What is an Electric Van Grant? And How Can I Benefit?
As we draw ever-closer to the UK Government’s deal to ban the sale of new petrol and diesel vehicles from 2030, there have been an increasing number of incentive schemes set up to help drivers seamlessly make the transition to electric vans. On top of this, studies have shown that the UK public’s demand for electrically-powered vans has dramatically increased in recent years; here are just a few of the figures that support this claim:
- Industry statistics showed that in 2021, the UK sold the highest number of plug-in electric vans in Europe.
- There were four times as many electric van applications made in 2021 compared to 2020.
- Since the Government’s plug-in van and truck scheme was launched, it has supported the purchase of over 26,000 vans.
If you’re interested in making the switch to electric when the time comes to purchase your next van, this guide will get you to grips with everything you need to know about the electric van grant. We’ll explore exactly what grants are available to you, as well as how you can access them.
What is the Electric Van Grant?
In an announcement made in March 2022, the UK Government confirmed a two-year extension on their plug-in van and truck grant (PIVG). As stated above, between 2030 and 2035, any new vehicles sold in the UK must have zero-emissions capabilities. In order to help fast-track the decarbonisation process, the Government launched the PIVG to help bridge the sometimes glaring price gap between diesel and electric vehicles. Businesses will thus be supported as they convert to electric vehicles in order to make it a more cost-effective transition. There are over 30 models of electric vans in varying sizes that qualify.
It is also expected that this electric van grant extension will help with the purchasing of thousands of more electric commercial vehicles across the UK. Overall, the scheme will enable businesses to be less reliant on foreign oil imports and not feel hindered by the ever-rising costs of fuel.
So, what savings can you expect to make from the PIVG? From 1st April 2022 onwards, the maximum size criteria for small electric vans (which entitles applicants with a grant of up to £16,000) increased from 3.5 tonnes to 4.25 tonnes. In light of the rising demand for large electric vans, vehicles up to 4.25 are also now eligible for a grant of up to £5,000.
This funding is available to manufacturers and distributors of electric vans, which is then passed onto dealerships. For example, the electric van grant will pay for 35% of the retail price of a small electric van, up to a maximum of £2,500. For large electric vans, the grant will also pay for 35% of the purchase, but up to a maximum of £5,000. When purchasing an eligible electric van, you won’t need to do anything as the value of the grant will be included in the listing price.
Which Vans are Eligible For the Electric Vehicle Grant?
In order to be eligible for the PIVG, the completed van or truck (both chassis and bodywork) must meet the criteria outlined by the UK Government. The Government has stated that they reserve the right to alter these criteria if, for instance, during the course of the grant scheme new safety requirements or European standards or regulations come into effect. Furthermore, new variants of a vehicle that is already eligible for the grant will not automatically qualify, and a new type of documentation will need to be approved separately.
Although the criteria might seem extensive, the good news is that there are still a great number of electric vans that are eligible for the grant. Below, we’ve listed the small and large electric vans that are confirmed to be eligible.
Eligible Small Vans
Small electric vans are classed as having less than a 2,500kg gross vehicle weight, CO2 emissions of less than 50g/km and being able to travel at least 60 miles without producing any emissions at all. Eligible vans include:
- Citroën e-Berlingo
- Maxus eDeliver 3 (SWB models)
- Nissan Townstar Electric
- Nissan Voltia
- Peugeot e-Partner
- Renault Kangoo ZE
- Renault Zoe Van
- Toyota Proace City Electric
- Vauxhall Combo-e
Eligible Large Vans
Eligible large vans are classed as having a gross vehicle weight between 2,500kg and 4,250kg, CO2 emissions of less than 50g/km and being able to travel at least 6o miles without producing any emissions at all. Eligible vans include:
- Citroën e-Dispatch
- Citroën e-Relay
- DFSK EC35
- Fiat e-Ducato
- LEVC VN5
- MAN eTGE
- Maxus eDeliver 3
- Maxus eDeliver 3 (LWB Chassis Cab)
- Maxus eDeliver 9
- Maxus eDeliver 9 MC (L3 Chassis Cab)
- Maxus eDeliver 9 LC (L4 Chassis Cab)
- Mercedes-Benz eVito
- Mercedes eSprinter
- Peugeot e-Boxer
- Peugeot e-Expert
- Renault Trafic E-Tech
- Renault Master ZE (3.1 and 3.5 tonnes)
- Renault Trucks Master ZE
- Toyota Proace Electric
- Vauxhall Vivaro-e
- Volkswagen ABT e-Transporter
For both small and large electric vans, a total of 1,000 electric van grants can be claimed by your business each year.
What Other Grants are Available to Me?
Alongside a grant to support the purchase of an electric van, there are also other Government-backed schemes to support the wider use of electric vehicles. For example, there are grant schemes for the installation of electric vehicle charging infrastructure, so keep reading to find out how you can benefit.
EV Chargepoint Grant
The EV Chargepoint Grant is a scheme devised to offer funding of up to 75% towards the costs of installing electric vehicle charging points at domestic properties and small to medium-sized businesses. Business owners can apply for funding to install an EV charging point in parking reserved for staff or company vehicles. For organisations with 249 employees or less, the grant money will go towards the infrastructure needed for charging points, as well as the installation of the actual charging point.
Workplace Charging Scheme
Similar to the above, the Workplace Charging Scheme is a voucher-based grant that offers funding for the upfront costs of purchasing and installation of electric vehicle charging points. Available to eligible businesses, charities and public sector organisations, the scheme covers up to 75% of total costs, up to a maximum of £350 per socket for a total of 40 sockets across a site.
This scheme can be used in conjunction with the EV Chargepoint Scheme to ensure that you receive the funding for the charger, its infrastructure and its installation.
The Benefits of Low Emissions Vehicles
Now that you’re familiar with all of the grants available to you as a prospective electric van owner, you’re probably wondering if an electric van is really worth all of the fuss. Below are just some of the biggest advantages of owning an electric vehicle:
- Hybrid vans are generally cheaper to run as they offer much better fuel efficiency than diesel or petrol vehicles.
- Electric vans are even cheaper to run than hybrids, as electricity is much cheaper than fuel. In some cases, you can even recharge your van without paying the full 20% VAT on the electricity you’re using. This has been reported to reduce annual running costs by an average of 21%.
- Electric vehicles are currently exempt from vehicle excise duty (VED) and as a result pay no fuel duty.
- Low-emission vehicles are exempt from congestion charges in London, and if your vehicle meets the LEZ and ULEZ standards, these savings add up. The Congestion Charge is £15 per vehicle per day, and the ULEZ charge is £12.50 for vans up to and including 3.5 tonnes.
- According to Zap Map, as of September 2021 there were more than 43,000 public electric vehicle charging stations across more than 16,000 locations in the UK. What this means is that it’s never been easier to charge on the go, reducing ‘range anxiety’ – the worry of running out of electricity whilst driving a battery-powered vehicle.
- As the 2030 petrol and diesel ban draws closer, it is likely that the resale value of non-electric vehicles will fall dramatically.
Upgrade Your Van Fleet with Van Sales UK
Will you be one of the many businesses to make the switch to electric vans this year? If so, then Van Sales UK is here to help. As a van finance company based in Bristol, we supply an extensive range of new electric contract hire vans at highly competitive prices. Whether you require a single electric van or an entire van fleet, then you can count on us to help you make it happen. Forget expensive shipping costs and long wait times, as we will deliver your new van straight to your door, free of charge.
To get started, browse our full range of electric vans online, or feel free to get in touch with us. A member of our experienced team will be happy to guide you through our product range, and help you find the perfect van for your requirements.