Drivers can save £25,000 on new EV with grant scheme extension

The Office for Zero Emissions (OZEV) has confirmed an extension to the Plug-in Van Grant, which allows motorists to save money on a new electric vehicle. It is understood that OZEV upgraded the limit of Plug-in Van Grant orders per user from 1,000 units to 1,500 units per financial year.

The limit was originally introduced in December 2021 to “ensure best value for money for the taxpayer” and make sure budgets were distributed as fairly as possible.

OZEV is believed to be keeping the Plug-in Van Grant under continual review and could eventually pull the grant once it is satisfied with uptake.

Some vans can be sold at a 35 percent discount, with small vans attracting a maximum discount of £2,500, with drivers able to use this on popular brands including Vauxhall, Nissan and Toyota.

Motorists can get a maximum discount of £5,000 when purchasing a new large van, which must be between 2,500kg and 4,250kg in weight, have CO2 emissions of less than 50g/km and be able to travel at least 96km (60 miles) without any emissions.

Commenting on the announcement, Gerry Keaney, chief executive of the British Vehicle Rental and Licensing Association (BVRLA), praised the move but warned of the challenges faced by van drivers.

He said: “Van fleets are struggling to make the zero-emission transition and the 2030 Phase Out target for internal combustion engine vehicles is at serious risk. 

“Fleet-friendly public charging infrastructure is scarce and operators are struggling to find electric vehicles that can match their diesel counterparts when it comes to cost of ownership, payload or range.

“The Government is listening and today’s Plug-in Van Grant extension will be welcomed by the largest fleet operators. 

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“The Grant is a vital tool in bringing more electric LCVs to UK roads, but it is not a silver bullet.”

From 2030, the UK Government will ban the sale of new petrol and diesel vehicles, followed by a similar ban on hybrids five years later.

While many individuals will be able to replace their petrol and diesel cars, it may be more difficult for businesses to switch their fleets, especially with trucks and lorries.

Further grants are available for trucks, including a £16,000 small truck grant, although only two vehicles are eligible for this incentive.

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Large trucks which are heavier than 12,000kg can receive a grant of up to £25,000 off the total price, with some vehicles believed to cost around £400,000.

Mr Keaney continued, saying that the Government needed to introduce a new Electric Van Plan to ensure manufacturers, businesses and individual drivers have the confidence to embrace electric.

He added: “The Zero Emission Vehicle Mandate that comes into force next year will encourage manufacturers to produce more affordable and capable electric vans.

“In the meantime, we need to see a huge effort in rolling out a more affordable, reliable and accessible van fleet-friendly charging infrastructure.

“The BVRLA continues to campaign on this topic and is in regular contact with OZEV and other bodies to share the concerns of van operators and drivers.”

The Plug-in Van Grant was extended last March in order to support the purchase of tens of thousands of new green vans and trucks.

Department for Transport data shows that existing grants have supported the purchase of more than 26,000 electric vans and HGVS since it was first launched in 2012.

It is estimated that nearly five percent of the UK’s CO2 emissions come from vans and larger vehicles on the roads. has reached out to OZEV for a comment.

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