New EV grant means electric cars will be cheaper than ever
The new Electric Car Grant will be available on EVs costing under £37,000 and only those models from manufacturers that have committed to a so-called Science-Based Target (SBT) for emissions and have already showcased reductions because of this.
The ECG will be available in two tiers; cars deemed the most environmentally friendly will be liable to receive the full £3,750 discount, while those not quite deemed green enough will instead be discounted by £1,500. As only cars costing under £37,000 will be eligible, the UK's best-selling EV, the Tesla Model Y is among a large list of EVS not in-line for government grants. Advertisement - Article continues below
Auto Express is awaiting clarification on how individual models will be rated in terms of how sustainable it is, but a full list will eventually be available on the government website.
Regardless, the re-introduction of the grant has been well-received across the industry, with Renault's managing director, Adam Wood calling it a 'much-needed signal that Government is ready to put tangible action behind the ambitious plans for the transition to electric vehicles (EVs) that it has outlined.' Skip advert Advertisement - Article continues below
The AA said it is 'pleased [its] calls have been heard', while CEO of charging firm InstaVolt, Delvin Lane, claimed the government's announcement 'could not [have] come at a better time.'
Just under 50 new electric car models would be eligible for the EV grant, if their makers pass the necessary criteria, with more becoming clear in the coming days.
There are also a number of electric cars that are just outside the £37,000 threshold and manufacturers will be reviewing whether to lower the prices on these models in order to qualify.
That's not all, however, as the government has also invested £25 million to aid private councils in installing cross-pavement charging solutions; these so-called 'gulleys' involve digging a small trench into the pavement in which a flap will be installed, allowing a charging cable to be draped across the road without becoming a trip hazard.
Co-founder of cross-pavement charging solution firm, KerboCharge, Michael Goulden, said he was 'delighted by the news of the Government grant', stating that it 'demonst[es] the Government's backing for cross-pavement charging and subsidising the cost for tens of thousands of UK households.'
That £25 million comes as part of a larger £63 million lump sum towards building appropriate signage for EV charging stations, something founder of campaign group, FairFuel UK, Quentin Wilson, said was 'a very welcome development'.
'I'm overjoyed to see that finally non-EV drivers will see that there is a charging infrastructure to give them the confidence to switch,' Wilson explained. 'Years of not having any charging signage on our roads has helped stoke the myth 'there's no infrastructure'.
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12 Jul 2025
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