A number of grants and incentives are available to help you make the switch to buying an electric car. This includes Company Car Tax benefits and OZEV (formerly OLEV) grant to help cover some of the cost of installing a home charging unit. Additionally, other incentives include the London Congestion Charge exemption, Ultra Low Emission Zones and free or reduced parking and charging. At the same time, you can also enjoy lower running costs.
The cheapest, easiest and fastest way to charge your electric car at home is to use a specifically designed EV charging unit. To support the charging of your Polestar 2 at home, The Electric Vehicle Homecharge Scheme (EVHS) from the Office for Zero Emission Vehicles (OZEV – formerly OLEV) provides grant funding of up to 75% (up to £350) for you to claim towards the cost of installing electric vehicle wallbox at home. This grant is typically applied for by your wallbox installer so the value is taken off the amount you pay upfront. Installing a home charger from a company like Pod Point will also reduce your long-term running costs.
More information: OZEV
Pure battery electric vehicles (BEV) like the Polestar 2 are exempt from Vehicle Excise Duty (VED), more commonly known as road tax. It’s important to know that even though you do not have to pay anything, you do still need to tax your car. Plug-in hybrid electric vehicles (PHEV) like the Polestar 1 pay reduced VED. VED is calculated based on a vehicle’s CO2 tailpipe emissions, list price and the registration year.
If your Polestar is a company car that you also drive for private use (this includes commuting), the Inland Revenue classifies it as a Benefit in Kind. This means you have to pay tax on it according to the value of the car, its tailpipe CO2 emissions, and your tax bracket. For the tax year 2021-22, fully electric vehicles like the Polestar 2 are eligible for a 1% BIK rate and rising to just 2% in 2022-23.
The average driver in the UK drives 10,000 miles a year. The running costs of an electric vehicle are almost three times less than a conventional car, meaning you could save about £686 per year. Not only this, but electric cars tend to hold their value better than their internal combustion engine counterparts and have lower maintenance costs.