22 July 2025

Commercial Charging

How Much Money Can a Fleet Manager Actually Save with EVs? A UK Cost Breakdown

A van with a UK flag

Summary

As a fleet manager, your world revolves around numbers: utilisation rates, maintenance schedules, and, most importantly, the operational budget. While the push to electrify your fleet is driven by sustainability and future-proofing, the decision to act often comes down to one simple question: how much money can we save? The answer is: a significant amount. Transitioning to an electric fleet isn't just an environmental decision; it's one of the most powerful financial levers you can pull to reduce your Total Cost of Ownership (TCO). Forget estimations. Let's break down the real-world EV fleet cost savings for a typical UK light commercial vehicle (LCV).

The Calculation Corner: Diesel Van vs. Electric Van

For this comparison, let's create a profile for one of your workhorses. We'll use an average annual mileage and current, realistic running costs.

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Our Assumptions:

  • Vehicle: A typical medium-sized van.
  • Annual Mileage: 20,000 miles.
  • Diesel Price: £1.55 per litre (Source: RAC Fuel Watch)
  • Diesel Van Efficiency: 35 miles per gallon (MPG).
  • Smart Charge Electricity Price: £0.15 per kWh (A typical off-peak business tariff).
  • Electric Van Efficiency: 2.5 miles per kWh.

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1. Fuel Savings: The Biggest Win

This is where EVs make their most compelling case.

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Diesel Van Annual Fuel Cost:

  • Gallons needed: 20,000 miles / 35 MPG = 571.4 gallons.
  • Litres needed: 571.4 gallons x 4.546 = 2,597 litres.
  • Annual Diesel Cost: 2,597 litres x £1.55 = £4,025

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Electric Van Annual 'Fuel' Cost (using smart charging):

  • kWh needed: 20,000 miles / 2.5 miles per kWh = 8,000 kWh.
  • Annual Electricity Cost: 8,000 kWh x £0.15 = £1,200

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Annual Fuel Saving Per Vehicle: £2,825

This saving is unlocked by smart charging infrastructure, like the systems we install at waEV-charge, which ensures your fleet automatically charges when electricity is cheapest.

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2. Tax & Clean Air Zone (CAZ) Savings

The savings continue with government taxes and levies designed to encourage EV adoption.

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Clean Air Zones (e.g., London ULEZ):

  • A non-compliant diesel van entering London's ULEZ daily would face a £12.50 charge. Annually, this could be over £3,000. Even infrequent city travel adds up. Let's assume a conservative £500 per year in potential CAZ charges for a vehicle operating in or near urban centres.
  • Electric Van: £0.
  • Saving: £500

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Annual Tax & Levy Saving Per Vehicle: £500(Source: GOV.UK for VED rates and ULEZ charges)

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3. Maintenance & Servicing (SMR) Savings

Electric vehicles have far fewer moving parts than an internal combustion engine. No oil changes, no filters, no exhausts. This translates to lower SMR costs.

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  • Diesel Van Annual SMR: Industry estimates place average servicing and maintenance costs at around £700 per year.
  • Electric Van Annual SMR: Estimates suggest a reduction of at least 40%, putting costs at around £420 per year.

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Annual SMR Saving Per Vehicle: £280

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Total Annual Saving Per Vehicle: The Bottom Line

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Let's add it all up:

  • Fuel Savings: £2,825
  • Tax & Levy Savings: £500
  • Maintenance Savings: £280
  • Total Annual Saving Per Van: £3,605

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Scaling the Savings: From One Van to Your Fleet

Now, let's see how these savings amplify across a small portion of your fleet.

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  • For a fleet of 5 vans: £3,925 x 5 = £19,625 saved per year.
  • For a fleet of 10 vans: £3,925 x 10 = £39,250 saved per year.
  • For a fleet of 25 vans: £3,925 x 25 = £98,125 saved per year.

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These are transformative numbers that can be reinvested directly back into your business, funding growth, and further innovation.

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Unlock Your Fleet's Savings Potential

The data is clear: the business case for fleet electrification is overwhelming. The key to unlocking these maximum savings lies in a well-planned and intelligent charging infrastructure that minimises energy costs and maximises vehicle uptime.

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At waEV-charge, we don't just install chargers; we design strategic fleet solutions that deliver measurable ROI. We can help you build a detailed cost-saving analysis based on your unique fleet data.

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Ready to see what your business could save? Contact our fleet specialists for a tailored cost-saving assessment today.

Visit https://www.waevcharge.co.uk/industry/ev-energy-fleet to learn more.

This article was written by the waEV-charge Team. waEV-charge specialises in installing and manufacturing EV chargers for both home and commercial use in the UK. If you're interested in electric car chargers, click here to discover more about our products.