posted 9 months ago

New Plug-In Car Grant Rates From March 2016

Ultra-low emission vehicles placed in Category 1,2 or 3 to define how much buyers receive from plug-in car grant.

Cars categorised by carbon emissions and range

The Plug-In Car Grant rates that encourage motorists to buy environmentally friendly, ultra-low emission, models change on March 1st 2016, the Government confirmed. From then, eligible models sit in Category 1, 2, or 3 based on their environmental efficiency.

  • Category 1. Vehicles with a zero-emission range of at least 70 miles, and carbon emissions of less than 50g/km. From March 2016, the grant for models within this category totals £4,500. 
  • Category 2. Vehicles with a zero-emission range of between 10 and 69 miles, and carbon emissions of less than 50g/km. From March 1st, buyers claim a £2,500 grant for cars of this nature.
  • Category 3. Vehicles with a zero-emission range of at least 20 miles, and carbon emissions of between 50 and 75g/km (£2,500).

Mitsubishi PHEV plugged in

The Government explained: “The grant will be maintained at these levels until March 2017, or until a prescribed number of each type of vehicle have been sold; whichever is sooner. The trigger point for further review of grant levels will be 40,000 Category 1 vehicles, and 45,000 combined sales of Category 2 and 3 vehicles”. 

The Government explained that these figures include cars sold prior to March. It added: “As of December 2015, 23,000 claims had been submitted for Category 1 vehicles” and 28,000 for Category 2 and 3. 

BMW i3 on road

New rates contrast previous system

The new rates are a contrast to the old system whereby drivers got 35% of the value of a car; up to £5,000. Further, the new system introduces a cap so there is no grant for cars which cost £60,000+.

Plug-In Car Grant eligible vehicles

The Government listed every vehicle that meets its plug-in grant criteria – but in terms of environmental efficiency and range only. 

Category 1 qualifies are the: BMW i3, BYD e6, Citroen Czero, Ford Focus Electric, Kia Soul EV, Mercedes-Benz B-Class Electric Drive, Mitsubishi iMiEV, Nissan e-NV200 5-seater and 7-seater, Nissan LEAF, Peugeot iON, Renault Fluence, Renault ZOE, Smart fortwo electric drive, Tesla Model S, Toyota Mirai, VW e-up! and VW e-Golf.

Category 2 qualifiers are the: Audi A3 e-tron, BMW 225xe, BMW 330e, BMW i8, Mercedes-Benz C350 e, Mitsubishi Outlander, Toyota Prius Plug-in, Vauxhall Ampera, Volkswagen Golf GTE, Volvo V60 D6 Twin Engine and the Volvo XC90 T8 Twin Engine. Category 3 qualifies are the Mercedes-Benz S500 Hybrid plus the Porsche Panamera S E-Hybrid.

New BMW i3

However, whereas the BMW i8, Mercedes-Benz S500 Hybrid and Porsche Panamera S E-Hybrid “remain genuine ultra low emission vehicles” - they are excluded from the plug-in car grant as they cost £60,000+.