Switching to an electric van: A complete guide for businesses
Whether you manage a fleet or run a small business, selecting the right van is a critical decision. Electric vans are increasingly popular, offering opportunities to reduce running costs, improve efficiency, and demonstrate environmental responsibility. However, choosing the right electric van leasing deal requires careful consideration of operational requirements, costs, and benefits.
This guide explores the advantages and disadvantages of electric vans, identifies where they work best, and helps you determine if an EV is the right choice for your business.
The advantages of electric vans
1. Environmental benefits
Environmental concerns are a major driver behind the adoption of electric vehicles (EVs). Compared to traditional diesel or petrol vans, EVs produce little or no local emissions, helping reduce urban air pollution. They also reduce dependence on fossil fuels and can significantly lower greenhouse gas emissions, contributing to improved air quality and a greener business footprint.
2. Lower running costs
Electric vans are cheaper to run than diesel alternatives. The cost per mile of electricity is significantly lower than fuel, and maintenance requirements are reduced due to fewer moving parts. For example, some small electric vans can cost as little as 2–3p per mile to operate. Over time, these savings can have a substantial impact on your operating budget.
3. Government incentives
The UK government offers multiple incentives to encourage EV adoption:
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Plug-In Van Grant: Up to 20% off the list price (up to £8,000 for eligible vans)
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Reduced vehicle taxes: For business and private use
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Grants for workplace charging stations
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Additional benefits such as free parking in designated areas, exemption from London’s Ultra Low Emission Zone (ULEZ), and in some cases, free public charging
4. Silent operation
Electric vans operate almost silently, with minimal engine noise. This makes them ideal for early morning or late-night deliveries in urban areas without disturbing local communities, and enhances driver comfort during long workdays.
5. Simple and smooth driving
Electric vans are intuitive to drive. With no gears to change and instant torque from the electric motor, acceleration is smooth and responsive, particularly in stop-and-go city traffic. Many drivers report a quieter, more relaxed driving experience compared to traditional vans.
6. Added convenience
Many electric vans include features designed for modern business needs, such as pre-conditioning (setting cabin temperature while charging), scheduled charging to take advantage of lower electricity rates, and remote monitoring via mobile apps.
7. Positive business image
Operating an electric van demonstrates your commitment to sustainability. With governments planning to phase out petrol and diesel vehicles within the next 10–15 years, adopting EVs positions your business as forward-thinking and environmentally responsible.
The disadvantages of electric vans
While EVs offer many benefits, there are factors to consider before committing to a lease:
1. Range limitations
Although EV range is improving, electric vans generally travel fewer miles per charge than diesel vans can on a full tank. For long-distance routes, frequent recharging may be required, which can affect operational efficiency.
2. Charging time
Charging takes longer than refuelling a traditional vehicle:
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Rapid chargers: ~80% charge in 40 minutes
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Home/workplace chargers: Full charge overnight
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Standard three-pin plugs: Can take a full day
3. Charging infrastructure
Finding suitable charging locations can be challenging, particularly for businesses operating outside urban areas. Planning routes and charging points is essential to avoid downtime.
4. Purchase cost
Electric vans are still more expensive upfront due to advanced battery technology and high-quality components. However, lower running and maintenance costs often offset the higher initial investment over time.
5. Vehicle weight
Batteries add significant weight to electric vans. Current regulations allow an increased gross vehicle weight (GVW) up to 4.25 tonnes for certain electric vans, helping preserve payload capacity comparable to diesel models.
6. Real-world range variance
Manufacturer-quoted ranges are often optimistic. Real-world factors such as payload, driving style, weather, and use of heating/air conditioning can reduce range by 20–30% or more.
7. Battery degradation
All EV batteries gradually lose capacity over time. Most vans, however, include extended battery warranties up to 8 years, ensuring reliability throughout the vehicle’s working life.
8. Residual values
The used electric van market is still maturing, so residual values can fluctuate. Leasing arrangements can help mitigate this risk, as leasing companies typically retain ownership and manage depreciation.
Where electric vans work best
Electric vans are ideally suited to:
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Urban and suburban deliveries: Short, repeatable routes with easy access to charging points
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Businesses with predictable daily mileage: Routes within the real-world range of the EV
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Overnight charging availability: Using home or depot chargers ensures vehicles are ready for the next day
For businesses with fixed routes or known daily mileage, electric vans can be a reliable, low-cost, and environmentally responsible option. Many operators set vehicles to charge overnight and take advantage of off-peak electricity tariffs.
Is an electric van right for your business?
Choosing an electric van depends on your operational needs, mileage, and charging capabilities. For many urban and local delivery businesses, the benefits in running costs, environmental impact, and government incentives outweigh the limitations.
If you’re unsure whether an electric van is right for your fleet, Commercial Vehicle Contracts can help. Our experts will guide you through vehicle selection, leasing options, and incentives to ensure you make the right choice. We can also help arrange test drives so you can experience an electric van firsthand.
Next steps
If you’re considering an electric van for your business, our team can provide expert advice on grants, leasing options, and vehicle selection. Every quote we provide includes the government grant, ensuring a transparent and cost-effective leasing process.
