March 19, 2021
Yesterday the UK Government announced that effective immediately they have updated the eligibility criteria and grant available for their plug-in electric vehicle grants.
This will impact plug-in car grants, plug-in van grants and plug-in truck grants and came into effect as of 7 am yesterday, the 18ht of March.
The Government has advised that they have taken this action with little warning for drivers as they were concerned about their limited finances and that there would be a flux of applications prior to the end of the higher rate dates.
Changes have been made in order to prolong the lifetime of the scheme and ensure they are able to provide support for personal drivers and businesses looking to make the switch to electric.
Changes to the Plug-in Car Grant
Previously you could have applied for a grant on a plug-in electric car for up to 35% of the total vehicle’s value up to £3,000 but this has now been reduced by £500 to £2,500.
The eligibility criteria has also changed and cars that have a price of £35,000 or higher will no longer be eligible for the grant.
This means that models like the Polestar 2 and Tesla Model 3 will no longer be eligible for the grant.
Changes to the Plug-in Van Grant
The plug-in van grant was previously a grant up to 35% for up to £8,000 which has now also reduced.
Depending on the size of the van that you opt for the amount you are eligible has changed but it remains at 35% of the vehicle value.
If you are looking at a small van, which is classed as one with a gross vehicle weight of under 2.5 tonnes, then you can apply for a grant of up to £3,000.
Large vans, which are classed as ones between 2.5 and 3.5 tonnes gross vehicle weight, are eligible for a grant of up to £6,000.
The eligibility criteria has also changed for the van grant and you will now need a vehicle that emits less than 50 g / km of CO2 and be able to travel at least 60 miles without any emissions.
Changes to the Plug-in Truck Grant
The plug-in truck grant has also seen some changes.
Previously you could apply for a grant of up to £20,000 on N2 and N3 vehicles that was up to 20% of the vehicle value for the first 200 vehicles that applied and was limited to 10 vehicles per customer.
The amount of the grant has changed but remains at a cap of 20% of the vehicle value.
For N2 vehicles which are classed as small trucks, and are between 3.5 and 12 tonnes gross vehicle weight, you can apply for a grant of up to £16,000 for the first 250 vehicles ordered per financial year. This March is classed as part of the 2021-22 financial year for the purposes of the application process.
Large trucks that fall into the N3 category, which are those that have over a gross vehicle weight of 12 tonnes, are now eligibly for up to £25,000 for the first 100 applications.
There is a maximum of 10 grants for N2 vehicles per business and 5 grants for N3 vehicles.
For both category N2 and N3 vehicles, the eligibility has now been updated and vehicles must be able to travel 60 miles without any emissions at all.
How Will This Affect My Fleet?
If you currently have electric vehicles, whether leased or owned outright, there will be no impact on you.
If you have currently placed a lease order with us then our dealers would have requested the EV grant at the same time as, or close to, placing the order for the vehicle and so there will be no impact.
If you are looking to add a new vehicle to your fleet and have not yet placed an order then we will provide you with quotes that take into account the new grant rates.