White Paper highlights cost savings of choosing EVs

A new White Paper has revealed that extensive savings can be made for fleet operators by choosing electric vehicles. It suggests fleets can expect to save around £1,500 annually per light commercial vehicle (LCV) driving 15,000 miles a year if charged at the depot or home. For rigid HGVs driving the same distance, the savings could be up to £3,500 annually.

The cost savings, published by the REA (The Association for Renewable Energy and Clean Technology) and Energy Saving Trust, are attributed to the fact that electric vehicles (EVs) only require 25-30% of the energy that a diesel equivalent would need to deliver the same performance.

Nick Harvey, senior programme manager at the Energy Saving Trust, said:

Electrifying fleets not only contributes to a more sustainable future but also offers potential financial benefits. Our collaboration with the REA on this resource highlights that fleet managers can achieve significant cost. These estimated savings support the economic viability of transitioning to electric vehicles and the efficiency gains that can be realised.

Current UK policy targets are also outlined in the White Paper – Electrifying the fleet, a practical resource for fleet managers – with a mandate that by the end of 2024, 10% of new van sales in the UK must be zero emissions, rising to 58% by 2029, 70% by 2030 and 100% by 2035. For HGVs, all new models sold in the UK must be zero emission by 2040.

To support these ambitious targets, the Government offers various plug-in grants, including up to £2,500 for small vans, £5,000 for large vans, £16,000 for small trucks, and £25,000 for large trucks, helping to offset the initial costs of electrification.

Future of roads minister, Lilian Greenwood, said: 

Our roads are undergoing a technological revolution and fleets will play a big part. A cleaner, greener transport network is a key priority for this Government, which is why we have plug-in grants available for vans and trucks and programmes aimed at scaling up zero emission HGVs, to decarbonise road freight. The REA and Energy Saving Trust’s new resource is a great step on our path to net zero.

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