UK Government Depot Charging Scheme – Key elements summary
In summary
The new Depot Charging Scheme (DCS) provides substantial, time‑limited financial support for fleets ready to transition to electric vehicles. The Scheme favours organisations that are strategically prepared, can move quickly, and have clear fleet electrification roadmaps. Early planning and realistic grid and operational assessments are critical to maximising value and minimising risk.
Purpose
The DCS is a Department for Transport (DfT) and Office for Zero Emission Vehicles (OZEV) grant programme designed to accelerate the uptake of zero‑emission vans, HGVs and coaches by reducing the upfront cost of depot-based electric charging infrastructure.
It directly addresses one of the biggest barriers to fleet electrification: the cost and complexity of installing depot charging and associated works.
Scheme Focus
- Depot-based charging infrastructure for commercial fleets
- Primarily supports battery‑electric vans, heavy goods vehicles (eHGVs), and coaches
- Complements vehicle purchase incentives such as the Plug‑in Van Grant and Plug‑in Truck Grant
- Targets organisations with vehicles that return to base for charging, making depot charging operationally efficient.
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Support available
- Covers up to 70% of eligible costs in the current funding window
- Maximum grant cap: £1 million per organisation, across all sites
Eligible costs include:
- Chargepoints and associated hardware
- Civil engineering works
- Electrical and grid‑connection works
The scheme forms part of a £170 million multi‑year programme (2026–2030), with funding allocated across successive application windows, the first of which runs to 30th June 2026 requiring funded works to be completed by 31 March 2027.
Eligibility and criteria for support
The DCS is open to private fleets, public sector bodies, local authorities and non‑profits across England, Scotland, Wales and Northern Ireland.
To qualify, applicants must:
- Be a UK‑registered organisation operating a fleet in the UK
- Have been operating for at least 12 months
- Operate vans, HGVs or coaches suitable for electrification
- Own or lease the depot, or have landlord consent
- Commit to using the infrastructure primarily for commercial fleet vehicles
- Submit one application per organisation (multiple sites allowed)
- Complete works by the deadline specified for the funding window (e.g. 31 March 2027 for window 1)
Fund the remaining project costs (minimum 30%) without relying on duplicate public funding.
Opportunities for Fleet Applicants
These can include:
- Significantly lowering capital barriers to fleet electrification
- Improving total cost of ownership through cheaper depot energy vs diesel
- Enabling operational control and resilience against fuel price volatility
- Supporting compliance with net‑zero, air quality and ESG commitments
- An opportunity to future‑proof depots ahead of diesel phase‑outs
- Combining funding strategically with vehicle purchase grants and smart energy solutions (e.g. load management, future solar or storage).
Risks and considerations
It’s important to keep in mind:
- First‑come, first‑served funding increases risk of missing out if applications are delayed
- Grant rates are expected to reduce over time, increasing future self‑funding requirements
- Grid capacity constraints and long connection lead times may delay projects (including for example the ability to charge and use fleet vehicles)
- It requires upfront capital and internal approvals before claiming grant funds
- Infrastructure must align with fleet transition plans—over‑ or under‑sizing chargers poses cost and operational risks
- Ongoing electricity costs and demand charges must be factored into business cases.
Wider Context
The scheme sits within the government’s wider net‑zero and transport decarbonisation strategy, complementing vehicle purchase incentives such as the Zero Emission Truck and Van Grants. Together, these measures aim to tackle both vehicle and infrastructure costs simultaneously, helping businesses make viable, long‑term investment decisions in zero‑emission fleets.
From 2026, the DCS forms part of a £170 million multi‑year funding programme (to 2030), signalling increased policy certainty and a shift towards scaling up commercial EV infrastructure across the UK economy.
In policy terms, the DCS underpins economic competitiveness and climate goals by supporting logistics, public services and other fleet‑intensive sectors to reduce emissions, cut exposure to volatile fuel prices, and demonstrate the operational viability of zero‑emission commercial vehicles at scale.
How we can help
The Freeths Zero Emission Vehicles & EV Charging Infrastructure team advises a range of clients thriving in the zero emissions space and would be delighted to discuss the scheme further with you.
If you have any queries regarding the contents of this legal article, please get in touch with Richard Lockhart, Frank Suttie or Michael Bray.
The content of this page is a summary of the law in force at the date of publication and is not exhaustive, nor does it contain definitive advice. Specialist legal advice should be sought in relation to any queries that may arise.
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