The government has named seven ultra-low carbon vans that will qualify for a discount of up to £8,000 as part of the Plug-In Van Grant incentive to stimulate the market for ultra-low carbon commercial vehicles.

"The Plug-In Van Grant and today's detail on the seven models eligible is excellent news for van drivers, operators, businesses and the industry. The savings on the initial purchase price, coupled with the tax advantages and very low running costs, make a plug-in van an attractive proposition – particularly for those running local and back-to-base services," said Paul Everitt, SMMT chief executive.

Business minister Mark Prisk said: "Vans are essential to the smooth running of so many businesses and contribute enormously to the UK economy. An upfront purchase grant, when combined with lower running costs and tax benefits, can make switching to an ultra low carbon van an attractive choice for those businesses.

"Now there are seven different models eligible for that support, van buyers should be able to choose one they find easy on the eye as well as on the wallet."

Already on sale, or arriving this year, each van is eligible for a 20% price reduction (up to £8,000), with VAT businesses able to reclaim the full list price VAT on top of the reduction.

Vans qualifying for the Grant must emit less than 75g/km CO2, be capable of travelling at least 60 miles between charges (10 miles in electric mode for hybrid vans), reaching speeds of more than 50mph and meet European safety standards.