New zero-emissions cars (mainly EVs) purchased in the UK are eligible for the plug-in car (PiCG) subsidy. The government sets aside money to buy zero-emission vehicles, creating a cash incentive for buyers to switch to electric cars and trucks.
This, along with the imposition of higher taxes on some new diesel vehicles, is helping the country achieve its goal of cutting CO2 emissions. It also makes it easier for people to buy low-emissions cars. Government announces end of subsidies in June 2022, before announcement Renewed for 18 months in October 2022 to continue it due to supply chain problems.
How does sponsorship work?
The government classifies all cars for sale into seven categories, depending on how much carbon dioxide (CO2) they produce and how far they can travel without any emissions. Until October 2018, the incentives apply to class 1, 2 and 3 cars, which are considered the least polluting.
However, the various changes to the PiCG mean that Class 2 and 3 vehicles (all plug-in hybrids) are ultimately ineligible for assistance, while the discount for Class 1 vehicles has been reduced. by the time.
This grant is administered by the Office for Zero Emission Vehicles (OZEV), a division of the Department of Transport (DfT). It decides which cars are eligible not only based on emissions, but also on factors such as safety features, warranties and top speed.
The subsidy currently covers up to 35% of the vehicle’s purchase price, up to a maximum of £1,500, if the vehicle has a list price of less than £32,000 (any optional equipment selected by the customer is not included). in the calculated list price). An eligible car also needs CO2 emissions below 50g/km and must travel at least 70 miles without emitting any CO2. Finally, it must be on the OZEV approved list.
Which cars are eligible for PiCG?
Cars are classified by OZEV as follows:
- Type 1: The vehicle has a 70-mile zero-emissions range, and one manufacturer puts CO2 emissions figures below 50g/km.
- Type 2: Vehicles have a range of at least 10 miles with zero emissions, and one manufacturer puts CO2 emissions figures below 50g/km.
- Type 3: Vehicles have a range of at least 20 miles with zero emissions, and one manufacturer puts CO2 emissions figures between 50-75g/km.
If your car qualifies for Category 1 and costs new under £32,000, excluding any optional extras, you can benefit from up to PiCG, paying 35% of the value of the vehicle, up to a maximum amount of £1,500.
Class 2 and 3 vehicles are used to qualify for a 35% discount if they cost less than £60,000, with a maximum savings of £2,500. However, the 2018 reforms mean that class 2 and 3 cars are no longer eligible for PiCG.
How do you apply for Plug-in Vehicle Financing?
Buyers don’t need to do anything to ensure that PiCG is applied to the vehicle they purchase, because the dealership they purchase from handles all the paperwork. The allowance is deducted from the list price of the vehicle, and the dealer makes the rest.
Are there any other electric vehicle grants?
Yes – The government will also give you up to 75% of the installation cost home power charging box. Among the conditions is that it must be an officially approved ‘smart’ charger and you need to have your own off-street parking. You must also be a registered car keeper (or have one on order).
Finally, cars with CO2 emissions below 75g/km are now exempt Congestion fees in London. Electric vehicles also benefit from favorable tax rates, both private and company vehicles.
Is there funding for plug-in valves?
Yes, yes. The valve plug-in level works on a slightly different basis to the way a plug-in car works, but is still available. Van buyers can receive a subsidy worth up to 35% of the cost of an electric truck with a value cap based on the vehicle’s total vehicle weight. For small trucks, the cap is £2,500 and for large trucks it is £5,000. You can get full details about level plug-in valve here.
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