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What is the UK ‘Plug-in Car Grant’?

In the UK car manufacturers offer anything from a city-car to super-car which are either zero emissions or are capable of running on electricity alone for a limited distance, known as a Plug-in hybrid, these are seen as a perfect transition to a full plug-in vehicle.


When purchased from new, a car could be eligible for the UK Government backed plug-in vehicle grant (PiCG). The grant currently stands at upto £4500 for a car and upto £8000 for a commercial vehicle.  With outstanding warranties on battery packs, a used EV/PHEV could be an option too.

From March 2016 changes to the grant were made with bandings taking effect to recognise the technological and environmental progress made by pure electric vehicles, and provides them with the largest amount of financial support.

OLEV PiCG Tiers

The grant will be tiered offering £4500 for a vehicle with a zero-emission range of more than 70 miles, including hydrogen fuel cell vehicles, with plug-in hybrids costing under £60,000 receiving £2,500.

The grant is deducted from the price of the vehicle at the point of sale by the dealership. No paperwork is required from the customer, except a survey, to benefit from the grant.

Currently the PiCG is scheduled to run until March 2017 providing £400m of incentives.

With new models expected from VW, Mercedes and Tesla this list is set to grow giving more electrifying choices to buyers.