The Plug-in Van Grant (PIVG) has been available to purchasers of new all-electric commercial vehicles (and a select few hybrid vans) since 2012, but there are fears that the scheme could soon be phased out following two cuts to the grants in 2021.

On 15 December 2021, the Government reduced the amount of grant available for electric vans across the range of sizes. This followed a previous round of reductions made in March.

How much grant can I claim on an electric van?

Grants of up to £8,000 had been available for purchases of electric vans up to 3.5 tonnes, but this figure was reduced in March 2021 to £6,000, and again in December to a maximum of £5,000 (up to 35% of the purchase price).

Grants for small vans up to 2.5 tonnes are now a maximum of £2,500 (up to 35% of the purchase price). From March to December this figure had been £3,000.

There is also now a limit on the number of van grants available to individual customers. Fleet owners will be able to claim the subsidy for up to 1,000 vans per application.

Can I claim a grant for any electric van?

The PIVG provides a government-funded subsidy for vans that are able to be driven with zero emissions. The latest qualifying criteria states that vans must be able to:

• travel at least 60 miles with zero emissions
• create less than 50g/km CO2 emissions

Are grants available on larger vans and trucks?

Vans weighing up to 4.25 tonnes qualify for the 'small truck' grant and buyers can receive up to £16,000 or 20% of the purchase price (prior to December 2021 this had been £20,000).

These larger alternative-fuel vans are seen as an important part of a greener logistics industry and a special exemption has been granted so that, in certain circumstances, they can be driven on a standard UK driver's licence.

What about the cost of the charging system?

Grants of up to 75% towards the cost of electric vehicle smart chargepoints at domestic properties in the UK are available through the Electric Vehicle Homecharge Scheme (EVHS).

However, the grants will no longer be available to homeowners in single-unit properties from April 2022 (installations must be completed by 31 March 2022 and the grant claim submitted by 30 April 2022).

Those who live in flats (homeowners) and people who live in rental accommodation (both flats and single properties) will still be able to apply for the grant.

The Workplace Charging Scheme (WCS) provides vouchers towards the upfront cost of installing a workplace charge system and is available for eligible businesses, charities and public-sector organisations.

Electric van insurance with iVan

There have long been murmurings that insurance for electric vans is more expensive than traditional vehicles, and yes, any new or niche technology in a van will make it more expensive initially. However, this is largely to do with the higher-than-average vehicle purchase prices and the cost of replacement parts and repairs.

As electric vans become more commonplace, and as the sale of new petrol and diesel vehicles will be banned, possibly by 2030, the costs related to electric vans will come down and so will the price of electric van insurance.

If you want to find out how much it would cost to insure an electric van, contact iVan today, the van insurance specialists.