Electric Car Grants – The Ultimate Guide

Thinking about switching to an electric car? Great news, the government’s new Electric Car Grant is designed to make the move more affordable. From vehicle eligibility to home EV chargers, here’s everything you need to know about the grant scheme.

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What is the new Electric Car Grant?
How does it work?
Which cars are eligible?
Are there any alternative discounts?
Grants for EV chargers
FAQs

What is the New Electric Car Grant?

The new electric car grant is part of a £650m scheme to help make electric cars more affordable while accelerating the shift to zero-emission vehicles. Eligible buyers can get discounts of up to £3,750 on brand-new battery electric vehicles (BEVs), which are fully electric cars powered only by a battery. Sounds good, right?

How does it work?

Getting the discount is simple – it’s automatically applied when you buy an eligible car from a dealership, so there’s no need to apply for the grant separately. To qualify, the vehicle must cost £37,000 or under. If eligible, savings between £1,500 and £3,750 are available on electric cars bought from 11th August 2025. The exact discount depends on the car’s eligibility, which considers factors like how eco-friendly its production and battery manufacturing are.

Which cars are eligible?

The grant scheme has two levels of support:

Band 1 £3,750 discount: For the greenest electric cars that meet top eco standards
Band 2 £1,500 discount: For EVs that are still eco-friendly but don’t meet the highest sustainability mark

Top 5 eligible models:

Volkswagen ID.3
Skoda Enyaq
Nissan Ariya
Vauxhall Corsa Electric
Peugeot E-2008

An EV public chargepoint with designated parking spaces for EV owners.

Are there any alternative discounts?

Yes, Chinese EVs, which are often among the most affordable, such as Great Wall Motors, Leapmotor, and Skywell are offering discounts that match the £1,500 grant, since it’s still unclear if they’ll qualify on the new grant scheme.

While other popular models such as the MG S5 EV and MG4 also have extra incentives. Beyond these, brands including Alfa Romeo, Hyundai, Volvo, Smart, Volkswagen, Skoda, Vauxhall, Suzuki, and Toyota are running deals across their ranges.

Are there grants for EV chargers?

If you own an EV, you might be eligible for help installing a charger, depending on whether it’s for home or business use.

Home charging

You could get 75% off the cost of a charger if you:

Own an EV
Have private off-street parking
Rent or own a flat/home

Landlords & residential car parks

Two grants are available:

1. EV chargepoint grant: Up to 75% off a socket installation (max £350 per socket, 200 grants per year for residential properties)

2. EV infrastructure grant: Covers wiring, charging posts, and multiple sockets (max £30,000, up to 40 grants per year)

Workplace charging

Small and medium-sized businesses can claim:

1 . Up to five grants across five sites

2. 75% of installation costs (up to £15,000)

3. Up to £350 per socket installed

EV charge point next to a bollard in a public car park.

FAQs

I ordered a car before the grant was announced. Am I eligible?

It depends on the car manufacturer. Renault, for instance, only applies the grant if it’s on the invoice. Nissan reviews case by case, and Citroen customers may need to cancel and reorder. The best way to know? Check with your dealership.

Do I need to apply for the grant?

No, the discount is applied automatically when ordering an eligible new electric car.

Are there tax benefits?

Yes! Low Benefit in Kind rates make electric cars tax-efficient, especially through salary sacrifice schemes. Savings can reach 40%, depending on your bracket. Some schemes include a home EV charger, insurance, servicing, and maintenance.

What else is the government doing?

£25m for ‘cross-pavement’ chargers so drivers without driveways can charge at home
£30m to support businesses’ transition their fleets to electric
£8m to install chargers at over 200 NHS sites
£1.6bn for road maintenance and frozen fuel duty

The new Electric Car Grant makes going electric easier and more affordable than ever. You could save on a brand-new EV and even get help with installing a home charger. Ready to make the switch to a zero-emission car?

Ready to sell your car?

Ready to learn more about valuing, maintaining, and selling your car? Check out more of our guides here, covering everything from hybrid and electric car depreciation to converting your car to dual-LPG fuel.