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Since 2011, the government has been actively encouraging motorists to switch to for ultra low emission vehicles (ULEVs) by contributing up to 25% or a maximum £5,000 towards electric vehicles and up to 20% or a maximum of £8,000 towards electric. This week, the guidelines changed and a new modified system of Plug-in Vehicle Grants (PiCGs) was introduced.
Below Trusted Dealers outlines the latest guidelines for buyers thinking about purchasing an electric vehicle or plug-in hybrid from 1 March 2016 onwards.
What is the new grant?
The new system offers two rates for PiCGs:
Plug-in Hybrids (PHEVs) – the grant will fall by 50% from a maximum £5,000 to £2,000.
Electric Vehicles – the grant will be reduced by £500 to a maximum of £4,500
PiCGs will be awarded using a new EV classification system depending on the level of CO2 emissions and EV-only capability.
|Category||CO2 emissions||Zero emission range||Grant awarded|
|1||Less than 50g/km||70 miles minimum||£4,500|
|2||Less than 50g/km||10-69 miles||£2,500|
|3||Between 50-75g/km||At least 20 miles||£2,500|
Category 2 and 3 models with a list price of more than £60,000 will not be eligible for any grant at all, but all Category 1 vehicles will be eligible regardless of the cost.
The new grant scheme will run until March 2018 or until a certain number of each grant has been awarded.
How do I apply for the grant?
The grant is automatically deducted from the price of the car when you buy it. The dealership completes the paperwork, so there are no application forms to fill in, but you may be asked to complete a short questionnaire.
What is the qualifying criteria for cars?
Below is a list of the qualifying criteria for cars eligible for the government grant:
Which cars are eligible for the grant?
The cars currently listed as eligible on the government’s website for the scheme are: