Plug-In Electric Car Grant (PiCG): Are The Grants Still Available In The UK?

Mazda MX-30 electric SUV


The short answer is, NO. On 14th June 2022, the UK government announced that the plug-in car grant (PiCG), the UK electric car incentive scheme, was being closed for new orders. The government also clarified “All existing applications for the grant will continue to be honoured and where a car has been sold in the 2 working days before the announcement, but an application for the grant from dealerships has not yet been made, the sale will also still qualify for the grant’.

According to the UK government, “The scheme has succeeded in creating a mature market for ultra-low emission vehicles, helping to increase the sales of fully electric cars from less than 1,000 in 2011 to almost 100,000 in the first 5 months of 2022 alone”. As we approach the end of 2022, it is clear, that despite the lack of the EV grant, the sale of electric cars continues to grow rapidly in the UK. BEVS AND PHEVS now command nearly a 30% market share in the country.

As of November 2022, the sale of BEVs were up 38% in 2022, compared to the same period in 2021. The total number of new pure electric cars registered in the UK, year-to-date is over 163,000.

The UK government intends to focus the £300 million in grant funding to support the uptake of electric taxis, electric vans, electric motorcycles and electric wheel chair accessible vehicles. The government will also continue to support the development of public EV charging infrastructure in the UK. To learn about the plug-in electric van grant (PiVG), follow this link.

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For those of you new to zero-emission electric driving, we recommend a read of the following articles:

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Previous Grant Updates

Though it is not surprising, it is certainly unwelcome news that the UK government has further reduced the Plug-in Car Grant (PiCG) for aspiring electric vehicle (EV) owners. With immediate effect, the PiCG grant has been slashed by 40% from £2,500 to £1,500. However, this is not the first time in 2021, that the government has reduced the grant. In March 2021, the UK plug-in car grant was reduced from £3,000 to £2,500.

Along with the reduction in the grant, the government has also changed the qualifying criteria for pure electric cars. For a battery-electric vehicle (BEV) to qualify, the electric car must have a recommended retail price (RRP) of less than £32,000, including VAT and delivery fees. In March 2021, the criteria was reduced from £50,000 to £35,000. The reason for this is that the UK government is keen to support the uptake of affordable electric cars. Put another way, if a consumer can afford a more expensive EV, a grant support is not required! Best-selling electric cars like the Tesla Model 3 do not qualify for the grant.

However, the good news is that he EV sector has seen an increase in the availability of affordable electric vehicles and you can lease a number of affordable EVs via e-zoomed, to include, the Honda-e, VW e-up!, VW ID.3 and Fiat 500e.

honda e electric car
The Honda-e Qualifies For The Grant And Is Available To Lease Via e-zoomed (credit: Honda)

Electric Vehicles Eligible For Plug-In Car Grant (PiCG)

There are 8 categories of electric vehicles (EVs), eligible for a grant. EVs have to be approved by the government to be eligible. EV categories approved include:

  • Electric cars
  • Wheelchair accessible vehicles
  • Electric motorcycles
  • Electric mopeds
  • Electric small vans
  • Electric large vans
  • Electric taxis
  • Electric trucks

Qualifying Criteria For Plug-In Car Grant (PiCG) For Electric Cars

  • Electric car with zero tailpipe CO2 emissions and can travel at least 70 miles (112 kms). 
  • Electric car must cost less than £32,000 (RRP) to include VAT and delivery fees. 
  • Grant up to 35% of the purchase price, capped to a maximum of £1,500.

Electric Cars Eligible For The Plug-In Car Grant 

  • Fiat 500e – Action
  • Fiat 500e – Icon
  • Fiat 500e – La Prima
  • Fiat 500e Convertible – Icon
  • Honda e – Standard
  • Hyundai KONA Electric (39kWh) – SE Connect
  • Hyundai KONA Electric (39kWh) – Premium
  • Mazda MX-30 – SE-L Lux
  • Mazda MX-30 – First Edition
  • Mazda MX-30 – Sport Lux
  • MG MG5 EV (52.5kWh)
  • MG MG5 EV (61.1kWh)
  • MG ZS EV – SE
  • MG ZS EV – Trophy
  • MG ZS EV – Trophy Connect
  • MG ZS EV – SE Long Range
  • MINI Electric – Level 1
  • MINI Electric – Level 2
  • Nissan e-NV200 (5 Seater) – Visia
  • Nissan e-NV200 (7 Seater) – Visia
  • Nissan Leaf – (40kWh) – Acenta
  • Nissan Leaf (40kWh) – N-Connecta
  • Peugeot e-208 – Active Premium
  • Peugeot e-208 – Allure Premium
  • Renault ZOE – i Play R110 Z.E 50
  • Smart EQ fortwo
  • Smart EQ forfour
  • SsangYong Korando eMotion – Ventura
  • Vauxhall Corsa-e – SE Nav Premium
  • Vauxhall Corsa-e – SRi Nav Premium
  • Volkswagen e-up!
  • Volkswagen ID.3 Pro (58kWh 145PS) – Life
  • Volkswagen ID.3 Pure Performance (45kWh 150PS) – Life

To claim the grant, a buyer does not need to do anything as this will be managed by the dealership and manufacturer. The cost of your purchase price will reflect the grant. 

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Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include, the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising large-scale industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He has also been involved with a number of early stage ventures.

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