How to save up to £12k on a new electric van in London

Looking for a new ULEZ-compliant van for your London-based business? You can get up to £!2k in grants when swapping diesel power for electric.


With the expansion of the Ultra Low Emissions Zone (ULEZ) right out to the M25, more London-based businesses will now be facing a £12.50 daily charge for taking an LCV on the road.

Like passenger cars, a non-compliant LCV is any petrol van that does not meet ‘Euro 4’ standards, and any diesel van that does not meet ‘Euro 6’ standards.

If you are currently being charged daily for driving in the ULEZ zone, Nissan has produced some tips for sole traders and businesses who are planning to purchase a new ULEZ-compliant LCV, highlighting that – through grants and incentive payments – you could save up to £12,000 on your next van by swapping diesel power for electric.

ULEZ scrappage scheme

While the expansion of the ULEZ zone has provoked widely reported opposition from the British public, Transport for London (TfL) has also increased its van and minibus scrappage grants for sole traders, businesses and registered charities in recent months.

Essentially, applicants can receive £7,000 for scrapping their non-compliant van, or £9,500 for swapping that van for a new electric model. Nissan recommends its new compact Townstar EV, but any electric van would be suitable.

To be eligible, your non-compliant van must weigh up to and including 3.5 tonnes, and it needs to have been registered to you or your business for more than 12 months before the start of the scrappage scheme on 30 January 2023. The van also needs to be insured for business use and certified with valid road tax and MOT.

For more details about eligibility, visit the TfL website.

Should you order a new electric van, or retrofit your current van to meet emissions standards, you can apply for a short-term grace period, which exempts you from ULEZ charges for a given time period.

Plug-in van grant

Secondly, Nissan recommends checking out the long-standing plug-in van grant (PiVG), given out by the UK government’s Office for Zero Emission Vehicles (OZEV).

This grant will suit anyone looking to swap a traditional combustion-powered van for an electric LCV, but the payment size will vary. Nissan says that the largest sum currently available for electric versions of its Townstar variant is £2,500. Should you need to install charging infrastructure on site to accommodate the new electric van, OZEV also awards grants for this too.

To find out more about this grant, read more on the GOV.UK website.

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Sean Rees
Sean Rees
Sean is the Deputy Editor at The Van Expert. A enthusiastic fan of motorsport and all things automotive, he is accredited by the Professional Publishers Association, and is now focused on helping those in van-buying need with independent and impartial advice.

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