Britain Extends Subsidies for Buyers of Greenest Cars, More To Benefit From Latest Grant

by Benson Agoha | Technology

* An E-Car charges at a charging point. (Credit: Wards Auto).

On the heal of the December's Paris Climate deal, applauded by global leaders, Britain is steaming with incentives for cleaner motoring.

Government has announced a long-term extension of grants to electric cars, backed by a £400 million package, according to a statement from the Department of Transport.

The new incentive aims to refresh the previous deadline and continue the support from February 2016 until at least the end of March 2018.

Government says this will mean more than 100,000 people will benefit and will doubled the number who have claimed the grant since 2011.

A statement from the Department of Transport, titled "New plug-in grant will treble number of greener cars on Britain’s roads" said more than 100,000 motorists are to benefit from the £400 million fund focused on greenest vehicles.

Transport Minister Andrew Jones said in the statement that: “The UK is a world leader in the uptake of low emission vehicles and the plug-in car grant has been key to that success. Extending the grant in a sustainable way ensures more than 100,000 people will benefit from financial support when purchasing these cheap-to-run and green cars."

He said, "We are determined to keep Britain at the forefront of the technology, increasing our support for plug-in vehicles to £600 million over the next 5 years to cut emissions, create jobs and support our cutting-edge industries.”

On his part, Jim Wright, Nissan GB Managing Director, said: “Today’s decision by government has reaffirmed their commitment to the uptake of ultra-low emission vehicles."

"With government support and Nissan’s investment of over £420 million into electric vehicles in the UK, our British made Nissan LEAF has increased in popularity with many UK customers already enjoying the benefits of zero emission and low cost driving."

"This announcement, together with ongoing infrastructure developments, should see the growth and wider deployment of this technology continue.”

The grant was created in 2011 to encourage sales of ultra-low-emissions vehicles and has been instrumental in the U.K. becoming the biggest ULEV market in the European Union, and the fourth-largest in the world. Some 50,000 people have received the grant.

From next March, vehicles with a zero-emissions range of more than 70 miles (112 km) will benefit from a grant of £4,500. Vehicles with a shorter zero-emissions range, such as plug-in hybrid vehicles with a gasoline or diesel engine, will receive £2,500 ($3,720).

The new grant levels reflect strong growth in the sector with sales of ULEVsdoubling over the past year. Motorists also have a wider choice of 29 ULEVson the market — 5 times as many as when the plug-in car grant was launched. The UK is also at the forefront of the roll-out of hydrogen fuel cell vehicles, which are also eligible for the £4500 grant thanks to their zero tailpipe emissions.

The government has also today announced it will continue to provide a grant to help ULEV owners have a dedicated charge point installed at their home. From 1 March 2016, the electric vehicle homecharge scheme (EVHS) will offer £500 per installation, which on average will cover around half of the cost of getting a charge point.

The plug-in car grant is just one element of a comprehensive £600 million package of measures from the Office for Low Emission Vehicles over the course of this parliament which also includes funding for chargepoints, grants encouraging low emission buses and taxis and R&D funding for innovative technology such as lighter vehicles and longer-lasting car batteries.

To encourage zero emission vehicles and maximise the number of everyday motorists who can benefit from government support, a price cap will also be introduced from 1 March 2016. Category 2 and 3 models with a list price of over £60,000 will not be eligible for the grant, but all category 1 vehicles with a zero emission range of over 70 miles will be eligible for the full £4,500 grant.

* Lead by: Alan Harman | Wards Auto