Electric car grant - everything you need to know
The Government's new electric car grant gives some electric car buyers an automatic discount of up to £3750. We explain how it works and which cars are eligible...
The electric car grant is available to buyers of electric cars with up to nine seats that cost £37,000 or less to buy new.
It was introduced on 16 July 2025 and replaces the previous plug-in car grant that was live from 2011 to 2022. Like the previous discount, it's an incentive that aims to encourage people to switch from petrol and diesel models by reducing the cost of electric cars.
Video: Electric car grant explained
It is available at two levels, based on how green the vehicle is in terms of the carbon emissions created in producing it. This is intended to incentivise more sustainable automotive manufacturing.
Lower road tax (VED) and company car tax have also been introduced for the greenest vehicles, and these two initiatives are part of the Government’s target of reaching zero net emissions by 2050.
What is the electric car grant?
The electric vehicle (EV) grant is a subsidy on new zero-emissions vehicles and is intended to bring their prices down to a level that is closer to the cost of buying a conventional petrol or diesel alternative.
The battery electric technology that powers EVs makes them more expensive to produce than cars with conventional engines, and the grant is a way of reducing their cost for buyers.
The Government has pledged £650 million to pay for the grants. Funding for the scheme will be available until some time in the 2028/2029 financial year 2028 to 2029. The exact date will be reviewed and will be based on when the money pot that pays for the discounts runs out.
How much is the electric car grant?
The electric car grant is offered at two levels: £3750 and £1500 and car makers need to apply to the Government for eligibility to the scheme for each one of their EVs that costs £37,000 or less.
A spokesperson said: "The amount of grant available per vehicle will depend on the level of emissions associated with production of the vehicle. Emissions from vehicle production are assessed against the carbon intensity of the electricity grid in the country where vehicle assembly and battery production are located."
The highest discount band is only applicable to the cars with the lowest carbon emission scores. To gain this they must meet certain criteria, including having zero tailpipe emissions, an official (WLTP) range of 100 miles and a warranty that covers the EV batteries for at least eight years or 100,000 miles and will replace batteries that fall below 70% of their original capacity during this time.
The car maker must also have a verified Science Based Target. This is a commitment to reduce its environmental impact, in line with the UK’s international climate commitments, which is verified by the independent Science Based Targets Initiative.
In addition, the carbon emissions incurred during vehicle assembly and battery cell production must be below certain thresholds, but details of this is yet to be made public.
Car brands and models that don’t meet some but not all of these criteria will be eligible for the lower discount of £1500. Cars that don’t meet them at all won’t get any grant.
Good news for car buyers is that the grant will also be available on higher spec trim levels of a model with a starting price of £37,000 or less.
Are other types of vehicle eligible for the electric car grant?
Hydrogen fuel cell vehicles are also eligible to apply for the new electric car grant. However only two fuel cell cars from mainstream manufacturers have been made available in the UK, the Hyundai Nexo and Toyota Mirai, and they are priced at £68,000 and £65,000 respectively.
The existing grant of up to £2500 off the cost of other low-emission vehicles, including wheelchair accessible vehicles with a list price of £50,000 remains in place.
Which models are eligible for the electric car grant?
A total of 48 new car cars should be eligible for the electric car grant. They include the pure electric version of the Ford Puma, the Ford Puma Gen-E, the Kia EV3 small SUV, and our 2025 Car of the Year, the Renault 5.
Click here for our list of all the cars that should be eligible for the electric electric car grant
How do I get the electric car grant?
If you’ve chosen an eligible vehicle, you do not need to do anything to get the grant. The car dealer that supplies the car will complete the necessary paperwork to apply for the payment on your behalf and you will get it in the form of an automatic discount off the price.
However, at present car makers are still waiting for confirmation that their vehicles are eligible for the grant, so it is not yet available at the point of sale. If you’re considering buying a new EV that costs £37,000 or less, we’d advise you to hold fire on placing the order until your preferred brand has been given the green light for inclusion in the scheme by the Government.
When will the electric car grant stop?
The Government has pledged to keep offering the incentive to new car buyers until the 2028/2029 financial year. However, the exact date for its ending hasn’t been given because it depends on when the £650 million funding for it runs out.
Are there other grants for electric car buyers?
Yes. At present, anyone buying an EV can also apply for a grant of up to £350 towards the cost of installing a home charging point. The electric vehicle chargepoint grant can be used to lower the cost of buying and installing a home charging point.
It’s only available to people who rent or own a flat or apartment with off-street parking and for landlords of rental properties. Owners of houses and bungalows do no longer qualify because the idea is to remove a key barrier to EV uptake in densely populated urban areas.
If you're a leasehold flat owner, to qualify for the grant you need to own an electric vehicle with CO2 emissions below 50g/km and have an OLEV-approved charger fitted. The paperwork for the EV chargepoint grant can be done by the charge point supplier.
Read our guide to the best home charging solutions for electric cars
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