RHA hails plug-in lifeline for hauliers

Announced by the DfT, the extended scheme allows continued financial support for hauliers investing in electric vehicles (EVs), including grants of up to £25,000 for large electric trucks and £5,000 for large vans. The PVG was previously due to end in 2026.

The RHA said the decision will encourage many businesses already weighing up electric alternatives, especially when combined with existing initiatives such as the Department for Transport’s £30m Depot Charging Scheme and the Scottish Government’s £2m HGV Market Readiness Fund.

However, the Association stressed that extending the grant alone is not enough to accelerate widescale decarbonisation of the UK’s commercial fleet. Citing findings from its Future of Fleet report and recent industry surveys, the RHA is urging government to go further in tackling the major financial and infrastructure barriers still holding back adoption.

RHA Managing Director Richard Smith commented: “Businesses will be encouraged that the plug-in grant scheme is being extended until at least 2027. Confirmation of the scheme continuing provides welcome certainty for many firms.

“To progress further, and as we outlined in our Future of Fleets report, more support will be required to allow companies to invest viably in zero-emission commercial vehicles — especially at a time of rising cost pressures.

“To address some of the remaining broader barriers, we urge the Government to implement a residual value guarantee scheme to reduce vehicle financing costs. This remains a key obstacle for many HGV, coach and van operators. Help with grid connection costs is also vital — this is essential infrastructure investment that many firms simply cannot absorb on their own.”

Smith emphasised the RHA’s ongoing commitment to working collaboratively with Government and industry partners to ensure the transition to net zero is “achievable and affordable for businesses of all sizes.”

With commercial vehicles accounting for over a third of road transport CO₂ emissions in the UK, the latest move has also been welcomed across the wider business community. Checkatrade CEO Jambu Palaniappan called the extension “a big boost for tradespeople across the UK”, citing lower running costs, exemption from ULEZ charges, and long-term certainty as key benefits.

Currently, the PVG offers:

• £2,500 for small vans (<2.5 tonnes)

• £5,000 for large vans (2.5–3.5 tonnes)

• £16,000 for small trucks (4.25–12 tonnes)

• £25,000 for large trucks (>12 tonnes)

However, Logistics UK said the continued lack of an adequate charging infrastructure remained a key concern for operators.

“Commercial and operational viability will always be the main driver for transport operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure,” explained head of decarbonisation policy Lamech Soloman. “We regularly hear from our members that depot charging alone will not be enough and that there must be a mix of depot and en route charging to make operations viable.

“The sector needs greater clarity and support from government to give it the confidence to invest in these new technologies: we are urging that freight hubs and depot facilities are prioritised for grid connections to ensure confidence in the new technologies involved. It is also critical that the government does not continue to overlook the role of low carbon fuels, such as HVO and biomethane, in decarbonising commercial transport and which can provide immediate Green House Gas emission savings.

“In addition, the Plug-in Van and Truck Grant should be delivered as part of a multi-year settlement, as procurement cycles for commercial vehicles can take longer than a year. Operators need certainty over the long term to plan investments and create confidence required to transition at scale.”

Further details, including the number of grants available and how they will be allocated, are expected to be clarified in the coming months.