The UK Government’s Office for Low Emission Vehicles (OLEV) has been set up to strengthen the market for ultra-low emission vehicles in the UK. To achieve this, OLEV has a budget of £500 million to be spent up to 2020 support the market development of ultra-low emission vehicles. Grants are being offered to reduce the upfront cost of battery electric and plug-hybrid vans and support the installation of electric vehicle charging points.
A number of financial incentives have additionally been introduced at national and local level to lower the running cost of plug-in hybrid vans.
A list of the current incentives for plug-in hybrid electric vans:
- Plug-in van grant- up to £8,000 or 20% of the list price.
- Lower road tax rate.
- 100% capital allowance.
- Exempt from Van Benefit Charge until 2015, with tapered support extended to 2020.
- Free / Discounted parking offered by some local authorities.
- 100% discount for London Congestion Charge until October 2021
- Grant of up to £700 towards the installation electric vehicle infrastructure. The grant can only be accessed by householders who own or have regular access to an eligible plug-in vehicle.
Plug-in van eligibility criteria
To receive 20% or up to £8,000 off the list price, a van must meet the criteria as set out in the Plug-in Van Eligibility Guidance document. To qualify, a vehicle must:
- Emit less than 75 grams of carbon dioxide (CO₂) per kilometre driven.
- Be able to travel a minimum of 60 miles between charges if a battery electric vehicle (BEV).
- Have a minimum electric range of 10 miles if a plug-in hybrid electric vehicle (PHEV).
- Be able to reach a speed of 50 miles per hour or more.
For more information see the Plug-in Van Guidance on the Department for Transport’s website.
To see which BEVs are eligible for the grant, see our BEV Market page.
Further Information: