Electric trucks are coming, but is the UK ready for them?| Everywhen

Electric trucks with charger in foreground

Electric trucks (also known as eHGVs) aren’t just a futuristic idea anymore. They’re quietly reshaping the next generation of transport and over 1,000 eHGVs have been registered in the UK¹. That’s a 171% rise year-on-year, but it’s still only 1.4% of all new HGV registrations².

Although we can see that demand is growing, for operators there’s one question that’s springing to mind. Is the UK actually ready to support eHGVs on a larger scale, and what does that mean for your fleet?

Grants and funding available for electric trucks in the UK

One of the biggest supporters of electric trucks is the Government as it works to achieve net zero by 2050.

In order to help drivers and businesses make the move with more certainty, the plug-in van and truck grant has been extended to at least 2027³. With this grant, buyers can get discounts of up to £16,000 for smaller trucks and £25,000 for larger models⁴.

There are also several other incentives available to make purchasing and charging more accessible. For example:

Depot Charging Scheme: Covers up to 70% of the installation cost for private depot chargers⁵.

Workplace Charging Scheme: Allows you to claim up to £500 per charging socket and up to 40 sockets per applicant⁶.

Tax relief (capital allowances): Businesses can often claim 100% of the cost of an eHGV back against their corporation tax in the same year that they bought the vehicle⁷.

If you’re an operator balancing tight margins, this kind of support is a major bonus and can make a meaningful difference when you start exploring your options with electric.

What is the biggest challenge for electric fleets

While funding is making a big difference in encouraging adoption, charging infrastructure is still one of the biggest hurdles facing eHGVs.

There’s no denying that the public EV charging network is growing at a promising rate. In fact, there’s now more than 121,000 across the UK. However, the majority of these chargers are designed for cars and vans rather than HGVs⁸, which limits their usefulness for fleet operators.

Projects like Electric Freightway aim to improve this. This £100 million investment will run until 2030 and looks to install roughly 200 chargers for eHGVs, designed to operate using net zero carbon energy.

In the meantime, many fleets have to rely on a mix of depot charging and adapted public sites to keep their vehicles moving.

Is the UK ready for electric trucks?

If we’re answering honestly, the UK isn’t quite there yet to accommodate widespread electric HGV adoption. However, we’re seeing lots of good progress being made, and quickly too. Investment is rising, technology is constantly improving and the industry is working today to sort out the gaps in infrastructure.

Electric trucks are already a practical option for some fleets, especially those with urban deliveries or operating from central depots. The trouble lies with the long-distance hauliers, or fleets with more complex logistics, but we expect to see a lot of improvements in this field over the coming years.

For your business, this creates an opportunity to plan ahead. Those who start exploring their options for eHGVs now are able to get ahead of the curve, adapt at a more gradual pace that suits your operation and take advantage of the support that’s currently available.

Should you switch to electric HGVs now?

Not sure if eHGVs are quite right for your operation yet? Read our article on the advantages and disadvantages of electric trucks as they stand right now, here.

Supporting your transition

If you’re reviewing your options or planning your next steps, it’s worth taking a look at your insurance cover to make sure it keeps pace with your fleet. We can help you review your cover and make sure that it supports your transition fully. Simply reach out to our team on 0344 892 1434 or visit our website.

0344 892 1434

Truck Insurance

The information contained in this article is for general information purposes only. It does not constitute legal or other professional advice and cannot be relied upon as such. Should you have any queries, we recommend that you consult the appropriate professional adviser. The links provided in this document are for reference only. Please note that we are not responsible for the content of any linked site.

Sources:

Chris North FCII

Commercial Vehicle Insurance Technical Manager

Chris is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is a longstanding Fellow of the Chartered Insurance Institute (FCII).

Chris is a respected industry leader with over 40 years' experience, who has worked in the insurance industry in a variety of roles, accumulating a wealth of knowledge. He is a longstanding Fellow of the Chartered Insurance Institute (FCII). He is currently Technical Manager for Everywhen's motor division, providing expertise on all matters relating to motor fleet insurance, in particular haulage and self-drive hire fleets.

Chris is responsible for providing this specialist team with technical advice, not only about the usual motor, liability, property and goods in transit covers, but also increasingly crucial covers such as directors’ and officers’ liability insurance and cyber threat insurance. His role also includes bringing forwards new initiatives for transport-related businesses, in particular those of a risk management nature given the importance Everywhen places on the maxim that ‘prevention is better than cure’.

Everywhen combines regional care with national reach, deep sector knowledge and strong insurer relationships to deliver tailored solutions across 55+ schemes. We help our clients navigate everyday and emerging risks with confidence, always and at all times.