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Is there a government electric car grant?

Although the total cost of owning an electric car is likely to be lower (thanks to reduced running and maintenance costs), new electric car prices may seem higher than those of equivalent petrol or diesel-driven models.

To mitigate these higher upfront costs, the Government’s plug-in grant provides up to £1,500 towards the price of a new electric car, but is only applicable if the car costs less than £32,000.  You don’t have to apply for the grant either - your supplying dealer applies on your behalf and automatically deducts its value from the price of your electric car. 

The Government’s Office for Low Emission Vehicles (OLEV) also provides a grant under the Electric Vehicle Homecharge Scheme (EVHS). This gives new and existing electric car owners 75% off the purchase and installation costs of a home charge point (up to a maximum of £500). You can find out more about your eligibility for an EVHS grant and how to apply, by reading the government’s EVHS Guidance document here.

We’ve tried to answer some of the more common questions about electric car grants below.

Can I get a plug-in grant if I’m buying on finance?

Yes, the plug-in grant is paid to your car dealer who will deduct it from the total price of your electric vehicle. Your monthly payments will then be adjusted accordingly. Our page on electric vehicle finance gives you further information on the different types of finance agreements available from PSA Finance.

How much longer will the plug-in grant be available?

The amount offered in the plug-in grant has already been reduced owing to unexpectedly high demand. The government announced the grant remains until 2022-2023 financial year, albeit with some cutbacks.

Electric car prices are already falling and as demand increases, they are likely to fall further still. As the price of an electric car gets ever closer to its equivalent petrol or diesel-driven model, the need for the plug-in grant recedes accordingly.

Can I get a plug-in grant for a used electric car?

Only new electric cars qualify for the plug-in grant. Pre-registered cars are also ineligible because as they are registered to the dealership, they are technically second-hand vehicles. However, drivers of used and pre-registered electric cars are still eligible to apply for an EVHS grant, which will provide you with a contribution to the funding to install a charging station in your home.  

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How does a car qualify for the plug-In grant?

Since October 2018 only ‘pure electric’ vehicles are eligible for the plug-in grant. This specific government incentive is no longer valid for hybrid cars, although plug-in hybrid vehicles are still eligible for an EVHS grant. 

To qualify for a plug-in grant up to a maximum of £1,500, your new electric car must have:

  • Costs less than £32,000.
  • CO2 emissions below 50g/km
  • Ability to travel 112km (70 miles) with zero emissions  

Like all vehicle manufacturers, Stellantis is working hard to supply vehicles that can meet this criteria and satisfy the rising demand for electric cars. From 2025 Citroën, DS Automobiles and Peugeot will have all-electric or hybrid versions of every available model. In the meantime, look out for some exciting developments as we make our way towards an electric future.