Electrifying your taxi fleet: What are the current benefits?

The transition to electric vehicles is inevitable for everyone. The Government has brought forward the ban on new ICE vehicle sales to 2030, and many businesses and fleets have already taken steps to prepare for the future of EV in the commercial environment.

Taxis and private hire vehicles are already at the forefront of electrification, with low emission zones across many of the UK’s largest cities and towns now influencing future vehicle purchases.

There are plenty of incentives for drivers to make the transition. As a result, now is the best time to switch to electric vehicles. Whether businesses are looking to purchase individual taxis or operate an entire fleet, you can take advantage of the benefits available.

GRANTS FOR EV PURCHASES

For those looking to purchase a vehicle to use for private hire or a purpose-built electric taxi, there are specific grants available that will decrease the price of low emission vehicles.

These include:

Grant of up to £2,500 for purchases of new and approved low emission cars up to £35,000.
Up to £7,500 in grants for purpose-built, low emission taxis – Dynamo and LEVC.

These grants can be used towards vehicle deposits or be used to reduce the overall cost of the vehicle.

FINANCIAL BENEFITS

Along with the grants mentioned previously, there are numerous other financial benefits for businesses investing in EVs, these include:

Lower ‘fuel’ cost – EVs cost around £2-£4 per 100 miles – compared to £13 - £16 for combustion engines.
Cheaper travel in London – EVs are exempt from London’s congestion charge. Saving £11.50 per day.
Fewer maintenance costs – Fewer moving parts and no need for oil changes.

EXEMPT FROM ROAD TAX

Low Benefit in Kind (BiK) rate – For purely electric vehicles, it is 1% for the 2021/2022 financial year and 2% for the 2022/2023 financial year. Plug-in hybrids vary depending on how much CO2 is produced.

COMPANY BENEFITS

Pure electric vehicles run off electricity only, making them excellent assets for companies expressing green initiatives, or require zero-emission vehicles to operate effectively.

Even with the production of lithium batteries and the source of the electricity used to charge them, they are significantly better for the environment compared to petrol or diesel vehicles.

Furthermore, companies who are looking to prioritise green initiatives can benefit from positive PR.

Additionally, they will open themselves to customers who are looking to reduce their own carbon footprint.

WORKPLACE CHARGING

For companies looking to electrify their fleets, investing in workplace chargepoints can also come with several advantages, to both businesses and employees.

Moreover, the Government’s Workplace Charging Scheme (WCS) has been developed to support the transition to electric vehicles. The scheme helps reduce the overall cost of charger installation by up to 75%.

The scheme can be used for up to 40 sockets per company and can in total reduce costs by up to £14,000.

Furthermore, there are many benefits to installing electric vehicle charging in the workplace, these include a new revenue stream for the business, improving employee satisfaction, and developing the company’s image.

RENEWABLE ENERGY

Fleets looking to create a carbon-zero solution for their vehicles should consider installing renewable energy products to provide electricity to workplaces chargers.

After the initial purchase, the only on-going cost is maintenance. As a result, there would be no more monthly electricity bills. They can also improve revenue with the extra electricity produced being sold back to the grid.

Similar to EVs and EV charging, there are several grants which companies can benefit from.

FINANCE OPTIONS

For companies looking to electrify their fleets, there are several finance options they can utilise.

Each finance product brings its own advantages and will be tailored to companies’ specific requirements. Additionally, these finance options can be used for Electric Vehicles, EV Charging and Renewable Energy