Van buyers will be able to receive 20% – up to £8000 – off the cost of a plug-in van, Transport Minister Norman Baker and Business Minister Mark Prisk announced yesterday.

This is an extension of the Plug-In Car Grant which offers 25% – up to £5000 – to motorists buying a new plug-in car. Ministers have also re-confirmed there is funding secured for this grant until 2015.

The purpose of the consumer grant is to enable the purchase of ultra-low carbon vehicles which could otherwise have been unaffordable. The consumer will also benefit from lower running costs over the lifetime of the vehicle.

Liberal Democrat Transport Minister Norman Baker said:

“Electric vehicles are the arrowhead for a low carbon revolution in motoring and as more models come to market we’ll begin to see sales gather pace.

“Car buyers have had a year to take advantage of our grant and now it’s time for van buyers to get their chance to go electric. This is great news for businesses given the lower running costs of these vehicles – fleet buyers tell us that this is one of the most important factor influencing their decision on what to buy.

“It is radical initiatives like these which will allow us to create a transport system that both cuts carbon and is an engine for economic growth.”

From today ultra-low carbon van manufacturers will be able to apply to be part of the Plug-In Van Grant – which will help to improve local air quality in cities, reduce carbon emissions and meet Government carbon reduction targets.

To be eligible for the scheme, vans will have to meet performance criteria to ensure safety, range, and ultra-low tailpipe emissions. Consumers, both business and private will receive the discount at the point of purchase.

There are currently 10 cars eligible for the Plug-In Car Grant – 5 of which came onto the market in 2011, with the other half expected to be available to purchase this year. During the first year of the scheme, over 1000 eligible vehicles were registered and, up to 31 December 2011, 892 applications were made for the Plug-In Car Grant.