News and Insights

Plug-in van and truck grants

Plug-in van and truck grants have been extended by the government for two more years, supporting more businesses to make the switch to electric. 

With nearly 5% of the UK’s CO2 emissions currently coming from vans, companies are under pressure to transition to greener vehicles to meet national climate change and air quality commitments.

‘Switching your fleet over to EV can be a frankly challenging prospect, but the direction of travel is clear. The government has committed £2.5 billion to vehicle grants and chargepoint infrastructure to support the transition to zero emission vehicles to date. This is about helping businesses reduce their costs, plan their operations, and it addresses the issue of range anxiety, something we help manage through our fleet analysis and deployment tools,’ says Flexible Power Systems Managing Director Michael Ayres.

Last year, industry figures showed the UK had the highest number of plug-in electric vans sold in Europe and there were around 4 times as many grant applications compared to 2020.

The grant is available to customers at the point of purchase directly from the dealer or manufacturer’s representative. Consumers do not have to go through a grant application process.

The Plug in Van Grant applies to vehicles with at least 60 miles zero emission range and is available for a number of vehicle classes.

Small vans

Vehicles like the Nissan ENV200, Renault Zoe van and Maxus eDeliver 3 that weigh less than 2.5T are eligible for the small van plug in van grant.

The grant covers 35% of the purchase price for small vans, up to a maximum of £2,500.

Large Vans

Vehicles like the Vauxhall Vivaro-e, Maxus eDeliver 9 and Fiat e-Ducato that weigh between 2.5 and 4.25T are eligible for the large plug in van grant.

35% of the purchase price up to a maximum of £5,000 is covered by the grant.

Small Trucks

There’s less choice when it comes to small trucks. So far, just the FUSO eCanter and the Paneltex Z75 qualify with a gross vehicle weight of between 2,500kg and 4,250kg.

The grant will pay for 20% of the purchase price, up to a maximum of £16,000 for these vehicles, but speed is of the essence, as there are a limited number of grants available.

Only 250 grants are available at the £16,000 rate, with the limit per business or organisation capped at 10 grants each.

If either of these limits are reached, the maximum your business or organisation can apply for is £5,000.

You can email the Department for Transport to find out how many grants are left.

Large Trucks

Large trucks heavier than 12,000kg like the Electra e-Compact and the Electra e-Star 27-350 are eligible for a grant of 20% of the purchase price, up to a maximum of £25,000.

But again, there are a limited number of grants available, so do get in touch sooner rather than later.

There are only 100 grants for large trucks at the £25,000 rate, with companies or organisations limited to 5 grants each at this rate.

If either of these limits are reached, the maximum your business or organisation can apply for is £16,000 – with up to 10 grants at this rate.

However, only 250 grants of up to £16,000 are available, after that, the maximum your business or organisation can apply for is £5,000.

Find out how many grants are left by emailing the Department for Transport.

You can claim a total of 1000 plug-in van and truck grants for your business or organisation each year. This limit resets every year on 1 April.

You can find full details of large vans, trucks and other vehicles here.

Workplace charging schemes have also supported the purchase of over 450,000 ultra-low emission vehicles across the UK – including more than 300,000 zero emission vehicles, a decision FPS can also help with, just get in touch for advice on your vehicle and charger strategy.

As well as the extension to grant schemes, the government has also announced it will continue to allow drivers holding standard car driving licences to drive electric goods vans at a higher weight limit, up to 4.25 tonnes (compared to a 3.5 tonne limit for diesel vans). This takes into account the additional weight of electric vehicle batteries and makes it easier for businesses and drivers to make the switch. 

FPS helps customers understand the benefit that the workplace charging scheme and plug-in van grants can have on reducing their electrification costs. If you are planning a commercial vehicle EV project, we would love to hear from you.