Vans become eligible for Plug-In Grant
The government has announced that electric vans up to a gross vehicle weight of 3.5 tonne are now included in the revised Plug-In Grant scheme, reducing the cost of eligible vehicles by 20 per cent up to the value of £8,000. Up until now, it only applied to passenger cars. The subsidy will remain in place until at least 2015.In effect this means that the up-front cost of buying a Renault Kangoo Z.E. is reduced to £13,592, with a battery lease cost of between £60 and £105 depending on mileage and contract period. An Azure Dynamics Ford Transit Connect EV drops from £40,000 to £32,000.
Vehicles qualifying for the Plug-In Van Grant must emit fewer than 75g/km of CO2, be capable of at least 60 miles between charges (10 miles in electric mode for hybrid vans — if there were any), more than 50mph and have passed European Vehicle Type Approval. Applications from manufacturers to have vans included in the scheme must be in by the end of the month to appear on the first eligibility list.
Commenting on the announcement transport minister Norman Baker said: “Minister of state for business and innovation Mark Prisk and I are persuaded that there is a strong case for supporting ultra-low emission technology in vans, which often have fixed duty cycles and return to base regularly where they can easily recharge. An upfront purchase grant, when combined with the lower running costs and tax benefits, can make switching to an ultra-low emission van an attractive choice for businesses.
“The Plug-In Van Grant, alongside the existing Plug-In Car Grant, is designed to help private individuals and businesses adopt new, cleaner technology. Businesses, especially those with fleets, will be a key driver in increasing the market share of ultra-low emission vehicles.
“The shift towards clean technology is an opportunity to further reinvigorate the UK automotive industry, where many van manufacturers are based, alongside helping to increase our energy security.
British Vehicle Rental & Leasing Association chief executive John Lewis said: “It is great that the government has listened to the feedback from business fleets, who have spent the last year telling the government that the van market was crying out for this sort of low-carbon incentive. Electric vans are very expensive, but the combination of this grant, much lower running costs and some significant tax benefits will enable many fleets to take the plug-in van plunge.
“As well as identifying which vehicles will qualify for the grant, we hope that the government will learn the lessons from its introduction of the plug-in car grant by moving much more swiftly to clarify how the grant will be treated for VAT purposes.”
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