Insights / Incentives for commercial electric fleets

Grants, subsidies and incentives for commercial electric fleets

Despite their reputation for being expensive, EVs are becoming increasingly affordable for businesses.

When you consider the total cost of ownership (TCO) – that’s the upfront cost and all running costs such as insurance, fuel, and tax – EVs are often the most cost-effective option for a fleet.

What’s more, there are many grants, subsidies, and incentives available to help boost your budget.

We update this list every few months to ensure you have the guidance at your fingertips.

Grants, subsidies and incentives for commercial electric fleets - Hero Image

Grants for preparatory installation works and buying and installing charge points

EV infrastructure grant

The EV charge point grant provides financial support towards the ‘wider building and installation work’ necessary to fit charge points.

Whether you plan to install now or in the future, the grant can cover up to 75% of the cost – up to £350 for each socket you install and up to £500 for each parking space you enable with charging facilities.

The EV infrastructure grant for staff and fleets is for companies with 249 or fewer employees. It contributes a maximum of £15,000 and you can receive up to five grants across five different sites. You may be able to use the grant in conjunction with the Workplace Charging Scheme (below).

The EV charge point grant has recently (18 March 2024) expanded to those without a driveway as part of Government’s Plan for Drivers.

Supporting the costs of purchasing and installing EV charge points at residential properties, the grant offers 75% off the cost to buy and install a socket, up to a maximum of £350.

The closing date for all applications is 31 March 2025.

Workplace Charging Scheme

Grants are available to reduce hardware-purchase and direct installation costs by up to 75% or £350 per socket (whichever is less).

The Workplace Charging Scheme provides support towards the cost of up to 40 sockets per applicant. It’s open to eligible businesses, charities, public sector organisations and small accommodation businesses.

The closing date for applications is 31 March 2025.

There are also similar grants to support with preparatory installation works specifically for landlords, renters and schools. Grant scheme eligibility and guidance can also be found on the Government website.

Grants for electric vehicles

Plug-in small van grant

35% of the purchase price, up to £2,500 (only available for a total of 1500 plug-in vans and trucks for your business or organisation each financial year).

Plug-in large van grant

35% of the purchase price, up to £5,000 (only available for a total of 1500 plug-in vans and trucks for your business or organisation each financial year).

Other vehicles

Grants are also available for the following vehicle types:

  • Wheelchair accessible vehicles
  • Motorcycles
  • Mopeds
  • Taxis
  • Small trucks
  • Large trucks

Here's a list of all eligible vehicles and criteria for the plug-in vehicle grants.

Additional incentives

Lower Benefit-in-Kind tax - cars

EV company car drivers pay less Benefit-in-Kind (BiK) tax (also known as Company Car Tax (CCT) rates). These will be 2% for 2022/23, 2023/24,2024/25, before gradually increasing to 3% in 2025/26, 4% in 2026/27, and 5% in 2027/28.

0% Vehicle Excise Duty (VED)

Until 2025, pay no VED (otherwise known as road tax) for EVs. This includes EVs, which cost more than £40,000.

From April 2025, electric cars, vans, and motorcycles will begin to pay VED in the same way as petrol and diesel vehicles.

Find out more about vehicle tax rates.

Reduced Van Benefit Charge

Since April 2021, a nil rate has been applied to zero-emission vans within Van Benefit Charge.

Other benefits

Electric vehicles may also enable you to take advantage of other benefits, including:

  • Exemption from fees in the London Ultra Low Emission Zone, which was expanded across all London Boroughs in 2023, and Clean Air Zones in other cities
  • London-based businesses (under 50 employees) and registered charities can apply to scrap or retrofit up to 3 vans or minibuses and get an increased grant payment as part of the Mayor of London’s £1210 million scrappage scheme.
  • Free parking in certain locations
  • Potentially reduced running costs due to electricity typically being cheaper than petrol or diesel as Fuel Duty is not applied
  • Tax exemptions for workplace EV charging under certain conditions

At Drax, we can help you find out what grants, subsidies, and incentives are available for your business fleet. Get in touch using our contact form.

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