Ministers have announced an expansion of the Plug-In Van Grant, with electric trucks above 3.5 tonnes now eligible for grants of up to £20,000.
The Government has committed an additional £4m to the scheme, which dates back to 2012, as part of the drive to reduce carbon emissions from transport use.
Business and energy secretary Greg Clark said: ‘The electric car revolution is well underway with consumers and this funding will encourage more businesses to consider switching to cleaner vans and trucks.
‘We are forging ahead to deploy new engine technology to make low-carbon vehicles mainstream, and leading the way in driverless car technology.’
The scheme will be reviewed once 5,000 grants have been processed, or in March 2018, whichever is earlier.
Previously the scheme offered 25% off the price of a ULEV car capped at £5,000 and 20% towards the purchase of a van, up to 3.5 tonnes, capped at £8,000.
Early last year, Government figures suggested the UK was outstripping France and Germany in the take up of ULEVs, helped by more than 25,000 grant claims for the ‘plug-in’ scheme.