The government is providing new grants to reduce the cost when businesses buy electric trucks and vans.
The Zero Emissions Truck and Van Grants scheme will provide savings of up to £81,000 off the heaviest zero emissions trucks, covering up to 40% of the cost.
The van grant will continue to offer discounts of up to £5,000 off the cost of electric vans.
The government is also providing £170 million in extra funding for the Depot Charging Scheme which covers up to 70% of the cost for businesses and public authorities to install charging points for vans, coaches, and eHGVs.
The first application window runs until 12pm on 30 June or earlier if funding is exhausted.
Today’s announcements follow the government providing an additional £18 million to the plug-in van and truck grant scheme in January.
Aviation, maritime and decarbonisation minister Keir Mather said:
“This £1 billion investment cuts cost for British businesses, supports jobs, cleans up our roads, and gives operators protection against shifting global fuel prices.
“The logistics sector is the backbone of the UK economy, worth £170 billion and supporting 2.7 million jobs. We’re helping them expand and decarbonise their fleets whilst saving them cash, driving growth up and down the country.”
Ben Fletcher, chief executive at Logistics UK:
“This is the practical support the industry needs that will move the needle on electric commercial vehicle adoption. Our research highlights a growing gap between decarbonisation targets and industry readiness, particularly among smaller operators, driven by factors such as limited charging infrastructure and high cost of electricity.
“By extending the Depot Charging Scheme and confirming significant funding levels through the Zero Emission Truck and Van Grants, the government is simplifying the investment decisions businesses need to take.
“These announcements reduce uncertainty in purchasing decisions and will help fleet operators demonstrate the operational viability of transitioning to electric vehicles. However, vehicle procurement cycles span several years, so the government must provide multi-year funding certainty to support the continued adoption of zero emission vehicles.
“Moving away from the current annual funding cycles will present a clear transition pathway enabling businesses to plan and upgrade their fleets in a more structured and sustainable way.”