Are electric vans better than diesel for commercial use in 2022?

For businesses, EVs can offer plenty of benefits depending on the job you need them for. For some uses, diesel vans are still the most practical option but this depends on several key considerations.

Electric vans can be more cost-effective and better for the environment, but they are not without their drawbacks.

In 2022, when compared to their diesel equivalents, electric vans are more expensive, and in short supply. When it comes to batteries, the driving range of EVs is improving with each new iteration but charging may not yet be as seamless as some businesses will want or need.

These blockers prevent EVs from being a practical choice for many fleets, yet there are some businesses which can benefit from the electrification of their fleet.

So, what are the factors holding electric vans back for commercial use?

EVs face several blockers

EVs are one of the best solutions to achieving the government’s 2050 net-zero emissions target. As with any new technology, there are still several challenges to overcome before EVs can be a true replacement for combustion engines.

Cost

The high price tag of an EV is still the main blocker. Until there is a breakthrough in EV technology or a surge in demand, costs are unlikely to change in a significant way.

Perception of Range Anxiety

Many drivers still have range anxiety concerns for EVs. Further advancements in EV technology will be needed before drivers will lose the fear of running out of battery.

Charging Anxiety

Charging an EV is still causing headaches for many drivers. EVs will be a more attractive option once they are no longer held back by challenges around charging them.

Huge Electricity Demands

Widespread adoption of EVs would create an extra demand for power that the UK’s current energy grid cannot support. The upgrades needed would come at a significant cost.

Competition with other markets

With a limited supply of electric vehicles being manufactured, there’s a lot of competition for acquiring them. This impacts electric vans in two key ways:

Batteries are often being used for cars where there is a bigger market for them – and they are easier to sell.
Vehicles are more commonly made in the left-hand drive where there is, again, a bigger market for them, driving on the right-hand side of the road.

The result is that the supply of electric vans in the UK is low, even when compared to the generally limited availability of electric vehicles.

The countries that use left-hand traffic compared to right-hand traffic - credit

Developments in EV technology and systems could alleviate these blockers

Smart Charging

If everyone charged their EV at the same time, this would create unnecessary pressure on the energy grid.

By having a system to smartly manage when vehicles are charged, we would be able to prevent surges in demand for power. Surges in demand for power is something that puts our national grid under huge strain.

Having battery storage units would assist in making sure that power draw is more spread out and act as an added buffer to help ensure power is available when it is needed. It may even be that large storage batteries could be used to power both our vehicles and our buildings.

With smart charging, the extra power and cost of upgrades needed to support electric vehicle charging could be reduced drastically.

Battery Capability

Electric vehicle batteries are continually being developed to hold bigger charges in lighter storage. The main issue with the current electric vehicles available and their limited range - is not that there isn’t a battery solution which could hold sufficient charge, rather it’s that the size and weight of the battery needed would be too big.

Electric vehicle batteries are already large. Bigger batteries are heavier, so they tend to be less fuel-efficient and are only really suitable for much larger vehicles. However, battery size is starting to become more standardised with more power cells being packed in – getting the balance right and preventing excess heat is the key.

New iterations of electric vans coming out are continually pushing for lighter batteries with greater storage capability and better battery life.

Investment from Government

Investments and policies that support electrification will impact the speed of widespread EV adoption.

Having a UK Gigafactory to produce batteries could play a crucial role in meeting an increase in demand for electric vehicles.

Cost

Over time, the costs of EVs should come down.

As the cost of producing batteries falls and the volume of sales increases, the prices of EVs will decrease.

Bloomberg New Energy Finance found that EVs could reach cost parity with the combustion engine as soon as 2025.

If EVs reach cost parity with conventionally fuelled vehicles, a huge surge in EV sales is expected. Any increases in EV sales is likely to further drive down costs.

More needs to be done before there is widespread adoption of electric vans

EVs provide a far greener alternative to conventionally fuelled vehicles in meeting most of our Transport needs. Before the widespread adoption of EVs becomes possible, however, there needs to be a significant reduction in their price, better infrastructure to support them, and they need to become more widely available for fleets.

We also have to consider more specialist vehicles where there is a debate on whether battery-electric powertrains can deliver a practical solution – e.g. vans that need power at the roadside for extended periods. Many feel that hydrogen vehicles are a more likely solution.

And with investment from the government, further incentives to go green, and a review of the current policies for phasing out internal combustion engines, the market can be nudged further in adopting zero-emission vehicles and in a way that is practical for businesses.