Electric Car Grant 2026: Latest Eligible Models and Discounts

The UK Electric Car Grant gives buyers up to £3,750 off the purchase price of eligible new electric cars. The discount is applied by the dealer at the point of sale — you do not apply separately or wait for a rebate. But not every EV qualifies, and the list of eligible models is more restrictive than most buyers realise. Tesla, MG, BYD and several other well-known names are excluded. Here is the current position.

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How does the Electric Car Grant work?

The grant is managed by OZEV (the Office for Zero Emission Vehicles), which maintains an approved list of qualifying vehicles. To be eligible, a car must:

1. Be a new, fully battery electric vehicle (BEVs only — no PHEVs, no mild hybrids)
2. Have an on-the-road list price of £37,000 or below (for the maximum Band 1 grant)
3. Be manufactured by a company that has verified Science Based Targets (SBTs) with the Science Based Targets initiative (SBTi)
4. Meet minimum range and specifications set by OZEV

The grant operates in two bands:

Band	Grant amount	Price ceiling
Band 1	£3,750	£37,000
Band 2	£1,500	£37,000

Band 1 models attract the full £3,750 discount. Band 2 models attract £1,500. The price ceiling of £37,000 applies to both bands — models above this list price receive no grant.

The grant is currently funded through to the 2028-29 financial year, with the November 2025 Budget allocating an additional £1.3 billion to extend the grant pool through 2026 and 2027.

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Which brands are currently excluded?

This is the most common point of confusion. Several major EV brands are not currently eligible for the Electric Car Grant because they have not met the SBTi verification requirement:

Currently excluded brands (as of May 2026):

• Tesla
• MG (SAIC)
• BYD
• Fiat / Abarth / Alfa Romeo / Jeep (Stellantis brands yet to verify, though Vauxhall and Citroën — also Stellantis — are verified)
• Smart
• Volvo (specifically the EX30; other Volvo models may be eligible)

These are among the bestselling EVs in the UK. Their exclusion means that a significant proportion of the new EV market is outside the grant scheme.

The SBTi requirement was introduced to ensure that grant funding goes to manufacturers with credible environmental commitments, not just those who happened to be selling EVs. But the practical effect is that some of the most competitive and affordable Chinese and American brands do not qualify, while European brands with verified SBTs do.

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Which models are currently eligible?

As of May 2026, OZEV lists 45 eligible models — nine in Band 1 and 36 in Band 2. The full list is updated by OZEV as manufacturers complete SBTi certification and Vehicle Certification Agency (VCA) processing.

Recent additions to Band 1 (£3,750 grant):

• Nissan LEAF (confirmed eligible February 2026)
• Nissan Micra (52 kWh, February 2026)
• Renault 4 (confirmed December 2025)
• Renault 5 E-Tech (52 kWh variant, December 2025)
• Alpine A290 (December 2025)
• MINI Countryman Electric (December 2025)
• Citroën ë-C5 Aircross Long Range (November 2025)
• Ford Puma Gen-E (upgraded from Band 2 to Band 1, September 2025)

Established Band 1 models currently eligible:

• Renault 5 E-Tech (52 kWh)
• Citroën ë-C3 (all variants)
• Vauxhall Corsa Electric
• Volkswagen ID.3 (selected variants)
• MINI Cooper Electric (SE)
• Fiat Grande Panda Electric (pending confirmation — check OZEV portal)

The official list changes frequently as manufacturers complete certification. Always verify current eligibility on the official OZEV portal (gov.uk) or through the buying dealer before making a purchase decision based on grant eligibility.

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Eligible models and their effective prices after grant (Band 1 examples)

Model	List price	Grant	Effective price
Renault 5 E-Tech (52 kWh)	~£26,995	£3,750	~£23,245
Citroën ë-C3	£23,495	£3,750	£19,745
Vauxhall Corsa Electric	~£27,000	£3,750	~£23,250
MINI Cooper Electric SE	~£30,000	£3,750	~£26,250
Nissan LEAF (40 kWh)	~£28,795	£3,750	~£25,045
Ford Puma Gen-E	~£32,000	£3,750	~£28,250

These effective prices make several of these cars significantly more competitive against Chinese alternatives that do not carry the grant. The Citroën ë-C3 at an effective £19,745 after grant, with 249 miles of WLTP range and 100 kW DC charging, is a genuinely strong value proposition.

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How is the grant applied? Do I need to do anything?

The grant is applied by the dealership at the point of sale. You should not need to complete any separate application or claim process. The dealer claims the grant from OZEV and passes the saving directly to you as a discount on the sale price. It is deducted before any finance calculation, so PCP and HP monthly payments reflect the lower price.

You should always confirm in writing before signing any purchase agreement that the grant discount has been applied. Ask the dealer to confirm the OZEV reference number for the eligible model and show you the pre-grant versus post-grant price breakdown.

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What about other EV grants and incentives?

The Electric Car Grant is one incentive among several:

OZEV EV chargepoint grant: Up to £350 off the cost of installing a home wallbox. Changes to eligibility came into effect from April 2026 — check the OZEV portal for current terms. This grant covers supply and installation of a smart chargepoint from an approved installer.

Salary sacrifice: Not a government grant but an employment benefit that allows employees to lease a new EV through their employer at significant tax savings. For a higher-rate taxpayer, salary sacrifice can reduce the effective monthly cost of an EV lease by 30-40%. This applies regardless of whether the car is on the OZEV grant list.

Company car tax (BIK): BEVs currently attract a 3% Benefit in Kind (BIK) tax rate in 2026-27, rising to 7% by 2028-29 under the current schedule. Even at 7%, BEVs will carry a substantially lower BIK rate than petrol equivalents. For company car drivers, this remains one of the most powerful financial arguments for going electric.

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What is the most common myth about the Electric Car Grant?

The most widespread misconception is that the grant applies to all electric cars, or to all affordable electric cars. It does not. The most affordable EVs available in the UK right now — the Leapmotor T03 (£14,495), the Dacia Spring (~£15,000), the BYD Dolphin Surf (£18,650) — are all ineligible. The grant applies to a specific list of qualifying models from manufacturers with verified sustainability commitments.

A related misconception is that you apply for the grant directly. You do not — the dealer handles the claim and passes the discount on. If a dealer tells you to apply separately through a government website, that is incorrect for this scheme (though it may be relevant for the separate OZEV chargepoint grant).

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What should you do next?

For the broadest overview of EV grants, incentives and tax treatment in 2026, see our grants, policy and legislation guide. For an editorially selected shortlist of the best-value EVs that qualify for the current grant scheme, see our value EVs that qualify for grants page.

The Electric Car Grant is a meaningful saving on qualifying models. But it is not the only metric to optimise. A car that does not qualify for the grant but offers better specifications, lower running costs and a stronger total ownership proposition may still represent better value. Use the grant as a factor, not the sole deciding criterion.