Green vehicle-buyers 'to receive £5,000 government subsidy'

Date: 26/2/2010

British motorists could receive a subsidy of up to £5,000 for the price of a new plug-in electric car, the government announced.

From January 2011, customers who buy a plug-in vehicle could be offered the grant, which accounts for 25 per cent of the price, as part of an investment which will see a network of electric charging hubs being installed in London.

Next year the government expects a series of low-carbon cars to become available, but believes take-up could be slow without financial incentives.

Transport secretary Lord Adonis said: "Decarbonising transport isn't an aspiration, it's a reality. 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."

Customers who purchase plug-in hybrids and hydrogen fuel cell cars could also be eligible for the subsidy.

The hybrids must emit less than 75 grams of carbon dioxide per kilometre and have an electric range of ten miles, and electric vehicles must emit no carbon and be able to run for at least 75 miles on battery power to qualify under the scheme.

In addition, £30 million will be invested in the Plugged-In Places programme, which could see 11,000 charging points for electric cars installed nationwide over the next three years. They could be put in supermarkets, car parks, retail centres and on the street.