Plug-in Grant extended to electric vans

Van buyers will be able to receive 20% – up to £8,000 – off the cost of a plug-in electric van, Transport Minister Norman Baker and Business Minister Mark Prisk announced today.

This is an extension of the Plug-In Car Grant which offers 25% – up to £5000 – to motorists buying a new plug-in car. Ministers have also re-confirmed there is funding secured for this grant until 2015.

The purpose of the consumer grant is to enable the purchase of ultra-low carbon vehicles which could otherwise have been unaffordable. The consumer will also benefit from lower running costs over the lifetime of the vehicle.

Transport Minister Norman Baker said, “Electric vehicles are the arrowhead for a low carbon revolution in motoring and as more models come to market we'll begin to see sales gather pace. Car buyers have had a year to take advantage of our grant and now it’s time for van buyers to get their chance to go electric. This is great news for businesses given the lower running costs of these vehicles – fleet buyers tell us that this is one of the most important factors influencing their decision on what to buy.

“It is radical initiatives like these which will allow us to create a transport system that both cuts carbon and is an engine for economic growth.”

Business Minister Mark Prisk said, “Supporting ultra-low carbon technology in vans makes sense. An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra-low carbon van an attractive choice for businesses. The technology also fits well with a large portion of the van market that relies on short urban trips to and from base.”

From today ultra-low carbon van manufacturers will be able to apply to be part of the Plug-In Van Grant – which will help to improve local air quality in cities, reduce carbon emissions and meet Government carbon reduction targets.

To be eligible for the scheme, vans will have to meet performance criteria to ensure safety, range, and ultra-low tailpipe emissions. Consumers, both business and private will receive the discount at the point of purchase.

One such van that can be purchased today is the Kangoo ZE van from Renault, although its has to be officially registered for grant eligibility before benefits are made available. It is a pure electric vehicle with a top speed of 81 mph – a 6 to 8 hour charge will return up to 106 miles of emission free motoring.

The Kangoo ZE van is priced at £16,990 excluding VAT, but with the introduction of the new van grant, a consumer would end up paying little over £13,000 – very reasonable considering its lower running costs.

To be eligible for the grant, vans must be brand new and in the ‘N1′ vehicle category with a gross weight of 3.5 tonnes or less. They must emit 75 grams or less of CO2 per kilometre driven, and must have a minimum range of 60 miles with the ability to reach a minimum top speed of 50 mph. For additional criteria visit the Department for Transport website.

There are currently 10 electric cars and plug-in hybrid cars which are eligible for the Plug-In Car Grant – 5 of which came onto the market in 2011, with the other half expected to be available to purchase this year.

To view all battery electric vehicles eligible for the Plug-in Car grant, go to:
Available electric models page for eligible electric cars,and
Available plug-in hybrid models page for eligible plug-in hybrid cars.

During the first year of the scheme, over 1000 eligible vehicles were registered and, up to 31 December 2011, 892 applications were made for the Plug-In Car Grant.

Newspress