Is an Electric Vehicle (EV) right for your small business?

The rise of EVs for small businesses

Electric vehicles (EVs) are no longer a futuristic concept - they’re a practical, everyday solution for businesses of all sizes. For small businesses, EVs offer a unique opportunity to cut costs, reduce carbon emissions and enhance your brand reputation which aligns with your sustainability mission. Whether you’re an estate agent visiting clients, a florist delivering arrangements, or a manufacturer moving goods - EVs can transform how you operate.

Why Electric Vehicles (EVs) are good for business

EVs offer loads of benefits that go beyond just being eco-friendly:

Lower operating costs: Charging overnight during off-peak hours can significantly reduce driving costs compared to petroleum fuels. Plus, EVs have fewer moving parts, meaning there’s lower servicing costs.
Reduced emissions: A cleaner fleet means a smaller carbon footprint. Our top tip: Make sure you have a tariff charging your EV that’s powered by low carbon electricity.
Free or discounted parking: Many charging points offer free parking - always check local rules.
Reduced noise pollution: Quieter vehicles mean happier neighbours of your small business.
Enhanced brand image: Customers are increasingly valuing sustainability. EVs align with B Corp and CSR goals.
Government incentives: Grants for EV charging points and other funding options are available for small businesses.
Employee perks: Salary sacrifice schemes make EVs affordable for staff, boosting retention rates.

Here’s an example of a small business that saves energy successfully

Meet Gillian, the owner of Rose Dene B&B and an EDF Small Business customer. Gillian’s ethos is sustainability and customer comfort; she uses her solar panels with EV charging for maximum cost and environmental savings.

Understanding the Zero Emission Vehicle (ZEV) Mandate and what it means for your small business

The UK’s ZEV Mandate sets clear targets for how many electric vehicles manufacturers must sell each year. It begins at 22% of all new car sales in 2024 and increases steadily to 80% by 2030 and 100% by 2035.

For small businesses, this provides helpful certainty when planning future vehicle needs and ensures electric options become increasingly available.

Why this matters for small businesses

More EV availability: Manufacturers are required to offer a wider range of electric cars and vans, which means more choice for different business types.
Competitive pricing: Increased supply should help stabilise pricing over time and may support more affordable EV options.
Long-term clarity: Making decisions to plan your business fleet updates are easier, knowing the UK’s direction on clean transport is firmly established.

The ZEV Mandate supports a market where electric vehicles become the natural choice. This helps small businesses move towards lower-carbon transport with confidence.

Key takeaways from the latest Budget for small businesses considering EVs

1. £1.3bn additional funding for the Electric Car Grant (extended to 2029/30)
More consumers and businesses will be able to access grant support over the long term, which helps make electric vehicle adoption more affordable.

2. VED Expensive Car Supplement threshold rising from £40,000 to £50,000 from April 2026
This update reduces future tax costs for many new electric vehicles and reflects the continued growth of the EV market.

3. Low Benefit-in-Kind (BiK) rates maintained until 2030
Electric company cars will continue to offer considerable tax advantages. This strengthens the financial case for EV salary sacrifice schemes and helps businesses and employees save money.

4. Introduction of a new cost-per-mile charge for EVs from April 2028
The government will introduce a mileage-based charge of 3p per mile for electric cars and 1.5p per mile for plug-in hybrids. For a typical small business travelling around 8,500 miles a year, this represents about £255 annually. Even with this change, electric vehicles continue to offer strong running-cost advantages, especially when charged on off-peak tariffs and supported by lower maintenance needs.

EDF EV solutions for small businesses

We make the transition to EVs simple and cost-effective:

1. EV leasing

Through our trusted partner DriveElectric, we help you choose the right EV for your business needs. Leasing reduces upfront costs and offers flexibility.
Explore EV leasing options.

2. EV salary sacrifice

Attract and retain employees with a low-stress benefit scheme. Through DriveElectric, you can offer staff access to EVs with considerable savings, with a secure portal for easy management.
Learn more about salary sacrifice.

3. Electric vehicle charging solutions for small businesses

With Pod, now part of the EDF family, we provide scalable, cost-effective workplace charging solutions for staff and visitors.
Discover workplace charging.

What to consider before switching

Total cost of ownership: Compare upfront and on-going service costs vs. long-term savings.
Usage and range: Choose vehicles with a mileage range that fits your daily routes.
Charging infrastructure: Do you have access to dedicated parking spaces and approval from the landowner to install EV chargers? Would you take advantage of custom tariff settings to earn revenue back from users?
Wider environmental and employee benefits: Consider how EVs reduce overall emissions and improve local air quality, while giving employees the benefits of driving a cleaner electric vehicle that they can charge at their workplace.

EV Grants

We’ve highlighted a range of grants available to small businesses interested in EVs below:

EV infrastructure grant for staff and fleets

What it covers: Costs for installing charging points and supporting infrastructure (like wiring and posts) for staff or fleet vehicles.
Grant amount: Up to £15,000 per property.
Eligibility: Small and medium-sized businesses.
How it works: Covers 75% of the cost of the work, up to the maximum.
How to apply: You can apply online on the GOV.UK website. These grants will close in 2026 and the last date to apply is 31 March 2026.

Workplace Charging Scheme

What it covers: Support for purchasing and installing charge points at eligible workplaces.
Grant amount: Up to £500 per socket and up to £500 for each parking space with supporting infrastructure.
Eligibility: Businesses must install infrastructure for at least five private off-street parking spaces and have at least one active charge point.
How it works: The grant can cover up to 75% of the cost of the work.
How to apply: You'll need to work with an installer like Pod who can claim the grant on your behalf and you can start the application on the GOV.UK website. The grant is open until 31st March 2027.

100% First Year Allowance (FYA)

What it covers: Full cost of purchasing zero-emission vehicles.
How it works: Businesses can deduct the entire cost of the electric vehicle from their taxable profits in the year it was purchased.
How to apply: You will need to provide details of the purchase when you file your company's tax return. You can find more details on the GOV.UK website.

Want to build a business case for EVs?

If you’re ready to make the switch, here’s how to build a business case for an EV.

Find out more about EDF’s sustainable solutions for small businesses.