Government Electric Car Grant Explained | Select Car Leasing
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Government Electric Car Grant Explained

The government electric car grant scheme ended on 14 June 2022. It used to be £1,500. When you leased an eligible car, the grant was applied automatically. Our guide below explains how the grant used to work.

If you're looking to lease a van – good news! – the grant is still available.

Why Did The Government Electric Car Grant Exist?

As part of their Road to Zero policy – when the sale of new petrol and diesel cars will be banned from 2030 – the government wants to promote eco-friendly vehicles that have low or zero CO2 emissions and don’t pollute the environment. 

That’s why there was a grant which reduced the recommended retail price (RRP) when you lease certain fully electric cars.

The car grant scheme – sometimes referred to as the Plug-in Car Grant or PiCG – was administered by the Office for Zero Emission Vehicles (OZEV).

Which Cars Could Get The Grant?

Only 100% electric vehicles were eligible for the grant. These vehicles are powered by batteries alone – no internal combustion engine in sight. They are often referred to as Battery Electric Vehicles or BEVs.

The grant applied to all-electric cars under £32,000, as long as they had a battery range of at least 70 miles. Fortunately, all BEVs you can lease today have a range greater than 70 miles.

Plug-in hybrids and conventional (non plug-in) hybrid cars – which have both a battery and a petrol or diesel engine – did not attract the electric car grant.

Full details of the new grant scheme – covering wheelchair accessible vehicles, motorcycles, mopeds, small vans, large vans, taxis, small trucks and large trucks – are available on the government website.

How Much Was The Government Electric Car Grant?

As long as the vehicle’s purchase price (RRP), including VAT and delivery fees, was less than £32,000, then the grant was £1,500.

For example, an all-electric car costing £31,000 would have been priced at £29,500 once the grant of £1,500 had been taken off.

On the other hand, an electric vehicle with a cost of £38,000 (RRP) would not have been eligible for the grant and would have remained at £38,000.

Did You Have To Apply For The Grant?

If you leased an eligible fully electric car with Select Car Leasing, you didn't need to do any paperwork to get the grant.

The £1,500 reduction in price was applied automatically before your monthly payments were calculated.

Even without the grant, we have a wide range of excellent lease deals for both all-electric and hybrid cars. Why not get in touch now for a quick chat or browse our special offers below.

Plug-in Car Grant Summary

  • Applied to fully electric cars only
  • £1,500 off the RRP
  • Cars priced at below £32,000 were eligible
  • The discount was applied automatically when you lease

Want to know more or enquire about a new electric car?

Why not phone one of our friendly electric vehicle consultants on 0118 3048 688

or email us at

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