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Wednesday, July 30, 2025

UK Government’s Depot Charging Scheme

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The Government has launched the Depot Charging Scheme, a pivotal initiative to support fleet operators in transitioning to electric vehicles (EVs). Announced as part of a £63 million package to bolster EV infrastructure, the scheme provides substantial financial assistance to cover up to 75% of the costs associated with installing charging infrastructure at depots, with a maximum grant of £1 million per organisation. This initiative, which opened on 16 July 2025, is designed to accelerate the adoption of zero-emission heavy goods vehicles (HGVs), vans, and coaches, contributing significantly to the UK’s net-zero emissions target.

The Depot Charging Scheme aims to address one of the primary barriers to fleet electrification: the high upfront cost of installing charging infrastructure. By part-funding the installation of chargepoints at depots, the scheme supports the decarbonization of the road freight and coach industries, which account for over a third of the UK’s domestic transport CO₂ emissions. The initiative works in tandem with existing vehicle incentives, such as the Plug-in Van and Truck Grant, to facilitate a seamless transition to battery-electric vehicles. It is expected to support the installation of over 3,000 van and 200 HGV chargepoints, reducing operational costs and boosting efficiency for businesses.

The scheme’s broader goal is to promote a fairer, cleaner future by enabling fleet operators to adopt zero-emission vehicles, thereby reducing environmental impact and aligning with the UK’s commitment to net-zero emissions by 2050. By providing reliable depot-based charging, the initiative ensures that vehicles can be charged overnight at a consistent location, optimizing schedules and lowering the total cost of ownership.

Eligibility Criteria

The Depot Charging Scheme is accessible to a wide range of organisations across the UK, excluding the Channel Islands and the Isle of Man. Eligible applicants include:

  • Public and private sector fleets: Organisations operating fleets of HGVs, vans, or coaches.
  • Local authorities: Councils and other public bodies looking to electrify their vehicle fleets.
  • Non-profit organisations: Charities and other non-profits with fleet operations.

To qualify, applicants must meet the following criteria:

  • Be a registered fleet operator with at least one year of operating history in the UK at the time of application.
  • Own the depot or have landlord consent to install chargepoints.
  • Own, lease, or have ordered at least one battery-electric van, HGV, or coach.
  • Commit to completing all installation works by 31 March 2026.
  • Ensure sufficient grid capacity by 31 March 2026.
  • Provide evidence of all requirements, including senior leadership sign-off on the infrastructure proposal.
  • Submit supportive quotes to evidence predictive costs and demonstrate sufficient financing to meet match-funding requirements.
  • Ensure that commercial vehicles are the primary users of the funded charging infrastructure, though it may be shared with other local operators under specific pricing requirements outlined in the Grant Funding Agreement.

The scheme allows applicants to apply for funding across multiple sites, but it is limited to one application per organisation. Importantly, the grant cannot be used to fund infrastructure installed before the effective date of the Grant Funding Agreement, and applicants must avoid duplicate funding for the same activities.

Duration of the Scheme

The Depot Charging Scheme opened for applications on 16 July 2025 and will close on 28 November 2025 or when the £30 million funding pool is exhausted, whichever comes first. The monitoring and claims window runs from 1 September 2025 to 31 May 2026, with all infrastructure works required to be completed by 31 March 2026. This tight timeline underscores the urgency of the initiative and the government’s commitment to rapid decarbonization.

The Depot Charging Scheme has garnered significant support from government officials and industry stakeholders. Transport Secretary Heidi Alexander emphasized its transformative potential, stating, “We are making it easier and cheaper to own an electric vehicle. We know access to charging is a barrier for people thinking of making the switch, so we are tackling that head on so that everyone – whether or not they have a driveway – can access the benefits of going electric.”

Health Minister Karin Smyth highlighted the scheme’s benefits for public services, noting, “This is a win-win: cheaper travel for the NHS and cleaner air for our communities.”

Additionally, industry leaders have praised the initiative. Nick Harvey, Senior Programme Manager at Energy Saving Trust, said, “This new scheme is vital, as it directly addresses one of the main barriers: the cost of installing charging infrastructure. We’re proud to partner with Cenex to provide the expert guidance businesses need to reduce their emissions and lower running costs by making a confident switch to electric vehicles.”

Logistics UK’s Deputy Policy Director, Michelle Gardner, welcomed the scheme but noted ongoing challenges, stating, “Logistics UK’s members, which move all the goods that the economy needs to operate effectively, will welcome today’s announcement of the Depot Charging Scheme, which will support operators looking to install the infrastructure needed to charge electric vehicles swiftly and effectively.

“However, challenges still exist for the logistics sector on the road to decarbonisation – the public charging infrastructure for commercial vehicles is still woefully underpowered and requires an effective plan to ensure it is scaled rapidly.”

Mike Nakrani, CEO of  VEV, said: “This is exactly what the industry needs. it isn’t just funding, it’s a game-changer that finally makes fleet electrification a no-brainer for operators who’ve been sitting on the fence. That 75% coverage transforms the economics overnight. For our customers, it means they can worry less about upfront charging costs and start focusing on what really matters, running cleaner, more efficient fleets.

“At VEV, we’ve been saying for years that successful electrification needs the whole ecosystem vehicles, charging, and smart power management working together. This scheme proves the government gets it too! The closing date to apply for support (28th November) might seem generous, but the best sites and suppliers will be booked fast. Smart operators are already calling us to get their applications ready.”

The Depot Charging Scheme is a landmark initiative in the UK’s journey towards a net-zero transport sector. By providing up to £1 million in funding to cover 75% of the costs of installing charging infrastructure, the scheme addresses a critical barrier to fleet electrification. It supports a wide range of organisations, from public sector fleets to non-profits, in adopting zero-emission vehicles, thereby reducing CO₂ emissions and operational costs.

With applications open until 28 November 2025 and a completion deadline of 31 March 2026, fleet operators are encouraged to act swiftly to leverage this opportunity. The scheme, combined with other government incentives like the Plug-in Van and Truck Grant, underscores the UK’s commitment to building a cleaner, greener future for transport.

For more information and to apply, visit the Depot Charging Scheme application page.

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