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Last updated: Wednesday 20th August 2025

New Electric Car Grant Everything you need to know

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What is the Electric Car Grant (ECG) 2025?

Buying a new electric car just became easier, more affordable, and more accessible for everyone with the government's new Electric Car Grant!

The Electric Car Grant (ECG) is a £650 million government subsidy for eligible new electric cars, priced at £37,000 or below, that was launched in July 2025.

The subsidy was introduced as part of the Government's wider strategy to reach net zero carbon emissions by banning the sale of new petrol and diesel cars by 2035.

Consequently, with the ECG, the government is incentivising customers to go electric with large EV discounts.

There are two bands for the grant:

Band 1 £3750

Available for EVs with the lowest carbon emission ratings

Band 2 £1500

Available for EVs with moderate sustainability ratings

The grant is processed by the dealer directly from the government, making it easy and hassle-free for the customer to obtain at point of purchase. The grant is set to run from 2025 until the end of the 2028/29 financial year.

Please be aware that the UK Government will regularly review grants and subsidies which means that the grant or criteria could change at any time with little or no notice.

How does the government Electric Car Grant work?

The Electric Car Grant works based on specific technical and environmental criteria which apply to car makers when producing and manufacturing vehicles.

The ECG can only be claimed for new Zero Emission Vehicles (ZEVs) at the point of initial registration.

The band each specific model falls under is dictated by the level of carbon emitted during the vehicle’s production.

What this grant means for you

Although running costs for EVs tend to be cheaper for motorists as you save on fuel and other running costs, we know that a pain point for many has been the cost of buying or leasing an EV from new.

So, if you’ve been toying with the idea of going electric but the initial or monthly costs had been putting you off, then this could truly be a game changer.

There are real-life savings to be made every month if you choose to buy a new, eligible EV. And the list of eligible models is likely to increase as time goes on.

Government Electric Car Grant eligibility criteria

To be eligible for the Electric Car Grant, the car manufacturer must demonstrate that they have a verified science-based target (SBT) and are committed to making real progress in achieving this target.

An SBT is a target which demonstrates to manufacturers and other businesses how much and how quickly they need to reduce their greenhouse gas output and emissions to prevent the worst impacts of climate change.

Subsequently, manufacturers must demonstrate that their carbon emission output during vehicle assembly and battery cell production falls below certain thresholds.

In addition to the above, specific eligibility criteria also applies to the specific model's technical standards:

  • Must be a passenger car with a maximum of nine seats (DVLA category of motor vehicle - M1).
  • Must be a zero-emission vehicle (ZEV) producing 0g CO2/km from the tailpipe.
  • Must have a minimum battery range of 100 miles WLTP.
  • Must have an eight-year or 100,000-mile battery warranty with a low rate of degradation (≥70%).
    The warranty must also guarantee:
    • A replacement battery if degradation surpasses 70% capacity within the first eight years.
    • 90% of the fuel stack's rated voltage output for the initial five years.

Find discounted EVs by manufacturer

There are now more than 20 different EV models which qualify for the £1500 government Electric Car Grant.

As of yet, none of the models qualify for the full £3750 government grant but manufacturers are still working on applications and the government are still processing applications with more EVs set for eligibility soon.

Additionally, manufacturers who are not eligible for the government Electric Car Grant have decided to offer EV discounts of their own to ensure their customers can also save on the list price and don’t miss out.

Want to see everything on offer?

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Your questions answered

How to apply for Electric Car Grant?

Car buyers don’t need to apply for the grant – dealers will handle receiving the grant from the government. The buyer will benefit from the grant automatically at point of sale in the form of a discount when they purchase a new zero-emission vehicle priced under £37,000.

How much is the Electric Car Grant

The ECG amount varies depending on which band a model is in (Band 1 or Band 2) when compared to specific manufacturing and production criteria. Band 1: £3750 available for EVs with the lowest carbon emission ratings. Band 2: £1500 available for EVs with moderate carbon emission ratings.

When does the government Electric Car Grant end?

The ECG is set to run from 2025 until the end of the 2028/29 financial year. Please be aware that the UK Government will regularly review grants and subsidies which means that the grant and/or criteria could change at any time with little or no notice.