What Is the Electric Car Grant and Who Qualifies in 2026?

The Electric Car Grant (ECG) is a UK government subsidy that reduces the purchase price of eligible new zero-emission cars by up to £3,750 at the point of sale. It is administered by OZEV (the Office for Zero Emission Vehicles) and operates through a two-band system based on sustainability criteria. In May 2026 there are 45 eligible models: nine in Band 1 (£3,750 off) and 36 in Band 2 (£1,500 off). The grant is deducted from your invoice automatically; you do not apply separately.

What replaced the Plug-in Car Grant?

The Plug-in Car Grant was closed for cars in June 2022. The Electric Car Grant launched as its replacement in October 2023 with a more sophisticated eligibility structure. The key differences are:

• The ECG pays more at the top end: up to £3,750 versus the final PiCG value of £1,500
• The ECG uses sustainability bands rather than a flat rate
• The ECG covers only 100% zero-emission cars; plug-in hybrids are excluded
• The price cap is £37,000 under the ECG

How do the bands work?

OZEV assesses each model against a set of sustainability criteria including factory environmental standards, production efficiency and the overall price positioning of the model in the market. Cars that score more favourably earn a Band 1 rating and receive the full £3,750. Cars that meet basic eligibility but score lower on sustainability sit in Band 2 and receive £1,500.

The assessment is model and variant-specific. A 40kWh version of a car might sit in Band 2 while the 52kWh version with a different battery supply chain earns Band 1. Always check the specific trim you intend to buy.

What are the eligibility criteria?

Every car on the ECG list must meet all of the following:

Criterion	Requirement
Emissions	100% zero-emission at the tailpipe (no PHEVs)
Price cap	At or under £37,000
Range	At least 100 miles WLTP-rated
Top speed	At least 60mph
General warranty	Minimum 3 years or 60,000 miles
Battery warranty	Minimum 8 years or 100,000 miles
Sustainability	Must meet OZEV’s production criteria

The sustainability criterion is what surprises most buyers. It is assessed at the factory level, which is why Chinese-manufactured cars currently fail to qualify even when they are attractively priced and have strong range figures. This is not a blanket rule against Chinese brands; it is a factory-level assessment, and the criteria could change. Check the current OZEV list for the most up-to-date position on any specific model.

Which cars qualify in 2026?

As of May 2026, the eligible list covers 45 models. Here is a representative selection:

Band 1: £3,750 off

Model	Battery	Approximate price before grant	After grant
Renault 5	52kWh	From ~£23,000	~£19,250
Renault 4	52kWh	From ~£27,000	~£23,250
MINI Countryman Electric	64.7kWh	From ~£34,000	~£30,250
Nissan Micra	52kWh	From ~£24,000	~£20,250
Renault Alpine A290	52kWh	From ~£34,000	~£30,250

Band 2: £1,500 off

Model	Approximate price before grant	After grant
Volkswagen ID.3	From ~£33,000	~£31,500
Peugeot e-308	From ~£35,000	~£33,500
Citroën e-C3 Aircross	From ~£23,000	~£21,500
SEAT Arona Electric	From ~£28,000	~£26,500
Cupra Raval	From ~£28,000	~£26,500

These are indicative prices; check current manufacturer and dealer figures before making any decision.

Who actually gets the grant?

Anyone buying an eligible new zero-emission car from an approved dealer. There is no income means-test, no residency requirement beyond being a UK buyer, and no application form to complete. The dealer handles the claim and you pay the post-grant price.

One practical point: the grant applies only to vehicles being registered for the first time. It cannot be applied to used EVs or pre-registered stock that was already sold once.

Does leasing count?

Yes, with conditions. If you are taking a Personal Contract Hire (PCH) deal, the leasing company is technically the buyer and can claim the grant on your behalf, passing the saving into your monthly payments. In practice, whether the leasing company passes the saving on depends on the specific deal. Some leasing companies advertise ECG-eligible vehicles with the grant built into the quoted monthly cost; others do not. Always ask explicitly.

Salary sacrifice schemes work similarly: the employer leases the car and claims any applicable grant, reflecting it in the monthly sacrifice amount.

What is not covered?

• Plug-in hybrids (PHEVs). Excluded entirely from the ECG.
• Used electric cars. The grant applies only to new, first-registration vehicles.
• Cars over £37,000. No exceptions; a car listed at £37,001 does not qualify even if it is otherwise eligible.
• Models that fail the sustainability assessment. This currently includes most Chinese-manufactured EVs.
• Cars without an OZEV-approved dealer. In practice, all major manufacturer dealer networks are approved.

Common mistakes buyers make

Assuming a model qualifies without checking. The eligible list is updated regularly. New models are added and old ones can be removed. Always verify on the OZEV GOV.UK page before signing.

Confusing Band 1 and Band 2. Buyers sometimes see a car listed as “grant eligible” and assume they are getting £3,750. If it is in Band 2, the discount is only £1,500. The difference of £2,250 is significant.

Not factoring in salary sacrifice. A buyer who qualifies for salary sacrifice through their employer can stack the ECG discount with salary sacrifice benefits, making the effective saving considerably larger than the grant alone.

Buying a used EV expecting the grant. The grant is for new cars only. There is no equivalent for the used EV market, though some local authorities and housing associations run separate schemes.

How long will the grant last?

OZEV funding for the Electric Car Grant currently runs to the 2028/29 financial year. The November 2025 Budget allocated an additional £1.3 billion to extend the grant pool through 2026 and 2027. However, the scheme can close earlier if the approved budget is exhausted. Given the growth in EV sales driven by the ZEV Mandate (which requires 33% of new car registrations to be zero-emission in 2026), there is a reasonable chance grant-eligible models sell through their allocations before the stated end date.

If you are considering an ECG-eligible car, buying sooner rather than later is generally the safer strategy.

What to do next

Check OZEV’s current eligible vehicle list for your shortlisted model and confirm which band it sits in. Then speak to your employer about salary sacrifice if you are employed. If you are renting or own a flat, investigate the £500 EV chargepoint grant for your home installation.

For a ranked shortlist of the best-value current options, see our guide to best value EVs that qualify for UK grants. For the full policy context, return to the grants, policy and legislation hub.