The government has announced an additional £18 million for the Plug-in Truck Grant, pushing maximum discounts on electric lorries to £120,000 for vehicles over 26 tonnes. The funding runs until March 2026 and forms part of a broader £318 million "green freight" investment.
The grant structure now offers tiered support based on gross vehicle weight: up to £20,000 for trucks between 4.25 and 12 tonnes, up to £60,000 for 12 to 18 tonnes, up to £80,000 for 18 to 26 tonnes, and the full £120,000 for anything heavier. Previous caps were £16,000 and £25,000 respectively - a significant jump, particularly at the heavier end where the cost gap with diesel is most acute.
The cost gap in practice
An electric HGV still costs roughly twice as much as its diesel equivalent. A 44-tonne electric tractor unit runs to around £300,000, according to industry sources, against £120,000-160,000 for diesel. Even with £120,000 off, operators face a premium of £60,000 or more before turning a wheel.
The government's argument rests on total cost of ownership - the theory that lower running costs eventually offset the higher purchase price. Research from Transport & Environment suggests electric trucks can reach cost parity within 4 to 5 years on certain duty cycles. But that depends on depot charging, electricity prices, and operational patterns not every fleet can guarantee.
Logistics UK welcomed the funding as "a step forward" but noted that over 60% of industry respondents believed the government had not provided adequate support for fleet decarbonisation. With long procurement cycles, operators need certainty these rates will hold beyond March 2026.
A market stuck at 1%
Electric HGV uptake in the UK remains stubbornly low. SMMT figures show zero-emission trucks at around 1% market share in 2025 - roughly 500 vehicles out of half a million HGVs on British roads. The Netherlands manages 9%, Scandinavia over 7%.
Carlos Rodrigues, Renault Trucks UK's managing director, put it plainly: the economics of running an electric truck in Britain are "simply not competitive", with higher energy costs adding around £90,000 to lifetime running costs compared with mainland Europe.
The government's ZEHID programme has supported nearly 300 zero-emission lorries through projects with Amazon and Marks & Spencer. Useful for proving the technology, but a long way from mass adoption.
The 2040 consultation
Alongside the funding, the Department for Transport has launched a consultation on phasing out new non-zero emission HGV sales by 2040. Vehicles up to 26 tonnes - around three-quarters of the market - face a 2035 deadline.
Minister Keir Mather said the proposals would provide "the certainty the industry has been calling for". The industry has been asking for a clear plan for years. Whether this consultation produces a credible pathway - or another set of targets without the infrastructure to meet them - remains to be seen.
