Motorists buying electric cars will be able to claim on the government's £5000 incentive until at least 2017. The extended scheme comes as part of a wider initiative for an extra £500 million worth of funding to encourage the uptake of ultra-low emission vehicles.
The funding, which will be made available from next year until 2020, is being used to create new jobs, grow the existing electric charging point network and encourage drivers to choose electric cars.
By far the biggest chunk of funding, some £200 million, will be used to extend the government's current plug-in electric vehicle grant, continuing the £5000 incentive for buying an electric car. The grant has been extended until at least 2017, or until 50,000 electric cars have been sold. The plug-in electric vehicle grant was initially supposed to end in May next year, and offers drivers significant savings on cars like the Nissan Leaf, Renault Zoe and BMW i3. The grant brings the price of an all-electric i3 down from £30,680 down to £25,680.
The existing EV charging infrastructure will also be boosted thanks to £32 million of extra funding, the aim being to make rapid electric charging points available across the UK's motorway and A-road network. The charging network for hybrid commercial vehicles will also be expanded thanks to a £4 million boost.