The government says it will help people buy electric cars by handing them up to £5,000 to spend on one from the year 2011.
An electric car at a city charging point
They are also going to build charge points in city centres across the country so the cars can get power from them.
Car makers are having a tough time at the moment because of all the money problems the world is having. The government reckons that helping pay for electric cars will give them a boost.
Not everyone is happy
Green experts aren't completely happy though, they say that even though electric cars are cleaner than existing petrol ones most of the electricity they need comes from big power stations that produce pollution too.
They say the best way to help the environment is to ditch our cars altogether.