CASE STUDIES
CLEAN BREAK
With an ever-growing number of electric vans – and hope for an improved charging network – fleets are in a better position than ever before to move away from diesel power. By Matt MacConnell
Fleets are up against the clock as the sale ban of new diesel and petrol vans creeps closer. While the former Conservative government pushed out the ICE ban to 2035 last year, the new Labour administration has said it’s looking to revert to the 2030 date for cars. The position on vans remains unclear.
Incentives for the EV switch are available though. These include the Plug-in Van Grant, which currently offers up to £2,500 for small vans and £5k for large vans, available on eligible vehicles and with the discount included by the seller in the purchase price. Businesses can also use the full expensing regime for equipment and machinery on electric vans/trucks to gain a 100% first-year allowance.
Grants are also available for workplace charging while financial support is on offer for renters or flat owners and drivers with on-street parking to install home charge points.
According to latest Zapmap figures, there were 68,273 public charging points across the UK, across 35,230 charging locations, as of the end of August. That’s up 41% year-on-year, with 19,823 installed since August 2023. The Tory government previously set out plans to have 300,000 charge points installed by 2030.
“According to latest Zapmap figures, there were 68,273 public charging points across the UK, across 35,230 charging locations, as of the end of August”
Take the plunge
Transitioning an entire fleet from ICE to EV can seem daunting, especially when fleet managers are faced with infrastructure installation, new van costs, reliability queries, home charging and fleet operator training.
According to Kent County Council (KCC), electric vans are still seen as emerging technology by many people. To help local businesses, KCC applied for £1.5m funding from National Highways to purchase 48 electric vehicles. A total of 270 businesses borrowed the vehicles for eight weeks free of charge from 2020, which helped give insight into ownership. As a result, 88 tonnes of CO₂ were saved in comparison to ICE vehicles and 58% of businesses involved claimed they would buy an EV as a result of the trial.
Norwich-based housing association Flagship Group has incorporated 350 electric vans into its fleet, alongside 270 electric cars, in a move to reduce emissions and reduce costs. The group was assisted by electric vehicle leasing business DriveElectric, which provided a short-term electric van lease. This allowed the group to try an electric van before making any long-term commitment.
According to Volkswagen Commercial Vehicles (VWCV), to manage the electrification of a company’s van fleet, decision-makers need to consider various factors, including their mix of EV and PHEV solutions.
In many cases, there remains some scepticism on whether now is the right time to make the switch. To help, VWCV provides a dedicated service for businesses to find the best solution based on their real-world needs. There has never been more information available to justify the transition, putting stakeholders at ease on topics including range anxiety, charging infrastructure and cost. VWCV claims that its research — a survey of 1,000 UK van drivers — reveals that 52% of commercial drivers now believe that operating electric vans is more cost-effective than petrol or diesel equivalents.
“VWCV claims that its research — a survey of 1,000 UK van drivers — reveals that 52% of commercial drivers now believe that operating electric vans is more cost-effective than petrol or diesel equivalents”
Reduce anxiety
To aid decision-makers, VWCV’s range simulator tool — found on the Volkswagen Vans website — can estimate vehicle range based on driving profile, payload and outside temperature. For road-based fleets, VWCV claims that its telematics service allows businesses to reduce running costs and increase productivity. It also tracks usage against local charging networks.
Volkswagen Group works alongside individual networks such as We Charge, which offers access to 29,000 nationwide public charge points via a smartphone app to help alleviate range anxiety. The group also works with Ovo, which provides home charging costs of 7p/kWh throughout the day.
Electrification also enables fleets to access low-emission zones, benefiting from cost savings where they may otherwise incur charges. Wates Property Services recently purchased 30 Volkswagen ID. Buzz Cargo vans to support fit-out, refurbishment and maintenance of social housing properties and non-domestic buildings.
“Since 2021, we have introduced 55 fully electric vehicles, replacing some of our older diesel vans,” says the company’s executive managing director, David Morgan. “Our latest investment into electrifying our fleet highlights our commitment to reducing our carbon footprint in our operators – and the work we do on behalf of our customers to support a thriving planet.”
Meanwhile, facility management and services company Mitie recently celebrated its 5,000th electric vehicle, equating to two-thirds of its fleet. Some 650 of these were converted ID. Buzz Cargo vans, which included lightweight racking, a lockable cabinet and a load-through bulkhead, all kitted out by VWCV.
“Reaching 5,000 EVs is testament to our unwavering drive and commitment to reaching a zero-emission fleet. This landmark reflects how far we’ve come since our EV journey started in 2020, as one of only a handful of British businesses to achieve this success,” states Mitie Group fleet manager, Heidi Thompson. “We look forward to celebrating our next milestone soon as we gather momentum towards our 100% electric target.”
Better delivery
Courier company Packfleet launched in 2021 with its all-electric fleet, which now sits at 130 vehicles. Some vehicles are owned, while others are leased. Packfleet’s co-founder and chief executive claims that public charging is still poor. The company charges its vans via 30 fast and rapid chargers at its main hub, but a lot of charging is done via public infrastructure.
Meanwhile, Royal Mail will add a further 2,100 electric vans to its already 5,000-strong fleet as the company aims to achieve net zero by 2040.
DPD’s new London Dockland sorting Centre delivers up to 80,000 parcels each day. The site uses solar panels to charge 500 electric vans and the company plans to add extra site solar panels to the main building roof, which could generate around one million kWh per annum. As of mid-2023, the delivery firm installed 200 charge points as part of its 600 charge point installation plan with Pod Point. DPD’s goal of converting its fleet of over 10,000 vehicles by the mandate deadline is supported by Pod Point and a £111m EV investment.
Improved infrastructure
One of DPD’s challenges was fleet charging infrastructure. Pod Point recommended installing a load balancing system, which works with the existing power supply to maximise charge points. Over 200 DPD drivers have off-street parking, meaning they were eligible for a home charger. The £350 OZEV grant, combined with a further £350, helped to entice drivers who were hesitant to shift to EVs. Pod Point’s chargers are either Wi-Fi or 3G-enabled, allowing for remote troubleshooting.
The Motor Fuel Group (MFG) has announced a mass charge point rollout as part of a £2.5bn agreement with Morrisons. It’s claimed that the group will acquire 337 petrol station forecourts and install 800 ultra-rapid 150kW charge points over five years.
While van fleets have been slower to switch to EVs compared with car operators, switching to electric can bring substantial savings for any fleet manager.
According to Ohme director Peter McDonald: “Charging at home will always be the cheapest option all-round. First, the price per kWh of the current domestic standard variable tariff is less than half a typical rapid-charging public charger. Second, if the driver knows they can charge at home, they won’t have to hunt for a public charging station, so it adds valuable time to their day. The savings in employee time alone could potentially be even greater than the charging savings.”
As technology advances and electric vans become more efficient, fleets will have more choices when choosing a van to fit their fleet.
