What is the UK ‘Plug-in Car Grant’?

In the UK car manufacturers offer anything from a city-car to super-car which are either zero emissions or are capable of running on electricity alone for a limited distance, known as a Plug-in hybrid, these are seen as a perfect transition to a full plug-in vehicle.

When purchased from new, a car could be eligible for the UK Government backed plug-in vehicle grant (PiCG). The grant currently stands at upto £4500 for a car and upto £8000 for a commercial vehicle.  With outstanding warranties on battery packs, a used EV/PHEV could be an option too.

From March 2016 changes to the grant were made with bandings taking effect to recognise the technological and environmental progress made by pure electric vehicles, and provides them with the largest amount of financial support.

OLEV PiCG Tiers

The grant will be tiered offering £4500 for a vehicle with a zero-emission range of more than 70 miles, including hydrogen fuel cell vehicles, with plug-in hybrids costing under £60,000 receiving £2,500.

The grant is deducted from the price of the vehicle at the point of sale by the dealership. No paperwork is required from the customer, except a survey, to benefit from the grant.

Currently the PiCG is scheduled to run until March 2017 providing £400m of incentives.

With new models expected from VW, Mercedes and Tesla this list is set to grow giving more electrifying choices to buyers.

Eligible models


Pure electric / Fuel cell cars – upto £4,500 grant


BMW i3
BYD e6
Citroen CZero
Ford Focus Electric
Hyundai IONIQ
Kia Soul EV
Mahindra e20
Mercedes-Benz B-Class Electric Drive
Mitsubishi iMiEV
Nissan e-NV200 MPV
Nissan LEAF
Peugeot iON
Renault ZOE
Smart fortwo electric drive
Smart forFour electric drive
Tesla Model S
Tesla Model X
Toyota Mirai
Volkswagen e-UP!
Volkswagen e-Golf

Plug-in Hybrid & Extended Range Electric vehicles (Category 2,3 eligible if purchase price <£60,000) – upto £2,500 grant


(37g co2/km) – Audi A3 e-tron
(46 co2/km) –  BMW 225xe
(49g co2/km) – BMW 330e
(46g co2/km) – BMW 530e
(48g co2/km) – Mercedes-Benz C350e
(42g co2/km) – Mitsubishi Outlander PHEV
(49g co2/km) – Toyota Prius Plug-in
(27g co2/km) – Vauxhall Ampera
(39g co2/km) – Volkswagen Golf GTE
(39g co2/km) – Volkswagen Passat GTE
(48g co2/km) – Volvo V60 D6 Twin Engine
(49g co2/km) – Volvo XC90 T8


Ineligible cars – 
Category 2 or 3 with a recommended retail price over £60,000

BMW i8 (category 2)

Mercedes-Benz S500 Hybrid (category 3)

Porsche Panamera S E-Hybrid (category 3)

Click for more details of the PiCG here.

The Founder of driveEV. A driving and new technology fan enjoying learning all about the future of motoring. I drive a BMW i3.