Full Guide to Electric Car Grants 2023
All the latest EV grants & incentives in the UK
Thinking about buying an electric car? There are several government incentives in place to make the switch easier and more affordable. For example, as part of the Department for Transport’s Office for Zero Emissions (OZEV) schemes, drivers could receive a grant towards buying an electric vehicle and installing an electric charging point. So, what help is available?
Below, we look at the various electric car grants and how they work.
The latest government electric car grants 2023
Grants for electric vehicles are available if you’re looking to transition to an EV. There are also government incentives towards the cost of installing home charging points. Plus, there are options for workplaces and local authorities looking to expand on-street charging facilities.
Explore the options below and find out what you could be eligible for.
The Electric Vehicle Homecharge Scheme
EV owners may be eligible for the Electric Vehicle Homecharge Scheme (EVHS). This government grant provides up to £350 off the cost of installing a home charger. This grant is available for flat owners or anyone in rental accommodation (flats and single-use properties). Plus, you’ll need to have access to off-street parking.
How the EVHS works
The Electric Vehicle Homecharge Scheme (EVHS) enables an authorised charge point installer to claim 75% of the cost of installing your new wall box – up to £350. This is ideal for flat owners or tenants who drive an electric or plug-in hybrid vehicle and have access to off-road parking.
Electric Vehicle Homecharge Scheme eligibility criteria
If you have purchased or leased a new or used eligible electric vehicle on or after 1 October 2016, you may be entitled to the Electric Vehicle Homecharge Scheme.
To claim the grant, you must meet specific criteria, including:
The below people are eligible for the EVHS grant:
- Registered keepers of a new or used EV
- Drivers of an electric company car (for at least six months)
- Drivers of a privately leased electric car (for at least six months)
- Drivers of a leased electric vehicle through a salary sacrifice scheme
- Named drivers of an electric company car (for at least six months)
- Anyone who has ordered an eligible EV
Living situation eligibility
Alongside your driver status, you must also meet conditions regarding your living situation.
- Must have dedicated off-street parking
- Must live in an existing property (no new builds)
- Must be a resident of the property
- Must have permission from the freeholder, building management or letting agents
How to get the EVHS grant
The grant is deducted from the installation cost of your new electric charge point. An approved installer will claim 75% of the price from the government scheme (up to £350), and you pay the remaining agreed cost to the installer.
You cannot apply for the grant yourself. Instead, you must contact a local approved electric charge point installer to access this scheme on your behalf.
Recent changes to the EVHS in 2022
Before March 2022, most electric car owners could take advantage of this scheme. However, from April 2022, eligibility criteria changed, and homeowners, including people with a mortgage in single-unit properties such as detached, semi-detached, terraced houses and bungalows, are now unable to apply.
The Workplace Charging Scheme
The Workplace Charging Scheme (WCS) is a great way for eligible businesses to make electric charge points more accessible to employees. It also encourages greener travel options for those that commute to work. This scheme is run on a voucher basis and covers up to 75% of the cost (up to £350) of electric charger installation.
What is the workplace charging scheme & how does it work?
This grant is available for eligible businesses, charities and public authorities looking to install up to 40 charge points. This scheme, unlike the EVHS, is voucher-based, and organisations must apply to the OZEV to claim the grant.
The WCS provides up to £350 off the installation of each electric charge point. In addition, businesses can apply for up to 40 sockets in total across all their sites.
So this could be 40 charge points in one location or one charge point in 40 individual sites.
Workplace Charging Scheme eligibility
The WCS is available for most businesses in the UK. Charities and public sector organisations are also able to apply. However, these organisations must meet specific criteria, including the following:
- Must be located in England, Wales, Scotland and Northern Ireland
- Must be able to provide a Companies House, VAT or HMRC registration reference number
- Must declare the requirement for EV charging point if your business does not own or lease electric cars
- Have off-street parking for employees or fleet use
- Own the property or have permission to install from the landlord
Public sector organisations may also need to meet other criteria based on previous funding allowances. Check the government’s website for the complete list of requirements.
The On-Street Residential Chargepoint Scheme
The On-Street Residential Chargepoint Scheme (ORCS) is available to local authorities looking to install more community electric charging points. This funding helps towards the cost of installation in towns & communities where more charging points are needed.
How the On-Street Residential Chargepoint Scheme works
The Energy Savings Trust runs the scheme on behalf of the Office for Zero Emission Vehicles (OZEV), and funding is available on a first-come, first-served basis.
Funding is available for up to £7,500 towards an on-street charge point. However, local authorities must have support from the Highways Authority and a plan for the implementation to apply for this scheme.
Individuals cannot apply for help via the On-Street Residential Chargepoint Scheme. But, if you would like to see your local authority install EV charge points in your area, get in touch with them to express community needs.
Recent changes to the Plug-in Car Grant
The Plug-in Car Grant (PiCG) was introduced in 2011 as an incentive to encourage drivers to switch to electric. However, since its launch, the grant has steadily reduced as uptake increased.
As a result, it is no longer available for electric cars. Fortunately, some drivers can take advantage of discounts when purchasing or leasing a new vehicle. Explore below to find out which vehicles are still eligible.
Plug-in Grant (PiG)
Nowadays, the plug-in grant provides drivers with a maximum of 35% off the list price of a vehicle. However, this only applies to eligible electric and plug-in hybrid vans, motorcycles, taxis and trucks.
If you’re interested in using this grant, it is automatically applied to the list price at the dealership, so there is no application to fill in.
How much is the Plug-in Grant?
Eligible vehicles have a maximum of 35% off the list price. However, the cap varies depending on the model. For example, a small electric van is capped at £2,500 off the list price, and larger vans are capped at £5,000.
How does the government’s Plug-in Grant work?
If you’re looking to buy an electric vehicle, you don’t have to do anything other than select an eligible model. The grant is applied directly to the list price through the dealership or leasing company, and they claim the cash from the OZEV once you’ve purchased it. Also, only new electric vehicles are available with the Plug-in grant.
Below shows the range of eligible electric vehicles and their grant caps:
- Wheelchair-accessible vehicles under £35k - 35% of value, up to £2,500
- Motorcycles under £10k - 35% of value, up to £500
- Mopeds under £10k - 35% of value, up to £150
- Small vans - 35% of value, up to £2,500
- Large vans - 35% of value, up to £5,000
- Taxis - 20% of value, up to £7,500
- Small trucks - 20% of value, up to £16k
- Large trucks - 20% of value, up to £25k
Other exemptions for electric cars
While you don’t have access to the plug-in grant on an electric car, there are other ways to save with these models, such as:
Central London is subject to low-emission vehicle standards, and if cars fail to meet these, there is a daily fee to pay when driving in the city. However, EVs produce tailpipe emissions, so they are exempt from paying the Congestion Charge fees.
ULEZ & LEZ
The Ultra Low and Low Emissions Zones span a greater area of London, and the most polluting cars and vehicles are charged a fee to enter these areas. With an electric car, you enjoy an exemption from these charges and can drive freely within the capital.
Clean Air Zones (CAZ)
Several cities have introduced Clean Air Zones in high-pollution spots. Bath, Birmingham, Bradford and Portsmouth already have zones in place. Other locations are planning to implement these in the near future.
Clean Air Zones are determined by four classes, A-D, and charges are applied on this basis. But, if you drive an electric vehicle, you are exempt from paying CAZ charges as no emissions are produced.
Road tax charges apply to most vehicles on UK roads. However, as this is based on emissions, electric cars are exempt from paying it. Plug-in hybrids also get reduced rates depending on emissions figures. Electric cars still need to apply for road tax though.
Get in touch
Contact your local Group 1 Automotive dealership in Hampshire, Surrey, East Sussex, West Sussex, Essex, London, Bedfordshire, Cambridgeshire, Hertfordshire, Suffolk, Kent, Berkshire, Middlesex and Norfolk to learn more about electric driving or to book a test drive in an EV!