Everything you need to know about electric vans

Getting Started: Everything you need to know about electric vans

5 min to readElectric vehicles
For millions of UK businesses, vans are a vital tool of the trade - and going electric can feel like a step into the unknown. Here's what you need to consider.
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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.

What funding is available for electric vans?

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).

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].

How much funding is available for electric vehicle charging points?

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].

How can electric vans reduce whole-life costs?

What are the practical considerations for an electric van?

GVW
Payload
Max. Towing
Peugeot Partner Professional Long 100PS (diesel)
2380kg
939kg
1050kg
Peugeot e-Partner Professional Long
2450kg
709kg
750kg
Vauxhall Vivaro Prime Panel Van 1.5 Turbo D
2830kg
1182kg
2000kg
Vauxhall Vivaro Electric Prime Panel Van
3011kg
1001kg
1000kg
Citroen Relay Panel Van L3H2 6MT Enterprise
3500kg
1350kg
2500kg
Citroen e-Relay L3H2 110kWh Enterprise
3500kg
635kg
2400kg
Panel vans in equivalent trim levels. Data provided by manufacturers.

REFERENCES

[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].

Published at June 18, 2024
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June 18, 2024
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