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Motoring news

Government firms-up £5k electric car incentive

25/02/2010

Ministers have provided more detail on forthcoming incentives to encourage the uptake of electric cars.

The plans, first outlined last April, will allow people who buy a qualifying ultra-low emissions vehicle (ULEV) to receive a grant worth 25% of the vehicle's value, up to a maximum of £5,000.

The Department for Transport (DfT) has now said that the 'Plug-in Car Grant' will operate in a similar manner to the scrappage scheme, with motorists paying the discounted price and the manufacturer being responsible for claiming the subsidy back.

But while the scrappage incentive was made up of equal contributions from the Government and car manufacturers, the new grant is set to be wholly provided from the public purse in an attempt to encourage "pioneering motorists" to take up new technology.

However, it will not be available until January 2011, at which point ministers expect a wider range of eligible vehicles to be available. In its previous announcement, the Government made clear that only electric, or plug-in electric hybrids would qualify, seemingly precluding currently popular models such as Toyota's Prius.

The DfT also revealed that London, Milton Keynes and the North East are the first areas to receive funding for the installation of charging infrastructure, under its 'Plugged-in Places' scheme. This is set to deliver 11,000 charging points over the next three years at public places such as supermarkets, car parks and retail centres.

Announcing the details, Transport Secretary Lord Adonis said: "Transport has a huge part to play in helping the UK meet its stringent emission reduction targets."

Reaffirming Government plans to put the UK "at the global forefront" of ULEV development, manufacture and use, he added: "By this time next year, cutting edge motorists will be on the roads with these next-generation cars they've purchased because of our help."

Government-commissioned research has suggested that electric vehicles, powered through energy supplied by the National Grid, could produce up to 40% fewer greenhouse gas emissions than those using conventional fuels.

But while transport organisations have generally welcomed steps to encourage electric-car uptake, environmentalists have stressed that they should not be the sole focus of carbon-reduction efforts.

Commenting in 2008 on the Government's plans to encourage a mass-market for electric cars, Campaign for Better Transport spokesperson Richard George called for investments in sustainable transport that would give people "real travel choices".

"This means better buses, cheaper trains and a real boost for walking and cycling - with a few electric cars sprinkled on top," he said.