The Government has announced an extension of the plug-in van grant, as well as upcoming changes to grant weight thresholds.
Plug-in Van and Truck Grant Extension
The Office for Zero Emission Vehicles (OZEV) has confirmed its plans to extend the plug-in van and truck grant until at least 2024/25. This aims to give certainty to fleets supporting the still early market for zero emission vans and trucks. Plug-in van grant orders in 2021 were over 250% higher than in 2020, and the extension of the grant will support the continuation of this increased uptake.
Plug-in Van and Truck Grant Threshold Change
A large number of electric van models are available between 3.5 and 4.25 tonnes. The Government is also changing the weight threshold eligibility criteria for Plug in Vehicle Grant from 1st April 2022 – recategorising vehicles between 3.5 and 4.5 tonnes as large vans (£5,000 grant) rather than small trucks (up to £16,000 grant, 250 limit per year). Dealers will be able to submit orders for vehicles currently eligible and impacted by this change at the higher grant rate until 31st March 2022, subject to the 250 annual limit not being reached.
Category B Regulations
Existing regulations allow fully electric goods vans up to 4.25t to be driven on a standard car driving licence, compared to 3.5t for a diesel van. This allows for the extra weight of the battery.
The announcement aims to reassure fleets that the Government has “no plans to end this flexibility when it comes up for a 5-year review next year”. The new terms will apply from 1st April 2022. OZEV will be updating the online eligible vehicles list and guidance on gov.uk before the new terms come into effect to reflect which vehicles are eligible for which grant. They will also be updating our portal guidance and Plug-in Grant Application Guidance Documents to reflect the changes.
