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A guide to plug-in car grants and the Homecharge Scheme

Although the current climate has drastically impacted vehicle registrations, there has been a glimmer of hope for electric vehicles. This year saw electric vehicle registrations increase its market share by 12.7% to 20.8%, compared with just 8.1% in 2019.

With this in mind, Moneybarn looks at the different grants available to electric or hybrid vehicle owners, when they’re looking to purchase their next vehicle.

What is a plug-in grant?

Administered by the Office for Low Emission Vehicles (OLEV), the plug-in grant is designed to encourage the uptake of electric vehicles in the UK by reducing the initial cost to drivers.

The grant sum depends on which category the vehicle is in. The six categories are:

·         Cars
·         Motorcycles
·         Mopeds
·         Vans
·         Taxis
·         Large vans and trucks

However, not all low-emission vehicles are eligible and only government-approved vehicles will qualify for the grant.

Low-emission cars

Given the name of the scheme, it’s unsurprising that the only cars eligible are those you need to plug in to recharge. This means most new electric cars, which are powered only by their electric motors, will qualify for the incentive.

Qualifying cars will have CO2 emissions of less than 50g/km, can travel at least 70 miles without any emissions at all and cost less than £50,000.

The grant will cover the cost of 35% of the purchase price – up to a maximum of £3000.

Motorbikes and mopeds

Pure electric motorbikes and mopeds that only use battery power are eligible for a grant worth 20% of the recommended retail price (RRP), up to a maximum of £1,500.

However, to qualify for the grant, motorbikes must be able to travel for at least 31 miles before needing a recharge. Whereas, mopeds only need to be able to travel a minimum of 19 miles between charges.

Vans

Electric vans receive the largest plug-in grant. As it stands, motorists can receive a grant worth 20% of the RRP, up to a maximum of £8,000.

To qualify, the van must be able to travel at least 10 miles on electric power without needing to recharge and have CO2 emissions of 75g/km or less.

Hybrid vehicles

Unfortunately, plug-in hybrid vehicles are no longer eligible for a grant. Due to them running partly on a petrol or diesel engine, they no longer qualify – however, they are still eligible for lower car tax and grants for charging infrastructure.

Home-charging grant

Both hybrid and fully electric vehicles can still qualify for a home-charging grant. There have been some slight changes to the scheme recently, such as the grant cap being reduced to £350, since April 2020. This will cover up to 75% towards the cost of installing a domestic charging station in your home.

The grant is only applicable to one charge point per household/per eligible vehicle.

To qualify for the grant, you need to have purchased an eligible vehicle from 1st October 2016 onwards and have access to designated private off-street parking with facilities for the vehicle to be charged safely.

If you’re given an eligible vehicle by your employer for at least six months, you are also eligible for the home-charging grant. But only if you are assigned as the primary user.

The full list of vehicles eligible for the plug-in grant can be found here. The full list of vehicles for the Electric Vehicle Homecharge Scheme can be found here.

May 21, 2020Blagojce Krivevski
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Blagojce Krivevski

Blagojce Krivevski is physicist and green technology lover. Keep in touch with Blagojce through his email, web site, Twitter, Linkedin, Facebook and Google+.

May 21, 2020 Electric Car NewsEV Charging, Homecharge Scheme, Plug-In Car Grant, UK
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