The UK Government is putting another £170 million into the Depot Charging Scheme, as it looks to boost the number of businesses and public authorities installing EV charging infrastructure.
The new money is on top of the recently-announced boost to grants awarded under the Workplace Charging Scheme, which meant businesses could get a grant to cover almost half the cost of installing an EV charging point. While that funding focused on general EV charging infrastructure to help employees charge while at work, the new money is specifically designed for companies looking to electrify their fleets.
The funding sits within a wider £1 billion package aimed at helping businesses move to zero-emission vans and trucks, and it includes grants of up to £1 million towards the installation of depot charging infrastructure. The funding is capped at up to 70%% of the total cost of installation, which means businesses will still need to invest some of their own capital.
The Government is keen to boost the uptake of electric vans, trucks and buses, which are seen as key to meeting its net zero goal by 2050. While there have been bright spots in electrification, with the likes of Stagecoach investing heavily in electrifying its bus fleet, there has been waning interest elsewhere. In fact, according to recent data from the Society of Motor Manufacturers and Traders, sales of electric vans are significantly lagging Government targets.
That’s why the Government has launched this latest intervention. It says the new funding is intended to address two of the biggest obstacles facing operators: the upfront cost of vehicles and the lack of suitable charging provision.
Alongside the cash available for depot charging infrastructure, companies will be offered up to £81,000 off the heaviest zero-emission grants, while it will continue to fund £5,000 grants off the cost of electric vans.
Keir Mather, Aviation, Maritime and Decarbonisation Minister, noted, “This £1 billion investment cuts costs 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.”
Toby Poston, BVRLA Chief Executive, added, “The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots.
“The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators – particularly SMEs – to electrify at scale, reduce costs, and contribute to the UK’s net zero goals.”
