The news gets even better as it was announced that the funding for the plug-in car grant has been secured until 2015.
To date, 892 grants have been applied for, covering the majority of the 1082 electric car registrations in 2011, taking just £5.26 million of the £250 million allocated for the consumer incentive.
The plug-in car grant offers 25% – up to £5,000 – off the price of an electric car. The grant for eligible vans totals 20 percent of the vehicle, up to the value of £8,000.
Both plug-in hybrid and full battery electric vans will be able to qualify.
Each van qualifying for the grant must emit less than 75g/km CO2, be capable of at least 60 miles between charges (10 miles in electric mode for hybrid vans), more than 50mph and to ensure safety and meet European Vehicle Type Approval standards.
Announcing the electric van grant, 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.”