Electric Van Running Costs: Will Electric Beat Diesel on Your Routes?

On the spreadsheet, the electric van is the cheaper one. Then you count where it charges. The same van on the same journeys can land on either side of diesel, depending on whether it charges overnight at your depot or on rapid chargers. Here is the sum a fleet manager can redo, with the inputs that move it.

Is an electric van cheaper to run than diesel?

Electric van running costs depend on where the van charges. On the example below, charging on your own site at the business average price costs well under diesel per mile, while charging only at rapid chargers costs more than diesel. Mileage, your price per kWh and the van’s real miles per kWh decide which side you land on.

The Energy Saving Trust says total cost of ownership for battery electric vehicles is likely to be higher than for a comparable petrol or diesel vehicle if you charge only on rapid chargers, and depot charging on cheaper tariffs lowers it considerably.

The inputs that decide the answer

Six inputs decide the sum for one van: daily miles and days worked, where it charges, your price per kWh and per litre, miles per kWh and miles per gallon, and servicing quotes. These are published averages, so use your own invoices.

DESNZ puts diesel at 198.58p a litre including VAT for the week commencing 2 November 2026. Ofgem’s household price cap is 26.32p a kWh for 1 October to 31 December 2026, with no VAT until 31 March 2027. DESNZ’s business average is 24.51p a kWh including the Climate Change Levy for quarter 2 2026. Neither is a depot tariff. Compare on the same VAT basis and ask your accountant.

Where the van charges changes the sum more than the van does

DfT’s October 2026 review of public charging puts mainly home charging, charger installation included, at 8 to 12p a mile, a mix of public charging powers at 17 to 20p and rapid and ultra-rapid only at 24p, against 22p for petrol. Those are car figures, and the example below leaves out the charger. Behind them are average consumer tariffs of 54p a kWh for standard public charging and 79p for rapid and ultra-rapid, and public charging carries the full 20% VAT.

For drivers who charge at home, HMRC accepts reimbursing part of a domestic energy bill used to charge a company van where you can show the payment relates solely to charging the van. Check with your accountant.

A worked example you can redo

This is arithmetic on stated assumptions, not a measured cost or a prediction: one van, 20,000 miles a year, 40 mpg diesel, 2.5 miles per kWh at the supply, and no servicing, insurance, charger, depreciation, grant or tax.

Prices checked on 3 November 2026: diesel 198.58p a litre (DESNZ, week commencing 2 November 2026); electricity 26.32p a kWh (Ofgem, 1 October to 31 December 2026) and 24.51p (DESNZ, quarter 2 2026); public charging 54p and 79p a kWh (DfT, October 2026).

Your break-even price is diesel pence per mile times your van’s miles per kWh: 56.4p a kWh at 2.5 miles per kWh. On the same assumptions, 80% at the business average and 20% on rapid chargers is about 14.2p a mile, or about £2,833 a year, and matches diesel at about 58.6% rapid.

Redo the diesel line in the free van diesel calculator. The EV journey calculator divides by a 0.88 charging efficiency, so its result will differ from the table unless you enter your own miles per kWh adjusted for that.

Where the sum breaks: range, payload, winter and residuals

A van that cannot finish its day on one charge needs a public top-up or a second van, and a top-up usually means public prices. The grant only requires 60 miles of zero emission range, so work out each van’s worst day on your routes, not its average.

Trial a van on your own loads and winter routes for a measured miles per kWh, and get the residual value and its assumed mileage from your lessor or dealer in writing.

Grants, tax and road charges that change the total

The plug-in van grant takes 35% off some new eligible vans. The cap is £2,500 on small vans under 2,500 kg gross vehicle weight and £5,000 on large vans of 2,500 kg to 4,250 kg. It covers listed models only, in limited numbers, so confirm availability at order.

Most electric vans have moved to the standard annual rate of van tax, says gov.uk. HM Government says vans sit outside the new electric vehicle excise duty at launch, and zero-emission vans currently have a nil rate of van benefit charge, covered in our van benefit in kind guide. In central London an electric van on Auto Pay pays £9 a day because the 100% discount has ended. Our ULEZ and Clean Air Zone guides cover the rest.

This is general information, so check prices and tax treatment before you decide.

Questions to ask before you switch

1. How many miles does each van do on its worst day, including winter?
2. Where does it park overnight, and does that site have power?
3. What does my electricity contract charge per kWh, and when does it renew?
4. What will a driver charging at home cost, and how will I pay it?
5. What residual value and mileage does the lessor assume?
6. Is a grant unit confirmed on this order, not just listed?
7. What does my accountant say about VAT and allowances?

Run your own numbers

Put your diesel price and mpg into the van diesel calculator, then your electricity price and your van’s real miles per kWh into the EV journey calculator, whose vehicle list is built around cars. Neither covers servicing, tax, VAT or the grant, and the EV tool has no depot tariff and no home and public mix. Our company car calculators are not for vans.

If you want to talk through a switch for your fleet, book a short conversation.

Frequently asked questions

Does the 7p and 15p advisory electric rate apply to vans?

No. They are advisory rates for fully electric company cars from 1 September 2026: 7p a mile for home charging, 15p for public. gov.uk says they only apply to employees using a company car and must not be used elsewhere. Our mileage rates guide explains them.

Is the plug-in van grant still available?

It is available on listed models, in limited numbers, so confirm availability at order.

How much does it cost to charge an electric van per mile?

It depends on where the van charges. In the example: 9.8p to 10.5p a mile at the business and household prices, 21.6p on standard public AC and 31.6p on rapid, against 22.6p for diesel. That is arithmetic on stated assumptions.