Are Electric Vans Good Enough for Your Business?

As UK businesses face increasing pressure to reduce emissions and operating costs, electric vans (EVs) have emerged as a compelling option. With the government’s plan to phase out new petrol and diesel vans by 2035, many businesses are considering whether electric vans are suitable for their needs. However, many drivers are still undecided whether an EV would be able to fit their business.

Payloads: Can Electric Vans Handle the Load?

Payload capacity is a critical factor for businesses relying on vans for transporting goods or equipment. Electric vans have made significant strides in matching their diesel counterparts, though some limitations remain due to the weight of battery packs.

• Comparable Payloads: Many electric vans offer payloads similar to diesel models. For example, the Fiat E-Ducato can carry up to 1,885 kg, and the Ford E-Transit has a payload of up to 1,758 kg, which is competitive with diesel equivalents.
• Weight Considerations: The batteries in electric vans add weight, which can reduce payload capacity compared to diesel vans, particularly for larger models limited by the 3.5-tonne gross vehicle weight (GVW) cap for standard UK driving licences. However, the UK government has introduced a derogation allowing electric vans to have a GVW of up to 4.25 tonnes for category B licence holders, offsetting the battery weight and preserving payload capacity.
• Load Volume: Electric vans typically maintain the same cargo volume as diesel models because batteries are often placed under the floor, ensuring no compromise on space.

For businesses prioritising load volume over payload weight, such as those in urban delivery, electric vans are often a strong fit. However, if your business requires heavy payloads or towing, check the specific model’s capabilities, as towing capacities can be limited in smaller electric vans.

How Do Electric Vans Perform?

Electric vans are highly efficient, particularly for urban operations, due to their energy use and regenerative braking systems.

• Energy Efficiency: Electric vans convert a higher percentage of energy into motion compared to internal combustion engine (ICE) vehicles, resulting in lower energy costs per mile.
• Regenerative Braking: This feature recaptures energy during braking, extending range and reducing wear on brakes, which is particularly beneficial in stop-start urban driving.
• Range Improvements: Modern electric vans offer ranges suitable for most business needs, with some models offering up to 285 miles.

For small businesses operating in cities or covering less than 100–200 miles daily, electric vans provide sufficient range and efficiency. However, long-distance or motorway-heavy operations may require careful planning due to range limitations.

Are Electric Vans Cost-Effective?

One of the strongest arguments for electric vans is their lower running costs compared to diesel or petrol models.

• Fuel Savings: Charging an electric van is significantly cheaper than refuelling a diesel van.
• Maintenance Savings: Electric vans have fewer moving parts, leading to lower maintenance costs. No oil changes, clutches, or pistons mean less wear and tear, and regenerative braking reduces brake maintenance.
• Tax and Incentives: Electric vans are exempt from avoid Ultra Low Emission Zone (ULEZ) and Congestion Charges in cities like London.

While the initial purchase price of electric vans is higher, these savings can make them cost-competitive over time, especially for high-mileage urban fleets.

What About Charging Times?

Charging infrastructure and times are crucial for businesses relying on vans for daily operations.

• Home and Workplace Charging: Most electric vans can be fully charged overnight (4–12 hours) using a small wall box, ideal for businesses with on-site charging. A standard three-pin socket takes longer (up to 12 hours for a full charge) and is less practical for regular use.
• Rapid Charging: Many modern electric vans support rapid charging at 100 kW or more, allowing a 5–80% charge in 30–45 minutes.
• Infrastructure Challenges: Public charging can be less reliable due to availability, queues, or higher costs.

For businesses with predictable routes and access to charging infrastructure, electric vans are highly practical. However, those relying on public chargers or covering high daily mileage may face challenges.

Should You Buy or Lease an Electric Van?

Electric vans come with higher upfront costs due to expensive battery technology, but various purchase options and incentives make them accessible.

• Outright Purchase: Prices for electric vans start at around £19,116 (excl. VAT) for models like the Nissan e-NV200, though premium models like the Mercedes eSprinter can be significantly higher. The Plug-in Van Grant reduces costs by up to £5,000 for large vans or £2,500 for small vans.
• Leasing or Finance: Leasing is often the most cost-effective option, as it spreads the higher purchase price over time and can incorporate grant discounts. Monthly lease payments are offset by lower running costs, making electric vans competitive with diesel models. It can be harder to obtain bad credit van finance though, so ensure you’ve got a good credit score before relying on finance.
• Used Market: The used electric van market is limited, leading to higher resale values but fewer options. This may improve as more electric vans enter the market.
• Grants and Incentives: In addition to the Plug-in Van Grant, businesses can claim grants for home or workplace chargers (up to £350) and benefit from tax exemptions, such as no road tax or congestion charges.

To determine if an electric van fits your needs, consider:

• Daily Mileage: Ensure the van’s range (100 Anita of 250–285 miles) covers your typical routes.
• Payload Requirements: Verify the payload capacity meets your needs, considering the 4.25-tonne GVW allowance.
• Charging Access: Confirm availability of workplace or home charging to avoid reliance on public chargers.

Budget: Evaluate leasing options and grants to offset higher upfront costs.