Costly grid connections, electricity prices and financing is risking holding back wider adoption of electric trucks, a new report has said.
The report, published by the Aldersgate Group and the Renewable Energy Association (REA), calls for a single government transition plan built around three priorities: a clear long-term framework, finance that reduces risk for operators, and grid and charging infrastructure planned ahead of demand.
Drawing on discussions with businesses across the freight and energy value chain, the report recommends a clear long-term framework. This would involve retaining the 2035 and 2040 phase-out trajectory for new non-zero-emission HGV sales, publishing a single transition roadmap, and defining a clear, time-limited role for low carbon fuels to unlock short-term carbon savings where zero-emission vehicles are not yet viable. Any sales mandate should follow a carefully set trajectory reflecting vehicle capability, infrastructure and commercial viability.
It also calls for a finance scheme that reduces risk. This would involve developing targeted residual value and SME loan guarantees through the National Wealth Fund and British Business Bank, alongside consistent battery-health information for lenders and second-hand buyers, and help smaller operators access competitively priced electricity.
The infrastructure would also need to be planned ahead of demand. This would include freight in energy and network planning, invest ahead of need at logistics hubs and freight corridors, improve grid-connection processes and support shared charging and battery storage where these reduce costs.
Rachel Solomon Williams, Executive Director at the Aldersgate Group, said: “Record diesel prices have shown how exposed our supply chains are to fuel price shocks. Electric trucks are already delivering for British businesses, and the challenge is to make that possible for more operators. As government decides its next steps after the 2026 consultation on HGV decarbonisation, it has an opportunity to connect future regulation with affordable power, charging infrastructure and finance that reduces risk, which would cut emissions and make supply chains more resilient.”
Businesses involved in the report warned that freight has been largely left out of national planning for future electricity demand, which has focused on other users such as data centres. Without that planning, operators face slow and expensive grid connections, which for many depots cost substantially more than the charging equipment itself. Current grants mainly cover the equipment, creating a postcode lottery that favours operators who already have enough grid capacity.
Trevor Hutchings, Chief Executive at the REA, said: “Freight needs to be part of energy planning now. Operators cannot invest confidently without knowing where charging will be available, when they can connect and what electricity will cost. Planning capacity ahead of demand, backing shared charging and battery storage, and clarifying the role of low carbon fuels in the interim would help more businesses make the move.”
Smaller hauliers face the greatest difficulties, because uncertainty about future resale values and battery condition raises the cost of borrowing and leasing. A grant can make a truck cheaper to buy, but it does not resolve the uncertainty that makes it expensive to finance, and depot charging may need significant grid investment before the first vehicle enters service.
Jamie Sands, Head of Solutions at Welch Group, said: “We run battery-electric trucks in daily commercial service and they do the job. The vehicle isn’t what’s holding the sector back. It’s power and money. Connections take too long, electricity costs too much, and lenders can’t price a used electric truck because nobody can vouch for the battery. Sort the grid queue, cut power costs for HGV users and give finance a battery health standard it can underwrite, and smaller operators will follow.”
The organisations welcome the government’s £1 billion package for zero-emission trucks, vans and depot charging announced in March 2026, and call for wider action to make the transition commercially viable across the freight sector.
Nick Potter, Transport Director at Tesco, said: “We are committed to becoming net zero across our own operations by 2035, and trialling and investing in electric trucks is part of our plans to achieve this. To further expand investment, we need an electricity supply and charging capacity we can rely on. We continue to support the Government on this work, while encouraging them to plan grid capacity around freight and make connections easier to secure.”
The report is published ahead of the Autumn Budget on 28 October and the government’s response to its consultation on a new HGV CO2 emissions regulatory framework. The Aldersgate Group and the REA want government to follow the consultation with a transition roadmap that sets clear responsibilities and milestones across departments. The Budget is an immediate opportunity to start addressing finance and electricity costs.
