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Sofia Modiri Dockery
I research and write blogs on what’s happening in the EV-world.
If you’ve been thinking about switching to an electric car, now is a brilliant time to act. The UK government has reintroduced a brand-new Electric Car Grant that could save you up to £3,750 off the price of a new EV, and that’s on top of the savings you’ll make every year by switching to an EV.
What Is the Electric Car Grant?
The Electric Car Grant (ECG) is a UK Government incentive launched in July 2025 to make electric cars more affordable for private buyers. The goal is to get more EVs on the road, cut carbon emissions, and fast-track the move away from petrol and diesel ahead of the planned 2030 ban on new fossil-fuel cars.
It offers a discount on new electric cars at the point of sale. The amount depends on how green the car and its maker are. The grant runs until 2030, unless the funding pot runs out first.
To be eligible for a grant, the vehicle must adhere to some strict guidelines, including:
- Producing 0gCO2/km at the tailpipe
- Having a minimum battery range of 100 miles (160km)
- Having a 3-year/60,000 mile warranty
- Be powered by a battery with an 8-year/100,000 mile warranty
As well as meeting minimum sustainability criteria.
What Discount Can I Get?
There are two levels of discount under the Electric Car Grant:
Band 1: £3,750 Grant
This is the maximum discount, and you were right, that £3,750 is the headline number! To qualify for this top-tier grant, cars must:
- Have the highest sustainability scores during manufacturing.
- Only a handful of models currently meet these criteria (we’ll list them next).
Band 2: £1,500 Grant
Most eligible EVs qualify for a £1,500 discount if they meet the minimum environmental and price criteria.
To qualify for either level:
- You must be buying a brand-new electric car (not used).
- The car’s list price must be £37,000 or less before the grant.
Employers Introducing the Scheme
Employees Going Green
Which Cars Qualify? (As of August 2026)
The list of eligible vehicles is updated regularly by the Government.
Full Discount (£3,750) Cars:
Eighteen models now qualify for the maximum £3,750 discount:
- Alpine A290
- Abarth 500e
- BMW iX1 and iX2
- Citroën ë-C5 Aircross (Long Range)
- Fiat 500e (including Urban Range)
- Ford E-Tourneo Courier and Puma Gen-E
- Hyundai KONA Electric
- Kia EV2 (Long Range) and EV4
- MINI Countryman Electric
- Nissan LEAF and Nissan Micra (52kWh)
- Renault 4, Renault 5 (52kWh), and Renault Scenic
There are plenty more cars available for the Band 2 discount, have a look at the GOV website to see which ones, then have a look on our quote engine to see how much more you can save!
How Do You Claim the Grant?
Good news: you don’t claim it yourself. The grant is automatically applied at the point of purchase when you order a qualifying car from a dealer.
That means:
- You see the discount on the car’s price tag.
- No extra forms, no paperwork.
- It’s the manufacturer/dealer who deals with the grant process behind the scenes.
Important Caveats (So You Don’t Get Stung)
- Only new EVs qualify: used cars do not get the grant
- There’s a price cap of £37,000: many popular EVs sit above this, so you won’t always get a discount.
- The grant runs to 2030, but it could run out earlier if funds are exhausted.
- Only the greenest vehicles get £3,750. Most currently fall into the £1,500 category.
- Manufacturers must apply and qualify, so some models you want might not be on the list yet.
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