How can you make an electric truck more affordable?

While the purchase price of a battery-electric truck is higher than its diesel equivalent, the total cost of ownership can be better. With the right approach, there are ways of bringing the overall lifetime costs down to a competitive level. 

Today, with the right combination of government incentives, optimal drive cycles, access to charging infrastructure and low electricity prices, an electric truck can be cheaper than diesel over its lifetime. Here are some of the areas where you can potentially reduce an electric truck’s total cost of ownership (TCO) and help make it a more cost-effective option for your business.

Are there any government incentives available?

Yes. Across the world, governments and state authorities are offering various forms of financial incentives and subsidies to help offset the cost difference between diesel and electric. Such incentives can be game changers when it comes to TCO calculations.

For example, at the time of writing, electric truck buyers in the US can claim up to USD$40,000 in tax credits per vehicle as well as grants for charging infrastructure through the Clean Heavy-Duty Vehicles Grant Program. Then there are various state-based incentive programs, such as California’s HVIP or New York’s NYTVIP.

In Europe, the UK government currently offers grants of up to £25,000 for purchasing electric trucks. Within the EU, the situation differs from country to country, but most member states offer some form of incentive for acquiring zero-emissions vehicles, and often for infrastructure too.¹

How does switching drivelines affect your costs?

Whether you can reduce your operating costs by switching from diesel to electric will depend on the cost of both in any given market. In general, electricity is cheaper than diesel in Europe, North America and Asia, especially where diesel attracts high taxes.

However, one of the advantages of electric drivelines is that they are around 55% more energy-efficient than diesel. Again, depending on the current prices, this makes the running costs of an electric truck around a third cheaper in Europe and the US, and 70% cheaper in China.²

The cost of charging an electric truck will also vary depending on where and when you charge. For example, charging during off-peak times at your own depot will most likely be more cost-effective than charging at public charging stations.

Another possibility is to install solar panels on your premises. Not only is this likely to bring your charging costs down, but if you generate more electricity than you consume, you can potentially sell excess energy back into the grid.

Does operating an electric truck entitle you to any tax exemptions?

Road tolls represent a growing cost for many truck owners as governments introduce CO₂-based taxes, such as Germany’s MAUT and the EU’s Eurovignette Directive. In some markets, road tolls have even overtaken fuel on a cost-per-kilometer basis. For example, heavy-duty truck tolls in Austria can be as high as €0.62 per kilometer.^[1] However, battery-electric trucks are often exempt from these taxes, such as in Germany, or at the very least subject to lower fees.

Furthermore, the EU’s ETS2, which is set to come into force in 2027, is expected to increase diesel prices across the EU.^[2] Again, the additional taxes can be avoided by switching to an electric driveline.

It should also be noted that, in some countries, electric trucks are permitted higher payloads to offset the increased weight of the batteries. For example, the EU allows an additional two tonnes GVW (gross vehicle weight) than the limit for diesel trucks, and is in the process of increasing this to four tonnes.^[3] This additional payload could tip the TCO calculations in favor of electric.

Does operating an electric truck open new business opportunities?

While it might be outside of a traditional TCO calculation, the potential to attract new customers and generate business is another important factor that can help make an electric truck more affordable.

For example, the growing number of low and zero emissions zones being created in cities across the world is an opportunity for electric truck owners. They can access such zones unhindered or without incurring additional fees or penalties. Having vehicles with zero tailpipe emissions and low noise also opens new possibilities for late night and early morning operations.

Many transport buyers have set themselves ambitious carbon reduction targets, which will require carbon reductions in their supply chains. This represents another opportunity for electric truck owners who can offer zero tailpipe emissions transport. In some instances, customers could even be willing to pay extra to have their deliveries made by electric trucks. 

If owning an electric truck enables business opportunities that wouldn’t exist with a conventional diesel truck, then that should be factored into any cost calculations and price comparisons.

If you’re interested in learning more about electric trucks and how to implement them into your business, you might be interested in:

• Why we should worry less about range anxiety for electric trucks
• How alternative fuels impact total cost of ownership
• 5 ways to make investing in an electric truck easier

[1] ‘Zero-emission commercial vehicles: tax benefits and incentives (2025)’, ACEA, 3 April 2025, https://www.acea.auto/fact/zero-emission-commercial-vehicles-tax-benefits-and-incentives-2025/

[2] ’Trends in heavy-duty electric vehicles’, IEA, https://www.iea.org/reports/global-ev-outlook-2025/trends-in-heavy-duty-electric-vehicles

[3] Pölös Zsofia, ’Tolls now outweigh fuel costs in parts of Europe, IRU warns’, Trans.info, 7 October 2025, https://trans.info/en/tolls-vs-fuel-costs-424452

[4] Juan Fernando López Hernández, ‘EU emissions trading system for buildings, road transport and additional sectors (ETS2)’, European Parliamentary Research Service, May 2025, https://www.europarl.europa.eu/RegData/etudes/BRIE/2025/772878/EPRS_BRI(2025)772878_EN.pdf

[5] Jaan Soone, ’Revision of the Weights and Dimensions Directive’, European Parliamentary Research Service, October 2024, https://www.europarl.europa.eu/RegData/etudes/BRIE/2023/754595/EPRS_BRI%282023%29754595_EN.pdf?utm_source=chatgpt.com