Electric vans eligible for new grant scheme

The government has listed seven electric vans that are eligible for a discount of up to £8,000 as part of the Plug-In Van Grant first unveiled last month.

In addition to the grant, the scheme also allows businesses to reclaim the full list price VAT of any new electric van, transport secretary Justine Greening and business minister Mark Prisk have confirmed.

To qualify for the scheme models must emit less than 75g/km CO2, be capable of travelling at least 60 miles between charges – or 10 miles in electric mode for hybrid vans – reach speeds of more than 50mph, and meet European safety standards.

As well as benefiting from reduced refuelling costs, electric vans are exempt from company car tax, attract capital allowance concessions, and receive a 100 per cent discount for the congestion charge in the London, making them an attractive choice for many businesses’ fleets. A report released today by The Climate Group in collaboration with the Energy Saving Trust and Cenex finds that, when used for the right tasks, electric vehicle’s save businesses £700 per vehicle per year compared to diesel alternatives.

“Vans are essential to the smooth running of so many businesses and contribute enormously to the UK economy,” Prisk said in a statement. “An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for those businesses.

“Now there are seven different models eligible for that support, van buyers should be able to choose one they find easy on the eye as well as the wallet.”

The models confirmed as eligible for the scheme are: Azure Dynamics’ Ford Transit Connect Electric, the Mercedes-Benz Vito E-CELL, Renault’s Kangoo Z.E. and others in that range, and Smith Electric’s Edison, plus variants SE2 and SE3.

Italian manufacturer Faam’s Ecomile and Jolly 2000 models will join the scheme in March, while discounts for Mia-electric’s Mia U will be available from May.

Greening also announced Mia Electrics’ Mia/Mia L electric car has become the 11th model eligible for the £5,000 plug-in car grant.

A Department for Transport spokeswoman told BusinessGreen the government anticipates more electric vans will join the scheme, but manufacturers must apply to be added.

Around £300m has been set aside to cover both the plug-in van scheme and its electric car equivalent, under which 1,052 cars were sold in 2011, using up just £5.26m of the original £250m budget.

The DfT spokeswoman said no targets have been set for van adoption under the scheme, although the Committee on Climate Change estimates 1.7 million electric vehicles need to be on UK roads if the country is to meet its emissions targets.

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the van grant was good news for British manufacturers.

“Home to a high level of low carbon R&D and manufacturing activity, the UK is well placed to take full advantage of the ultra-low carbon vehicle sector,” he said in a statement. “Incentives that support the development of a flourishing market will add to our competitive advantage.”

Source: Business Green