Introduction
The UK Government has committed £4.5 billion to support the country’s shift to zero-emission transport — making it easier and more affordable for people and businesses to switch to electric vehicles (EVs). This funding is secured until the 2028–29 financial year, giving long-term confidence to the market.
Why now?
The government wants the UK to maintain its position as a global leader in EV adoption and green transport innovation.
Where’s the money going?
- £650 million Electric Car Grant (ECG):
- This will mean buyers can obtain up to £3,750 off the price of a new electric car up to a purchase price of £37,000.
- Available for purchases and leases.
- Helps make EVs more affordable for individuals and businesses.
- £63 million infrastructure boost:
- Increasing the availability of home charging for people without driveways.
- 1,200+ charge points at NHS sites.
- Depot charging grants for businesses with fleets (vans, lorries, buses).
- DRIVE35 programme:
Supports UK-based EV manufacturing, including:
- Gigafactories
- Startups
- Prototypes
- Green automotive tech.
- Zero emission vehicle (ZEV) mandate: Requires carmakers to sell a growing percentage of zero-emission vehicles each year.
Existing grants for electric vans and electric heavy goods vehicles (eHGVs)
The UK government has extended the Plug-in Vehicle Grant to cover new electric vans, with funding confirmed through 2026:
Small vans
- Discount: Up to 35% off the purchase price, capped at £2,500.
- Eligibility:
- Gross vehicle weight under 2,500 kg.
- CO₂ emissions under 50g/km.
- Can travel at least 60 miles (96 km) with zero emissions.
Large vans
- Discount: Up to 35% off, capped at £5,000.
- Eligibility:
- Gross vehicle weight between 2,500 kg and 4,250 kg.
- Same emissions and range requirements as small vans.
Grants for eHGVs
- Small trucks (4.25 to 12 tonnes): Up to £16,000 per vehicle (limit: 10 vehicles per customer).
- Large trucks (over 12 tonnes): Up to £25,000 per vehicle (limit: 5 vehicles per customer).
Depot charging scheme – leasing eligibility
Under the UK Government’s Depot Charging Scheme (part of the £30 million infrastructure grant), leasing the remainder of the charging infrastructure is allowed, provided certain conditions are met.
Leasing charging infrastructure – what’s allowed
While the grant covers up to 75% of the costs for purchasing and installing depot-based EV chargers, the remaining 25% (or more, if costs exceed the cap) can be:
- Paid outright by the applicant, or
- Financed through leasing or third-party arrangements, such as:
- Leasing the hardware (charge points).
- Leasing installation services or maintenance contracts.
- Service agreements with infrastructure providers.
This flexibility helps fleet operators manage cash flow and spread costs, especially for SMEs or organisations with limited upfront capital.
To qualify, applicants must:
- Own or lease at least one battery-electric van, HGV, or coach.
- Be a registered UK fleet operator with at least one year of operating history.
- Own the depot site or have written permission from the landlord to install infrastructure.
- Ensure the chargers are primarily used by commercial vehicles in their fleet.
- Complete installation by 31 March 2026.
What the grant covers
- Up to 75% of eligible costs, capped at £1 million per organisation.
- Includes:
- Purchase of charge points (any type or speed).
- Civil engineering and electrical works to install and energise the chargers. - Does not cover: Cost of electric vehicles or grid connection upgrades.
Things to consider
If a customer wants a share of the £30 million to support their charging infrastructure, they must act quickly. Applications are due by November 2025, and all installations — including grid connection — must be completed by March 2026.
Without an existing grid connection, it may be difficult to meet the deadline.
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