Approval in principle is likely within five minutes and if there are queries, the system will automatically generate e-mails so that details can be quickly amended or expanded.
TransportEnergy is part of the Energy Saving Trust (EST), which has responded to complaints that the paper form is too cumbersome, especially if there are queries.
Richard Tarboton, head of the TransportEnergy business unit, said: ‘The new system promises a significant number of benefits to applicants, in particular making it easier and faster to apply and then track the application.’
Domenic Girolamo, who developed the website for EST, said: ‘We expect more than half the applications to be made online almost immediately and for the proportion to increase.
There are seven steps in the online grant process, which must be completed before ordering a new vehicle or modification.
Frustration will continue for applicants who apply at the wrong time. Total government funding for PowerShift and CleanUp grants (£7m each) in 2004/5 was frozen at last year’s £26m and the money is allocated gradually through the year, spread among operating areas.