The government has announced a continuation of the Depot Charging Scheme, as well as additional funding for electric trucks and vans.
The Zero Emissions Truck grant will offer savings of up to £81,000 off the heaviest zero emissions trucks, covering up to 40% of the cost.
The van grant will continue to offer discounts of up to £5,000 off the cost of electric vans.
The Depot Charging Scheme will get a £170 million boost which covers up to 70% of the cost of installing charging infrastructure for vans, coaches, and eHGVs.
Mike Hawes, SMMT chief executive said: "Confirmed longer term funding for zero emission vans and trucks, along with support for depot charging, is hugely welcome. Transitioning this sector depends on operator confidence to invest and government support is the clearest sign that ZEVs are the right choice.
"To accelerate the transition, however, such that ambitious mandated van sales targets are met and the ZEV truck market moves beyond its infancy, these measures must be complemented by enablers such as grid connection prioritisation, dedicated commercial vehicle charging infrastructure and regulation that reflects the diversity of operators’ uses and requirements."
Lee Holmes, Transport and Logistics Director at Wren Kitchens and Bedrooms, said: "Government investment gives businesses like Wren the confidence to accelerate fleet decarbonisation while maintaining operational stability, even in periods of economic uncertainty.
"With this support, we’ve brought a number of 44-tonne e-trucks into our fleet alongside a rapid charging infrastructure, reducing our reliance on traditional fuels and strengthening resilience and reliability against ongoing market volatility."
Julian Bailey, Head of Group Transport at M&S, said: "In 2021, we set ourselves the ambitious target of becoming a net zero business across our value chain by 2040. Since then, we’ve made some great progress, which includes the onboarding of 24 battery electric vehicles across our transport fleet.
"We welcome this investment which serves as a reminder of the importance of the logistics sector in the UK and its role in decarbonisation."
Toby Poston, BVRLA Chief Executive said: "The Depot Charging Scheme is playing a vital role in helping fleet operators and rental companies to install affordable, reliable charging infrastructure at their depots.
"The vehicle rental sector faces one of the most challenging paths to decarbonisation, and this additional support for depot charging will play a major role in building confidence. It will encourage more rental operators - particularly SMEs - to electrify at scale, reduce costs, and contribute to the UK’s net zero goals."