Buyers of Electric cars have had a helping handing over the last few years with financial help from the UK Government to incentivise the purchase of new cars.
The Plug-in Car Grant ({PiCG) was introduced back in 2011 with the aim of reducing the level of CO2 produced by our car drivers in the UK. Back then, the choice was limited to a Tesla Model S, Nissan Leaf and the BMW i3 and the early adopters of these electric cars could get a £5,000 grant to help reduce the cost of ownership.
From 21 October 2018, the Government changed the rules so that cars that were eligible for the grant had CO2 emissions of less than 50g/km and a zero-emission range of at least 70 miles. This encouraged car manufacturers to consider the All Electric Range (AER) of Plug in Hybrid cars.
Further changes were made on the 12th March 2020, cars that were eligible for the grant had a recommended retail price below £50,000. The grant was also reduced from £5,000 to £3,000. This removed the Tesla Model S, but by now, the UK Market had much more choice and as such, the entry point of electric car ownership started to come down. The logic here was that the UK Government no longer needed to support the sale of Luxury Electric cars.
Then on the 18th March 2021, cars eligible for the grant had a recommended retail price below £35,000 and the grant was reduced from £3,000 to £2,500, this limited the choice of cars and the manufacturers started re-aligning model ranges to get some of their cars back in the band to keep sales going.
The most recent change happened on the 15th December 2021, cars eligible for the grant have a recommended retail price below £32,000 (* see full price cap definition below) and the grant was reduced from £2,500 to £1,500, the vehicles also had to have a zero emission range of at least 70 miles and are fully zero emission.
So, what cars are available in the UK today that qualify for the £1,500 PiCG? This is a list of models that have qualifying derivatives in their range;
Citroen E-Berlingo Car-derived van
FIAT 500 Electric Hatchback
Hyundai Kona Hatchback
Mazda MX-30 Hatchback
MG MG5 Estate
MG ZS Hatchback
Mini Electric Hatchback
Nissan Leaf Hatchback
Peugeot E-208 Hatchback
Renault Zoe ForFour Hatchback
Vauxhall Combo E-Life Car Derived Van (7 Seat option)
Vauxhall Corsa-E Hatchback
Vauxhall Mokka-E Hatchback
Vauxhall Vivaro-E Car Derived Van
Volkswagen ID.3 Hatchback
Volkswagen Up Electric Hatchback
Have a look here at all our Electric Car Leasing offers. For more info please call the team on 0161 406 3936.
* Definition of price for application of the cap
To be eligible for the PICG, eligible cars must be priced below £32,000 recommended retail price. If the car will be converted to a WAV, then eligible cars may be priced up to £35,000 subject to grant limits. The definition of recommended retail price includes:
• 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 capacity of the
battery, drive train configuration or maximum net power.
and excludes:
• any non-standard option fitted by the manufacturer or dealer which does not affect the capacity of the battery, drivetrain configuration or maximum net power.
• modifications such as ‘police packs’, ambulance/fire engine modifications
• modifications for disabled users, including WAV conversions
• warranty/insurance and service packages etc
• first registration fee and cost of first licence
• discounts (including rebates)
Where a vehicle model has a price range which straddles the cap only those variants/trim levels priced below the cap will be eligible for the grant. Variants or trim levels of eligible vehicles which are priced above the price cap are not eligible for the grant.
Source: UK Government - Plug-in Car Grant Vehicle Application Form and Guidance Notes. Version 8.0