New grant to slash £8,000 off electric vans

The Department for Transport has announced van discounts will be offered for up to 20 per cent of a van’s value (up to £8,000) for all ultra-low emissions vans.

The news means electric vans such as the new Renault Kangoo Z.E. and the forthcoming Ford Transit Connect Electric will be eligible for large deductions in their price.

For the Renault Kangoo Z.E., which is available from £16,995 in the UK, it could mean savings of up to £3,400 from the list price.

It also means any van delivering less than 75g/km of CO2 emissions and capable of up to 60 miles between charges and with a strong safety score will be eligible for the discounts.

This means hybrid vans could also be eligible for the van discount in future if they were to meet the criteria.

“Supporting ultra low carbon technology in vans makes sense,” said Business Minister Mark Prisk, “An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for businesses.

“The technology also fits well with a large portion of the van market that rely on short urban trips to and from base.”

Van drivers in the UK are increasingly turning to greener vans amid legislation to clamp down on emissions from diesel engines.

All new vans built in Europe must comply with ‘Euro 4’ emissions criteria from this year and from 1 January 2012, all vans travelling inside a Low Emission Zone in London must be registered after October 2006 or face £100-per-day fines.

To combat this, manufacturers such as Ford, Renault, Vauxhall, Peugeot, Fiat and Citroen have all introduced van ‘swappage’ offers running until March to deliver as much as £7,000 off the price of a new van when an older model is traded in.