Government Electric Car Grants

If you’re considering buying a new electric car, it’s well worth being aware of some of the potential electric car grants that can help you either save money on the price right from the start, or reduce your running costs. 

The deadline for all new cars sold in Great Britain to be zero emission models is now 2035. But, with the UK government stipulating that 80% of new cars sold in Great Britain by 2030 should be zero emission models (70% of new vans), the road forward is clear. In little over a decade, all new cars on British roads will be fully zero emission at the tailpipe – and, to help encourage motorists to start making that transition well in advance, it may be possible to get a government grant for an electric car.

If you’re an EV newbie, you’re likely to have lots of questions – many of them around running costs as well as the purchase price. You might have heard, or read, about some of the electric car grants that are available, which can save you money when you buy a new EV car as well as help towards other costs. But, as this blog will explain in more detail, the government electric car grant isn’t available in the same way as it used to be, and you might not be entitled to the kind of discounts you were expecting. There are a few different schemes available, but some have changed in recent years. So, what type of electric car grants can you apply for?

Firstly, the once-popular Plug-in Car Grant (PICG) is no longer available. Originally introduced in 2011 to encourage more car buyers to purchase vehicles with low emissions, the value of the Plug-in Car Grant (PiCG) was revised frequently until eventually being phased out in June 2022. The PICG gave buyers of new electric cars a discount on the price of the vehicle, but standard cars aren’t included anymore. 

So – not such good news for buyers of new electric cars. However, PICG has been replaced by other schemes that function as electric car grants, so support is still available. 

What has changed in recent years is a shift away from providing discounts on buying new electric cars, to grants that can help with the cost of improving the overall charging infrastructure around the UK. The eligibility criteria means many motorists won’t be able to apply – but there are incentives to help with installing home charging points in residential and commercial areas, with the aim of getting Great Britain ready for an all-electric motoring future.

The UK government has stated an ambition to install ‘around 300,000’ public chargers by 2030 — as a minimum. Solutions to widen the network include integrating charging points into lamp posts.

How long does it take to charge an electric car? Read our guide to EV charging times here.

One of the benefits of driving an electric car is reduced running costs, and those costs can be reduced further by having access to a charging point at your home. The Electric Vehicle Chargepoint Grant can help towards the cost of having an EV chargepoint socket installed at your property – providing either 75% off the price, or a discount of £350.

Not everyone is eligible to apply for this type of Government electric car grant, though. If you own your home, you don’t qualify. But, you can apply if you own and live in a flat, and if you rent a residential property (including properties under the shared ownership scheme). Your home needs a dedicated off-street parking spot, too.

The EV Chargepoint Grant has replaced the Electric Vehicle Homecharge Scheme (EVHS). The scheme is also available if you’re a landlord. Landlords can apply for up to 200 grants for residential properties, and 100 grants for commercial properties, in each financial year. Local authorities owning social housing can also apply for the EV Chargepoint Grant.

According to government statistics, between April 2022 and January 1, 2023, 1,587 sockets were installed via the EVCG – corresponding to £1.2 million in grant payments.

The EV Infrastructure Grant is available in two different formats:

• For landlords
• For small to medium businesses

For landlords, the grant can provide money off more extensive building installation work that might be needed in order to fit multiple chargepoint sockets; the government’s example is for wiring and posts.

The grant can provide 75% off the cost of any work, capped at a maximum of £30,000. Landlords can get up to £350 per chargepoint socket, and up to £500 per car parking space. Up to 30 grants can be received in each financial year. To qualify to apply, the EV Infrastructure Grant must be used for a property with what’s deemed as multiple homes; a block of apartments, or an estate where several homes share a car park.

For small to medium businesses, an EV Infrastructure Grant can be used to install EV chargepoints and building infrastructure in staff car parks. Again, the grant covers 75% of the overall cost of the work, up to a maximum total of £15,000.

A business with 249 employees, or fewer, is eligible to apply, and an Office for Zero Emission Vehicles (OZEV)-approved installer must be used for the work.

Another Government grant for electric cars is the Workplace Charging Scheme (WCS). The WCS is available for businesses, charities and public sector organisations in England, Scotland, Wales, and Northern Ireland. The scheme is designed to help support businesses and other organisations that may be looking to provide EV chargepoints for employees who drive electric cars and vehicles.

The WCS grant covers up to 75% of the cost of the purchase and installation. The grant is capped at a maximum of £350 per socket, and at 40 sockets per applicant. You can read more details about the WCS here.

The On Street Residential Chargepoint Scheme (ORCS) is designed to help local authorities around the UK deliver electric charging infrastructure for residents who don’t have private or off-street parking facilities. The intention is that, if you drive an electric car but don’t have a home with a driveway or garage, or shared residential parking space, you can still get access to a chargepoint.

This grant is for local authorities to apply for, but you can contact yours to request an application. The funding covers up to 50% of eligible capital costs, capped at £200,000; maximum funding per chargepoint is £7,500.

Applications for ORCS run until March 1, 2024, and projects must be completed by March 1, 2025.

While electric car grants are no longer available for standard cars, the Plug-in Car Grant (PICG) does still operate on certain types of vehicles.

Eligible vehicles include:

Wheelchair accessible vehicles – maximum discount of £2,500
Motorcycles – maximum discount of £500
Mopeds – maximum discount of £150
Small vans – maximum discount of £2,500
Large vans – maximum discount of £5,000
Small trucks – maximum discount of £16,000
Large trucks – maximum discount of £25,000
Taxis – maximum discount of £7,500

Not all models will be considered eligible for a PICG, and the value of the grant will vary depending on the new price of any vehicle. Check further details on Gov.uk.

Are you charged up and ready for the switch to zero emission motoring? Dive into our latest news section to read more electric-car themed content or explore our range of electric cars from BMW, Jaguar, Land Rover and Range Rover, MINI and Porsche. 

Looking for an electric bike? Check out the new BMW Motorrad CE04.