How do you compare total cost of ownership for an electric fleet?

Compare equivalent vehicles over the same ownership period, including charging, infrastructure, downtime and resale value. Qualifying new chargepoint equipment can receive a 100% first-year allowance under HMRC rules [S1], but that is a deduction from taxable profits. Model operating costs separately from host charging income, then check the tax treatment with your accountant. Checked October 2026.

Last checked 16 October 2026

What belongs in an EV fleet total cost of ownership comparison?

Build a total cost of ownership, or TCO, worksheet for equivalent vehicles doing the same work. Choose the same ownership period, mileage and service requirement. Our suggested method is acquisition minus resale value, plus operating costs, infrastructure and disruption over that period.

For a purchase model, include the vehicle price and residual value. For a lease comparison, use the relevant lease payments and charges instead: do not also count purchase depreciation. Ask your accountant to confirm a consistent tax and VAT basis. Keep grants conditional until eligibility and award are established.

Government van research records operational barriers including charging access and waiting [S5]. Reflect those issues in your inputs rather than comparing fuel bills alone. Link the worksheet to your fleet roadmap so replacement dates and charging availability match.

How do you calculate electric van running costs?

Multiply annual miles by meter kWh per mile and the weighted electricity price. A kilowatt-hour, or kWh, measures energy. Meter consumption should include charging losses; do not add those losses twice. Split depot, home and public energy where their costs differ.

Here is an illustration, not a quote. All inputs below are assumptions for comparable purchased vans over 5 years at 20,000 miles annually. They are not published vehicle prices or tax rates.

Electric annual operating cost is £4,650 including charger service. Diesel annual operating cost is £6,900. The electric total is £40,000 − £12,000 + £6,000 + 5 × £4,650 = £57,250. Diesel totals £30,000 − £10,000 + 5 × £6,900 = £54,500. On these assumptions, electric costs £2,750 more over the period.

Replace every input with your quotes and measured use. The example excludes financing, grants and tax effects and is not a claim about typical vans. Changing the public-charging share, residual value or infrastructure allocation could change the result. Use the depot sizing guide before assigning charging capital to each vehicle.

What does your site earn under the three funding models?

Fleet-only charging is usually an operating cost in your comparison, not a payment from outside the business. Assess paid host charging separately. Do not count a payment transferred between your own departments as new business income.

The following separate host illustration compares fully funded, part funded and self funded. All commercial inputs are assumptions, not market offers. It excludes VAT, tax, borrowing, rent, business rates and extra grid works. Confirm those items before relying on a proposal.

Sales equal sessions × 300 × 20 × £0.50: £6,000 / £12,000 / £18,000. Energy costs equal sessions × 300 × 20 × £0.25. Net operating income equals sales minus energy minus £600: £2,400 / £5,400 / £8,400.

Yearly host net income divided by host capital × 100 gives simple return on investment, or ROI. Host capital divided by yearly net income gives payback. Rounded ranges use both ends of the stated capital range. These calculations assume steady use throughout; they exclude equipment replacement and the time value of money. Fully funded has no host capital payback calculation because assumed host capital is zero.

What terms could change the host business case?

Request a written definition of the revenue-share base. Ask who pays energy, maintenance, refunds and rates, and whether deductions occur before your share. Compare lease length with your property tenure and ask about bay loss, removal costs, liability and early exit with your solicitor.

For public access, check the operator’s obligations under the public charging regulations [S6]. Keep the host agreement review and business rates questions beside the financial model. A missing cost is a question to resolve, not a zero.

Which grants and tax reliefs can enter the calculation?

The Workplace Charging Scheme offers eligible applicants up to 75% of purchase and installation costs, capped at £500 per socket and 40 sockets, until 31 March 2027 [S2]. Check eligibility before installation. The Depot Charging Scheme page says a further application window is expected but future terms are unconfirmed [S3]; do not apply an earlier grant rate to a new project.

HMRC lists qualifying new chargepoint equipment bought before April 2027 for a 100% first-year allowance [S1]. Check the precise expenditure date, eligibility and tax effect with your accountant. Keep any confirmed relief in a separate after-tax calculation.

For company cars, HMRC advisory electric rates address specified business-travel reimbursements and private repayments [S4]. Keep that payroll calculation separate from the fleet energy forecast, and check the treatment with your accountant.

What should you do next?

Collect vehicle quotes, route records, tariff terms and a priced infrastructure scope. Compare low, mid and high use, then test the result with a more expensive charging mix and lower resale value.

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