The Office for Low Emission Vehicles (OLEV) will begin a review of the Plug-in Car Grant in May, seeking to launch a replacement scheme which will recognise the diversity of the technology available.

Launched in 2011, the grant offers funding of up to £5,000 or 35% of the car’s value against the purchase of a new vehicle, provided it emits less than 75g/km CO2, offers an electric range of 70 miles (10 for plug-in hybrids) and can reach 60mph, as well as satisfying safety and warranty criteria.

OLEV began sorting eligible vehicles into three categories on the 1st April, but the scheme will continue to offer the current funding level until all 50,000 grants have been awarded. It’s likely the subsequent scheme will offer progressively higher funding for vehicles which prioritise electric driving.

So Category 1 is tailored towards fully electric cars, with a 50g/km CO2 cap and a battery-powered range of at least 70 miles, though the BMW i3 REX is eligible.

Category 2 and 3 cover most plug-in hybrids and range extenders, the first setting a 50g/km cap but with a range of between 10 and 69 miles, and the latter spanning CO2 emissions of between 50 and 75g/km with an electric range of at least 20 miles.

Plug-in Hybrids, led by the Mitsubishi Outlander PHEV, outsold battery electric vehicles more than two-fold in the first quarter of 2015, according to data from the SMMT. However, not all plug-in hybrids are eligible for the grant.

OLEV said it will announce the structure of the new grant scheme once the review is complete.

Source: Fleet World