Plans for change in Plug-in Car Grant confirmed

Plans for change in Plug-in Car Grant confirmed


The Office for Low Emission Vehicles (OLEV) has confirmed that its Plug-In Car Grant (PICG) will come to an end in its present form with the sale of the 50,000th EV or the end of the budget period, whichever occurs first.

The confirmation came in response to a query raised by the British Vehicle Rental and Leasing Association (BVRLA) following uncertainty from some of its members, some of whom had started to remove the £5,000 grant from their quotation systems.

BVRLA Chief Executive, Gerry Keaney said: “We are delighted that OLEV was able to provide this speedy and common-sense response to our members’ concerns. Losing the £5,000 subsidy would have a major impact on a monthly lease rental, so leasing companies need to know that their quoted price won’t be hit because the vehicle lead time extends beyond the plug-in grant’s cut-off date.

“Registrations of ultra-low emission vehicles have taken-off in recent months and the rental and leasing industry has been leading this charge. The uncertainty surrounding the grant was threatening to hike lease prices for ULEVs and reduce their appeal to prospective customers.”

OLEV has alreday announced changes to the Plug-in Car Grant – from 1st April 2015, buyers of eligible electric cars are able to claim 35% of the vehicle’s OTR price up to a maximum of £5,000. The Grant is automatically awarded on registration of an eligible vehicle and no application from the buyer is required.

From April 2015, eligible ULEVs must meet criteria in one of the following categories depending on emission levels and zero-emission-capable mileage:

Category 1: CO2 emissions less than 50g/km & a zero emission range of at least 70 miles;
Category 2: CO2 emissions less than 50g/km & a zero emission range of 10 – 69 miles;
Category 3: CO2 emissions 50-75g/km & a zero emission range of at least 20 miles.

In response to the confirmation, Dr Ben Lane of Next Green Car added: “While the current Plug-in Car and Van Grants will come to an end in their present form, all the signals from Government suggest that the new administration will continue to vigorously support the UK’s emerging EV market.

“The introduction of the new Plug-in Car Grant Categories also indicates a significant shift in future policy with future grants most likely to differentiate between all-electric vehicles, plug-in hybrid models with official CO2 emissions of less than 50 g/km, and PHEVs with CO2 of 50-75 g/km.”

GreenFleet, Next Green Car