£20 million for electric vehicle loans in 2025-26

The Scottish Government is providing over £20 million in 2025-26 to encourage and enable more households and businesses with lower incomes to purchase electric vehicles (EVs) across Scotland.

Scotland has been providing funding to incentivise the uptake of EVs since 2011, and also investing over £65 million to create public charging infrastructure. This has helped encourage more people and businesses to purchase EVs across the country. The latest statistics show that the number of ultra-low emission vehicles registered in Scotland has increased 20% between 2022 and 2023.

As EVs become increasingly common, the Scottish Government’s incentivisation programmes have evolved to help people and communities who need it most. In 2025-26, funding will again be available for the Used EV Loan, Switched on Taxi Loan and Used Electric Low Carbon Vehicle Loan for Vans.

Cabinet Secretary for Transport Fiona Hyslop said:

“I’m pleased to announce the allocation of £20 million to support our electric vehicle support schemes. During the ongoing cost of living crisis, this will help people access the benefits of modern electric vehicles at a greater range of price points. This means that more people can take climate action as part of our transition to a net zero transport system.

“These loans are in addition to what Scotland is already investing through our core Electric Vehicle Infrastructure Fund. These streams of investment work in tandem to make electric cars and vans the natural choice for drivers by 2030.

“Scotland is currently the only part of the UK offering financial support in the form of an interest free loan for consumers to purchase electric vehicles. Since our loan schemes began in 2011, we have provided interest free loans worth £230 million. This has supported individuals and businesses including the taxi sector across Scotland purchase over 8,700 zero and ultra-low emission vehicles saving an estimated 230,000 tonnes of carbon dioxide equivalent.

“Since 2011 the Scottish Government has also provided over £65 million to support the provision of infrastructure. We’ve met our target of 6000 charge points two years earlier than planned through a combination of Scottish Government funding, increasing private sector investment and local authority planning and leadership.

“Scotland has more public EV charge points per capita than anywhere else in the UK, outside of London, and we have more rapid public EV charge points than any other part of the UK. We have also set out our Draft Implementation Plan, showing how Scotland will help support the delivery of approximately 24,000 additional public EV charge points by 2030.”

These funding programmes are delivered on behalf of the Scottish Government by Energy Saving Trust. Heather Quin, Senior Programme Manager at Energy Saving Trust said:

“As an independent organisation working to address the climate emergency, we’re proud to have delivered the Scottish Government’s electric vehicle loans since 2011.

“This long-standing support has helped thousands of people and businesses across Scotland transition to cleaner, more sustainable transport.

“In addition to supporting individuals and businesses purchase electric vehicles, we’re pleased to also be offering further support to microbusinesses and sole traders to purchase electric vans. These loans are a practical and inclusive way to help more people switch to electric vehicles, lowering Scotland’s carbon emissions and improving local air quality.”

For more information on these funding schemes, including eligibility visit Financial support for low carbon travel - Energy Saving Trust