With the election of the new Labour government, the UK is recommitting to the widely known and temporarily abandoned NetZero 2050 plan. When this plan was last enacted, we witnessed how daunting it could be for businesses with diesel vehicle assets; there is a lot to consider, and investments will need to be made to become compliant within the established deadlines.
This eco-friendly initiative requires significant changes across our country’s commercial fleets, but fortunately, the government is providing assistance with both guidance and funding for motorised businesses. In this blog, we explore what funding grants are available for businesses transitioning to electric vans and the success other businesses have had after such a transition.
Which Grant Supports Businesses Changing to Electric Vans?
The primary government assistance is the Plug-In Van and Truck Grant (PIVG). Started in 2012, it has been adapted over the years to broaden the scope and be more effective for businesses. This funding is designed to speed up the process of making EV fleets and permanently reduce the sector’s carbon emissions. In fact, the decarbonisation scheme plans to phase out petrol and diesel vehicles by 2030, with newly manufactured vehicles from 2035 onwards required to have zero carbon emissions.
However, the uptake of electric vans remains below expectations, accounting for less than 5% of van sales in the first half of 2024. Currently, this grant phase will last until the end of the tax year in 2025, and it is still unknown if it will be extended, so there is no time to waste applying for the grant and gaining that financial assistance. It is important to note that these grants apply only to new vans purchased outright and cannot be used for pre-owned vehicles.
Details of the PIVG Grant
Many technical criteria need to be reviewed before a successful application, but those businesses that do meet them will benefit significantly during their green fleet transition. For the current financial year, the PIVG offers substantial discounts for vans and trucks based on the vehicle’s gross vehicle weight (GVW). Here are some of the eligibility data shared:
- Vans under 2.5 tonnes GVW receive up to £2,500 off the purchase price, with a maximum discount of 35% of the vehicle’s cost.
- Vans between 2.5 and 3.5 tonnes GVW are eligible for a discount of up to £5,000, capped at 35% of the purchase price.
- Heavier electric vans, specifically those with a GVW of up to 4.25 tonnes and classified as ‘N2’ (small trucks), qualify for a larger incentive. These vehicles can receive a grant of up to £16,000, though this amount is limited to 20% of the purchase price and capped at 250 grants per financial year, with a maximum of 10 grants available per customer.
Because the grant is specific to purchasing new vehicles and not refurbishments, there are additional requirements assigned to the emission standards of the purchased vans or trucks. Essentially, the van must have a minimum zero-emissions driving range of 60 miles. Additionally, the vehicle must emit less than 50 grams of CO2 per kilometre (50g CO2/km).
Which Vans/Trucks Are Eligible for the PIVG?
Now that you know why this grant exists and the general requirements behind it, we have compiled a list of the brands and models you can choose from that will let you apply for the grant, as well as highlight the ones we include in our catalogue of fridge and freezer vans for sale. Review the list below and build your electric fleet faster.
Small Electric Vans (up to 2.5 tonnes)
- Citroën e-Berlingo
- Fiat E-Doblò
- Maxus e Deliver 3 (short-wheelbase only)
- Mercedes-Benz eCitan
- Nissan Townstar
- Peugeot e-Partner
- Renault Kangoo E-Tech
- Toyota Proace City
- Vauxhall Combo Electric
Large Electric Vans (2.5 to 3.5 tonnes)
- Citroën e-Dispatch
- Citroën e-Relay
- DFSK EC35
- Fiat E-Ducato
- Fiat E-Scudo
- Ford E-Transit
- Ford E-Transit Custom
- Iveco eDaily
- LEVC VN5
- Maxus e Deliver 3 (long-wheelbase and chassis cab versions)
- Maxus eDeliver 7
- Maxus e Deliver 9
- Maxus T90EV
- Mercedes-Benz eVito
- Mercedes-Benz eSprinter
- Nissan Townstar (crew van and L2 versions)
- Peugeot e-Boxer
- Peugeot e-Expert
- Promod L City
- Renault Master
- Toyota Proace Electric
- Vauxhall Vivaro Electric
- Volkswagen ID. Buzz Cargo
Royal Mail’s Success with Electric Vans
Royal Mail is making significant strides towards its net-zero goal by adding 2,100 electric vans to its fleet within the next year, with around half expected to be operational by Christmas 2024. This move will increase the company’s electric fleet by nearly 50%, bringing the total to over 7,000 EVs. The rollout of these new electric vehicles will commence in August, replacing the existing diesel vans and bolstering the UK’s largest electric delivery fleet.
Beyond environmental concerns, there are numerous benefits for business owners in going electric. Firstly, electric vans have significantly lower running costs compared to diesel vehicles, as electricity is cheaper, and maintenance costs are reduced due to fewer moving parts and less wear and tear.
Additionally, electric vans can enhance a company’s brand image by showcasing a commitment to sustainability and innovation, which can attract eco-conscious customers and partners. EVs also provide operational advantages in urban areas. Where low-emission zones and congestion charges lead to increased costs for diesel vehicles, EV vehicles have cheaper running costs.
Are You Considering Electric Vans for Your Business? CoolKit Can Help
We know that there is a lot to take in, specifically after the back-and-forth changes this past year, but we are here to help you make this transition as simple and seamless as possible. At CoolKit, we have years of trading experience selling electric refrigerated vans and are experts in decarbonising fleets, so you can rest assured you are in the right hands.
Explore our range of vans online and the finance options we offer for both our van sales and conversions. If you have specific questions or are wondering what vans are available to meet your business needs, contact us today; our team will be happy to assist you as best they can.
