UK rolls out £3,750 electric car grant

The U.K. government has taken a revolutionary decision as part of the country’s net zero carbon emissions drive.

The Secretary of State for Energy and Climate Change of the United Kingdom Edward Miliband has announced a grant of £3,750 for those who want to buy an electric car.

What is the Electric Car Grant?

Electric Car Grant (ECG) is an initiative by the British government to promote eco-friendly electric vehicles for travelling. It offers money to all new model electric car buyers but there’s a twist - the car must be sustainably manufactured and priced at or under £37,000.

The program was introduced last month (July 2025) and it’ll run until 2028-2029.

The grant is divided into two categories, band 1 and band 2, depending on how eco-friendly the car making process is.

• Band 1: It offers £3,750 reduction in price of eligible EVs
• Band 2: It offers £1,500 reduction in price of eligible EVs

The companies which have been declared eligible for Band 1 includes Renault 5 and Nissan Misra EVs.

The Band 2 car makers, for now include, Citroen, Vauxhall, Nissan and Renault. While many car making brands are waiting for the government’s decision regarding their approval for ECG.

The government has claimed that the grant will make owning an electric car much easier and cheaper for thousands of UK residents.

This is the latest effort by the government to achieve net zero emissions by 2050 amid exacerbating effects of climate change.

The net zero target was written into law in 2019 and to achieve this, the current administration is trying to shift towards ‘clean’ electricity by 2030, by rapidly increasing wind and solar generation.