Grants & Incentives

Electric vehicle government grants and incentives

Find out about electric vehicles tax benefits

  1. How much road tax will I pay for an electric van?

    The good news is that electric vans are currently zero-rated when it comes to Vehicle Excise Duty or ‘road tax’. The Government has given van drivers the same incentives to go electric as it has car drivers, so annual road tax for all 100% electric, zero-emissions vans is £0 – and this applies to all Mercedes-Benz electric vans. 

  2. Benefits in kind for electric vehicles explained

    Benefit-in-kind (or BIK) is a tax on employees who receive benefits in addition to their salary, including vehicles. In 2021 the BiK rate was reduced to zero for all-electric vans (not hybrid), encouraging businesses to switch to electric. This has a number of advantages: employees who use an electric van for personal mileage do not pax on the mileage, and the zero rating means employers also save money on National Insurance. Also, if you charge your electric van at your workplace, you won’t have to pay any BiK tax, even though it is a perk of being an employee.

  3. Free parking permits and spaces for electric vehicles

    A very handy benefit of driving an electric van is the ability to use free parking spaces in many urban areas. City centres are keen to attract zero emission vehicles to reduce pollution, and in Milton Keynes, for example, there are more than 15,000 city centre bays where electric vehicle drivers can park for free.

  4. No Congestion charges and ULEZ free 

    If you’re working in London, especially central London, an electric van could save you £3,915 a year on congestion charges, plus, if your current van does not meet the Ultra Low Emission Zone (ULEZ) standards (Euro 5 or older), you could save an additional £3,262.50 a year^.

    All 100% electric van are completely exempt from the London Congestion Charge, and the Ultra Low Emission Zone (ULEZ) charge. Many other UK cities are introducing their own congestion charges and limiting access to non-electric vehicles. Regulatory bodies are also heavily scrutinising non-fully electric vehicles that are currently exempt. There are concerns about the damage caused by the Nitrogen Dioxide and other tailpipe gases, so it seems possible that to work in cities in the near future, a fully electric van will soon become the only way to go. 

  5. Reclaim VAT on an electric vehicle 

    The rules for reclaiming VAT on an electric van are the same as for any other type of vehicle, it must be used exclusively for business. If you use the van for a mix of personal and business travel, you will not be able to claim any of the VAT on it. Proving that you only use the van for business may be difficult to prove to HMRC. 

They offer grants to encourage the take-up of plug-in vehicles, as well as funding to develop the charging point infrastructure across the UK.

You may remember that OZEV was previously called ‘OLEV’ – The Office for Low Emission Vehicles. The name change reflects the government’s net zero aims, hance the Office for Zero Emission Vehicles (OZEV).

As an electric van buyer, the funding schemes you can benefit from are:

  • The plug-in vehicle grant (PIVG) for ultra-low and zero emission vans
  • The Electric Vehicle Homecharge Scheme (EVHS)
  • The Workplace Charging Scheme (WCS)
  • The On-street Residential ChargePoint Scheme (ORCS).

We explain each of these in detail below. Together, these subsidies reduce both the price of purchasing commercial electric vans and cover some or all of the cost of buying and installing your own home or workplace charger.

Plug-in vehicle grant – applicable for electric vans

  1. What is the plug-in vehicle grant?

    The plug-in vehicle grant applies to electric vans and is the main government subsidy for supporting business that want to migrate to electric vehicles. Grant rates for the plug-in vehicle grant are currently £5,000 for large vans and £2,500 for small vans*, with a limit of 1,000 per customer per year. The grant is very popular and plug-in van grant orders in 2021 were over 250% higher than in 2020, reflecting a growing momentum for electric commercial vehicles. eVito and eSprinter qualify as large vans.

  2. Is my Mercedes-Benz van eligible for the electric van plug-in grant?

    To be eligible for the subsidy, the latest rules state simply that electric vans must have an overall emissions figure of less than 50g/km CO2 using the 'WLTP' emissions test standard and be able to drive 70 miles with no tailpipe emissions at all. The Mercedes-Benz eSprinter Panel Van and the eVito Panel Van meet this criteria as they are pure electric – so produce zero tailpipe emissions.

    In December 2021 the plug-in vehicle grant scheme for zero-emission vehicles was widened to apply to some of the less expensive models, allowing the grant scheme to go further and to help businesses off sizes transition to electric vans. 

  3. How do I claim the plug-in vehicle grant for my electric van?

    You don’t have to do anything. The plug-in vehicle grant will be claimed by the Dealer that sells you your electric van. When you talk to the Dealership, they will factor the grant into purchase price of your van. For Mercedes-Benz electric vans the grant will mean 35% off the purchase price up to £2,500 for a small van and up to £5,000 for a large van*. The grant applies to new vehicles only. Unfortunately the eVito Tourer does not meet the criteria for this grant.

    Find out more about the plug-in vehicle grant for electric vans

PICG Overview

  CO2 emission Electric vehicles
range from one
charge
Grant Grant cap
Vans Under 50g/km At least 80 miles 35% of RRP £2,500 (small van)
to £5,000 (large van)

The Electric Vehicle Homecharge Scheme (EVHS)

  1. What is the Electric Vehicle Homecharge Scheme (EVHS)?  

    As with the plug-in vehicle grant, the EVHS scheme is designed to make switching to electric vehicles more affordable. Currently the grant subsides 75% of the purchase and installation of your home charger with a contribution of up to £350. Originally this was available to all homeowners but from April 2022 it will be limited to people who live in flats and rental accommodation, as well as landlords. 

  2. Am I eligible for the electric van EVHS grant?

    To qualify you’ll to need to own, lease or be the primary user of an eligible electric or plug-in hybrid vehicle for at least six months. All Mercedes-Benz electric vans qualify for the scheme. As mentioned above, you also will need live in a flat or rental accommodation or be a landlord. ‘Single unit’ houses – detached, semi-detached and bungalows – are no longer eligible unfortunately. 

  3. How do I claim the EVHS grant for my electric van?

    If you are eligible, the process is very straightforward. You simply choose an EVHS installer to install your charge point. The EVHS installer checks that you qualify and then applies on your behalf.

    Find out more about the homecharge grant for electric vans.

The Workplace Charging Scheme (WCS)

  1. What is the Workplace Charging Scheme?

    This is a government grant that supports businesses with the purchase and installation of electric vehicle charging points for their employees. It’s available to most businesses, charities and public bodies, and allows you to reduce the costs of installing workplace electric vehicle charging stations by up to £14,000 (that’s £350 per socket, up to 40 sockets).

  2. Is my business eligible for the electric van WCS grant?

    There are a number of criteria, mainly aimed at ensuring your site is suitable, you have a genuine need and have a commitment to maintaining the charge points for at least 3 years. 

  3. How do I claim the Workplace Charging Scheme for my business?

    How do I claim the Workplace Charging Scheme for my business?

    To apply for the WCS grant you will need to go via an OZEV WCS-authorised installer. They will advise you on your eligibility and can help with your application. Here is the current list of government-approved WCS suppliers.

    Find out more about the workplace charger grant for electric vans.

On-street Residential ChargePoint Scheme (ORCS)

  1. What is the On-street Residential ChargePoint Scheme?

    As a business you cannot apply directly for the ORCS scheme but it may benefit you if your local authority applies in your area. The On-Street Residential Chargepoint Scheme offers grant funding for local authorities to install on-street charging points for use by electric vehicle drivers in their area.

    The scheme is designed to provide charging infrastructure for electric vehicle drivers who can’t have a home charger installed and provides up to £7,500 towards a charge point.

  2. Am I eligible for the electric van ORCS grant?

    Not directly, but you could contact your local authority to see if they are intending to provide on-street charging in your area. To qualify, they must prove existing demand in the area, or explain why they want to site a charge point on that street, so if you let them know you have a need, this may strengthen their application.

  3. How do I claim the On-street Residential ChargePoint Scheme for my electric van?

    You can’t, unfortunately. Funds are made available to local authorities to install the charging infrastructure.

    Find out more about the On-street Residential ChargePoint Scheme.

Other frequently asked questions about electric vehicles grants

  1. Can I get the electric vehicle grant for my van if I’m purchasing on finance?

    Yes, the grant will be deducted from the total price, which will reduce your monthly payments. Simply speak to your preferred Mercedes-Benz Vans Dealer to find out more. 

  2. Can I be paid the electric vehicle grant in cash?

    No. The grant will be claimed by your Dealer and deducted from the purchase price. 

  3. Can I apply twice for the OZEV plug-in vehicle grant?

    Yes, you can claim grants for multiple electric vans, providing you meet all the criteria for each vehicle.    

  4. Who can claim for an electric van home charger grant?

    From April 2022 the eligibility for this grant was drastically reduced and now applies only to those in flats, rental properties and landlords. Private owners of detached or semi-detached houses are no longer eligible. 

  5. How many EV home chargers can I get a grant for?

    Up to two, if you meet the eligibility criteria. Your installer will check to see if you qualify, on your behalf, before going ahead and installing two EV chargers, or a second home charge point at your address.

  6. Can I get a grant for a three-pin socket EV home charger?

    Sorry, the answer is no, the grant is for approved home charger, typically a wallbox mounted unit. 

  7. What maintenance do electric vans need?

    There are far fewer moving parts than a combustion engine and less oily, grimy deposits. The main areas of maintenances are battery, brakes, tyres and coolants. As you’d expect, with less to service and replace, you save on maintenance costs. 

  8. Do electric cars need oil changes?

    There’s no engine oil as such, but electric vans do generally need coolants for the battery, and lubricants, greases and fluids for the wheels, brakes and other components. Overall, the outlay on oil and lubricants is significantly less than a diesel or petrol engine van. 

Discover more detailed information on electric vans

Running Costs

An electric van could cut your running costs with savings on fuel, Vehicle Excise Duty, and servicing and maintenance.

Guide page

From questions about battery range to tips on driving efficiently, our electric vans guide should tell you all need know.

Charging

Mercedes-Benz electric vans use the latest battery technology to keep you moving for longer.

Insights

See how customers are using electric vans to reduce their costs and operate more sustainably.

* Applicable on eVito Panel Van and eSprinter Panel Van. Excludes eVito Tourer. Vehicle purchase price calculated on base vehicle only. Excludes optional equipment, delivery charges and first registration fee. Grant applicable after any vehicle discount has been offered and includes VAT and number plate costs. Visit: https://www.gov.uk/plug-in-car-van-grants.

^ Savings based on 261 trips a year at £15 per day in London. And the additional £12.50 per day if your current van does not meet the Ultra Low Emission Zone (ULEZ) standards (Euro 5 or older).

All information is correct at time of going to press – June 2022.  Please note, Government grants and schemes and electricity prices can quickly change. Whilst every effort has been made to keep the page content as up to date and accurate as possible, please refer to the relevant Government sites for the latest information. Or speak to your preferred authorised Mercedes-Benz Dealer.