The government’s time-limited Depot Charging Scheme provides up to 70% funding for depot-based EV infrastructure, but fleet operators must act fast. With the first window closing June 2026 and grant rates expected to fall, early planning and realistic grid assessments are essential to secure support.

Richard Lockhart

The Depot Charging Scheme (DCS) provides substantial, time‑limited financial support for fleets ready to transition to electric vehicles. The ccheme favours organisations that are strategically prepared, can move quickly, and have clear fleet electrification roadmaps. Early planning and realistic grid and operational assessments are critical to maximising value and minimising risk.

The DCS is a DfT and Office for Zero Emission Vehicles (OZEV) grant programme designed to accelerate the uptake of zero‑emission vans, HGVs and coaches by reducing the upfront cost of depot-based electric charging infrastructure.

It directly addresses one of the biggest barriers to fleet electrification: the cost and complexity of installing depot charging and associated works.

The scheme is focused on:

  • Depot-based charging infrastructure for commercial fleets
  • Primarily supports battery‑electric vans, heavy goods vehicles (eHGVs), and coaches
  • Complements vehicle purchase incentives such as the Plug‑in Van Grant and Plug‑in Truck Grant
  • Targets organisations with vehicles that return to base for charging, making depot charging operationally efficient.

It covers up to 70% of eligible costs in the current funding window with a maximum grant cap of £1m per organisation, across all sites.

Eligible costs include chargepoints and associated hardware, civil engineering works and electrical and grid‑connection works.

The scheme forms part of a £170m multi‑year programme (2026–2030), with funding allocated across successive application windows, the first of which runs to 30 June 2026 requiring funded works to be completed by 31 March 2027.

The DCS is open to private fleets, public sector bodies, local authorities and non‑profits across England, Scotland, Wales and Northern Ireland.

To qualify, applicants must:

  • Be a UK‑registered organisation operating a fleet in the UK
  • Have been operating for at least 12 months
  • Operate vans, HGVs or coaches suitable for electrification
  • Own or lease the depot, or have landlord consent
  • Commit to using the infrastructure primarily for commercial fleet vehicles
  • Submit one application per organisation (multiple sites allowed)
  • Complete works by the deadline specified for the funding window (eg 31 March 2027 for window 1)
  • Fund the remaining project costs (minimum 30%) without relying on duplicate public funding. 

Opportunities for fleet applicants can include significantly lower capital barriers to fleet electrification,  improving total cost of ownership through cheaper depot energy vs diesel enabling operational control and resilience against fuel price volatility, supporting compliance with net‑zero, air quality and ESG commitments, future‑proofing depots ahead of diesel phase‑outs and combining funding strategically with vehicle purchase grants and smart energy solutions (eg load management, future solar or storage).

It’s important to keep in mind:

  • First‑come, first‑served funding increases risk of missing out if applications are delayed
  • Grant rates are expected to reduce over time, increasing future self‑funding requirements
  • Grid capacity constraints and long connection lead times may delay projects (including for example the ability to charge and use fleet vehicles)
  • It requires upfront capital and internal approvals before claiming grant funds
  • Infrastructure must align with fleet transition plans—over‑ or under‑sizing chargers poses cost and operational risks
  • Ongoing electricity costs and demand charges must be factored into business cases

The scheme sits within the government’s wider net‑zero and transport decarbonisation strategy, complementing vehicle purchase incentives such as the Zero Emission Truck and Van Grants. Together, these measures aim to tackle both vehicle and infrastructure costs simultaneously, helping businesses make viable, long‑term investment decisions in zero‑emission fleets.

In policy terms, the DCS underpins economic competitiveness and climate goals by supporting logistics, public services and other fleet‑intensive sectors to reduce emissions, cut exposure to volatile fuel prices, and demonstrate the operational viability of zero‑emission commercial vehicles at scale.

Richard Lockhart, partner, Freeths