The UK government has confirmed the extension of the Plug-in Van Grant (PIVG) scheme until at least the end of the 2024/2025 financial year. This initiative provides discounts on most electric vans, encouraging businesses to transition to electric commercial vehicles as the UK moves toward phasing out sales of diesel and petrol-powered vans by 2035.
The grant rates have been maintained, with no reductions. Large electric vans (up to 3.5 tonnes) can still benefit from a maximum discount of £5,000, while smaller vans (up to 2.5 tonnes) can receive up to £2,500. However, there's a cap of 1,500 grants available per customer each financial year.
It's important to note that the grant amount has decreased over time. In 2021, the maximum discount for large vans was reduced from £6,000 to £5,000, and for smaller vans, it dropped from £3,000 to £2,500. Previously, all electric vans up to 3.5 tonnes were eligible for savings of up to £8,000 through the PIVG program.
Heavier electric vans, those rated up to 4.25 tonnes and categorized as 'N2' vehicles, are eligible for the 'small truck' grant, which offers up to £16,000 (capped at 20% of the purchase price). However, this discount only applies to new vans at the point of purchase, not to used electric vans.
Why Extend the Plug-in Van Grant?
The Department for Transport (DfT) has extended the PIVG to accelerate the adoption of electric vans in the UK. This move also helps mitigate the impact of oil price volatility by reducing reliance on imported oil. However, electric van sales have not yet reached the desired levels, accounting for less than 5% of the market in the first half of 2024.
If you're considering an electric car, note that the Plug-in Car Grant (PICG) has been discontinued.
Understanding the Electric Plug-in Van Grant
The PIVG provides a government-funded discount for vans that operate with zero emissions, using an electric motor instead of a traditional diesel or petrol engine. To qualify, the van must have a zero-emissions driving range of at least 60 miles and produce less than 50g/km of CO2.
The grant is divided into two main rates based on gross vehicle weight (GVW):
Vans less than 2.5 tonnes: 35% of the purchase price, up to £2,500.
Vans 2.5-3.5 tonnes: 35% of the purchase price, up to £5,000.
There's a cap of 1,500 grants per customer each financial year, which could affect large fleets.
What About Heavier Electric Vans?
Heavier electric vans, which are classified under the 'N2' category, play a significant role in the large electric van market. A special provision allows vehicles up to 4.25 tonnes to be driven on a regular UK car license under certain conditions. Although there were plans to remove this concession, no changes have been implemented as of the 2024 general election.
These heavier vans can qualify for the 'small truck' grant, offering up to £16,000, capped at 20% of the purchase price. However, only 250 grants are available each financial year, with a maximum of 10 grants per customer.
Eligible Vans for the Plug-in Van Grant
The government maintains a list of vans eligible for the PIVG, though it may not always be up to date. Here's a selection of small and large electric vans that qualify:
Small Electric Vans (up to 2.5t):
- Fiat E-Doblo
- Maxus e Deliver 3 (short-wheelbase only)
- Mercedes-Benz eCitan
- Peugeot e-Partner
- Renault Kangoo E-Tech
- Toyota Proace City Electric
- Vauxhall Combo Electric
Large Electric Vans (2.5-3.5t):
- Citroen e-Dispatch
- Fiat E-Ducato
- Ford E-Transit
- Iveco eDaily
- Mercedes-Benz eVito
- Peugeot e-Boxer
- Renault Master E-Tech
- Toyota Proace Electric
- Vauxhall Vivaro Electric
- Volkswagen ID.Buzz Cargo
Do Hybrid Vans Qualify?
Currently, only the LEVC VN5 hybrid van meets the PIVG requirements with its 61-mile electric-only range. Other hybrids, like the Ford Transit Custom Plug-in Hybrid and Mitsubishi Outlander Commercial, fall short.
Electric Vehicle Charger Discounts
While the grant for electric vehicle chargers has been renamed the EV Charge point Grant, it’s still available, but now only for those living in flats or rented properties.
