EV Charging London 2026: What Businesses Need to Know Now
The EV Congestion Charge exemption ended December 2025 — electric cars now pay £13.50/day. Charging costs vary from 7p to £1.20/kWh depending on your strategy. Grants up to £15k expire March 2026. Here's how to act.
Get London EV Charging QuoteThe December 2025 Cliff Edge: Congestion Charge Changes
The Cleaner Vehicle Discount - providing 100% Congestion Charge exemption for EVs - terminates on 25 December 2025. From 2 January 2026, the daily charge increases from £15 to £18, and EVs must pay.
| Vehicle Type | 2025 Status | From Jan 2026 | Daily Cost | Annual Increase* |
|---|---|---|---|---|
| Electric Car | 100% Exempt | 25% Discount | £13.50 | +£3,375 |
| Electric Van (<3.5t) | 100% Exempt | 50% Discount | £9.00 | +£2,250 |
| Electric HGV | 100% Exempt | 50% Discount | £9.00 | +£2,250 |
| ICE Vehicle | Full Charge (£15) | Full Charge | £18.00 | +£750 |
*Annual cost assumes 250 operational days
Fleet Impact Example
A fleet of 20 electric vans entering the Central Zone daily will see operational overhead increase by £45,000 overnight from January 2026. The business case shifts from "operational savings" to "compliance necessity".
Further Reductions Coming
Electric car discount drops to 12.5% from 4 March 2030. Van discount remains at 25%. TfL is clearly prioritizing commercial freight over private EVs in the Central Zone.
ULEZ Exemption Remains
Fully electric vehicles remain exempt from ULEZ (£12.50/day) across all London boroughs. For fleets operating primarily in Outer London (Zones 4-6), the EV advantage against non-compliant diesels remains absolute.
London EV Charging Costs: The Complete Picture
The cost disparity between private and public charging is extreme - often exceeding 1000%. Your charging strategy determines whether EVs save money or cost more than diesel.
| Charging Source | Cost/kWh | Cost/Mile* | Notes |
|---|---|---|---|
| Home (Off-Peak EV Tariff) | 7-9p | 2-3p | Octopus Intelligent Go, OVO Anytime |
| Depot (Business Contract) | 21-24p | 6-7p | Fixed rate, volume dependent |
| Home (Standard Cap Rate) | ~28p | ~8p | If not using smart charging |
| Public Lamppost (Standard) | 52p | ~15p | Ubitricity 7pm-4pm rate |
| Public Lamppost (Peak) | 72p | ~21p | Ubitricity 4pm-7pm winter peak |
| Public Rapid (DC) | 65-85p | 18-24p | BP Pulse, Osprey, Gridserve |
| Ultra-Rapid | 85p-£1.20 | 24-34p | Ionity, Shell Recharge - diesel comparable |
*Assumes vehicle efficiency of 3.5 miles per kWh
The VAT Disparity
Public charging attracts 20% VAT. Home electricity has reduced 5% VAT. For business mileage, public charging VAT is recoverable with company invoices. But for employees charging at home, the Advisory Electricity Rate (9p/mile) covers home costs but creates a massive shortfall if they use public charging (15-20p/mile). Businesses need "pay-on-behalf" solutions to bridge this gap.
Charging Without Off-Street Parking
61% of London households lack off-street parking, rising to 90% in Tower Hamlets. For "return-to-home" fleets, this is a critical barrier. Here are the solutions.
Cross-Pavement Channels (Recommended)
Gul-e and Kerbo Charge channels cut into the pavement to safely run cables from the property to the kerbside. They sit flush with the pavement to prevent trip hazards.
Installation: £1,000-1,500
One-off CAPEX unlocks home tariffs
ROI: Under 12 months
vs lamppost charging at 52p/kWh
London Councils published supportive guidance May 2025. Trials in Bromley and Enfield moving to wider rollout.
Lamppost Charging Network
Ubitricity dominates residential boroughs (Wandsworth, Westminster, Tower Hamlets). Tower Hamlets completed a 2,000 charge point rollout in under 4 months in late 2025.
Warning: Aggressive peak pricing (72p/kWh, 4pm-7pm winter) can catch drivers out. Use the "Smart Charging" feature in the app to pause during expensive windows.
Source London Network
Essential for Central London operations. "Company" membership (£4/month) unlocks ~55p/kWh vs 65p PAYG. For a fleet vehicle charging 40kWh weekly, the subscription pays for itself in one charge.
The West London Grid Capacity Crisis
Data centers along the M4 corridor have saturated grid capacity in Hillingdon, Hounslow, and Ealing. Large business connections can face delays until 2035-2037.
The 1MVA Ramping Solution
Allows connections to proceed if demand grows incrementally: e.g., 1MVA Year 1, 2MVA Year 3, 4MVA Year 5. Aligns well with phased fleet electrification. Apply for maximum 5-year capacity now.
Flexible Connections (ANM)
DNO can throttle your charging during grid emergencies in exchange for faster, cheaper connection. Smart charging software can prioritize essential vehicles during these windows.
Smart Load Balancing: The DPD Solution
Instead of paying for massive grid upgrades to charge 100+ vans simultaneously, DPD Westminster installed smart load balancing. The system distributes available power across the fleet overnight - as one van finishes, power shifts to others. This enabled 600+ charge points without prohibitive grid reinforcement costs.
Grants for London Business EV Charging
Most current schemes end 31 March 2026 - act now to secure funding.
Workplace Charging Scheme
75% of purchase and installation costs, capped at £350 per socket. Up to 40 sockets (£14,000 max) per applicant.
London schools: Enhanced rate of £2,500 per socket
Full WCS guide →EV Infrastructure Grant (SMEs)
Covers wiring, groundworks, and posts - not just chargers. £500 per passive parking space, £350 per active socket.
Strategic use: Wire all bays now, install chargers later. Up to 5 grants per business.
Plug-in Van Grant
35% of purchase price. Small vans (<2.5t): up to £2,500. Large vans (2.5-4.25t): up to £5,000.
Volume limit: 1,000 grants per business per year
Benefit in Kind (BiK)
EV BiK rate remains at 2% (vs 37%+ for diesel), making salary sacrifice schemes extremely attractive for employee retention.
Rising to: 3% (2025/26), 4% (2026/27), 5% (2027/28) - still vastly better than ICE
Planning: Heritage Buildings & Westminster Policy 43
Westminster "Retrofit First" Policy
Westminster's Policy 43 favours adaptation of existing street furniture (lamppost charging) over new ground-mounted rapid charger pillars that add "street clutter".
New commercial builds must provide 50% of parking spaces as "EV Ready" (passive provision with cabling) ensuring future scalability.
Listed Buildings & Conservation Areas
~17% of London homes and significant commercial stock lies in Conservation Areas. Installing a charger on a listed building's fabric without consent is a criminal offense.
- • Free-standing posts preferred over wall-mounted units
- • Discreet colours (black/grey) required vs branded colours
- • Equipment cabinets heavily scrutinised - may require screening
Underground Car Park Fire Safety
Following Luton Airport and other fires, new guidance requires: mechanical ventilation (minimum 10 air changes/hour in fire), wider parking bays or fire barriers between EV spaces, and enhanced suppression systems (Hazard Group 2) for basement EV hubs.
London EV Fleets in Practice
Fruit 4 London (SME Delivery Fleet)
Fresh fruit delivery service operating high-frequency, multi-drop routes in the Congestion Charge zone. Transitioned to 100% electric (Nissan e-NV200, then Vauxhall Vivaro-e).
- • Charging model: Strict return-to-base, overnight depot charging on 7kW/22kW AC
- • Surprise finding: London's stop-start traffic increased range due to regenerative braking
- • Reliability: Zero operational downtime from EV mechanical failure since 2012
DPD Westminster (Large Logistics)
Global parcel delivery electrifying Westminster depot in a grid-constrained area.
- • Solution: Smart load balancing distributes available power overnight
- • Result: 600+ charge points deployed without triggering grid reinforcement
- • Key insight: Software intelligence can substitute for grid capacity
Frequently Asked Questions
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