Discounts are made against the price with VAT, with businesses able to reclaim the full list price VAT back on top of the reduction. To qualify, the vans must emit less than 75g/km CO2, have an electric range of at least 60 miles (or 10 for hybrids), exceed 50mph top speed and meet the latest European safety standards.

Announcing the first vehicles to join the scheme, business minister Mark Prisk said: ‘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 those businesses. Now there are seven different models eligible for that support van buyers should be able to choose one they find easy on the eye as well as on the wallet.’

Transport secretary Justine Greening added: ‘Our new grant demonstrates that you can be a motorist and still be pro-environment. The new Plug-in Van Grant also makes business sense as it’s been estimated that a small electric van will typically cost £100 less in fuel for every thousand miles driven compared to a diesel equivalent.’

In addition to the latest crop of electric vans, the Mia Electric compact car has become the eleventh vehicle to be eligible for the Plug-in Car Grant, Greening announced today.

SMMT chief executive, Paul Everitt, welcomed the news. ‘Home to a high level of low carbon R&D and manufacturing activity, the UK is well placed to take full advantage of the ultra-low carbon vehicle sector. Incentives that support the development of a flourishing market will add to our competitive advantage,’ he commented.

Vehicles eligible for the grant: