BETT - Battery Electric Truck Trial

Assessing Suitability

2. Grants and Incentives

The UK government provides a discount on the price of selected new low-emission vehicles through a grant provided to vehicle dealerships and manufacturers. The grant is applied by the manufacturer at the point of purchase so the buyer does not need to apply.

Key Points

The UK government provides financial support for fleets switching to BEV trucks, including:

  • Grants of 20% of the purchase price, up to a maximum of £16,000, for vehicles between 3,500kg and 12,000kg gross weight.

  • Grants of 20% of the purchase price, up to a maximum of £25,000, for vehicles above 12,000kg gross weight.

  • Other support includes the workplace charging scheme, corporation tax incentives, and exemptions or discounts on congestion and emissions zones.

Refer to the OZEV website for more details.

Detailed Guidance

Grants for Vehicles

The UK government provides a discount on the price of selected new low emission vehicles through a grant provided to vehicle dealerships and manufacturers. The grant is applied by the manufacturer at the point of purchase so the buyer does not need to apply.

For HGVs there are two categories of grants.

  1. Small trucks

    These are vehicles between 3,500kg and 12,000kg gross weight, sometimes called N2 vehicles. Eligible vehicles must:

    • Have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity

    • Be able to travel at least 96km (60 miles) without any emissions at all

    The grant will pay for 20% of the purchase price, up to a maximum of £16,000. Refer to the OZEV website for a list of eligible vehicles.

    There are conditions to the grant scheme including:

    • A limit of 10 grants per business or organisation at the maximum (£16,000) rate

    • The maximum amount of plug-in truck grants your business or organisation can get each year is 1000.

    Refer to the OZEV website for more details.

  2. Large trucks

    These are vehicles which are heavier than 12,000kg, sometimes called N3 vehicles. Eligible vehicles must:

    • Have CO2 emissions of at least 50% less than the equivalent conventional Euro VI vehicle that can carry the same capacity

    • Be able to travel at least 96km (60 miles) without any emissions at all

    The grant will pay for 20% of the purchase price, up to a maximum of £25,000. Refer to the OZEV website for a list of eligible vehicles.

    There are conditions to the grant scheme including:

    • A limit of 5 grants per business or organisation at the maximum (£25,000) rate

    • The maximum amount of plug-in truck grants your business or organisation can get each year is 1000.

    Refer to the OZEV website for more details.

Grants for Infrastructure

Currently there are no infrastructure grants dedicated to electric HGVs. There is a workplace charging scheme funded by the UK government. The scheme provides eligible applicants with support towards the upfront costs of the purchase and installation of electric vehicle (EV) chargepoints.

The grant covers up to 75% of the total costs of the purchase and installation of chargepoints (inclusive of VAT), capped at a maximum of £350 per socket and 40 sockets across all sites per applicant. Refer to the OZEV website for more details.

Other Incentives

Businesses can claim 100% of the cost of an electric HGV in the tax year in which the purchase is made. For example, if a business pays corporation tax at 19% and buys an electric HGV for £100,000, its tax bill will be reduced by £19,000. Businesses cannot claim an enhanced capital allowance if they have received the plug-in truck grant.

Electric HGVs have zero emissions at the tailpipe and as such will benefit from exemptions or discounts on congestion zones, clean air zones, and low and ultra low emissions zones. For example, BEVs are eligible for a 100% discount on the London Congestion Charge (£15 per day). The discount will be removed from 2025 for all vehicles. See the policy page for information on city-wide zones.