed. In this article, Vanarama takes a close look at what the grants are & what types of vehicles theyre available on.

    The UK Governments grants on electric vehicles & low emission vehicles are designed to help customers make the switch to electric vehicles by reducing the higher up-front prices. Customers will see there are discounts applied to the prices of brand new low-emission vehicles through grants the government gives to manufacturers & those business leasing or selling the vehicles.

    **Does A Customer Need To Do Anything To Activate The Grants? **

    Customers dont need to do anything to activate the discounts when they buy one of these vehicles – the responsibility is with the company arranging the lease or sale to include the value of the grant in the vehicles price.

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    Electric Car Grant Changes

    The grant was first launched in 2011, when the government was offering £5,000 off the price of plug-in cars. There was no price limit, so taxpayers were subsidising buyers of cars that included the £100,000 BMW i8 and £90,000 Porsche Panamera S E-Hybrid.

    It was also a major boost to plug-in hybrid cars such as the Mitsubishi Outlander PHEV, which arent as green as fully electric cars – since drivers are able to simply drive the car without charging, burning far more fuel than the official figures state in the process – but had enough battery range to qualify for the grant at the time. Meanwhile, drivers who travel only short distances and charge religiously between journeys may find they are able to travel 100% on electric power.

    In March 2016, the scheme was revamped. The maximum incentive was cut to £4,500 and categories were introduced, which meant that plug-in hybrids generally lost half of their subsidy. A price cap was introduced for categories 2 and 3.

    The scheme was altered again in October 2018 when the discount was cut to £3,500 for electric cars and was axed entirely for plug-in hybrid vehicles. The grant has been reduced annually since, to the current level of £1,500.

    Electric Car Grant Faqs

    Government plug in

    Can I get an electric car grant for used cars or pre-registered cars?

    No. The grant is only available for the first owner of brand new cars, ruling out any used cars, including pre-registered vehicles, which normally count a dealership as the first owner. Home charging grants are available for eligible buyers of new or used cars, however.

    How do I claim the grant?

    You dont need to do anything. The supplying dealer does it on your behalf and automatically reduces the price of the car by the value of the grant.

    Can I get the electric car grant if Im purchasing on finance?

    Yes, the grant will be deducted from the total price, which will reduce your monthly payments.

    Can I be paid the electric car grant in cash?

    This isnt an option. As its designed to boost sales of plug-in cars, the grant is only used to adjust the price: you never actually see the money, let alone get it in your pocket.

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    Do You Get A Discount If You Buy An Electric Car

    Yes, it is possible to get a government grant of up to £2,500 towards the cost of a new electric car. The car must be new and not second-hand.

    The plug-in car grant, run by the Office for Low Emission Vehicles , is available for models that meet the criteria listed below.

    Vehicles must:

    • Have emissions of less than 50g/km
    • Have a range of at least 70 miles

    Van owners can get a grant of up to £6,000 and taxis can get up to £7,500. The eligibility criteria here are different to those that apply to cars.

    Incentives And Grants For Electric Cars And Vans

    The good news is, there are a number of government incentives for electric cars and vans, which offer a host of financial benefits for your business during the course of ownership. To assist with the initial purchase, theres a Plug-in Car Grant that offers 35% of the cost of an electric car for cars which cost less than £32,000, as well as a Plug-in Van Grant that offers 35% of the cost of a small electric van without any emissions at all) up to a maximum of £2,500 and 35% of purchase price for large vans 2.5 -3.5 tonnes gross vehicle weight and CO2 emissions of less than 50g/km that can travel at least 96km without any emissions at all. You can claim a total of 1000 plug-in van and truck grants for your business or organisation each year. This limit resets every year on 1 April. In addition, the Workplace Charging Scheme can reduce the cost of installing electric car charging points by up to £14,000. Taking advantage of these grants for electric cars and vans can lower the upfront cost significantly.

    In addition to saving your business money, taking into account incentives such as lower BiK and exemption from ULEZ and congestion charges, compared to conventional diesel or petrol cars, electric vehicles can also deliver real cost-saving benefits to your drivers.

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    Grants For Electric Vehicle Charging

    For those who arent able to make use of the Plug-In Grant, as well as those who can, the UK Government is also supporting electric vehicle users with the, rather practically named, Grant schemes for electric vehicle charging infrastructure.

    One of the grants here is tied to the installation of a home charging unit for electric vehicles. Electric cars can be charged on the road, as well as via traditional outlets, but using a home charging system for electric cars is much more efficient and cost-effective. At the time of writing, the grant offers up to £500 towards a home charger for an electric car.

    Similarly, there is also a Workplace Charging Scheme which electric car drivers can apply for which operates a voucher based funding for businesses, public sector organisations and charities, to help with the up-front costs of the purchase and installation of electric vehicle chargepoints.

    Which Cars Can Get The Grant

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    Only 100% electric cars are eligible for the grant. These vehicles are powered by batteries alone no internal combustion engine in sight. They are often referred to as Battery Electric Vehicles or BEVs.

    The grant applies to all-electric cars under £32,000, as long as they have a battery range of at least 70 miles. Fortunately, all BEVs you can lease today have a range greater than 70 miles.

    Hybrid cars which have both a battery and a petrol or diesel engine do not attract the electric car grant.

    Full details of the grant scheme are available on the government website.

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    How Is The Electric Car Grant Calculated

    The discount available can be determined by the Recommended Retail Price since its a percentage of the full purchase price, however, there is a maximum cap of £2,500 pounds. Any car over £10,000 is highly likely to be subjected to the capped rate. For vehicles listed under £10,000, the saving can be worked out through the following simple formula:

    Retail Price x 35/100 = How much you can save

    For more on the costs associated with EVs check out our EV hub and our guide on costs to maintain your electric vehicle.

    How Much Is The Electric Car Grant

    When it was first introduced, the grant provided up to 35% off the list price of a new plug-in hybrid or pure electric vehicle up to a maximum of £5000.

    In 2018, the maximum amount payable was cut to £4000 and plug-in hybrids were excluded from the grant, which was only available for zero-emissions cars with an electric range of 70 miles or more.

    The grant has been reduced by £500 each year since then, and in December 2021 it dropped to just £1500. The price cap, which was £35,000, was also reduced to £32,000.

    According to the Government, the latest reduction was announced to “reflect a greater range of affordable vehicles available” and help the funding go further as more drivers make the switch to electric cars.

    A spokesperson said: “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 by drivers who can afford to switch without a subsidy from taxpayers.”

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    Are There Other Grants For Electric Car Buyers

    Yes. At present, anyone buying an EV can also apply for a grant of up to £350 towards the cost of installing a home charging point. The Electric Vehicle Homecharge Scheme can be used to lower the cost of buying and installing a home charging point. EV owners can apply for one charge point per eligible vehicle with a maximum of two vehicles per household.

    However, the rules on who can apply for the grant are changing on 31 March 2022. From then, only landlords of rental properties and those living in leasehold flats will be able to get the grant owners of houses and bungalows will no longer qualify. The idea is to remove a key barrier to EV uptake in densely populated urban areas.

    If you’re a leasehold flat owner, to qualify for the grant you need to own an electric vehicle with CO2 emissions below 50g/km and have an OLEV-approved charger fitted. As with the PiCG, the paperwork for the EVHS grant can be done by the charge point supplier.

    What Are The Ozev Standards Based On

    Explained: What is the government plug

    Plug-in vehicles must meet two simple criteria to qualify for a grant, whereas cars were formerly put into three categories, depending on their range from a single charge and carbon dioxide emissions.

    The latest simplified rules state simply that cars must emit zero emissions. These new rules replace a set that stipulated that plug-in cars could emit up to 70g/km of CO2 using the ‘WLTP‘ emissions test standard. They should also be able to drive 70 miles in electric mode. The figures used come from the standard industry test that every new car must undertake. They arent representative of real-world conditions , but are currently the only common standard.

    CO2 emissions

    20% of RRP


    *Wheelchair accessible vehicles are eligible for up to £2,500 , and can cost up to £35,000. Vehicles eligible to convert include: Citroen e-Berlingo, Citroen e-SpaceTourer, Nissan e-NV200, Peugeot e-Rifter and Vauxhall Vivaro-e Life. The number of WAV grants available is limited.

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    Electric Vehicle Homecharge Scheme

    The Electric Vehicle Homecharge Scheme which helps plug-in vehicle owners offset up to £350 of their home EV charger is ending on 31st March 2022 for homeowners who live in single-unit properties such as bungalows and detached, semi-detached, or terraced housing.

    The scheme will remain open to homeowners who live in flats and people in rental accommodation .

    To claim, you’ll need to:

    Who Cant Claim For An Electric Car Home Charger Grant

    The grant isnt available to drivers of electric cars who:

    • Are not on the list of eligible EVs, or whose car is registered outside of the UK
    • Drivers who sometimes use an electric vehicle, but are not listed as the main driver
    • Individuals who drive or lease an electric car for less than six months
    • Drivers who are borrowing an electric vehicle from friends or family
    • Drivers who only have access to an electric vehicle through a car club
    • Drivers who want to claim for a second home charger but dont have two eligible vehicles.

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    Who Qualifies For The Plug

    In order for a car to qualify for the PiCG, you first need to determine which of these three low-emission categories it falls into. Weve broken each of them down in the following table:

    > 20 miles 50g-75g/km

    If the car falls into Category 1 and costs less than £35,000 brand new, then you can apply for the maximum amount offended by the PiCG.

    While cars in Category 2 and 3 used to qualify for a 35% reduction if they cost less than £60,000, they no longer do as of 2018, when these measures were reformed.

    How Much Is The Government Electric Car Grant

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    As long as the vehicles RRP, including VAT and delivery fees, is less than £32,000, then the grant is £1,500.

    For example, an all-electric car costing £31,000 would be priced at £29,500 once the grant of £1,500 has been taken off.

    On the other hand, an electric vehicle with a cost of £38,000 would not be eligible for the grant and would remain at £38,000.

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    Government Funding Targeted At More Affordable Zero

    Changes to the plug-in grant scheme to enable funding to go further and to help more people make the switch to an electric vehicle.

    15 December 2021
    • soaring demand for EVs leads to refocusing of grants on the most affordable zero emission cars, making best use of taxpayer money
    • analysis shows sales of zero-emission cars are up 89% compared to 2020, and in the last 3 months nearly 1 in 4 new cars sold had a plug
    • comes as new rules set to be introduced next year to improve reliability and make it easier to pay at public chargepoints

    As sales of plug-in cars, vans and motorcycles increase, the government is today announcing that the grant scheme for zero-emission vehicles has been updated to target less expensive models, allowing the schemes funding to go further and to help more people make the switch to an electric vehicle .

    The plug-in grant scheme, which has supported nearly half a million vehicles over a decade, has helped kickstart a market that is now moving forward at pace with over one in 10 cars sold in 2021 over 150,000 having a plug. EVs are becoming more affordable as the market has expanded and demand is increasing.

    The governments approach to supporting the uptake of electric cars is clearly working while the grant has slowly reduced over time, the sales of electric vehicles has soared. Record sales in 2021 have already exceeded those from 2019 and 2020 combined.

    Transport Minister Trudy Harrison said:

    Roads media enquiries

    How To Take Advantage Of Ev Charging Station Grants

    2021 is an exceptional time to invest in EV charging stations, especially along highway corridors and at travel centers. But the truth of the matter is that the investment is a strategic one for any commercial customer.

    The key benefit to investing in EV Charging stations in 2021 and 2022 is the abundance of accessible EV Charging Station grants available to businesses. But these EV charging stations grants wont last forever.

    The deployment of EV charging stations is a priority for the federal government and local governments across the United States. As a result, some businesses that install and commit to operating EV charging stations may have access to various government grants and incentives to encourage station installation and to improve their return on investment . Thats why taking steps to financially future-proof your business now will save you time, money, and keep you one step ahead of the competition.

    For regional businesses interested in pursuing EV Charging station installation, the biggest hurdle is often knowing where to start. Thats because the different incentives and grants for installing and operating EV charging stations are not intuitive. Finding programs you qualify for, and knowing how to make the most of those grants, requires expertise. Thats why we encourage you to turn to EV Charging Experts, like the professionals at LilyPad EV.

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    How Can I Apply

    To qualify for this grant, you must:

    • Purchase an eligible plug-in vehicle

    • Have off-street parking

    • Have a home-charger installed by an OZEV approved installer

    You can find more information on the EVHS on the governments website.

    Looking for the perfect car to take advantage of the many EV grants on offer? Why not explore our growing range of eco-friendly electric and hybrid lease offers?

    Ask an expert

    What Is The Electric Vehicle Home Charging Scheme

    UK Government slashes electric and hybrid vehicles grants

    Similar to the WCS, the Electric Vehicle Homecharge Scheme shaves up to £350 off the purchase and installation cost of a home charger. One chargepoint can be claimed per eligible vehicle with up to two vehicles being eligible per household.

    Benefits of the Home Charging Scheme:

    • 130 models eligible

    • Claim for up to two chargers

    • Charge at home for less

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