Getting Started: Everything you need to know about electric vans

The UK has a fast-growing van population. Despite a period of reduced supply, there were 4.7 million on the road at the end of 2023, compared to 4.2m in 2019 [1], and for now it remains a diesel-weighted market.

Mandatory sales targets will require 10% of new vans to be zero-CO2 emission at the tailpipe in 2024, rising to 70% of registrations in 2030 and 100% in 2035 [2]. However, electric vans only reached a 5.9% share of registrations in 2023, compared to 16.5% of cars [3, 4]. Manufacturers are under pressure to adapt quickly, and the government supporting that transition with a package of incentives and funding.

Administered by the Office for Zero Emission Vehicles (OZEV, formerly OLEV), the Plug-in Van Grant offers discounts to offset the extra cost of an electric van [5]. This covers up to 35% of the purchase price for vehicles emitting less than 50g/km CO2 and with an electric range in excess of 60 miles. Maximum funding levels are based on gross vehicle weight (GVW).

• Small vans (under 2,500kg GVW) qualify for up to £2,500
• Large vans (2,500-4,250kg GVW) qualify for up to £5,000

OZEV also provides grant funding for vehicles with a GVW over 4,250kg, covering up to 20% (or £16,000) of the purchase price. Eligibility requires a 60-mile electric range with CO2 emissions which are half that of a Euro 6 compliant combustion engine equivalent. Fleets can claim up to ten times, and the maximum funding level will be reduced to £5,000 after the grant has funded 250 vehicles [6].

Organisations deploying electric vans can claim up to 75% (capped at £350 per outlet) towards the cost of charging equipment and installation through OZEV’s Workplace Charging Scheme [7].

Drivers living in flats or rented properties may also be eligible for home chargepoint funding, even if they don’t have off-street parking [8, 9] and these are not classed as a taxable benefit-in-kind, even if the employer pays for them [10].

For more information about chargepoint grants, read the following guides:

• Getting Started: An introduction to workplace charging
• Getting Started: An Introduction to home electric vehicle charging

• Fuel: Electric vans could offer significant reductions in fuel costs for fleet operators. Real-world efficiency will vary depending on usage, but 2023’s best-selling electric van, the Vauxhall Vivaro-e [11] would cost 8p per mile on an Ofgem-capped flat-rate tariff [12, 13]. The equivalent diesel version would cost 18p per mile [14].
• Maintenance: Electric drivetrains require less complex servicing than a combustion engine, while regenerative braking reduces wear on the mechanical brakes. This reduces average maintenance costs by around a third compared to petrol or diesel vehicles, according to analysis from BookMyGarage.com [15].
• Tax: Fully electric vans are exempt from paying vehicle excise duty (VED) – currently a flat rate of £335 per year – until April 2025 [16]. Drivers also do not have to pay the Van Benefit Charge to use their company-owned electric van for private journeys [17].
• Clean air zones: Battery-electric and hydrogen fuel cell vehicles (0g/km CO2 emissions) are exempt from the London Congestion Charge [18]. Although most urban clean air zones use Euro 6 emissions compliance as a cut-off point for diesel engines, going electric is likely to be a safer option for future-proofing your fleet. To find out more about clean air zones, click here.

• Range: Improving battery technology is delivering longer ranges for new electric vans, while reducing the weight and cost compromises. Many new models also feature rapid charging, restoring most of the range in under an hour. However, only a handful can travel more than 200 miles on a full charge, which can make inter-city routes more challenging.
• Weight: Electric vans are often heavier than their diesel counterparts, and some exceed the 3,500kg GVW limit for light commercial vehicles. There is a permanent derogation enabling them to be driven on a standard Category B licence without additional training, but drivers’ hours, MOT testing and speed limits for heavy-duty vehicles would still apply [20].
• Payload and towing: Most electric vans have the same size cargo area as a combustion engine model, but the additional weight of the battery can affect payload and towing capacity. Some examples* are provided below:

[1] Department for Transport. (2024). VEH0101: Licensed vehicles by body type. [online] Available at: https://assets.publishing.service.gov.uk/media/66436667b7249a4c6e9d33f3/veh0101.ods [Accessed 3 June 2024].

[2] Department for Transport. (2023). Pathway for zero emission vehicle transition by 2035 becomes law. [online] Available at: https://www.gov.uk/government/news/pathway-for-zero-emission-vehicle-transition-by-2035-becomes-law [Accessed 3 June 2024].

[3] SMMT. (2023). December 2023 New LCV Registrations. [online] Available at: https://media.smmt.co.uk/december-2023-new-lcv-registrations/ [Accessed 3 June 2024].

[4] SMMT. (2023). December 2023 New Car Registrations. [online] Available at: https://media.smmt.co.uk/december-2023-new-car-registrations/ [Accessed 3 June 2024].

[5] GOV.UK. (n.d.). Plug-in vehicle grants. [online] Available at: https://www.gov.uk/plug-in-vehicle-grants [Accessed 3 June 2024].

[6] GOV.UK. (n.d.). Plug-in vehicle grants: Trucks. [online] Available at: https://www.gov.uk/plug-in-vehicle-grants/trucks [Accessed 3 June 2024].

[7] GOV.UK. (n.d.). Workplace Charging Scheme. [online] Available at: https://www.find-government-grants.service.gov.uk/grants/workplace-charging-scheme-2 [Accessed 3 June 2024].

[8] GOV.UK. (n.d.). Electric Vehicle Chargepoint Grant for Renters and Flat Owners. [online] Available at: https://www.find-government-grants.service.gov.uk/grants/electric-vehicle-chargepoint-grant-for-renters-and-flat-owners-1 [Accessed 3 June 2024].

[9] GOV.UK. (2024). Electric Vehicle Chargepoint Grant for Households with On-Street Parking. [online] Available at: https://www.find-government-grants.service.gov.uk/grants/electric-vehicle-chargepoint-grant-for-households-with-on-street-parking-1 [Accessed 3 June 2024].

[10] HM Revenue & Customs. (2024). EIM01035 - Employment Income Manual. [online] Available at: https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim01035 [Accessed 3 June 2024].

[11] Department for Transport. (2024). VEH0181: Vehicles registered by fuel type. [online] Available at: https://assets.publishing.service.gov.uk/media/66436669bd01f5ed32793ad8/veh0181.ods [Accessed 3 June 2024].

[12] Vauxhall. (2024). New Vivaro Price Guide. [online] Available at: https://www.vauxhall.co.uk/content/dam/vauxhall/Home/brochure-library/commercial-vehicles/new-vivaro/all-new-price-guide.pdf [Accessed 3 June 2024].

[13] Ofgem. (2024). Changes to the energy price cap between 1 July - 30 September 2024. [online] Available at: https://www.ofgem.gov.uk/news/changes-energy-price-cap-between-1-july-30-september-2024 [Accessed 3 June 2024].

[14] Department for Energy Security and Net Zero. (2024). Weekly fuel prices 27/05/24. [online] Available at: https://assets.publishing.service.gov.uk/media/6655f3977b792ffff71a846c/weekly_fuel_prices_270524.xlsx [Accessed 3 June 2024].

[15] BookMyGarage. (2023). Servicing costs by fuel type: EV cheaper than ICE. [online] Available at: https://bookmygarage.com/blog/servicing-costs-by-fuel-type-ev-cheaper-than-ice/ [Accessed 3 June 2024].

[16] HMRC. (2022). Introduction of vehicle excise duty for zero emission cars, vans and motorcycles from 2025. [online] Available at: https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025 [Accessed 3 June 2024].

[17] HMRC. (2022). Introduction of vehicle excise duty for zero emission cars, vans and motorcycles from 2025. [online] Available at: https://www.gov.uk/government/publications/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025/introduction-of-vehicle-excise-duty-for-zero-emission-cars-vans-and-motorcycles-from-2025 [Accessed 3 June 2024].

[18] HMRC. (2020). Income tax: Changes to the van benefit charge from 6 April 2021. [online] Available at: https://www.gov.uk/government/publications/income-tax-changes-to-the-van-benefit-charge-from-6-april-2021/income-tax-changes-to-the-van-benefit-charge-from-6-april-2021 [Accessed 3 June 2024].

[19] Transport for London (n.d.). Discounts and exemptions. [online] Available at: https://tfl.gov.uk/modes/driving/congestion-charge/discounts-and-exemptions [Accessed 3 June 2024].

[20] Department for Transport. (2023). Guidance on Category B licence requirements. [online] Available at: https://assets.publishing.service.gov.uk/media/5e67aeb7d3bf7f26999bfeb4/guidance-category-b-licence-requirements-1.pdf [Accessed 3 June 2024].

This blog was originally published on leaseplan.com website. The views expressed may no longer be current and any reference to specific vehicles or products is for reference only. This information is not a personal recommendation for any particular vehicle, product or service - if you are unsure about the suitability of a product, you should consult with an expert.