When it comes to commercial vehicles, the announcement by the UK Government earlier this year regarding the extension of the Plug-In Van Grant for at least until 2024 is significant. The extension of the scheme brings a fresh wave of opportunities for businesses considering the leap into leasing a brand-new electric van. Crusader Vans explains how the Plug-In Van Grant aligns with the government’s persistent focus on promoting electric vehicles and makes sense to anyone considering the move to electric.
A Shift Towards Electric Mobility
The promotion of electric vehicles has consistently held a prominent position in the UK Government’s agenda for the past few years. There have been varying levels of success in achieving the ambitions date. However, the extension of the Plug-In Electric Van Grant signals a continued commitment to steering businesses towards greener, fully-electric alternatives.
Plug-In Van Grant: Incentivising Green Choices
Financial incentives often serve as a catalyst for the adoption of new business technologies. The Plug-In Van Grant (PIVG), a government scheme, is specifically designed to encourage the transition to electric vans. With nearly 5% of the UK’s CO2 emissions attributed to vans, ministers emphasise the urgency of embracing fully-electric vans to meet climate change and air quality targets. It’s worth noting that a similar incentive, the Plug-In Car Grant (PICG), is available for those considering electric cars.
Understanding the Plug-In Van Grant
Understanding the specifics of the Plug-In Van Grant is crucial for businesses contemplating electric van leasing. The grant reduces the vehicle cost by 35%, with a maximum discount of £2,500 for small vans weighing up to 2,500kg Gross Vehicle Mass (GVM). For larger vans, falling between 2,501kg and 4,250kg GVM, the same percentage applies, with a higher cap of £5,000. This financial reprieve directly impacts the overall cost of the vehicle, making electric van options more economically attractive.
What Small Vans are Eligible for the Plug-In Van Grant?
For those in need of compact yet efficient transportation solutions, small vans present an attractive option. A 35% discount is available on select small vans, with a maximum discount cap of £2,500. To qualify for this discount, the van must meet specific criteria:
• Gross Vehicle Weight: Less than 2,500 kilograms (kg)
• CO2 Emissions: Less than 50g/km
• Emission-Free Range: At least 96km (60 miles)
The following small vans are eligible for the discount:
• Citroën e-Berlingo
• Fiat e-Doblo
• Maxus eDeliver 3 (short wheelbase variants)
• Nextem Orca
• Nissan e-NV200
• Nissan Townstar
• Nissan Voltia
• Peugeot e-Partner
• Renault Kangoo E-Tech
• Renault Kangoo ZE
• Renault Zoe Van
• Toyota Proace City Electric
• Vauxhall Combo-e
What Medium and Large Vans are Eligible for the Plug-In Van Grant?
Businesses that require the use of a larger van can benefit from the discounts on select large vans, reaching up to £5,000. The eligibility criteria for these vans include:
• Gross Vehicle Weight: Between 2,500kg and 4,250kg
• CO2 Emissions: Less than 50g/km
• Emission-Free Range: At least 96km (60 miles)
The following large vans are eligible for the discount:
• BD Auto eTraffic
• BD e-Boxer
• BD e-Ducato
• BD e-Relay
• Citroën e-Dispatch
• Citroën e-Relay
• DFSK EC31
• DFSK EC35
• Fiat e-Ducato
• Fiat E-Scudo
• Ford E-Transit (Leader)
• Ford E-Transit (Trend)
• LDV EV80
• LEVC VN5
• MAN eTGE
• Maxus eDeliver 3
• Maxus eDeliver 3 LWB Chassis Cab
• Maxus eDeliver 9
• Maxus eDeliver 9 MC L3 Chassis Cab
• Maxus eDeliver 9 LC L4 Chassis Cab
• Maxus T90
• Mercedes-Benz eVito
• Mercedes-Benz eVito Premium
• Mercedes-Benz eVito Progressive
• Mercedes eSprinter
• Nissan Townstar Crew Van
• Nissan Townstar L2
• Peugeot e-Boxer
• Peugeot e-Expert
• Renault Master ZE (3.1 and 3.5 tonnes)
• Renault Trucks Master ZE
• Toyota Proace Electric
• Vauxhall Vivaro-e
• Volkswagen ABT e-Transporter
• Volkswagen ID. Buzz Cargo Commerce
• Volkswagen ID. Buzz Cargo Commerce Plus
Plug-In Van Grant: Not a Cashback Scheme
A common misconception is that the Plug-In Van Grant acts as a cashback scheme. In reality, the customer is invoiced for the net amount after deducting the grant. This streamlined process ensures that customers don’t need to navigate complex cashback procedures; the discount is seamlessly integrated into the transaction.
Leasing and Grant Access
Leasing an electric van doesn’t hinder access to the Plug-In Van Grant; in fact, it enhances it. Partnering with Crusader Vans The leasing the grant is incorporated into the overall cost structure, resulting in lower monthly payments for the lessee. Crusader Vans considers the Plug-In Van Grant in all their electric van leasing quotes. Without this grant, monthly payments would be significantly higher, making the financial aspect of electric van adoption more challenging.
Fleet Considerations
For businesses eyeing a fleet of electric vans, the good news is that the grant is accessible even at scale. While there is a limit of 1,000 grants per customer, this ceiling is unlikely to pose a concern for most businesses. Moreover, the end user is considered the customer by the government, ensuring that dealerships and funders won’t run out of qualifying deals.
The extension of the Plug-In Van Grant comes as a relief for businesses that faced uncertainty earlier in this year. The Office For Zero Emission Vehicles (OZEV) communicated that they wouldn’t provide advance notice of grant reductions or withdrawal. This lack of transparency created concern for businesses planning to place orders, as the grant status remained uncertain during the vehicle production period. The extension, while not eliminating all uncertainties, does provide a level of assurance that the grant will be available, albeit with potential amendments by OZEV.
Next Steps
For businesses keen on leveraging the extended Plug-In Van Grant, a visit to the Crusader Vans website or a call to 01825 701200 are the logical next steps. A conversation with Crusader’s van leasing experts opens the door to a range of electric van options, with the added benefit of newly-extended grants translating into attractive, low monthly rentals.
In conclusion, the combination of the extended Plug-In Van Grant and the offerings from Crusader Vans positions businesses for a future where operational efficiency aligns seamlessly with environmental responsibility. As the Plug-In Van Grant continues to play a pivotal role in shaping the electric van landscape, businesses have the opportunity to not only reduce costs but also contribute to a greener and more sustainable future.
