Plug-in van grant: what is it and how does it work?

The UK plug-in van and truck grant (PVG) has been extended until at least 2027, meaning commercial vehicle and van drivers could save up to £5,000 when buying an electric van or pick-up truck.

The plug-in van grant is a Government incentive that offers buyers a discount on the price of a new electric van or pick-up truck. It's similar to the recently introduced Electric Car Grant for passenger cars and the old Plug-In Car Grant that ran until 2022.

How does the plug-in van grant work?

The plug-in van grant offers discounts of £2,500 for small electric vans with gross vehicle weights under 2.5 tonnes, or £5,000 for large electric vans with gross vehicle weights between 2.5 and 3.5 tonnes. 

As the name suggests, electric trucks are also eligible for the grant with small trucks between 4.25 and 12 tonnes receiving a discount of £16,000, rising to £25,000 for large trucks over 12 tonnes.

At the moment, manufacturers are still waiting on confirmation of the grant levels for the 2026/2027 financial year, as well as how many buyers will be able to make a claim.

Either way, van and truck buyers stand to benefit from the extended plug-in van scheme, which is designed to help the transition to a zero-emission vehicle, reducing the cost to buy. Wheelchair users who need an accessible vehicle such as a converted van can also benefit from the grant. 

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Which vans are eligible for the plug-in van grant?

The plug-in van grant doesn’t just apply to electric vans, but also plug-in hybrid vans that meet the relevant criteria.

In order to qualify for the plug-in van grant subsidy, a van must be capable of covering at least 60 miles (96km) in zero-emission mode and must emit less than 50g/km of CO2 according to manufacturer-stated figures based on the official tests.

With more and more plug-in hybrid vans hitting the roads, businesses which aren’t quite ready to go fully electric can also benefit from the grant.

How much is the plug-in van grant?

The value of the plug-in van grant varies according to the size of the van it’s being applied to. 

Eligible vans with a gross vehicle weight (GVW) of less than 2.5 tonnes can receive as much as 35 per cent of the purchase price, up to a maximum sum of £2,500.

Buyers of eligible vans with GVWs of between 2.5 and 3.5 tonnes can still only receive up to 35 per cent of the vehicle’s purchase price, but the cap is set higher at £5,000.

Eligible vans and trucks with GVWs of between 4.25 tonnes and 12 tonnes can receive a maximum discount worth up to 20 per cent of the vehicle’s value, with a cap of £16,000. 

Large trucks over 12 tonnes can receive a maximum discount worth up to 20 per cent of the vehicle’s value, or a cap of £25,000.

Small vans eligible for the plug-in van grant

The Government’s list of electric vans weighing less than 2.5 tonnes that are eligible for the plug-in van grant is as follows:

Buyers can claim a grant worth 35 per cent of the purchase price of these vans, up to a maximum sum of £2,500.

Large vans eligible for the plug-in van grant

The Government’s list of electric vans with gross vehicle weights between 2.5 and 3.5 tonnes that are eligible for the plug-in van grant is as follows:

Buyers can claim a grant worth 35 per cent of the purchase price of these vans, up to a maximum sum of £5,000.

Small trucks eligible for the plug-in truck grant

The Government’s list of electric vans and trucks with gross vehicle weights between 4.5 and 12 tonnes that are eligible for the plug-in van grant is as follows:

Buyers can claim a grant worth 20 per cent of the purchase price of these vans, up to a maximum sum of £16,000.

Large trucks eligible for the plug-in truck grant

The Government’s list of electric trucks with a gross vehicle weight over 12 tonnes that are eligible for the plug-in van grant is as follows:

Buyers can claim a grant worth 20 per cent of the purchase price of these vans, up to a maximum sum of £25,000.

How do I apply for the grant?

If you are looking to buy an eligible electric van, pick-up or truck, the good news is that buyers don’t have to make an application in order to benefit from the plug-in van and truck grant.

The discounts offered by the plug-in van grant are automatically deducted from the list price of the vehicle by the manufacturer, and any paperwork which needs to be filled in will be done by them.

It’s worth noting that any optional equipment selected by the customer is not included in the calculated list price and therefore does not affect the discount you receive.

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