The UK Government will provide an additional £18 million in funding to accelerate electric truck adoption across British fleets.
Fleet operators can now access grants up to £120,000 per vehicle as part of a broader £318 million green freight investment package. The funding extends the Plug-in Truck Grant until March 2026.
The announcement comes alongside a consultation on plans to phase out non-zero emission heavy goods vehicles by 2040.
Grant Structure by Vehicle Weight
The grant system provides different funding levels based on truck size:
- Smaller trucks (4.25-12 tonnes): Up to £20,000 reduction
- Mid-sized trucks (12-18 tonnes): Up to £60,000 reduction
- Larger trucks (18-26 tonnes): Up to £80,000 reduction
- Heavy trucks (26+ tonnes): Up to £120,000 reduction
Electric trucks offer lower running costs compared to diesel vehicles but require higher upfront investment. The Government said the additional funding addresses this cost barrier and makes electric heavy goods vehicles accessible to more businesses.
Keir Mather, Minister for Aviation, Maritime and Decarbonisation, emphasized the economic benefits.
“We’re backing British businesses to go green by making electric lorries more affordable. Our proposals will provide the certainty the industry has been calling for so that Britain becomes the best place for green investment.”
Industry Response and Long-term Concerns
ChargeUK welcomed the new funding but called for extended support beyond the current timeline.
Jarrod Birch, head of policy and public affairs at ChargeUK, highlighted infrastructure needs alongside vehicle incentives.
“The new grants are a welcome kick starter for the electrification of freight. However as with electrification of cars we need long-term, clear policy to encourage investment in both the vehicles and the charging infrastructure. So we hope to see this new funding continue beyond March and be matched with support for the rollout of the widespread and affordable charging infrastructure required for HGVs too.”
Commercial vehicle charging specialist Voltempo emphasized operational challenges beyond funding.
Simon Smith, CEO of Voltempo, said regulatory streamlining remains equally important.
“This announcement is a welcome step forward for the UK’s road freight sector, signalling further momentum behind the electrification of heavy goods vehicles.”
Smith identified 2026 as a pivotal year for electric truck adoption.
“2026 is shaping up to be the year of the eHGV, and measures like the Plug-in-Truck Grant give more fleet operators the confidence to start investing. But incentives alone won’t deliver mass adoption. What really matters is whether electric trucks make commercial sense day-to-day.”
He stressed that total cost of ownership and operational reliability determine real-world adoption rates.
The industry leader called for coordinated efforts between public and private sectors, noting that policy must address practical operational challenges including grid access, energy pricing, site security, and scalability requirements.
