A practical guide to electrifying an SME fleet

Often with tighter budgets and fewer resources, SMEs must carefully manage the transition to electric vehicles to avoid disrupting operations or incurring unsustainable costs. So how can SMEs electrify their fleets in a way that is both practice and cost-effective?

With more than 135 battery electric cars on offer, and the average range reaching almost 300 miles, the options to electrify are broader and more capable than ever before. Electric vans are progressing too, with just under 40 battery electric vans available. The UK’s public charging infrastructure has also seen rapid growth, with over 75,000 chargers installed across the country.

Despite this progress, moving to electric vehicles can still feel like a major leap for smaller businesses. SMEs typically operate on tighter budgets and with fewer resources, so the transition must be carefully managed to avoid disrupting operations or incurring unsustainable costs. So how can SMEs electrify their fleets in a way that is both practical and cost-effective?

Getting started

Understanding your current fleet operations is the first step. SMEs need to understand how their current fleet is used, which means analysing the types of journeys being made, the distances covered, and whether vehicles return to a base or operate around the clock. For instance, vans used for short local deliveries or regular ‘back to base’ journeys may be easier to transition than those used for long-haul or continuous services.

Telematics can be a powerful tool in this process. By monitoring vehicle usage patterns, mileage, fuel consumption and efficiency, telematics systems can help businesses identify which vehicles are most suitable for replacement. Some advanced systems even use artificial intelligence to analyse large datasets and make tailored recommendations. Once EVs are introduced, telematics can continue to support operations by tracking battery health, monitoring energy use and optimising route planning and charging.

Charging considerations

Charging is another essential consideration, and SMEs must think carefully about what will work best for their business. Some vehicles might be charged at employees’ homes, others via the public charging network, and some may require workplace charging facilities.

Workplace charging, where feasible, can offer the greatest control and convenience. However, installing on-site chargepoints comes with its own set of considerations. First, it’s important to understand your premises’ electrical capacity. This involves checking with your District Network Operator (DNO) to identify how much power your site currently uses and whether there’s spare capacity to support EV chargers. If not, you may need a grid connection upgrade — a process that can be both time-consuming and costly.

Fortunately, there are workarounds. Smart charging solutions with load balancing can automatically adjust energy usage to avoid overloading your system. Some businesses also consider renewable energy solutions like solar panels combined with battery storage, which can help manage demand and reduce electricity costs.

To fully understand what’s required, it’s advisable to organise a site survey. Engineers can assess how charging infrastructure could be integrated into your property and identify any groundwork or electrical upgrades needed. If you lease your business premises, it’s important to start discussions with your landlord early, as getting approval for EV installations can take time.

Understanding charging technology is also helpful. Fast chargers typically operate between 7kW and 25kW, and are suitable for overnight or depot charging. Rapid chargers, ranging from 50kW to 100kW, are ideal for quick turnaround charging, while ultra-rapid chargers, from 150kW upwards, are more appropriate for high-demand use or electric HGVs. There are also differences between alternating current (AC) and direct current (DC) charging. AC chargers transfer power from the grid to the vehicle’s onboard converter, making them slower but more common for depot use. DC chargers handle the power conversion within the chargepoint itself, allowing for significantly faster charging, though at a higher installation cost.

When choosing a chargepoint provider, SMEs should also consider what kind of digital support system is offered. A good back office portal can make a real difference in managing an electric fleet by allowing businesses to monitor charging sessions, track costs, access CO2 reporting and handle driver reimbursements. It’s equally important to understand the level of ongoing support your chargepoint provider offers, including maintenance services and emergency repairs.

Funding help

Cost is, of course, one of the biggest concerns for SMEs considering fleet electrification. Thankfully, several government funding schemes are in place to help ease the financial burden. The Plug-in Van Grant (PiVG) has been extended until 31 March 2026 and offers up to £2,500 for small vans under 2,500kg and £5,000 for larger vans up to 4,250kg. Up to £16,000 is available for small trucks weighing between 4,250kg and 12,000kg, and grants of up to £25,000 are also available for trucks over 12,000kg.

In addition, the Workplace Charging Scheme (WCS) is available to businesses, charities, and public sector organisations and covers up to 75 per cent of the cost of purchasing and installing EV chargepoints, capped at £350 per socket and up to 40 sockets in total.

There is also the EV Infrastructure Grant for Staff and Fleets, which helps SMEs fund the wider infrastructure work required to support EVs, such as wiring and groundworks. This grant also covers up to 75 per cent of costs, with a maximum of £15,000 available per application. Applicants can get up to £350 per chargepoint socket installed and up to £500 per parking space enabled with supporting infrastructure. Applicants can receive up to five grants across five different sites.

The grant is available to businesses with 249 employees or fewer that are either registered at Companies House or VAT registered with HMRC.The chargepoints installed can only be used by the building’s staff and vehicles, not by members of the public.

It’s important to note that the move to electric does not need to happen all at once. Even starting with just one or two EVs can offer valuable insights, demonstrate cost savings, and set the trajectory for a phased, manageable transition. With the right planning and support, SMEs can electrify with confidence and future-proof their operations for the years ahead.