EV Fleet Strategy in 2026: Funding, benefits, and growth
For fleet owners, the transition to electric vehicles has long felt inevitable, albeit behind the transition to electric passenger vehicles. But with less than a decade to the OZEV deadline, the switch to EVs has become a priority.
Companies cannot sit on the sidelines and wait until the last minute to start thinking about electrifying their fleets.
What does the November 2025 Budget mean for fleet owners going forward?
Before we can unpack why 2026 will be a vital year for EV fleet transition, we should examine the policy movements influencing the fleet landscape. The latest budget included several grants and schemes which will provide support for EV fleet operators and those looking to make the switch:
EV Mileage Tax (eVED)
The most talked about part of the budget for EV fleet operators; the eVED, means that many vehicles now pay road tax. The list includes:
- All UK-registered battery electric cars.
- All UK-registered plug-in hybrid electric cars.
- Company cars accessed through salary sacrifice schemes.
- Vehicles receiving VED exemptions for disability benefits (exempt from VED but not eVED, as they’re not exempt from fuel duty).
There is a critical short-term exemption for vans and HGVs, however, so those who obtain these vehicles now can avoid the taxes for a few years. This exemption also provides some breathing space for EV fleets to adjust to the new reality and prepare accordingly.
The Electric Car Grant
For operators of fleets of small, cheaper vehicles under £37,000, the Electric Car Grant has been amended:
- The government has allocated an additional £1.3 billion in funding.
- The extension lasts until 2030.
- The grant offers savings of up to £3,750 per eligible EV.
- One of the best parts of both schemes is that you do not need to apply for the funding yourself, as it is handled by the manufacturers.
For more expensive vehicles, there is a similar PIVG scheme, which will continue to run until the start of 2027.
ECOS changes have been delayed
Back in 2024, it was announced that there would be changes to fleet taxation, and certain loopholes would be closed on Employee Car Ownership Schemes. These changes would have meant that Benefit-in-Kind vehicles fall under normal taxation rules. However, the government has delayed these changes for an additional four years, giving fleet owners more time to adjust their budgets accordingly.
What is the business relief for EV Chargepoints?
If you are looking to increase the number of chargers you have on-site, be sure to take advantage of the 10-year 100% business rates relief for eligible changepoints. This helps reduce overheads for businesses looking to expand their charging capabilities.
Meanwhile, there is a one-year extension on 100% first year allowances for businesses purchasing EVs and charging infrastructure.
How is EV regulation shifting from reward to risk?
Often, when it comes to significant regulatory shifts in industry, the government will approach it with a ‘carrot and stick’ mentality. In the case of EV fleet transition, the government offers incentives, grants and tax benefits as the ‘carrot’, while fines operate as the ‘stick’.
In 2026, we will see more cities introduce and expand their Clear Air Zones (CAZ, or Ultra Low Emission Zone if you are in London). Many cities in the UK, such as Birmingham, Bristol, Glasgow, and Edinburgh have already implemented some form of CAZ, and are looking to increase charges for being non-compliant. But what does this mean for fleet owners?
Going forward, non-compliance will become increasingly painful for budgeting, therefore necessitating the switch to EVs.
Historically, fleet businesses have been able to offset these fines and grow their EV fleet with various grants and schemes available, such as the Depot Charging Scheme and PIVG. While the budget has demonstrated a long-term commitment to funding some of these schemes, there is a metaphorical ‘belt-tightening’. Many of these schemes are ending in late 2026 and early 2027, with no indication of continuation. This suggests that as we approach the OZEV deadline, we could see fewer rewards and more regulatory pressure.
Businesses should start moving fast on switching to EVs in 2026 as these grants and schemes end, and before scrutiny towards both ESG reporting and fines increases.
Why do EV fleet operators benefit from a lower Total Cost of Ownership (TCO)?
The EV market has evolved dramatically over the past decade. In the past, the initial cost of purchasing EVs for a fleet was substantial. However, this was not to last, as EV fleet operators began to witness the long term TCO savings of fleet electrification.
As is often mentioned, EVs require less maintenance than their ICE counterparts due to having fewer moving parts. There are now multi-year studies from a wide range of companies that demonstrate these savings (1).
In 2026, the spare parts market for EVs will continue to increase, with battery prices in particular continuing to fall. Goldman Sachs anticipates a 50% decrease in price for EV batteries in 2026 (2), whilst other analysts also hold an optimistic view of the fleet electrification market.
For fleet owners, these facts are becoming increasingly difficult to ignore in the short-term. Delaying the switch to EVs could mean there is a future price spike due to the weight of the demand. In short, you will lose your competitive advantage as a late adopter.
Has EV charging infrastructure reached operational maturity?
Historically, one of the largest barriers to fleet electrification was the reliability of charging infrastructure. This is no longer the case – depot charging solutions have become increasingly sophisticated, and the public network is ever-expanding (3).
One of the most important developments has been the presence of Charge Point Operators (CPOs), who provide the technical expertise that is otherwise lacking in most companies.
CPOs can provide a range of support functions from design and consultancy, installation, management, and maintenance to deliver robust charging solutions for their clients.
In 2026, the importance of CPOs as critical partners will gain prominence.
Furthermore, securing the necessary power for EV charging solutions has become more manageable through the development of smart charging technologies. Smart charging helps to optimise charging schedules to avoid times of high energy tariffs, whilst integrating with route planning and other telemetry services. 2026 will see these technologies become even more integral to EV fleets and develop further capabilities as time progresses.
Why is 2026 so important for EV fleet operators?
For fleet owners, 2026 is a benchmark year for the transition to EVs. It represents the moment when fleet electrification shifts from optional to imperative. By switching this year, you will be better positioned to make the most of the disappearing funding options, decreased competition, and more relaxed regulatory landscape, and control your costs.
Find out more
If you want to find out more about how to embark on your own fleet electrification project, download our latest depot charging guide.
