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The Plug-in Taxi Grant: What is it, how much is it worth and how can I apply for it?

Image credit: LEVC

The taxi industry continues its shift to greener Zero Emission Capable (ZEC) vehicles with more than 5,000 electric black cabs roaming the roads in London alone.

The Government is helping that shift with a Plug-in Taxi Grant (PiTG) which was introduced as an incentive scheme designed to support the uptake of purpose-built ZEC taxis.

The grant is also designed to bridge the cost gap that currently exists between taxis powered by internal combustion engines versus new ultra-low emission technologies.

How much is the PiTG worth?

The PiTG scheme offers a discount on the price of eligible purpose-built taxis up to a maximum of £7,500 or £3,000 – depending on the vehicle’s range, emissions and design.

It is available to all taxi drivers and businesses buying or leasing a new purpose-built taxi.

Under the scheme, eligible taxis are allocated into 1 of 2 categories based on their carbon emissions and zero-emission range:

  • A Category 1 PiTG (up to £7,500) must have a zero-emission range of 70 miles or more and emissions of less than 50gCO2/km.

  • A Category 2 PiTG (up to £3,000) must have a zero-emission range of 10 to 69 miles and emissions of less than 50gCO2/km.

The most popular electric taxi, the LEVC TX, falls in the Category 1 range.

How do I apply for PiTG funding?

The PiTG is only available to newly purchased taxis. Second-hand taxis will not be eligible for the grant.

Conversions of vehicles into taxis after they have been registered will also not be eligible for the grant.

Once a vehicle has been formally approved for the scheme, the manufacturer and its selected dealerships will be given access to an online portal, through which they can register claims for eligible vehicles.

From the customer’s point of view, the PiTG is deducted from the price of the vehicle at the point of sale by the dealership, so there is no paperwork for them to complete in order to benefit from the grant.

For an approved vehicle to go on to receive the grant, it also must be sold and used as a licensed taxi.

How long is the PiTG available for?

Transport ministers recently confirmed the EXTENSION of the PiTG scheme to until at least the financial year 2023/24 for new electric taxis.

The Government did however CLOSE a more general Plug-in Car Grant scheme for all new electric vehicle orders after supporting the sale of nearly half a million electric cars.


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