Electric vehicle incentives for businesses
Although electric vehicle technology is fast advancing, many electric cars and vans are still more expensive to buy than comparable petrol and diesel vehicles. While the continuous operating expenses of electric vehicles are extremely appealing to businesses, the upfront investment expenditures of electric vehicles can be substantial. Grants and other forms of assistance may be available to your company to help make electric vehicles more accessible.
Government incentives for plug-in EVs
The good news is that there are a variety of government incentives available for electric cars and vans, which can provide a number of financial benefits to your company over the duration of ownership. These include:
Plug-in car grant
The plug-in car grant offers 35% of the cost of an electric car (up to a maximum of £2,500) for cars which cost less than £35,000. You must know if your vehicle falls into one of the three low-emission vehicle categories used by the government to assess whether a vehicle qualifies for the PiCG:
- Category 1: Vehicles with a range of 70 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
- Category 2: Vehicles with a range of at least 10 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of less than 50g/km.
- Category 3: Vehicles with a range of at least 20 miles making zero emissions, and a manufacturer quoted CO2 emissions figure of between 50-75g/km.
Plug-in van grant
The plug-in van incentive does not apply to all vans that have a plug, despite its name. A vehicle must be capable of travelling at least 60 miles in zero emission mode and emit less than 50g/km of CO2 according to manufacturer-stated numbers based on government tests to qualify for the subsidy.
Technically, a plug-in hybrid van that meets these conditions would be eligible for the grant, but as there isn’t one on the market right now, the incentive is essentially limited to purely electric vans. The plug-in van grant’s value varies depending on the size of the van to which it is applied. Vans with a gross vehicle weight (GVW) of less than 2.5 tonnes are eligible for a rebate of up to 35% of the purchase price, up to a maximum of £3,000.
Go green to stay ahead
For company car drivers, EVs are highly cost-competitive in terms of business. Because of the tax ramifications, many employees choose to forego corporate vehicles. However, the government decreased benefit-in-kind (BIK) taxes on fully electric vehicles from 16 percent to 0 percent in April of this year.
EVs also save money during the course of their ownership. An EV may be driven for as little as 1p per mile, compared to 8-10p per mile for even the most fuel-efficient petrol and diesel vehicles. They also have fewer components than petroleum vehicles, resulting in lower long-term maintenance costs.
Less fleet maintenance
Electric vehicles utilise three fluids: coolant, windshield washer, and braking fluid. That is all there is to it.
Oil changes, transmission fluid flushes, and other engine fluid replacements would be unnecessary for your EV fleet. Given that maintenance is one of your fleet’s other top operating expenses, the savings might be significant – and compound with a larger fleet.
The possibility of having to replace the battery pack is one of the drawbacks of electric vehicles. Electric car warranties, on the other hand, cover battery packs for up to 100,000 miles. At that stage in the vehicle’s life, you can either replace it with a newer model or pay for the battery replacement.
No fuel stops
The loss of productivity is another incentive to avoid the pump. Having to drive a car to a petrol station takes time away from an operator’s time that could be spent on more important responsibilities. When you sum up the time spent by all of your operators, the opportunity cost to your business might be significant.
If you had an electric vehicle fleet, you could recharge the vehicles overnight or when the drivers weren’t on the clock to keep the range full. If you have a 24-hour fleet, you’ll want to use vehicle assignments to assist you arrange your timetable, since it will ensure that drivers are appropriately charging and rotating vehicles.
Electric vehicle consultancy with EVP
Our fleet plan is implemented by analysing your current fleet and developing a roadmap that outlines the measures to be taken and the associated costs. In this industry, technology and product lines are always changing, and our market knowledge can help you make informed decisions and prevent costly mistakes. Find out more about our electric vehicle consultancy or have a look at how we can help with your fleet strategy.
EVP have dedicated previous blogs to electric vehicle news, read about the first big companies to embrace electric vehicles in their fleet and how to be more eco friendly as a business to stay up to date with all the electric vehicle news.
Looking to start your first electric fleet? We have a helpful beginners guide to choosing electric vehicles, ensuring you choose the right fit for your business. We’re always happy to advise you on any aspect of your fleet, contact a member of our expert team and we’ll respond to your query as soon as possible.