Depot Charging Scheme window two belately opens
The Government has opened a second window for fleet operators to apply for a share of £38m under the Depot Charging Scheme. Applications opened at midday on 11 November, two weeks later than planned. The window will stay open until midday on 26 February 2027.
The delay pushed the opening back from 28 October. It also moved the closing date by four weeks, from the planned 29 January. Operators therefore gain extra time to prepare, although the grant rate has fallen to 60%. This article explains the requirements, the parameters and what comes next.
What is the Depot Charging Scheme?
The Depot Charging Scheme (DCS) part-funds charging infrastructure at fleet depots. It supports operators of battery-electric vans, HGVs and coaches. The scheme forms part of a £170m multi-year programme that runs to 2030.
The Government set aside £66m for two windows this financial year. Window one offered £28m for projects delivered in 2026/27. It opened on 25 March and closed on 30 June 2026. Those projects must finish by 31 March 2027. Window two offers £38m for projects delivered in 2027/28.
Buses and Local Transport Minister Simon Lightwood said: “Britain’s businesses keep the country moving, and we want to help them power up for the future.” He explained that the funding will help firms put chargers in their depots, so more electric trucks, vans and coaches can get on the road.
He added: “By cutting the cost of installing charge points, we’re helping businesses build cleaner fleets, reducing exposure to volatile fuel prices and driving growth up and down the country.”
The scheme also sits alongside vehicle support. The £1bn Zero Emission Truck and Van package announced in March offers up to 40% off heavy vehicles, saving as much as £81,000 per truck. It also offers up to £5,000 off new electric vans.
What has changed in window two?
The headline change is the grant rate. Window two funds 60% of charge point and civil costs, down from 70% in window one. The cap stays at £1m per organisation across all sites.
The timings differ too. Applications opened through the GOV.UK Find a Grant service and close at midday on 26 February 2027. Projects can start from April 2027 and must finish by 31 March 2028. Officials expect to announce award decisions by 28 May 2027.
Applications will go through on a first-come, first-served basis, or competitively if the scheme is oversubscribed. Operators should therefore avoid leaving their bids until the final week. A complete, early application gives the best chance of securing funding.
Battery storage remains eligible. Jonny Berry, head of net zero transition at Novuna Vehicle Solutions, said the opening of window two was “fantastic news for the industry”. He also gave a balanced view of the changes.
“While the reduction in funding from 70% to 60% is disappointing, the continued inclusion of battery storage is particularly welcome, given the grid capacity challenges many businesses face.”
Who can apply for the Depot Charging Scheme?
The scheme targets UK commercial fleet operators. Applicants must own or lease at least one UK depot. They must also own, lease or have ordered at least one battery-electric van, HGV or coach. Rental and leasing businesses qualified in window one, which matters for many BVRLA members.
The scheme limits each organisation to one application per window. That application can cover any number of sites. However, the £1m cap applies across all of them combined.
Grid capacity is the key hurdle. In window one, applicants had to show that their depot already had enough capacity. Acceptable evidence included a signed connection agreement, a letter from the distribution network operator confirming capacity, or an accepted connection offer. Operators should check the window two guidance on Find a Grant for the exact wording.
Applicants should also expect to supply supporting evidence. This has typically included itemised quotes, proof of vehicle ownership or orders, and sign-off from senior leadership. Gathering these documents early avoids last-minute delays.
What does the grant cover, and what does it exclude?
The grant covers charge point hardware, installation and energisation. It also pays for electrical components and civil works such as trenching and cabling. Battery energy storage qualifies when it integrates with the chargers and mainly serves them. In window one, solar PV installed to support charging also qualified. Operators should confirm that rule for window two.
The grant does not pay for vehicles. It also excludes grid connection upgrades, public charging, and planning and design costs. Operators must therefore budget separately for any network reinforcement. Commercial vehicles should be the main users of the funded chargers.
Timing matters as well. Only costs incurred after the Grant Funding Agreement is signed count towards the grant. Operators must not start work or place orders for eligible items before that point.
The 60% rate also affects project sums. A £1m grant would need around £1.67m of eligible costs. Smaller projects receive proportionally less, and the operator funds the remaining 40%.
How do you apply?
Operators apply online through the GOV.UK Find a Grant service. Preparation should start well before submission. Begin by confirming that your fleet and depots meet the eligibility rules. Next, secure the grid capacity evidence, because this often takes the longest.
After that, collect itemised installer quotes and vehicle documents. Then agree internal sign-off and submit as early as possible. The scheme team has published contact details on the Find a Grant page for eligibility queries.
Operators with several depots should plan carefully. A single application must cover every site, so each depot needs its own quotes and capacity evidence. Prioritising the sites with the strongest case helps keep the bid focused.
Will there be any further funding windows?
Yes. The Government plans further rounds for 2028/29 and 2029/30. It expects to confirm timings and grant rates for these in 2027. Those rounds will share the balance of the £170m programme.
The Government has also warned that grant rates will fall over the life of the programme. Its reasoning is that charging infrastructure should become more affordable over time. The cut from 70% to 60% already reflects that approach.
Operators weighing whether to wait should consider this trend. A later window may offer a lower rate and more competition for funds. Delaying also pushes back the benefits of electrification. Window two therefore looks like an important opportunity for projects that are ready to proceed.
Industry reaction: clarity for rental and leasing
Toby Poston, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), welcomed the confirmation of further funding. He also praised the defined application phases and timelines. He highlighted the cost barrier facing smaller firms.
“Access to affordable, reliable charging infrastructure remains a significant challenge, particularly for rental businesses and smaller operators where upfront costs can be a barrier.”
Poston stressed the need for certainty. “Businesses need clarity to plan investment and make informed decisions about when and how to electrify their fleets,” he said. He concluded: “This is practical, targeted support that can help more operators make the transition with confidence.”
Industry reaction: electric trucks and charging economics
Aymeric Larcher, managing director of Renault Trucks UK & Ireland, welcomed the Government’s continued support. He said installing charging for electric trucks represents a substantial investment. For many operators, it is one of the main barriers to switching.
Larcher pointed to real-world evidence. More than 3,500 Renault Trucks electric vehicles have covered over 130 million kilometres between them. “Having the right charging infrastructure in place is as important as the right vehicle,” he said.
Simon Smith, CEO of megawatt fleet charging specialist Voltempo, said the funding recognises logistics’ vital role in the UK economy. His company has already helped several operators install chargers under earlier rounds. He argued that the equipment is only part of the picture.
“Getting chargers in the ground is only half the story. Energy costs, grid connections and making better use of that infrastructure are critical to getting the economics right.”
Smith said that bringing fleet demand together can secure cheaper, more predictable energy. It can also help operators earn revenue from spare charging capacity. “Electric freight has to pay,” he said. “Get the economics right and fleet electrification becomes a commercial opportunity.”
What should fleets do next?
The Depot Charging Scheme gives operators a clear route to cheaper depot charging. However, the lower rate, the grid evidence requirement and the first-come, first-served process all reward early action. Check your eligibility now, start the network operator conversation and gather your quotes.
The window closes at midday on 26 February 2027, or earlier if the funding runs out. Applicants who prepare carefully will be best placed to secure their share of the £38m.
