Each business is on its own journey to an electric fleet, some are already there, some are in the early stages and others have yet to begin.
Where are you on your journey? Are you thinking about upgrading your fleet? If you’re unsure, why not read more about what it involves in our blog here: Are Increasing Costs Causing You to Postpone a Fleet Upgrade?
We know there are challenges when it comes to managing a car fleet, we’ve got some helpful hints and tips in our blog here: The Challenges of a Fleet Department.
In this blog, we’ll explore the benefits and considerations when choosing between an EV fleet and an Internal Combustion Engine (ICE) fleet – petrol and diesel cars.
Benefits of an EV fleet
There are a number of benefits for your business if you run an electric fleet. For example, there’s potential to reduce fuel costs.
Although the cost of electricity varies dramatically from car to car, depends on location and energy supplier, and differs between public charging and home charging, if the electric efficiency is utilised effectively, it’s possible to make savings.
By having an electric fleet, you can create a positive brand image and demonstrate corporate social responsibility by showcasing your commitment to sustainability.
With the UK Government’s strategy for reaching net zero greenhouse gas (GHG) emissions by 2050 underway, environmental impact is now a consideration for most businesses.
There’s potential tax benefits and financial incentives available for businesses transitioning to electric fleets. Fully Electric Vehicles which produce zero CO2 emissions, come with a Benefit-in-Kind (BiK) tax rate of currently 4%. This will rise each year, reaching 9% by 2029/30. Charging incentives are also in place. Under the Office for Zero Emission Vehicles (OZEV) ‘s Electric Vehicle Homecharge Scheme, grants are available.
If you have a small-to-medium-sized business and meet the eligibility criteria, grants are available to install multiple EV charging sockets. The grant covers 75% of the cost of the work, up to a maximum of £15,000, and you can get up to five grants, but they must be across five different sites.
Challenges of an EV fleet
Range and charging anxiety are still considered potential challenges for EV drivers. Long distance journeys have to be planned for fully electric cars or plug-in hybrids if drivers want to utilise the electric range.
Costs to install electric chargers are another concern, whether at home or at business premises, with the average cost of a home charger installation between £600 and £1,000, which should cover the EV charger itself and labour costs.
For businesses, the Energy Saving Trust reports costs ranging from £1,500 to £35,000, with charging speed a significant factor in the price variation.
According to ZapMap, as of the end of February 2026 there are now 118,321 EV chargers across 45,561 charging locations in the UK, supported by 89,842 devices, marking continued monthly growth with 1,592 new chargers added last month. While this represents steady progress, it still falls far short of the number of petrol stations nationwide, and coverage remains uneven. Greater London continues to lead the UK in chargepoint availability, followed by the South East and Scotland.
Solutions for EV fleet challenges
There are strategies you can consider to optimise EV fleet challenges, such as:
Implement smart charging practices
Optimise charging schedules to minimise range anxiety and consider sharing or renting out your chargepoints, this could act as an extra source of income to help offset the cost of installing the EV chargers.
Route planning
Make sure your drivers plan their trips, especially if it’s long distance, and encourage them to be strategic when looking for public chargepoints.
Considerations for ICE fleets
Despite EV fleets offering significant advantages, traditional petrol and diesel fleets can still be the best option for certain businesses.
There’s an established network of fuel stations across the country, ensuring fuel is readily available and minimising range anxiety on long-distance journeys.
Technicians are generally more familiar with maintaining ICE vehicles, which could lead to faster repair turnaround times and potentially lower maintenance costs compared to newer EV technology.
Driver preference, driving style, what the car is primarily used for, business use or commuting can also all influence which fuel type is most appropriate.
Which fleet is right for your business?
When it comes to making the right decision for your business, here’s a reminder of the key benefits of an electric fleet:
- Reduced reliance on fossil fuels and lower overall fuel costs.
- Improved sustainability and positive environmental impact.
- Potential tax savings and financial incentives associated with EV ownership.
- Enhanced employee satisfaction with a modern and eco-friendly fleet.
The transition to an electric fleet will be different for every company, and it may not be right for your business to go full electric today, but there’s multiple options for electrifying your fleet.
If you’re looking for help to manage your transition to an electric fleet solution, get in touch with us today.