The residents in the United Kingdom can now avail themselves of a U.K. electric car grant as the government wants to encourage the adoption of electric cars in the country.

The grant is set to help reduce the price of the E.V. that you wish to purchase. The title of the electric car grant is Plug-in Car Grant or PiCG.

U.K. Electric Car Grant

The government is pushing the U.K. electric car grant so people will purchase electric vehicles to replace combustion engine cars in the United Kingdom.

The grant will provide a saving of £2,500 or $3,500 from the retail price of the E.V. However, there are some restrictions on how the grant is applied, and it is not available for all-electric vehicles.

As of July, the grant is no longer available on hybrid cars, according to Auto Express.

The PiCG was launched in 2011 and has since given out £1 billion or $1.4 billion to motorists. The project started as a £5,000 or $7,000 discount on new electric and plug-in hybrid vehicles costing up to £50,000 or $70,000.

Also Read: The U.K. Is Set To Begin Trials Of Roads That Could Charge Electric Vehicles

In 2016, the government reduced the discount to £4,500 or $6,200. In 2018, the U.K. government reduced it to £3,500 or $4,500.

In 2020, the grant was cut further to £3,000 or $ 4,000, and in March, it was reduced to £2,500 or $3,500.

The discount was not the only thing that was reduced.

The price of eligible vehicles also went down from £50,000 or $70,000 to £35,000 or $50,000, according to Top Gear.

This means that the grant is no longer available for very popular electric vehicle brands like Tesla as it is beyond the price range.

Since the discount and prices kept reducing, many speculated that it could be cut again in 2022, potentially to £2,000 or $3,000.

Eligible Cars for the Grant

The government now offers a wide range of grants to encourage the purchase of new electric cars, electric motorcycles, electric vans, mopeds, trucks, taxis, and even home chargers.

The release of the range of grants by the U.K. government came after Uber electric vehicles were given access to London roads.

A £2,500 or $3,500 discount is available on vehicles with an initial retail price of less than £35,000 or $50,000, including delivery fees and VAT.

To be eligible for the grant, the vehicle you purchase must emit fewer than 50 grams of carbon dioxide per kilometer. The electric vehicle should also be able to drive at least 70 miles without any emissions.

No hybrid electric cars priced below £35,000 or $50,000 can drive 70 miles on battery power, so it was removed from the list of vehicles that are eligible for the grant.

Hydrogen-powered vehicles are also not eligible because they are too expensive as their starting price is around £60,000 or $80,000.

Electronic vehicles that qualify for the grant include Kia e-Niro, Mini Electric, Fiat 500e, Volkswagen ID.3., and Renault Zoe. The full list is on the U.K. Government website.

The grant only applies to brand new vehicles and not the used ones.

How to Apply for the Grant

Luckily, the grant does not require any paperwork, and you don't need to pay full price for the vehicle before getting the £2,500 or $3,500 discount.

The dealer or the electric vehicle manufacturer will be the one to do the paperwork for you. They will have to apply for the grant and subtract the £2,500 or $3,500 discount from the final price of the electronic vehicle.

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Written by Sophie Webster

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