It's time for van buyers to go electric.

Van buyers will be able to receive 20% - up to £8,000 - off the cost of a plug-in van, Transport Minister Norman Baker and Business Minister Mark Prisk announced at the end of January.  This is an extension of the Plug-In Car Grant which offers 25% - up to £5,000 – 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.

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.

He concluded: “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.”

Business Minister Mark Prisk said: "Supporting ultra-low carbon technology in vans makes sense. An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra-low carbon van an attractive choice for businesses.  The technology also fits well with a large portion of the van market that rely on short urban trips to and from base.”

Ultra-low carbon van manufacturers can now 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 around 150 electric charging points for vehicles in London.

For more information visit: www.dft.gov.uk.