UK expands truck electrification support — what fleets and finance teams must know

avro fleet team • January 16, 2026

On 6 January 2026 the UK Department for Transport confirmed a new £18 million injection into the Plug‑in Truck Grant, extending the scheme through March 2026 and increasing potential cost reductions for businesses buying new electric heavy goods vehicles (HGVs). This matters because the upfront purchase price has long been the biggest barrier to electrifying freight operations. The enhanced grant means smaller rigid trucks (4.25‑12 tonnes) could see £20,000 knocked off the sticker price, mid‑range trucks up to £60,000, larger 18‑26 tonne models up to £80,000, and the biggest vehicles above 26 tonnes up to £120,000 in savings.


This additional funding is part of a broader £318 million government push to reduce emissions from freight and logistics. Alongside the grant extension, ministers have launched a consultation on a roadmap to phase out sales of new non‑zero emission HGVs by 2040. Combined, these moves give the sector a clearer picture of where policy is heading.


For fleet managers, the immediate impact is on purchasing decisions. With the grant in place, the total cost of ownership for electric trucks looks more favourable, especially when factoring in lower fuel and maintenance costs compared with diesel. But brokers and asset finance professionals should also look beyond headline grants and gauge how residual values and longer‑term policy will affect financing structures.


Understanding the financing landscape

Asset finance brokers need to recognise how grant‑backed pricing changes asset cost basis and risk profiles. Discounting initial capex can improve internal rates of return, but it also shifts attention to other variables that influence total lifecycle cost: battery performance, depreciation, and how future secondary markets for electric HGVs develop. Rather than just focusing on the initial price tags, advisers should incorporate expected operating savings and potential future scrap or resale values into their models.

At the same time, the policy consultation on a 2040 sales phase‑out gives a useful long‑range signal, even if final regulations aren’t yet in place. For lenders and brokers structuring deals over seven or ten years, that signal matters. A defined end date for fossil fuel trucks encourages greater confidence among underwriters and portfolio managers about residual values and market direction.


Infrastructure remains a key factor

Even with grants improving vehicle affordability, charging infrastructure remains a gating factor. Electrifying a fleet requires more than just trucks; it demands depot charging capable of handling high‑capacity vehicles without overwhelming local grid connections. This often means working with energy providers or deploying onsite generation and storage to manage peak loads and energy cost exposure.


Brokers who can introduce expertise or partners that understand charging infrastructure finance, grid access challenges and energy management will add real value to client discussions. For customers with multiple depots or cross‑country routes, planning charging infrastructure and financing it alongside vehicles can be more efficient than addressing them later in isolation.


What brokers should be advising today

When discussing electrification with operators, focus conversations on total cost of ownership, not just grant amounts. Explore structures that help customers: hire purchase or lease arrangements that balance initial grants with longer repayment terms; packages that incorporate battery warranty risk; and agreements that adjust repayment profiles based on operational performance.

Another avenue is residual value protection. Because electric HGV values are still emerging, programmes that protect lenders or investors from steep depreciation in early secondary markets can reduce perceived risk and unlock broader capital access for fleets.

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