New funding for plug-in electric vehicles

14th May 2014

The Government has extended the grant scheme for plug-in electric vehicles for a further three years.

It will now run until either 2017 or until at least 50,000 vehicles have been sold (whichever is sooner), the Government has announced.  The scheme provides 25% towards the cost of a vehicle up to a maximum of £5,000.

In addition, £4 million has been side aside for HGV gas refuelling infrastructure, as part of an overall package estimated by the Government to be worth £500 million.

That will include a £32 million funding boost for charging infrastructure, in support of plans to install rapid chargepoints across the ‘M’ and ‘A’ road network by 2020.  There will be one at every motorway service station by the end of 2014, and a network of 500 across the country by March 2015.  Rapid chargepoints mean that a vehicle can be charged in as little as 20 minutes.

Local areas coming up with the most ambitious plans will be able to win a share of a £35 million pot to make the leap to becoming ‘ultra low’.  Winning cities (there will be up to four) could, for example, incentivise drivers of green vehicles by letting them use bus lanes or allowing them to park for free.

Full details of each scheme will be published in the autumn, with some of the schemes opening for applications shortly thereafter.