So, you’re looking to lease a brand-new electric vehicle (EV), and would like to take advantage of the latest EV grants while they’re still available? Here’s your next steps.
Firstly, whatever EV you choose to lease, you can be confident that you’ll be benefiting from less maintenance and more importantly, lower running costs for the duration of your lease. That means you’re making a positive impact on your pocket as well as playing your part in reducing air pollution and combatting climate change every time you get behind the wheel.
Secondly, the introduction of Government grants to encourage the uptake of zero-emission vehicles on our roads has, so far, been met with great success. So you’ll be joining over half a million low emission vehicles that are already on UK roads, with that figure increasing at pace.
When it comes to support on electric vehicles there are three things to consider: the Plug-in Car Grant, the Electric Vehicle Homecharge Scheme, and if you live in Scotland there’s the additional Domestic Charge Point Grant.
The Plug-in Car Grant reduces the cost of electric cars that are priced at £32,000 or less by £1,500 effectively making the car even cheaper to lease, whilst the charge point grants save you money on the cost of installing a charger at home.
However, time may be running out to capitalise on the available grants including the attractive Chargepoint Scotland incentive which currently offers free on-street charging for Scottish EV drivers and the Homecharge Scheme which will see dramatic changes next year.
It’s not the first time we’ve experienced cuts to EV grants. The OZEV (Office for Zero Emission Vehicles, previously OLEV) Electric Vehicle Homecharge Scheme was suddenly cut from £500 to £350 in early 2021 and from March 2022, will no longer be available for owners of detached, semi-detached, terraced houses and bungalows. However, the scheme will remain open to homeowners who live in flats and people in rental accommodation (flats and single-use properties) and the Energy Saving Trust, which offers an additional grant to Scottish residents, will still be available.
The Plug-in Car Grant has also suffered recent cuts. In October 2021, the decision was made to cut the Grant from a maximum of £2,500 to £1,500 while the eligibility based on vehicle cost was decreased from £35,000 to £32,000.
The news comes less than 7 months after the eligibility threshold was reduced from £50,000 to £35,000 and the grant from a maximum of £3,000 to £2,500.
Now, new criteria mean, only vehicles under £32,000 (including VAT and delivery fees) with zero tailpipe CO2 emissions and able to travel at least 70 miles (112km) without any emissions at all will qualify. This includes models such as the Fiat 500e La Prima, Nissan Leaf (40kWh) – N-Connecta and the Volkswagen ID.3 Life Pure Performance (45kWh 150PS)
You should also bear in mind that the Government reserves the right to terminate the grant at any time. Perhaps what’s just as worrying is, last year we reported that OZEV representatives say future changes should be expected without notice, and they were right.
The good news
For now, the current grants are still available. Should the grant rate change, or the scheme end, the government will honour any claims made before the date of any public announcement (subject to meeting all relevant criteria).
So, if you’re thinking about going EV, now might be the best time to benefit from the grants while you still can.
Here’s a quick run-down of the grants available and how to apply:
Electric Vehicle Homecharge Scheme (EVHS)
Introduced over a decade ago, the Electric Vehicle Homecharge Scheme (EVHS) is a grant-funded by the Office for Zero Emission Vehicles (OZEV, previously OLEV) where EV drivers can benefit from up to 75% contribution to the cost of their charge point and installation. The grant cap is set at £350 (including VAT) per installation, though from March 2022 the grant will no longer be available to owners of detached, semi-detached, terraced houses or bungalows.
To be eligible, you must own, lease, or have ordered a qualifying vehicle and have dedicated off-street parking at your property. Even better, you can apply for two charge points at the same property if you have two qualifying vehicles. Most installations cost between £800 to £1,000 so a person can expect to pay around £500. The initial £350 will be paid to your supplier directly by OZEV.
As part of your electric car leasing experience with us, we can help you arrange the installation of a charge point and secure the necessary grants.
Domestic Charge Point Grant (EST Grant)
Scottish residents can claim an additional £250 grant from the Energy Saving Trust Scotland (EST) while those in the most remote parts of Scotland can claim £350. The grant will remain even after the OZEV EHVS grant is discontinued next year. There are no plans for the Domestic Charge Point Grant (EST Grant) to be removed. You need to complete a short application form and send proof of purchase/lease of your EV in advance of the installation. Installations must be carried out by one of the Energy Saving Trust’s approved installers. The Energy Saving Trust will then reimburse you upon receipt of the final invoice and EIC (Electrical Installation Certificate) which will be provided by the installer.
Any remaining costs above the £350 provided by OZEV and the additional funding provided by Energy Saving Trust you will need to pay by yourself.
So now you know what support is currently available, are you ready to make the switch?
Our Leasing Specialists are here to help and answer your questions. Please contact us today or call 0344 387 2727. Alternatively, you can browse our latest Electric deals here: https://www.intelligentcarleasing.com/electric-deals