Incentives for Low Emission Vehicles

Incentives for Low Emission Vehicles

05/11/2021

What incentives are in place to help me purchase a low emission vehicle? Find out more here..

Cars

National incentives

Government grants are available for people who want to buy certain low emission vehicles. You can receive up to £2,500 for cars that cost less than £35,000 (up to 35% of the purchase price) and either:

  • Run solely on electricity
  • Run solely on hydrogen
  • Have CO2 emissions of less than 50g/km and can travel at least 70 miles without any emissions at all

Local incentives

If you work within the CAZ and live outside it (please note this incentive is not available to residents of the CAZ) you are able to scrap your non-compliant vehicle through Motorpoint and then choose to receive one of the following options:


You are eligible for this scrapping incentive if:

  • You are the registered owner/ keeper of a vehicle that does not meet the emission standards for the Clean Air Zone so would be subject to the daily charge
  • You have been the registered owner/ keeper of that vehicle since before 10 September 2018
  • You work at least 18 hours per week at a business premise situated within the Clean Air Zone
  • You earn less than £30,000 a year

Taxis

National incentives for Hackney carriages

Government grants provide allow up to £7,500 for purpose-built taxis (Hackney carriages), up to a maximum of 20% of the vehicle purchase price, that either:

  • Run solely on electricity
  • Have CO2 emissions of less than 50g/km and can travel at least 112km (70 miles) without any emissions at all

Local incentives for Hackney carriages

As the owner of a Birmingham-licensed Hackney carriage, you may be eligible for a financial incentive if you meet all three of the following criteria:

  • Are the registered owner/keeper of a Hackney carriage taxi that is subject to the Clean Air Zone daily charge
  • Have been the registered owner/keeper of that vehicle since before 10 September 2018
  • Are licensed by Birmingham City Council as a Hackney carriage driver

If you meet all three of the above criteria, you can apply for one of the following financial incentive schemes:

  • £5,000 (spread over four years) towards the running costs of an Ultra Low Emission Vehicle (ULEV) taxi
  • £5,000 (one off payment) towards a Clean Vehicle Retrofit Accreditation Scheme (CVRAS) solution for an existing vehicle
  • £5,000 contribution towards a Euro 4 petrol or Euro 6 diesel (or better) compliant vehicle, unless eligible for the Government’s plug-in grant

If you had previously owned a non-compliant vehicle, but have upgraded to a compliant vehicle since 10 September 2018, you may be able to apply for the financial support retrospectively.

Local incentives for private hire vehicles

As the owner of a Birmingham-licensed private hire vehicle, you may be eligible for a financial incentive if you meet all three of the following criteria:

  • You are the registered owner/keeper of a private hire vehicle that will be subject the Clean Air Zone daily charge
  • You have been the registered owner/keeper of that vehicle since before 10 September 2018
  • You are licensed by Birmingham City Council as a private hire driver

If you meet these eligibility criteria, you can apply to one of the following schemes:

  • Up to £1,000 towards an upgrade to a compliant Euro 4 petrol or Euro 6 diesel vehicle or better. The vehicle must be no more than three years old as of January 2020
  • Up to £2,000 towards the purchase or lease of a hybrid vehicle or plug-in hybrid electric vehicle that is not eligible for the Government’s plug-in car grant and meets the Birmingham Taxi Licensing age requirements
  • Subject to purchase up to two annual payments of £1,250 towards running costs of a fully electric vehicle or long-range plug-in hybrid vehicle (if eligible for a Government plug-in grant)

Small Vans

You can also receive up to £3,000 for small vans (or up to 35% of the purchase price) that either:

  • Run solely on electricity
  • Have CO2 emissions of less than 50g/km and can travel at least 60 miles without any emissions at all

Large Vans

You can receive a grant for large vans that have CO2 emissions of less than 50g/km and must be able to travel at least 60 miles without any emissions at all. The grant will pay for 35% of the purchase price for these vehicles, up to a maximum of £6,000.

Trucks

National incentives

There are currently five truck models in the 3.5-12t gross vehicle weight category that are eligible for the plug-in grant. The grant covers 20% of the purchase price, up to a maximum of £16,000 for the first 250 orders placed (limited to 10 per customer). After 250 orders have been placed the maximum grant level will fall to £6,000.

Local incentives

SMEs operating heavy duty vehicles in Birmingham that have been actively trading for at least 12 months can receive financial support to ensure their vehicles meet the requirements of the CAZ from the Heavy Duty Vehicle fund.

Road Freight Transport for Hire or Reward Operators can apply for a maximum of €100,000 per SME towards:

  • Retrofit of non-compliant vehicle(s) – Up to a maximum of £15,000 per vehicle
  • Relocation/exit lease costs – Up to a maximum of £15,000 per SME

Non-Road Freight Transport for Hire or Reward Operators can apply for a maximum of €200,000 per SME towards:

  • Retrofit of non-compliant vehicle(s) – Up to a maximum of £15,000 per vehicle
  • Relocation/exit lease costs – Up to a maximum of £15,000 per SME
  • Lease of compliant vehicle(s) – A maximum grant contribution of up to £15,000 towards the lease costs of a new or used (Euro 6 diesel or above, Euro 4 petrol or above, electric, hybrid, LPG or biofuel) compliant vehicle, which can include a deposit and lease repayments of up to a maximum of six months
  • Purchase of compliant vehicle(s) – A maximum grant contribution of up to £15,000 towards the purchase cost of a new or used (Euro 6 diesel or above, Euro 4 petrol or above, electric, hybrid, LPG or biofuel) compliant vehicle

You can view the retrofit options and the approved providers under the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) in the Resource Library.

Eligibility criteria for the funding:

  • The company must own or lease Heavy Duty Vehicle(s) that do not meet the Clean Air Zone emission standards
  • Eligible non-compliant Heavy Duty Vehicles (N2, N3 and M3 only) must be either:
  • Registered and located within Birmingham’s Clean Air Zone or
  • Registered and located within the Birmingham City area and conducting commercial operations within Birmingham’s Clean Air Zone or
  • Registered and located within the West Midlands area and conducting commercial operations within Birmingham’s Clean Air Zone

Companies applying for the funding must also be able to evidence:

  • The frequency of entry to the Clean Air Zone based on current operations
  • The current emissions standard of eligible, non-compliant Heavy Duty Vehicle(s)
  •  The size of the business (Small to Medium sized Enterprise)

Motorcycles

You can receive up to £1,500 (up to 20% of the purchase price of the vehicle) for motorcycles that are fully electric and can travel at least 50km (31 miles) between charges, or mopeds that are fully electric and can travel at least 30km (19 miles) between charges. 



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