The Government has announced it is committing an extra £4m to the Plug-In Van grant scheme which has been extended to cover larger vehicles.
Businesses will now be able to able to benefit from grants of up to £20,000 when switching to electric vans weighing up to 12-tonnes.
The Plug-In Van Grant of up to £8,000 per unit has been active for weighing up to 3.5-tonnes since 2012, but sales have been limited.
The Government also confirmed the scheme would be reviewed once 5,000 grants have been processed or in March 2018, whichever comes soonest.
“The electric car revolution is well underway with consumers and this funding will encourage more businesses to consider switching to cleaner vans and trucks,” said business and energy secretary, Greg Clark. “Our automotive sector is thriving with the world’s most popular electric car already made in the UK and we are forging ahead to deploy new engine technology to make low-carbon vehicles mainstream, and leading the way in driverless car technology.”