The Government has announced that the electric car grant will now also apply to the purchase of electric vans.
The grant will give buyers 20% off the price of an electric van, up to the value of £8,000. The existing car grant offers consumers 25% off purchases of electric cars, up to the value of £5,000.
But new figures show that fewer than 900 applications have been received by the Government for the grant and even with the discount the vehicles can still cost up to £25,000.
However, transport minister Norman Baker hopes the expansion of the grant will stimulate a low-carbon revolution in motoring.
The Government is hopeful that the new scheme will appeal to businesses and fleet buyers as the lower running costs of electric vehicles offset their initial purchase price.
Mr Baker said: "Electric vehicles are the arrowhead for a low-carbon revolution in motoring and as more models come to market, we'll begin to see sales gather pace.
"Car buyers have had a year to take advantage of our grant and now it's time for van buyers to get their chance to go electric. This is great news for businesses, given the lower running costs of these vehicles - fleet buyers tell us that this is one of the most important factors influencing their decision on what to buy."
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