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Pros and cons of switching to electric vehicles for business

“Is it time to switch to electric vehicles?” - such a question at least once flashed through the head of every entrepreneur. At the same time, everything...

“Is it time to switch to electric vehicles?” - such a question at least once flashed through the head of every entrepreneur. At the same time, everyone understands that sooner or later they will have to say goodbye to diesel and gasoline vehicles - the end of the era of cars with internal combustion engines is near. Is it just to buy an electric car right now or is it better to wait a bit?

Trends

Marco van Eenennaam, electric vehicle expert at ANWB, says: “EVs are getting cheaper, greener modes of transport are becoming the norm. Thus, the government cannot continue to subsidize their purchase for a long time.” In the coming years, the government will gradually phase out the subsidy scheme for the purchase of electric vehicles. 

By the way! You can find out about current subsidies for the purchase of a car for personal needs in our material.

MIA/VAMIL subsidy

We have already wrote previously. However, to be eligible for the MIA/VAMIL program, your electric vehicle must meet certain requirements. You can apply for MIA/VAMIL at the Dutch Enterprise Agency (RVO).

Pay attention! MIA and VAMIL have fixed yearly budgets, so the earlier you apply for grants in 2022, the more likely you are to receive them.

Subsidy for commercial electric vehicles

Until the end of 2025, the Zero Emissions Commercial Vehicle Subsidy Scheme (SEBA) is in place. Are you considering buying an electric van as an entrepreneur? With SEBA you can get a discount of up to 5000 euros. This applies to both buying and renting. Do you want to apply for SEBA? Pay attention to the following conditions:

  • To be eligible for this subsidy, the value of a commercial vehicle must be at least €20 excluding VAT.
  • The amount of the subsidy is 10% of the net value of an electric commercial vehicle, up to a maximum of 5000 euros.
  • The commercial vehicle must not have been delivered on the application date.
  • The purchase of a commercial electric vehicle is fixed in a sales or lease agreement. But you can refuse to buy if you do not receive a subsidy.

You can apply for a SEBA subsidy from RVO here.

For some entrepreneurs, it is no longer a choice, but a necessity.

From 2025, more than 25 Dutch municipalities (gemeenten) will create zero-emission zones (zero-emissiezones). After the transition period, it will no longer be possible to drive there by diesel or gasoline cars. Marco van Enennaam warns entrepreneurs: "A delivery van with an electric motor is worth buying next year, if only to commensurate the cost of it with the cost of a diesel van." From 2025, it will be possible to carry out delivery to zones with zero emissions only by electric transport.

Note! In addition, from 2027, the EU may introduce mandatory electrification of vehicle fleets of companies and organizations - read about this in our article. Article.

Calculation example

In the calculation example below, you can see what you get in specific conditions.

Benefits Costs
Electric van price without VAT 50.000 euro
Consultations, preparation for operation and delivery costs without VAT 1200 euro
Gross investment 51.200 euro
Eco-investment deduction MIA, 45% 23.040 euro
Small investment deduction KIA, 28% 14.336 euro
Corporate tax base 37.376 euro
Corporate tax rate -25% -9344 Euro
SEBA subsidy -5000 Euro
Net investment 36.856 euro

So, the pros of buying an electric car now: 1) environmental benefits; 2) subsidies (which are beneficial to receive now, since their size decreases every year).

And now for the cons...

Higher purchase costs

“The latest electric van models are about 50% more expensive than comparable diesel options. The previous generation was twice as expensive. So the gap still exists, but it's getting smaller and smaller," says Van Enennaam. Used is cheaper, but in practice it can be difficult to find a suitable option. “Demand for used electric vehicles currently far outstrips supply.”

Note! If you don't want or can't buy an electric car, leasing is a good option. The advantage of renting is that you do not incur any unexpected costs in case of a breakdown, for example, of a battery, because the maintenance costs are included in the monthly rent.

However, the purchase can be a good investment. With zero emission zones on the way, demand for electric delivery vans is likely to increase. This means that the residual value of your minivan becomes extremely profitable. If you rent a car, the leasing company benefits from the residual value, not you.

The range is getting wider

The development of batteries for electric vehicles does not stand still. Batteries are getting better and better, which means that the duration of their work is increasing. In 2021, charging was enough for an average of 333 kilometers (for comparison: in 2017 it was 172 kilometers). The longer you wait to buy a new electric car, the further you can go on a fully charged battery.

Availability of charging stations

Don't forget to check charging availability in your area! In the coming years, the Netherlands will invest in installing more charging stations. If there is no charging station near you yet, there is a good chance that one will be installed in the coming years. Charging stations are also getting faster and faster. “A few years ago you could charge 100 kilometers in half an hour, now you can charge 350 kilometers in the same half an hour,” says van Enennaam.

Pay attention! This information is relevant for owners of commercial premises with parking spaces. From 2025, the presence of at least one filling station in such premises will be mandatory: 1) if there are more than twenty parking spaces; 2) if the premises are new (after a major overhaul) and there are more than ten parking spaces. In addition, every fifth parking space should be connected to a charging station.

Take a critical look at your situation

Whether now is the right time to switch to an electric car depends largely on your situation. So before you buy a new commercial electric vehicle, think carefully about what you plan to do in the coming years. Do you often travel to cities that will have zero emission zones? Do you drive long distances or short distances with intervals?

“If you own a delivery service and need to drive across the country, then the electric car option is probably not for you,” Van Enennaam says. "But if you're an artist and you're driving around and around Amsterdam (which is a municipality that wants an emission-free city center by 2025), an electric van will come in handy."

While you are considering whether or not to have electric vehicles in your fleet, we are following updates on subsidies and tax incentives for owners of such vehicles. Read our news, and if you decide to buy an electric car, contact We will help you get grants.

Publication Date: 01.08.2022
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