The offer amounts to 25% of the buy price, capped at 5,000 pounds, and are part of a 230 million pound investment. The contribution will be offered to purchasers of plug-in electric vehicles, plug-in hybrids and hydrogen fuel cell cars.
The Department for Transport has said that only vehicles that have established compliance with performance and safety criteria will be eligible for the money.
Plug-in hybrids must emit less than 75g/km CO2 and have an electric range of 10 miles, whereas electric vehicles must be emissions free and travel for at least 75 miles on battery power to qualify.
They must all have a highest speed of 60mph (about 96kmh) and offer a lowest of a three year warranty. No specific vehicles were declared by the DfT, but the likes of the Mitsubishi i-MiEV and the Nissan Leaf are likely to be included.
Mitsubishi's UK managing director, Lance Bradley, said: We are delighted with this news. We are now tolerant customer orders for the i-MiEV with deliveries for January 2011. A total of 30 million pounds has also been allocated for a network of electric vehicle hubs, to be called Plugged-In Places.
The Plugged-In Places will give the charge points to support these vehicles - demonstrating how electric vehicle charging works in perform in a range of different settings - urban, suburban and regional - as well as testing pioneering technologies such as rapid charging, inductive charging and battery swap, said business minister Pat McFadden.