Electric Vans for Business

A practical guide to the electric vans available in the UK, how their running costs compare to diesel, and what grants are available for businesses.

Does an Electric Van Work for Your Business?

Here we look at some of the key factors to consider before switching your vans to electric.

Local delivery and multi-drop

Well suited

Short, predictable routes with return to base. Overnight depot charging keeps vans topped up. Most electric vans offer more than enough range for urban and suburban delivery rounds.

Trades and site work

Well suited for most

Electricians, plumbers, and similar trades with predictable daily mileage and access to overnight charging at home or at a depot. Check payload against the tools and materials you carry.

Long-distance motorway use

Consider carefully

Vans covering 200+ miles daily on motorways will need to factor in rapid charging stops. Motorway driving reduces real-world range more than urban use. Possible but requires route planning.

Heavy payload trades

Check the numbers

Electric vans typically carry slightly less than diesel equivalents due to battery weight. If you regularly load close to the maximum payload of your current van, compare the specific figures before committing.

Grants and Incentives for Electric Vans

There is still some government support available to help businesses with the cost of switching to electric vans.

Plug-in Van Grant

Up to £5,000

Up to £2,500 for small vans and £5,000 for large vans, applied at the point of purchase for eligible new zero-emission vans. Applied automatically by the dealer.

Source: GOV.UK / OZEV

Workplace Charging Scheme

Up to £500/socket

Covers up to 75% of the cost of installing EV chargepoints at your business premises, up to 40 sockets. Extended for a final year until 31 March 2027.

Source: GOV.UK / OZEV

100% First-Year Capital Allowance

Full tax relief

Zero-emission vans qualify for 100% first-year capital allowances, meaning the full purchase cost can be deducted from taxable profits in the year of purchase.

Source: GOV.UK / HMRC

The ZEV Mandate and What It Means for Van Buyers

Government targets are pushing more electric vans onto the market, which means more choice and more competitive pricing.

The Zero Emission Vehicle Mandate requires manufacturers to ensure a rising percentage of new van sales are zero-emission each year. In 2026, 24% of new vans sold must be fully electric. This rises to 34% in 2027, 46% in 2028, 58% in 2029, and 70% by 2030.

Manufacturers who miss these targets face penalties of £9,000 per non-compliant van. This creates strong commercial pressure to sell electric vans, which in practice means more competitive lease deals, better residual values, and a wider choice of models coming to market.

For businesses, the practical effect is that electric van options are improving rapidly. New models are launching with longer ranges, higher payloads, and lower lease costs than even 12 months ago. Waiting may feel safer, but the best deals are often available now as manufacturers push to meet their targets.

Source: GOV.UK, Vehicle Emissions Trading Schemes Order 2023.

Electric Van Running Costs

Here is an illustrative example of how the day-to-day costs of running an electric van compare to diesel.

Cost area	Electric van	Diesel van
Fuel / energy cost per mile	6-9p (electricity)	18-25p (diesel)
Annual fuel cost (15,000 miles)	£900-1,350	£2,700-3,750
Vehicle Excise Duty (road tax)	£0 (zero-emission exempt)	£290+/year
Servicing	Lower (fewer moving parts, no oil changes)	Higher
Brakes	Lower (regenerative braking reduces wear)	Standard replacement schedule
Tyres	Similar or slightly higher (heavier vehicle)	Standard

Electricity cost based on average domestic rate of approximately 24p/kWh and typical van efficiency of 3-4 miles/kWh. Diesel cost based on approximately £1.45/litre and 30mpg. Figures are indicative and will vary by vehicle, usage, and energy tariff.

For a van covering 15,000 miles a year, switching from diesel to electric could save between £1,350 and £2,400 on fuel alone. Add in road tax savings and lower servicing costs, and the total running cost saving is substantial even before accounting for any grant support.

While most businesses choose to lease electric vans for the tax advantages and lower upfront cost, purchasing outright is also an option. There are a growing number of electric vans for sale in the UK from all major manufacturers, and the Plug-in Van Grant applies to both purchased and leased vehicles. Used electric vans are beginning to appear on the second-hand market as early leases end, though availability is still limited compared to diesel. Whether you choose an electric van lease or purchase outright, the running cost savings begin immediately.

Electric Van Registrations in the UK

WLTP Range

up to 600kg

Max Payload

up to 4.9m³

Cargo Volume

All range, payload, and cargo figures are WLTP or manufacturer-published maximums. Actual figures vary by variant, body length, and battery option.

Figures from manufacturer UK websites. Last reviewed: June 2026. Range figures are WLTP. Payload and cargo volume are maximums and vary by variant.

Related EV Zone Pages

Many electric vans now offer payload and cargo volume comparable to their diesel equivalents, making them suitable for a wide range of trades. The key considerations are daily mileage (most electric vans offer 150-250 miles of real-world range), access to overnight charging, and whether the payload capacity meets your needs. Urban and suburban trades with predictable routes are particularly well suited.

Charging time depends on the charger speed and battery size. On a 7kW home or workplace charger, a full charge typically takes 8-11 hours (ideal for overnight charging). On a 50kW rapid charger, most electric vans can charge from 10% to 80% in 30-45 minutes. Larger batteries take proportionally longer.

Payload varies significantly by model. Smaller vans like the Citroen e-Berlingo carry around 800kg, while larger vans like the Mercedes eSprinter can carry over 1,000kg depending on the variant. Electric vans typically carry slightly less than their diesel equivalents because of battery weight. Always check the specific variant, as payload varies within model ranges.

For most businesses, leasing is the more cost-effective option. Leasing avoids the higher upfront purchase cost, removes depreciation and battery degradation risk, and lease payments are a deductible business expense. Electric vans are also exempt from the benefit-in-kind van charge, and the Workplace Charging Scheme can subsidise charging infrastructure.

Content produced by

Ryan Hughes

Founder & Director

Ryan is the founder of Brumble and has over a decade of experience in the UK motor finance and insurance industry. He created Brumble to make it easier for UK drivers to understand the insurance and finance world by cutting through the jargon.

Originally published: 17 June 2026 · Last updated: 18 June 2026