The Plug-in Van Grant has been extended for a further two years, the Government has announced.
This commitment by the Government to help decarbonise the vital transportation industry and final mile delivery service is a positive move.
It will also help improve security of energy supply and reduce the UK’s exposure to volatile global energy prices, the Government added.
Fleets now have a level of certainty to plan for fleet commercial vehicle electrification as the 2030 ban on sales of new petrol and diesel vehicles approaches.
In practical terms the Plug-in Van Grant will continue for a further two years beyond the termination of the Plug-In Car Grant at the end of FY 2022-23.
“The electric van market continues to lag behind the electric car market and next year was not the time to remove this vital grant,” commented Toby Poston, Director of Corporate Affairs at the industry association BVRLA.
In addition to the grant extension, drivers holding standard car driving licences will continue to be able to drive electric goods vans at a higher weight limit of up to 4.25 tonnes. For diesel and petrol vans this is limited to 3.5 tonnes.
Mike Manners, Managing Director of CBVC Vehicle Management, said:
Customers really should not hold back. Electrification is coming, and with grant certainty this is a real opportunity for fleets to make the move while containing costs.
There are more hurdles to overcome with van electrification than car electrification and the most important of these is operational resilience. So it requires planning and a progressive switchover as vans come up for a new lease.
I would also suggest that fleets consider driver training as well to ensure their employees are not only comfortable with the different driving style of an electric commercial vehicle, but they are also familiar with recharging, whether that is at home, in a depot, or on the road.
What grants are available for electric vans?
Small vans
The grant for small vans up to 2.5kg GVW is 35% of the purchase price, up to a maximum of £2,500. The reduction will be reflected in the monthly lease rental cost. To qualify vans must have emissions below 50g/km and travel 60 miles in zero emission mode. Or be fully electric.
Typical examples are:
- Citroën e-Berlingo
- Maxus eDeliver 3
- Nissan e-NV200
- Renault Kangoo ZE
- Vauxhall Combo-e
Large vans
The grant for large vans between 2.5kg and 3.5kg GVW provides 35% of the purchase price, up to a maximum of £5,000. The reduction will be reflected in the monthly lease rental cost. To qualify, vans must have emissions below 50g/km and travel 60 miles in zero emission mode. Or be fully electric.
Typical examples are:
- Citroën e-Relay
- Fiat e-Ducato
- Maxus eDeliver 9
- Mercedes-Benz eVito
- Peugeot e-Boxer
- Vauxhall Vivaro-e
- Volkswagen ABT e-Transporter
From 01 April 2022, vans up to 4.25 tonnes will be able to claim the large van grant of up to £5,000.
Fleets wanting to electrify their vans, please talk to us on 01283 351200. We have extensive experience of the decarbonisation process and can help mange you through the switchover.
