UK Plug-In Vehicle Grant: Everything you need to know about electric van and vehicle incentives
The UK government, through the Office for Zero Emission Vehicles (OZEV), provides financial incentives to accelerate the adoption of electric vehicles (EVs) and reduce carbon emissions. The Plug-In Vehicle Grant (PiVG) is a key part of this strategy, helping make electric cars, vans, motorcycles, and other low-emission vehicles more affordable by applying a direct discount to the purchase or lease price of eligible new vehicles.
Launched in 2011, the scheme has evolved significantly over the years. Initial grants for private cars have been gradually reduced and, in some cases, withdrawn, while the focus has shifted to promoting commercial and specialty electric vehicles and expanding the UK’s EV charging infrastructure.
Electric van lease grant 2025
For businesses and individuals looking to lease electric vans, the government provides grants based on the size and weight of the vehicle:
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Small electric vans (up to 2.5 tonnes GVW): Eligible for a £2,500 grant.
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Larger electric vans (2–3.5 tonnes GVW): Eligible for a £5,000 grant.
These grants reduce the effective cost of leasing an electric van, making zero-emission transport more accessible to businesses of all sizes.
Fleet limitations
To manage demand and ensure fair allocation, the government sets a limit of 1,000 grants per financial year (April 1 – March 31) for large fleets, including businesses, organisations, and individuals.
Leasing companies, however, are not subject to this limit, meaning that vehicles leased through providers like Commercial Vehicle Contracts can access the grant seamlessly, regardless of fleet size.
Changes to the Plug-In Car Grant
The £1,500 Plug-In Car Grant (PiCG) for private electric vehicles was withdrawn on 14 June 2022. This decision reflects a broader strategy by the government to:
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Expand the UK’s public EV charging network, making it easier for EV users to charge at home, at work, and on long journeys.
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Redirect funding toward commercial and specialist electric vehicles, including:
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Electric taxis and ride-hailing vehicles
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Electric vans and trucks
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Electric motorcycles
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Wheelchair-accessible vehicles
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Around £300 million in funding from the former PiCG has been repurposed to support these categories, ensuring continued incentives for zero-emission transport in both commercial and specialist sectors.
It is important to note that private passenger cars are no longer eligible for the grant, except in specific cases such as wheelchair-accessible vehicles.
How the Plug-In Van Grant works when leasing
Leasing an electric van through a reputable provider ensures that:
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The OZEV grant is automatically applied to your monthly lease cost.
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There is no need for separate applications or paperwork—your lease quote already reflects the grant.
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Every quote you receive clearly indicates the grant contribution, providing transparent and predictable costs.
This simplifies the leasing process, allowing businesses to focus on operational needs rather than government forms.
Eligibility for Electric Vehicle Grants
To qualify for the Plug-In Van Grant:
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Vehicles must be brand-new and approved by the government.
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Vans must fall within the relevant gross vehicle weight (GVW) category.
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The grant applies to both businesses and individual lessees, though fleet restrictions may apply for large-scale buyers.
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Lease agreements count toward eligibility, meaning you do not need to own the vehicle outright to benefit from the grant.
By meeting these requirements, businesses can access significant financial support, helping reduce emissions while managing operational costs.
Why lease an electric van with Commercial Vehicle Contracts?
Leasing an electric van is about more than simply accessing the grant—it’s about ensuring the right vehicle aligns with your business requirements. Our team of experts can help you:
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Select the right van for your cargo, route, and operational needs
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Ensure the vehicle meets your range, charging, and load requirements
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Provide guidance on incentives, grants, and lease terms
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Simplify the leasing process, from application to delivery
Whether replacing a diesel fleet or introducing your first electric vehicle, we make it straightforward to access government support and secure a competitively priced, zero-emission lease.
Additional benefits of leasing an electric van
Leasing an EV offers multiple advantages beyond financial incentives:
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Reduced running costs: Electricity is cheaper per mile than diesel or petrol, and maintenance is lower due to fewer moving parts.
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Lower environmental impact: Zero tailpipe emissions contribute to improved air quality and reduced carbon footprint.
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Compliance with regulations: EVs help businesses meet local low-emission zone requirements and London Congestion Charge exemptions.
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Future-proofing your fleet: EVs are increasingly supported by government policies, infrastructure investment, and technological advancements.
Next steps
If you’re considering an electric van for your business, our team can provide expert advice on grants, leasing options, and vehicle selection. Every quote we provide includes the government grant, ensuring a transparent and cost-effective leasing process.
 
 
