Guidance

Zero emission fleets: local authority toolkit

Published 13 April 2022

To achieve net zero, greenhouse gas emissions generated by providing council services need to be reduced significantly, requiring zero emission fleet vehicles. Operating zero emission vehicles (ZEVs) also demonstrates leadership on tackling air pollution and, due to their lower running costs, can generate cost savings for councils.

For fleet electrification, local authorities need to:

• identify which vehicles are suitable for replacement with electric vehicles (EVs)
• formulate a procurement strategy based on whole life costs
• install chargepoints at council depots and review the options for charging
• implement supporting measures, such as driver and mechanic training

Why zero emission fleets?

Fleets and businesses are responsible for over half of new car and van sales in the UK, according to the SMMT and many are at the forefront of ZEV adoption.

As highlighted in the government’s transitioning to zero emission cars and vans: 2035 delivery plan and through the UK Electric Fleet Coalition, organisations have committed to switching over 700,000 vehicles to zero emission by 2030.

The government has committed that 100% of central government cars and vans will be fully zero emission by 2027, which is about 40,000 vehicles. It has committed to end the sale of new petrol and diesel cars and vans by 2030.

Like many others, local authority fleets need to develop and implement a plan to transition their fleet to ZEVs.

The plan should outline:

• which vehicles will be switched each year, reflecting the existing fleet renewal cycle
• the models available from manufacturers
• charging requirements and the cost-effectiveness of a ZEV fleet

Many local authorities already have ZEVs as part of their fleet, so the next stage is to scale up plans and tackle the ‘harder to decarbonise’ vehicle classes, particularly heavier vehicles.

The benefits of zero emission vehicles for fleets

For local authorities, switching to ZEVs can generate substantial cost and emission savings, as well as help to deliver net zero targets.

Impact on carbon emissions

ZEVs emit zero tailpipe emissions, but there are emissions associated with generating electricity for EVs.

Transport & Environment concludes that in Europe, battery electric cars currently emit on average 3 times less carbon dioxide (CO2) than the equivalent petrol or diesel car, after factoring in emissions from electricity generation, car and battery production.

In the UK, CO2 emissions from electricity consumption have fallen by about two-thirds since 2014 to reach 212g CO2e/kWh in 2021, as less coal is used and more generated from renewable energy sources. Referred to as ‘carbon intensity’, this trend is set to continue enhancing emission savings throughout the lifespan of EVs.

As set out in the government’s net zero strategy, plans are to fully decarbonise the power system by 2035.

ZEVs are significantly more energy-efficient than petrol or diesel vehicles and the energy use (MWh) of an all-electric fleet will be up to 75% less than the equivalent petrol or diesel fleet.

In 2020, transport produced almost 24% of the UK’s total emissions, with 91% of this from road transport.

Cars and taxis account for 52% of the emissions from road transport, followed by 19% from heavy goods vehicles (HGVs) and 16% from vans.

Diesel-powered refuse collection vehicles (RCVs) often generate a substantial proportion of a local authority’s fleet emissions.

In 2020, environmental consultancy, Eunomia, estimated that replacing local authority operated diesel RCVs with electric would reduce carbon dioxide-equivalent (CO2e) emissions per year from 330 kilotonnes to 40 kilotonnes.

Cost savings for fleets

Although ZEVs can currently cost more than their petrol or diesel equivalents to buy or lease, they can still be highly cost effective across their operational life for fleets, especially where the vehicles are travelling significant daily mileages and kept on fleet or leased for several years.

A whole life cost model calculates all the predicted costs of owning and operating a vehicle over its operational life. For example, this includes:

• the funding method (outright purchase or lease)
• the fuel or energy cost
• servicing
• vehicle excise duty
• other costs, such as National Insurance (NI) contributions when applicable

Offsetting higher lease or purchase costs of EVs

The cost of electricity is lower compared to petrol or diesel. Over a battery electric vehicle’s (BEV) operational life, the reduction in energy costs may be as high as 75%.

It is important to consider how vehicles are used when comparing costs. The more miles EVs are driven the more likely or sooner a higher lease or purchase cost is recouped in running cost savings. Where fleets or individuals (for company cars or vans charged at home) have access to a variable rate (time of use) electricity tariff, smart charging during off-peak hours can result in further cost savings.

EVs have lower servicing and maintenance costs compared to petrol or diesel. They are mechanically simple, with fewer components in the drive train and without a complex transmission and exhaust system. As a result, servicing and maintenance costs are lower, typically 40% less.

Over the extended operational life of 8 to 10 years, savings may be even greater as petrol and diesel vehicles can experience a rise in costs in later years. Regenerative braking in EVs also reduces wear and tear on the brakes. There are also various tax incentives available, which can enhance the business case for EVs, including:

• Vehicle Excise Duty
• Corporation Taxi Liability
• Benefit in Kind

EVs can be exempt from Clean Air Zones and the Ultra Low Emission Zone (ULEZ), as well as the London Congestion Charge (until December 2025).

For worked examples of whole life costs comparisons (correct as of 2020), see Energy Saving Trust’s step-by-step guide to electric vehicles for fleets. Some leasing companies and the Crown Commercial Service fleet portal will provide an estimate of whole life cost.

Additional benefits for fleets

For fleets, moving to ZEVs could also:

• deliver air quality benefits through reduced tailpipe emissions of nitrogen oxides (NOx) and particulate matter, which have a harmful impact on health
• provide a smooth, quiet driving experience
• encourage wider ZEV adoption through enhancing visibility and confidence – a positive experience of an electric pool car may encourage staff and the wider public to switch their private or company car to an ZEV
• demonstrate the council’s leadership on the path to net zero and cleaner air

Actions for local authorities

1. Identify suitable vehicles for replacing with ZEVs

Local authorities need to identify which vehicles would be relatively straightforward and cost effective to switch to zero emission equivalents. These could be switched now, within the next couple of years or when the ZEV market further matures.

Vehicle operational requirements should be considered against the models available from manufacturers, the authority’s replacement cycle (or contract renewals) and net zero targets.

Fleets can undertake this data collection and analysis themselves or work with a vehicle leasing provider or consultancy. Energy Saving Trust offers a limited number of fleet reviews for local authorities each year, funded by the Department for Transport (DfT).

This analysis will support investment decisions and enable appropriate milestones to be included in a council’s net zero action plan or similar decarbonisation or service strategies.

Mileages and usage patterns

The first crucial step for authorities is to gather data on how far individual fleet vehicles currently travel on a daily basis and their regular journey patterns.

This will determine what is operationally feasible and impact the whole life cost analysis.

Good sources of mileage data include:

• telematics
• fuel cards (this works best where there is one driver or fuel card per vehicle)
• expense claims (for example, relevant for considering how to shift grey fleet miles into an electric pool car)

If these are not available, fleet managers could consider collecting odometer readings for a short period.

Energy Saving Trust’s manage mileage provides help on improving an organisation’s mileage data capture if needed.

Data will also be needed on journey patterns to assess consistency and how frequently the vehicle is driven over a certain mileage threshold. This can indicate how easy it could be to switch to electric without compromising service delivery.

Infrequent high-mileage days do not necessarily rule out a vehicle for EV replacement. Depending on the usage pattern, the vehicle could be partly or fully recharged with a public chargepoint on the way to a destination or when it arrives. These journeys could also be redistributed to longer-range EVs.

The next step is to compare the mileage data against the ranges of EV equivalents from multiple manufacturers to identify suitable models. The Crown Commercial Service fleet portal provides information on technical specifications and pricing, including whole life costs. There are also many vehicle comparison websites available, such as the EV Database.

Carrying capacity and downsizing vehicles

In addition to assessing mileages, fleets will also need to review operational requirements and the carrying capacity needed, such as the number of seats or weight or volume in commercial vehicles.

Some BEVs are currently limited in their towing capacity.

For many cars, there are readily available and affordable electric equivalents. However, it is worth assessing the potential for downsizing light commercial vehicles, rather than automatically replacing them with an equivalent, due to the potential efficiency savings and the maturity of the market.

While there is a growing range of affordable battery electric vans up to 3.1 tonnes, larger 3.5 tonne ultra-low emission vehicles (ULEV) remain expensive. For some teams, a 3.5 tonne vehicle may no longer be essential.

For others, solutions may include occasionally renting a large van or having 1 larger pool van that multiple teams can access as needed. This could be used for stocking spare parts or rarely used equipment in a depot, installing bespoke racking and using a roof rack or trailer for occasional items.

The same principles apply to diesel vehicles. Carbon emissions and fuel use increase significantly with van size and it is more efficient to have a fully-loaded smaller van than a half-empty large one.

Potential for e-cargo bikes

E-cargo bikes are specifically designed to carry a load with an electric motor to assist the rider. In some local authority fleets, there may be potential to introduce e-cargo bikes to replace vans, especially for journeys with low mileage and relatively small loads.

E-cargo bikes are highly versatile. Within a local authority fleet, they could be used for:

• maintenance
• services
• street cleaning
• facilities or estates management
• inter-site deliveries
• mail and similar duties

As with any change, a trial period may be useful to test different configurations of e-cargo bikes and identify any operational changes required.

E-cargo bikes are especially effective in congested, urban areas. Anecdotally, several delivery operators have found they can be quicker than vans because they can take shorter, faster routes, be wheeled through pedestrianised areas, use cycle infrastructure move past standstill traffic and park closer to destinations.

They also have lower upfront costs than cars and vans, are significantly cheaper to run and some organisations report improved employee health and wellbeing.

More information about e-cargo bikes is available from Energy Saving Trust and European Cycle Logistics Federation.

E-cargo bikes: Devon County Council

In May 2020, Devon County Council was awarded funding from DfT to invest in 13 e-cargo bikes, including some that will be used by the council’s parking enforcement officers and Exeter City Council’s Environment Health team.

Others will be used by the University of Exeter, a local courier business and trialled by the Royal Devon and Exeter NHS Foundation Trust across its clinical and logistical services.

2. Formulate a procurement strategy

Once vehicles suitable for replacement with an equivalent zero-emission model have been identified, the next step is to evaluate the cost-effectiveness of the switch on a whole life cost basis to formulate a procurement strategy.

The Crown Commercial Services Fleet Portal and some leasing companies can estimate whole life costs for fleets.

For all vehicles, fleets should place orders early. There are long lead times – in some cases, up to a year – partly due to the global semiconductor shortage limiting supply of new vehicles for both electric and internal combustion engines.

Cars and vans under 3.5 tonnes

Due to lower fuel or energy, maintenance and service costs and tax incentives, the price premium on EVs, especially under 3.5 tonnes, can be recouped where vehicles undertake sufficient mileage.

For local authority fleets, the default should increasingly be that all petrol and diesel cars and small vans will be replaced with EVs as part of the fleet replacement cycle.

Where vehicles under 3.5 tonnes are doing insufficient mileages to be cheaper on a whole life cost basis, it may be worthwhile analysing the utilisation rates of the fleet and assessing the potential for switching to e-cargo bikes or daily rental.

Fleet electrification: Swale Borough Council

In 2021, Swale Borough Council replaced 9 diesel vans with electric and installed 8 chargepoints at the council’s offices. The new vans are used by environmental wardens, dog wardens, green space and parking services teams. These joined the 2 electric vans already being used by the civil enforcement team. The mayor also has an electric car. Their renewed grounds maintenance contract, which came into force in January 2022, included requirements for the introduction of EVs and electric machinery from year one.

Vehicles over 3.5 tonnes

For vehicles over 3.5 tonnes, the financial case for switching to electric can be weaker due to market maturity, even on a whole life cost basis. However, replacements with EVs could be justified in terms of the decarbonisation, air quality and reputational benefits for the local authority.

It may also be worth considering extending the number of years a vehicle is kept on the fleet to spread the higher purchase cost over a greater mileage. This might be set at 8 to 10 years, in line with the battery warranty.

Unlike diesel vehicles, where improvements in emission technology and standards mean that regular replacement will lead to emission reductions, keeping EVs for longer will not have a negative impact on either CO2 emissions or air quality.

Fleets with EVs have found they are also much more reliable and have lower maintenance costs.

Fleet electrification: Nottingham City Council

Nottingham City Council has 215 ULEVs, with 45% of its fleet being zero emission.

As well as switching its pool cars and light vans, the council has electric street sweepers, which will save around £20,000 each year on fuel. It also has electric cage tippers that are used to empty public litter bins and electric bin lorries.

Electric minibuses are used to transport children with special educational needs and disabilities and one of the minibuses has solar panels on the roof to help recharge the battery.

Electric refuse collection vehicles

The purchase cost of electric refuse collection vehicles (eRCVs) is frequently several times the cost of a diesel equivalent, but a business case can often be made for replacing 18 tonne to 26 tonne vehicles with 200 kWh or 300 kWh electric models. This would be over an extended 10 year replacement cycle, according to Energy Saving Trust.

Environmental consultancy Eunomia estimates that the total cost of ownership of an eRCV would be about 5% higher than diesel over 8 years, completing 60 mile rounds 5 days a week.

Any estimates are very sensitive to vehicle mileages, operational lifespan and the cost of borrowing, as well as vehicle purchase and fuel or energy prices.

Where relevant, any savings on energy costs can be used to pay for charging infrastructure or repairs required due to the extended operational life. Alongside the financial case, the benefits in terms of CO2 emissions, air and noise pollution should also be considered.

Implementing electric refuse collection vehicles: Manchester City Council

In April 2021, Manchester City Council took delivery of the first 7 of 27 fully electric, zero emission refuse vehicles.

Following trials over 2 years, the council has invested £10 million in vehicles from Electra to replace almost half its fleet. The vehicles will save about 900 tonnes of CO2 emissions per year, or about 3% of Manchester’s current direct emissions.

3. Install charging infrastructure

The transition to EVs by local authorities will require investment in charging infrastructure.

Thinking early and strategically about fleet requirements now, within the next 3 to 5 years and longer term will help make the process smoother, ensure operational needs are met and maximise the benefits.

Charging options

Vehicle journey patterns and the EV procurement strategy will inform the type, location and number of chargepoints required each year as the electric fleet grows.

Council depot or car park

Where vehicles return to base overnight or have significant downtime during the day, installing chargepoints on-site is likely to be the most cost effective and convenient option.

At home

Where employees take vehicles home overnight, they may be able to install a home chargepoint unit if they have off-street parking. There are a growing number of software solutions to manage reimbursing staff for energy costs for business travel.

Close to home

Where employees take fleet vehicles home overnight but cannot install their own chargepoint unit, they would need to rely on public on-street provision or chargepoints in nearby council or privately owned car parks.

Although these chargepoints cannot be exclusive for council staff, internal colleagues working on this rollout may be able to share their strategy for installations and welcome the fleet team’s input to help assess likely demand across the area.

Rapid public chargepoints

Where vehicles complete high mileages across a region, recharging at public rapid chargepoints, 50kW and above, may be the most convenient option. There is a small but growing number of businesses offering the equivalent of a ‘fuel card’ for fleets.

Determining your on-site charging requirements

Energy Saving Trust generally recommends that at depots and similar sites, there is 1 chargepoint socket per vehicle. This is to make sure all are sufficiently recharged for the next working day and to allow pre-conditioning (heating or cooling while plugged-in) during summer and winter.

For most fleets, low-cost 3.7kW to 7.4kW chargepoints are likely to be sufficient for overnight charging.

For large vans with a high daily mileage, 11kW or 22kW AC chargepoints or 25kW DC chargepoints may be needed. Most eRCVs will require a rapid 50kW chargepoint.

Where a site has a three-phase supply, it may seem intuitive to choose the highest power chargepoints available. However, installing rapid chargepoints (50kW and above) may require significant electricity supply upgrades. In many situations, where overnight charging is possible and practical, this higher investment will not be worthwhile for car and van recharging.

The very high-power demand for ultra-rapid chargepoints (150kW) means they are generally not suitable for depot charging for car and van fleets.

To roughly estimate the daily or annual charging demand and electricity costs for a fleet, multiply the fleet or vehicle mileage by the vehicle’s energy efficiency (in miles per kWh).

Many electric cars have an efficiency of 30kWh to 40 kWh per 100 miles (or 2.5 miles to 3 miles per kWh). Check manufacturer specifications on websites such as EV Database for the efficiency of particular vehicles.

When installing chargepoints, local authorities may wish to consider providing ‘passive provision’ for further spaces. By laying the underground ducting and cabling for future chargepoints at the outset, chargepoint units can be installed flexibly in future, at lower cost with less disruption.

For more information on charging infrastructure for fleets, see:

• Energy Saving Trust’s Step-by-step guide to electric vehicles for fleets (PDF, 2.7MB)
• UK EVSE’s Making the right connections (2019) (PDF, 2.7MB)
• the BEAMA Best Practice for Future Proofing Electric Vehicle Infrastructure (2020).

London’s 2030 EV Infrastructure Strategy identifies that vehicles that return to a depot will have different charging needs to other vehicles. Research undertaken for the strategy identified that operators may be unable to accommodate all fleet charging requirements at depots due to space constraints. Operators may need to make use of public charging or investigate innovative solutions to increase charging capacity at depots and reduce costs.

In 2021, Zemo Partnerships EV Energy Taskforce published guidance on commercial EV fleet charging requirements that will help local authorities understand the considerations for recharging their fleets.

Grid connections

The cost of connecting chargepoints to the UK grid varies significantly between sites depending on the existing electrical supply, site capacity and distance from the chargepoint to the connection point. Where there is insufficient capacity, an upgrade or reinforcement may be required by the distribution network operator, which can be expensive.

Options to minimise costs include:

• reviewing a site’s overall electricity requirements and implementing efficiency measures
• opting for slower chargepoints
• implementing active or dynamic load balancing
• time-profiled connections
• on-site assets, such as solar PV or battery storage

Smart chargepoints and load management are recommended to flexibly manage energy consumption across a fleet (for example, to keep charging load within grid connection thresholds) and their use is a condition of the Workplace Charging Scheme.

This will also help to decarbonise and manage demand from EVs on the grid nationally.

For more information, see connecting EV chargepoints to the electricity network.

Fleet electrification: Leeds City Council

As of 2021, Leeds City Council had over 330 fully electric vehicles. Due to a constrained electricity supply at several council sites, in 2018 to 2019, the council opted to pilot home changing.

Employees are reimbursed for charging fleet vehicles through their home chargepoint. This solution was cheaper than investing in grid upgrades at council premises and allowed the rapid expansion of the electric fleet.

In 2021, the council and partners were awarded funding for 3 wireless chargepoints as part of ProjectAMiCC by Innovate UK and Office for Zero Emission Vehicles (OZEV).

Funding available

The government’s Workplace Charging Scheme covers 75% of the upfront purchase and installation costs, up to £350 per socket for chargepoints.

This grant scheme is open to public sector, businesses and charities and can be used for chargepoints for fleet and staff vehicles.

Each organisation can apply for up to 40 sockets, regardless of the number of sites. The grant does not cover the costs of the electrical connection.

Chargepoint suppliers offer a range of procurement options for fleets, ranging from full ownership to leasing equipment. The most appropriate approach will depend on the capital available to invest.

Where vehicles are taken home, grant funding to cover up to 75% of the cost of installing a chargepoint may be available through the OZEV EV chargepoint grant scheme.

4. Implement supporting measures

To ensure that new EVs are received positively and achieve a good utilisation rate, it is important to engage with drivers to overcome initial reservations. As EVs have a strong and smooth acceleration, many drivers find them quiet and relaxing to drive, preferring them over petrol or diesel vehicles.

Engage and train drivers

As EVs are still unfamiliar to many people, engaging with drivers early is important to ensure a smooth transition and a positive experience for all. Actions may include:

• early, regular, transparent communications throughout the process
• organising workplace events or online information sessions to discuss operational requirements and explain why EVs are being introduced
• organising vehicle trials or test drives
• placing simple, laminated sheets in shared vehicles with reminders about key EV and chargepoint features and frequently asked questions
• familiarisation or driver training courses to help drivers gain confidence and maximise the use of EV features, such as regenerative braking

Depending on how the EVs will be used in the authority’s fleet, various policies may require updates, such as pool car booking and mileage expense claims. This is especially important where these policies and processes may inadvertently act as an incentive for employees to continue driving a private petrol or diesel private car, rather than booking an electric pool car and where employees recharge vehicles at home.

Electric vehicle maintenance

For local authorities with their own workshops, the Institute of the Motor Industry (IMI) provides an EV technician training programme.

Servicing EVs is far simpler than petrol or diesel vehicles, which will lead to savings on consumables, parts and labour.

As fewer staff may be needed to maintain and service fleet vehicles specifically, the local authority could combine teams or workshops with other public bodies or consider providing commercial EV servicing to the wider community.

Fleet electrification: Nottingham Electric Vehicle Services (NEVS)

Nottingham City Council opened the Nottingham Electric Vehicle Services in October 2020 to provide MOTs, servicing and repairs for ULEVs.

It caters for the rapidly growing number of EVs in Nottingham and gives drivers confidence to switch to electric by offering a local, knowledgeable, affordable service option.

Located in the city centre, NEVS can be used by the public, businesses and taxi drivers. It also serves the council’s own EVs, including specialist vehicles, such as street sweepers and cage tippers.

In addition to training the council team, NEVS offers an apprenticeship. It has 3 ‘master technicians’ trained to IMI level 4 on the maintenance of high voltage vehicles and 7 members of staff trained to level 3.

5. Encourage local businesses to switch to ZEVs

As well as transitioning their own fleet to electric, local authorities are well placed to support other public sector organisations and local businesses make the change in various ways.

Engagement events

Online events or test drive sessions offering information to demystify EVs and promote the government grants available. Cities implementing Clean Air Zones offer good practice, such as Brum Breathes.

Try before you buy schemes

Provide businesses opportunity to trial an EV for a longer period, often a month. National Highways is currently funding council-led schemes in Sheffield, Coventry, Kent, Nottingham and Bristol.

Provide charging infrastructure

This could include near business parks, providing longer parking bays with chargepoints for larger commercial vehicles or a reduced chargepoint tariff rate for small- to medium-sized enterprises (SMEs).

Support last mile delivery organisations

This could be through a van or e-cargo bike leasing or sharing scheme, training, establishing a micro-consolidation hub or changing council approved suppliers. See Energy Saving Trust guide Electrifying the last mile: A guide for local authorities.

Raise awareness through communications of the Workplace Charging Scheme

The Workplace Charging Scheme (WCS) was expanded in 2022 to offer greater financial support for SMEs for chargepoint installations in staff or fleet car parks and to small accommodation businesses and charities for visitor charging.

Fleet electrification: Leeds City Council

In summer 2020, Leeds City Council made 44 electric vans available to local businesses across the city through its EV Trial Scheme. Launched in partnership with National Highways, the scheme allows organisations to trial a vehicle for up to 2 months, free of charge. Each vehicle is equipped with telematic devices that are used to generate a tailored report for each business highlighting the environmental and financial benefits of switching to an electric van.

Since then, 5 electric cars licensed for private hire use have been added to enable trials by PHV drivers and 5 larger electric vans have been made available to broaden the options for trialists, with over half the organisations taking part stating that they either already had, or planned to purchase or lease an EV after taking part in the scheme.