Business Fleet Cars : Owning and running EVs is about to become simpler and more accessible to businesses across the country. The UK government has committed £650 million to go towards EV grants, including funding for electric vans and trucks. As well as this, the government has promised £30m for over 3,000 new van and HGV charging points, making it more convenient than ever for businesses to go electric.
Whether you need a fleet of sustainable vans or cars, the new EV grant scheme makes this more accessible and affordable for UK Businesses than ever. Find out more about government funding for EVs below.
What is the EV Government grant?
So, what is the government’s EV scheme? Put simply, it’s a financial incentive to make EVs more affordable. The scheme is designed to support the transition from petrol and diesel (ICE) cars to electric cars. The grant offers a £3,750 discount on zero-emission models that meet the government’s eligibility criteria. And you don’t have to do anything – the discount is automatically applied when you purchase a car from your manufacturer or car dealership.
To benefit from the Government’s EV scheme, your chosen model must have a list price of £37,000 or less. Small, city EVs and affordable manufacturers will likely qualify for this scheme, with cars to suit a range of needs.
Benefits of the EV government grant
So, what does it all mean for you? Here are a few of the benefits you can expect from the latest EV Grant scheme.
- Makes EVs more affordable and accessible
With discounts of £3,750 on eligible models, the new EV grant lowers the upfront cost of the model of your choice – you don’t have to do anything. This means EVs will become more accessible to businesses, families, and commuters, rather than just premium buyers.
- Encourages EV adoption
The latest EV grant aims to support growth in the electric car market. Not only will it help to increase production for manufacturers, but it will also help when it comes to making the shift away from petrol and diesel cars.
- Reduced emissions and improved air quality
Making it easier to access electric cars means cuts to CO2 levels and tailpipe pollution in towns and cities. Eventually, this will contribute to reducing net zero targets and cleaner air.
- Works with other government initiatives
Government EV funding works alongside other incentives, including tax benefits for EV drivers, as well as home and workplace chargepoint grants, and national charging infrastructure rollout, reducing issues including range anxiety, to make EV ownership more practical and accessible for everyone.
EV grant tips for businesses and fleet managers
Businesses can benefit from the Government’s plans to make EVs more accessible, with this grant making it cheaper to electrify fleets and meet sustainability goals. The UK government has promised £30m for 3000+ new van and HGV charge points, making electric fleets more attractive to businesses, resulting in lower operating costs and improved sustainability.
The UK government has also promised £8m for NHS electrification and £25m to support local authorities. As well as this, lower operating costs, combined with tax advantages like BIK, make it advantageous for companies to electrify their fleets.
Here are a few actionable tips for your business to get the best from this new EV initiative:
1. Choose eligible models strategically
Make sure you focus on electric cars and vans under £37,000 to qualify for the grant – you can do this by using the government’s official list to plan your fleet purchases. To make the most of the grant, opt for models with lower running costs to maximise potential savings.
2. Bundle grants and incentives
As mentioned previously, this grant can be paired with other government incentives, such as:
- The Workplace Charging Scheme (WCS) – covers up to 75% of installation costs for workplace chargepoints.
- The EV Infrastructure Grant for Staff and Fleets – supports larger site upgrades and multiple chargers.
You should also consider BIK tax savings when planning a bundle for your fleet.
4. Work with approved dealers and leasing companies
Make sure the fleet provider you choose is reputable to ensure your EV grant is correctly applied. You’ll also be able to benefit from advice throughout the process.
5. Educate and engage staff
EVs may still be a relatively new idea for staff members. Provide your drivers with EV training, including how to drive efficiently, charging best practices and how to use any fleet management software you have installed.
Make sure they’re aware of sustainability targets, as well as the financial and environmental benefits that come with making the switch to electric driving.
6. Track Total Cost of Ownership (TCO)
To get the best from your fleet lease cars, track the Total Cost of Ownership (TCO) to determine fuel savings, maintenance reduction and tax incentives. You can do this with telematics and fleet management software, keeping you up to date with vehicle and driving performance, and allowing you to track whether there are additional savings to be made.
What does the EV grant mean for new cars?
If you’re thinking of buying a new car, the EV grant reduces the purchase price of fully electric vehicles, as a way of making them more accessible and affordable. For cars under £37,000, you’ll receive a discount of up to £3,750. This is to encourage drivers to take up an affordable EV to help the UK reach sustainability and net-zero goals.
Charging installation
The EV grant itself covers vehicle purchase, and the government has also set aside funding to expand the UK’s charging network. Investing in a nationwide EV charging roll-out, the government has outlined a goal of over 300,000 public chargepoints by 2030. Improving the charging infrastructure in the UK makes driving an all-electric or plug-in hybrid car more attractive, reducing range anxiety and paving the way for the upcoming switch to all-electric cars.
How to get the EV grant
You don’t have to apply to take advantage of the EV grant. Your chosen car dealer or manufacturer automatically applies the discount at the point of sale. It’s really that simple!
The only eligibility criteria you’ll need to bear in mind is that your van or car is approved under the scheme by the Department for Transport in terms of pricing, emissions and sustainability. You must make sure your vehicle is £37,000 or less. That’s it.
Explore a range of electric and hybrid cars with business and personal leases at Car Leasing Made Simple. Need help? Get in touch with our experts who’d be happy to help, and if you want to know more about leasing, find the answers to your questions in our guides.