Overall usage of the fleet has also increased by 14%.
To take account of rapidly developing technology, and the growing range of ULEVs on the market, the criteria for the plug-in car grant are being updated.
The Plug-in Car Grant (PiCG) changes that will take effect from 1 April 2015 recognise the technological and environmental progress that vehicles have made since the original grant was announced in 2010 and provide further financial incentive for motorists to move to Ultra Low Emissions Vehicles.
From April 2015, eligible ULEVs must meet criteria in one of the following categories depending on emission levels and zero-emission-capable mileage:
- Category 1: CO2 emissions of less than 50g/km and a zero emission range of at least 70 miles
- Category 2: CO2 emissions of less than 50g/km and a zero emission range between 10 and 69 miles
- Category 3: CO2 emissions of 50-75g/km and a zero emission range of at least 20 miles.
Commenting on the announcement, Ken Ramirez, Managing Director, Renault UK said: “We welcome the changes announced today by OLEV as the move to a banding system for grant funding recognises the real-world practicality and zero tailpipe emission advantages that electric vehicles have over other types of alternative fuel vehicles.
Transport Minister Baroness Kramer said: “More and more people are deciding a ULEV is the right choice for them. They are great to drive, easily chargeable at home or on the street, and cheap to use with running costs from just 2 pence a mile. The government’s £500 million investment will help more models become available to suit a wide range of budgets. This thriving industry will support jobs and build a stronger economy.”
All categories will continue to be eligible for the full grant of up to £5000, until either 50,000 grants are issued or 2017, whichever is first. The new categories will better reflect the range of vehicles on the market and make them accessible to the widest range of people.
