Electric Van Grants 2025

November 27, 2024

Electric vans are gaining popularity as the UK government pushes for cleaner commercial vehicles. To encourage this shift, various incentives are available for businesses and individuals looking to switch to electric, including the electric van grant. This grant provides financial assistance based on vehicle weight categories, with specific caps per tax year and adjustments in maximum grant values depending on the 2024/2025 regulations. Additionally, the plug in car grant is another government incentive aimed at promoting electric vehicle adoption.

The move towards electric vans is part of a broader effort to reduce carbon emissions and combat climate change. As cities across the UK introduce low emission zones and congestion charges, electric vans offer a way for businesses to avoid these costs while also lowering their environmental impact. While some benefits are set to expire in the coming years, the overall trend towards electrification in the commercial vehicle sector is likely to continue.

Summary

Grants are available for both small and large electric vans in the UK
Electric vans can benefit from tax incentives and exemptions from certain charges
The shift to electric vans is part of a broader effort to reduce carbon emissions

Benefits of Switching to Low Emission Vehicles

Switching to low emission vehicles can have numerous benefits for businesses and individuals alike. One of the most significant advantages is the reduction in operating costs. Electric vans, for example, are cheaper to run than their diesel counterparts, with lower fuel costs and reduced maintenance needs. Additionally, low emission vehicles are exempt from Vehicle Excise Duty (VED), also known as road tax, which can result in significant savings.

Furthermore, switching to low emission vehicles can also help reduce a company’s carbon footprint and contribute to a more sustainable future. With the UK government’s target to reach net-zero emissions by 2050, making the switch to electric vehicles can help businesses stay ahead of the curve and demonstrate their commitment to environmental sustainability.

Aid for Compact Commercial Electric Vehicles

The UK government offers financial support for those purchasing small electric vans. Buyers can receive up to £2,500 off the price of eligible vehicles. To qualify, vans must weigh under 2,500 kg, be equipped with an electric motor, emit less than 50g/km of CO2, and travel at least 96 km without producing emissions.

Several models meet these criteria:

Citroën e-Berlingo
Fiat e-Doblo
Mercedes eCitan
Nissan Townstar
Peugeot e-Partner
Renault Kangoo E-Tech
Vauxhall Combo-e

This plug-in van grant aims to make zero-emission vehicles more affordable for businesses. By reducing upfront costs, the scheme encourages the adoption of cleaner transport options.

Bigger Electric Vans

The UK government offers substantial incentives for larger electric vans. Buyers can receive up to £5,000 off the purchase price of eligible vehicles. These bigger vans must weigh between 2,500kg and 4,250kg.

A wide range of electric vans qualify for this grant. Popular models include:

Citroën e-Dispatch
Ford E-Transit
Mercedes-Benz eVito
Peugeot e-Expert
Volkswagen ID. Buzz Cargo

These zero emission vehicles help businesses reduce their carbon footprint. They’re ideal for local deliveries and urban logistics.

Electric vans offer several benefits:

Lower running costs
Quieter operation
Access to low emission zones
Reduced maintenance needs

Many manufacturers now produce electric versions of their popular van models. This gives buyers plenty of options to suit different needs and budgets.

As technology improves, these vans offer increasing range and payload capacity. Some can travel over 200 miles on a single charge. This makes them practical for a wider range of business uses.

The government grant makes these vans more affordable. It helps businesses transition to greener fleets. This supports the UK’s goals for reducing transport emissions.

Plug-in Van Grant

The Plug-in Van Grant is a government-funded incentive scheme designed to encourage the adoption of electric vans. The grant provides a discount of up to £5,000 on the purchase price of an eligible electric van, with a maximum grant of 35% of the vehicle’s price. To qualify for the grant, the van must have a gross vehicle weight of less than 4,250kg, CO2 emissions of less than 50g/km, and a zero-emission range of at least 60 miles.

The grant is available for both small and large vans, with different eligibility criteria for each category. Small vans, with a gross vehicle weight of less than 2,500kg, can receive a grant of up to £2,500, while large vans, with a gross vehicle weight between 2,500kg and 4,250kg, can receive a grant of up to £5,000.

Eligibility and Application

To be eligible for the Plug-in Van Grant, the vehicle must meet certain criteria, including:

Gross vehicle weight: less than 4,250kg
CO2 emissions: less than 50g/km
Zero-emission range: at least 60 miles
Eligible vehicles: only vehicles that are on the government’s approved list of eligible vehicles

Businesses and individuals can apply for the grant through a vehicle dealership or manufacturer. The grant is subject to full terms and conditions, and eligibility may be revised or withdrawn at any time without prior notice.

Additional Benefits

In addition to the Plug-in Van Grant, there are several other benefits to switching to low emission vehicles. These include:

Reduced operating costs: electric vans are cheaper to run than diesel vans
Exemption from Vehicle Excise Duty (VED): low emission vehicles are exempt from road tax
Reduced maintenance needs: electric vehicles have fewer components than traditional vehicles, making them easier to maintain
Generous warranties: batteries are often covered by generous warranties that protect against unexpected costs
Simplified servicing: electric vehicles are simpler and cheaper to service than traditional vehicles

EV Charging and Plug In Van Grants for Workplaces

The UK government offers assistance to organisations looking to install electric vehicle (EV) charging infrastructure at their premises. This Workplace Charging Scheme provides financial support towards the purchase and installation of EV chargepoints.

Eligible applicants can receive up to 75% of the total costs, including VAT. The grant is capped at £350 per socket, with a maximum of 40 sockets across all sites per applicant. For instance, if an organisation has 40 locations, they would be limited to one subsidised socket per site.

The scheme is open to:

Businesses
Charities
Public sector organisations
Small accommodation providers (e.g. hotels, B&Bs)

Usage restrictions apply depending on the type of organisation:

Organisation Type

Usage Restrictions

Businesses

Staff only (local residents allowed outside office hours)

Public authorities, charities, small accommodation businesses

No restrictions

Employers can also install chargepoints at employees’ homes for company vehicles if workplace charging is not feasible.

It’s important to note that all charging stations must be installed by an approved Office for Low Emission Vehicles (OLEV) installer.

Organisations interested in this scheme should act promptly, as it is set to conclude on 31 March 2025.

How to Make the Switch

Making the switch to low emission vehicles is easier than ever. Here are some steps to follow:

Research eligible vehicles: check the government’s approved list of eligible vehicles to find a low emission van that meets your needs.
Contact a vehicle dealership or manufacturer: reach out to a vehicle dealership or manufacturer to discuss your options and apply for the Plug-in Van Grant.
Consider additional benefits: think about the additional benefits of switching to low emission vehicles, such as reduced operating costs and exemption from Vehicle Excise Duty (VED).
Plan for charging infrastructure: consider installing charging points at your premises to support your electric vehicle fleet.
Make the switch: once you’ve found the right vehicle and applied for the grant, make the switch to low emission vehicles and start enjoying the benefits.