Grants for electric cars - everything you need to know

If you're thinking about buying your first electric car, we know it can be daunting. Aside from getting the best deal, there are other factors to consider, such as charging, insurance, tax and range anxiety.

Many car buyers worry about the costs associated with buying an electric vehicle (EV) but we're here to let you know that there is help and support out there in the form of electric car grants and EV charger grants. In this article, we'll discuss them all in depth so you can be fully informed before making the switch to electric.

Electric car grants

Over the last decade, the government has pledged funding to businesses and individuals to help with the switch towards electric as they look to achieve net zero carbon emission goals. Below, we take an in-depth look at EV grants and EV charging grants - some of which are currently ongoing and others which are no longer open to applicants. The next section will cover:

• Electric car grants for businesses (UK-wide)
• Used Electric Vehicle Loan (Scotland only)
• Low Emission Zone Support Fund for Households (Scotland only)
• The Plug-In Car Grant (UK-wide - 2011 - 2022)

We've also provided some links to additional resources to help you find more information on each.

Electric car grants for business (ongoing)

Opting for an electric company car can result in you saving money. This is because company car EVs have lower benefit-in-kind (BIK) tax. BIK tax for vehicles is calculated based on that vehicle's level of emission output.

The UK Government has also confirmed that the BIK tax rate for EVs is to remain low until 2028, which means drivers can get up to 60% off an electric car lease with salary sacrifice.

Used Electric Vehicle Loan (ongoing)

The first electric car grant to discuss is specific to Scotland only. The Used Electric Vehicle Loan, funded by Transport Scotland, is an interest-free loan available to eligible drivers that can be used towards the costs of buying a used electric vehicle. The loan has a repayment term of up to five years.

Whichever vehicle you choose, you buy must be purchased from a dealership.

EVs with a sale price over this amount are not eligible for the loan. Additionally, the loan does not cover hybrid vehicles and cannot be applied for if you are already the owner of an EV.

Low Emission Zone Support Fund for Households (ongoing)

In Scotland, low emission zones have been introduced in Glasgow, Edinburgh, Aberdeen and Dundee, designed to improve local air quality and discourage older, more polluting vehicles from entering the zones.

Additionally, 'Travel Better' grants of up to £500 may also be made available for each adult in your household (capped at a maximum of £1,000 per household) which can go towards the likes of a new bike, bike repairs, public transport or bike hire schemes.

The Plug-In Car Grant (2011 - 2022)

The Plug-in Car Grant was first introduced in 2011. This type of electric vehicle grant saw the UK Government give a grant towards the cost of a new electric car, provided it met certain criteria. The maximum amount available for cars was £1,500.

However, the Plug-in Car Grant ceased in June 2022, with the budget being moved towards funding the development of public EV charging infrastructure.

However, this UK electric car grant is still available on certain vehicles on the government's approved list and can be claimed through car manufacturers and dealerships who pass the discount to customers. The discount on the purchase price of certain vehicles is as follows:

• Wheelchair accessible vehicles - up to 35%, capped at £2,500
• Mopeds - up to 35%, capped at £150
• Motorcycles - up to 35%, capped at £500
• Small vans - up to 35%, capped at £2,500
• Large vans - up to 20%, capped at £5,000
• Small trucks - up to 20% capped at £16,000
• Large trucks - up to 20% capped at £25,000

Electric car charger grants

If you're interested in an electric car charger grant, there are a few below to read up on, including:

• Workplace Charging Scheme (UK)
• The Electric Vehicle Charge Point Grant (UK)
• EV Charge Point Grant for Landlords (UK)
• On-Street Residential Charge Point Scheme (UK)
• Domestic Charge Point Funding Grant (UK)

We've also provided some links to additional resources to help you find more information on each.

Workplace Charging Scheme (ongoing)

If you're a business that would like to install electric vehicle charging points at your workplace, the Workplace Charging Scheme is worth checking out. This an EV charger grant that helps UK businesses cover some of the costs of installing EV charging points.

This grant will cover up to 75% of the cost of EV charge points for the workplace, limited to £350 per socket, and up to 40 sockets across all sites per applicant.

The Electric Vehicle Charge Point Grant (ongoing)

Another big concern for drivers switching to electric vehicles is not being able to access an EV charge point at home. Although EV charging infrastructure has developed rapidly over the last few years and there are now more EV charge points than there are traditional fuelling stations, most electric car drivers want to have a charging point at their home.

As of April 2022, the Electric Vehicle Charge Point Grant is no longer available to homeowners - including those with mortgages - who live in single-unit properties, such as bungalows, detached, semi-detached or terraced housing. The scheme remains open to homeowners who live in flats and those in rental accommodation.

If you are looking to install an EV charger at home, Arnold Clark is delighted to offer the services of Bumblebee, who can get you connected.

Bumblebee have a host of OZEV-approved specialist electric vehicle charge point installers across the UK, with chargers from industry-leading manufacturers such as Wallbox, Easee and MyEnergi.

EV Charge Point Grant for Landlords (ongoing)

Another electric car charger grant that should be mentioned is the EV Charge Point Grant for Landlords. If you are a landlord in the UK, this grant means you may be entitled to funding towards the cost of purchasing and installing a charge point at properties you own. Per year, landlords can apply for up to 200 grants for residential properties and 100 grants for commercial properties.

This doesn't just benefit landlords. If you are a tenant of a rented property in the UK and you are looking to have an EV charge point installed, let your landlord know about this grant if they don't already. As always, you should check with your landlord to make sure you have their permission to install a charging point first.

On-Street Residential Charge Point Scheme (ongoing)

If you would like to see more public charging stations for areas without private parking, you can approach your local authority about the On-Street Residential Charge Point Scheme. This scheme provides funding towards the costs of creating more EV charging areas in public spaces for those without driveways and garages.

Domestic Charge Point Funding Grant (ongoing)

Another EV charger grant that is specific to Scotland is the Domestic Charge Point Funding Grant. If you're looking to get a charging point fitted off-street at your address, the Energy Saving Trust has a grant available for Scottish motorists.

The grant offers up to £300 towards the costs of purchasing and installing a home charge point for an electric vehicle. It is available to those applicants who:

• Bought their EV through the Used Electric Vehicle Loan.
• Are rural EV owners.
• Are used EV owners.

More benefits of embracing EVs

Insurance

Getting insurance for electric and plug-in vehicles is much easier than it used to be. You may find that the industry generally places EVs in a higher insurance group rating than petrol or diesel cars of similar size. This is largely due to the lack of historical data from which insurance companies could base their premiums.

There are plenty of specialist insurance providers who will be able to offer a tailored policy for green vehicles.

However, the most important variable in a car insurance quote of any kind is the driver - insurance companies will consider your risk profile before giving you a quote. The good news is, as an EV driver, you tend to be considered a safer and lower-risk driver, your eco-conscious decision to drive green. your eco-conscious decision to drive green.

Electric car tax

Most EV drivers are exempt from the following taxes in the UK:

Fuel duty

Fuel duty isn't applied to the electricity used by plug-in electric or hydrogen fuel cell car owners.

Vehicle excise duty (VED)

Only zero-emission vehicles are exempt from paying VED for the first year of ownership. In order to qualify for tax exemption, the vehicle must be purely electric. This means the electricity must come from an external power source or an electric storage battery that isn't connected to any source of power while the vehicle is moving.

In the second year, zero-emission vehicles with a list price less than £40,000 will continue to be tax-free.

Plug-in hybrid EVs are now likely to cost between £0 and £105 for the first year depending on CO2 emissions - and then £145 each year thereafter.

Arnold Clark Charge network

Did you know that we're currently rolling out our own EV charging network? Our network will have 100 EV charging hubs across the UK, offering around 500 ultra-rapid chargers. around 500 ultra-rapid chargers.

We want to make the switch to electric as easy as possible for you! Download the Arnold Clark app and you can enjoy lots of EV charging benefits, like bookable charging slots and preferential charging rates. EV charging has never been so seamless or stress free!