Choosing the right type of vehicle for a business fleet is a crucial decision that affects operational costs, sustainability goals, and long-term profitability. In the UK, companies increasingly consider electric vehicles (EVs) as an alternative to traditional petrol cars due to evolving regulations and financial incentives. However, is switching to EVs the best decision for every business?
This blog compares electric and petrol cars across several key factors, including costs, environmental impact, government incentives, and infrastructure readiness. Additionally, businesses investing in fleet electrification must consider how solar panel efficiency can play a role in reducing long-term charging costs and improving sustainability.
Cost Comparison: Initial Investment, Fuel, and Maintenance
Initial Investment
Electric vehicles (EVs) generally cost more upfront than petrol cars due to battery technology, advanced software, and lightweight materials. The price of an EV can be £5,000–£10,000 higher than a comparable petrol vehicle. However, this gap is closing as battery production becomes more efficient and widespread.
Businesses investing in EV fleets can benefit from government grants, such as the Plug-in Vehicle Grant, which reduces the cost of qualifying electric cars and vans. Tax incentives, including reduced Benefit-in-Kind (BiK) rates, make EVs financially attractive for company cars.
Businesses can offset initial EV investment by implementing solar-powered charging stations. By improving solar panel efficiency, companies can generate more energy for fleet charging, reducing long-term costs and enhancing sustainability.
Fuel/Energy Costs
One of the most significant advantages of EVs is their lower fuel costs compared to petrol cars. On average, charging an electric vehicle costs 3-5p per mile, while petrol vehicles cost 15-20p per mile, depending on fuel prices.
Businesses can further reduce fleet energy expenses by using workplace solar charging stations. The efficiency of these stations depends on solar panel efficiency, which determines how much sunlight is converted into usable electricity. Higher efficiency means more miles powered by free solar energy, reducing dependency on grid electricity.
Energy providers also offer time-of-use tariffs, allowing businesses to charge EVs off-peak rates, making costs even lower than petrol refueling.
Maintenance Costs
Due to their more straightforward design, EVs have significantly lower maintenance requirements than petrol cars. Unlike petrol vehicles requiring oil changes, spark plug replacements, exhaust repairs, and engine tune-ups, EVs have fewer moving parts and require minimal servicing.
Key maintenance savings for EVs include:
- No oil changes or engine servicing
- Fewer brake replacements due to regenerative braking
- No exhaust system repairs
- Fewer cooling system and transmission issues
While battery replacement is a long-term concern, modern EV batteries are designed to last 10–15 years with proper use. Additionally, businesses using solar-powered charging stations can extend battery life by ensuring optimal charging cycles, which is influenced by solar panel efficiency.
| Cost Factor | Electric Vehicles | Petrol Vehicles |
|---|---|---|
| Purchase Price | Higher (but declining with incentives) | Lower |
| Fuel/Energy Costs | Lower (cheaper electricity rates) | Higher (volatile fuel prices) |
| Maintenance | Lower (fewer components) | Higher (more wear and tear) |
Environmental Impact: Sustainability and Carbon Emissions
Electric Vehicles (EVs) as a Key Player in Reducing Carbon Footprints
By eliminating tailpipe emissions, EVs offer a significant environmental advantage over internal combustion engine (ICE) vehicles. When powered by renewable electricity, EVs produce virtually zero operational carbon emissions, making them a vital component in the global push to reduce greenhouse gases and combat climate change. This is especially important for businesses aiming to lower their overall carbon footprint across operations and transport.
EV Battery Production vs. Petrol Vehicle Emissions
While EVs do have a higher carbon footprint during the manufacturing phase—mainly due to battery production—this is offset over the vehicle’s lifetime. Studies show that an average EV generates around 60% fewer carbon emissions than petrol vehicles when considering the entire lifecycle, especially when charged using low-carbon electricity. Battery technology is also improving, reducing environmental impact and reliance on critical raw materials.
How Can Businesses Align Fleet Electrification with Sustainability Goals?
Switching to an electric fleet supports long-term ESG (Environmental, Social, and Governance) strategies and net-zero targets. Businesses can demonstrate environmental leadership, reduce Scope 1 and 2 emissions, and gain a competitive advantage in tenders or supply chains that prioritise sustainability. With on-site renewable energy generation and smart charging infrastructure, EV adoption can be a cornerstone of a company’s carbon reduction roadmap.
According to ScienceDirect, the average battery electric vehicle (BEV) in the UK emits approximately 41 grams of CO₂ per kilometre, significantly lower than the 143 grams per kilometre emitted by a typical petrol car, as reported by Age Co. This stark difference highlights the environmental advantage of switching to electric vehicles, particularly in regions like the UK where low-carbon energy sources increasingly power the electricity grid.
Government Incentives and Tax Benefits for Businesses
To support the UK’s transition to net zero, the government offers a range of financial incentives to encourage businesses to adopt electric vehicles (EVs) over traditional petrol cars. These incentives not only reduce the upfront cost of EVs but also provide long-term tax advantages, making the switch more financially viable for fleet operators.
Key benefits include:
- Plug-in Vehicle Grant: Businesses can receive up to £2,500 off the cost of each eligible EV, reducing the initial capital outlay.
- Benefit-in-Kind (BiK) Tax: Company car drivers using EVs pay just 2% BiK tax, compared to 25% or more for petrol vehicles. This significantly reduces costs for both employers and employees.
- Road Tax and Congestion Charge Exemptions: Most EVs are exempt from Vehicle Excise Duty (road tax) and can drive through London’s Congestion Charge and ULEZ zones for free, offering added savings in urban operations.
- Enhanced Capital Allowances: Businesses can deduct 100% of the cost of qualifying electric vehicles and charging equipment from taxable profits in the first year, improving cash flow.
To maximise the value of these incentives, many businesses are combining EV adoption with solar-powered charging infrastructure. By focusing on solar panel efficiency, companies can increase the amount of renewable electricity generated on-site, further lowering operating costs and aligning with environmental targets.
| Incentive / Benefit | Electric Cars (UK) | Petrol Cars (UK) |
|---|---|---|
| Benefit-in-Kind (BIK) Tax Rate | 2% (2024/25 tax year) | Up to 37% depending on CO₂ emissions |
| Capital Allowances | 100% First Year Allowance (FYA) available | Writing Down Allowance at 6% or 18% |
| Fuel Benefit Charge | £0 if only electric charging is reimbursed | Applied based on fuel type and usage |
| Vehicle Excise Duty (VED) | From April 2025: £10 in year one for new zero-emission cars, then the standard rate (£195). £20/year for older models. Cars over £40,000 pay the 5-year expensive car supplement. | £180–£2,605 depending on CO₂ emissions |
| Congestion Charge Exemption | Exempt (e.g., London Congestion Charge) | Not exempt |
| Grants and Subsidies | Plug-in Van Grant available for eligible models | No government grants are available |
Is the UK Ready for the EV Charging Infrastructure?
The UK has made major progress in expanding its EV charging network. More than 50,000 public charge points, including rapid and ultra-rapid chargers in cities, retail parks, and motorway service stations, are now available. This growth reflects the government’s commitment to supporting EV adoption in both the personal and commercial sectors.
However, charging accessibility remains uneven, particularly in rural and industrial areas where public infrastructure is limited. Relying solely on public chargers can create logistical challenges for business fleets that operate on tight schedules or across wide geographical areas.
Many businesses are turning to on-site charging solutions to overcome this, especially those powered by solar energy. Installing solar EV charging points allows companies to control energy costs, increase energy independence, and reduce reliance on the grid.
Solar panel efficiency becomes critical here. It determines how much sunlight can be converted into electricity, directly affecting the speed and capacity of fleet charging. High-efficiency panels generate more energy in limited space and variable weather, making them ideal for business premises in the UK.
How Do EVs Compare to Petrol Cars?
Electric Vehicles (EVs) are fast becoming a mainstream alternative to traditional petrol cars, especially in the UK, where sustainability targets are pushing toward a net-zero future. But how exactly do they compare?
| Feature | Electric Vehicles (EVs) | Petrol Cars |
|---|---|---|
| Running Costs | ~6–10p per mile; lower maintenance due to fewer moving parts | ~14–20p per mile; higher maintenance costs (engine, oil, filters, etc.) |
| Environmental Impact | Zero tailpipe emissions; lower lifetime CO₂, especially with renewable energy charging | Emits CO₂ and pollutants; higher lifetime emissions |
| Driving Experience | Instant torque, smooth acceleration, quiet cabin, regenerative braking | Noisier engine, traditional driving feel, less efficient in stop/start traffic |
| Range | 150–350+ miles per charge (model dependent) | 300–500 miles per tank |
| Refuelling Time | 30 minutes to several hours (depending on charger speed) | 3–5 minutes at petrol stations |
| Charging Infrastructure | Growing rapidly in the UK, home, workplace, and public chargers are available | Extensive and mature infrastructure |
| Upfront Cost | Higher purchase price, but falling; grants available | Generally lower upfront cost |
| Total Cost of Ownership | Often cheaper over 5–10 years due to lower fuel and maintenance costs | Higher fuel and service costs add up over time |
| Vehicle Tax (UK) | £0 VED (until 2025); lower Benefit-in-Kind for company cars | Subject to VED; higher BiK for company cars |
| ULEZ/CAZ Charges | Exempt in most low-emission zones | Often subject to daily charges in zones like London’s ULEZ |
| Noise Pollution | Near silent operation – ideal for urban/residential areas | Engine and exhaust noise |
| Resale Value | Increasing as EV demand grows; improving battery warranties | Established market, but may decline as EV adoption rises |
| Government Incentives | Grants for some models, tax breaks, free parking (some areas) | Few or no incentives |
| Suitability for Businesses | Excellent for short-haul logistics, fleet cars, and sustainability goals | Still viable for long-distance logistics and areas with limited charging |
| Futureproofing | Strong alignment with the UK 2035 petrol ban and Net Zero targets | Will be phased out under the UK government strategy |
Power Your Fleet—and Your Business—Into the Future
As UK businesses look to reduce costs and align with net-zero goals, electric vehicles clearly stand out as the smarter, cleaner, and more future-proof option for most fleet operations. With lower running costs, government incentives, and reduced environmental impact, EVs present a compelling case over traditional petrol cars—especially when paired with solar-powered charging infrastructure.
However, the real game-changer lies in solar panel efficiency. By investing in efficient solar systems, businesses can sustainably fuel their fleet, cut long-term energy costs, reduce reliance on the grid, and strengthen their environmental credentials.
Looking to future-proof your fleet? Explore how EvoEnergy can support your transition with tailored solutions in solar panel installation, EV charging, battery storage, solar carports, and HV/LV infrastructure. Contact us today to see how our technologies can help drive your business forward—efficiently, sustainably, and reliably.