Updated 09/25/2026
Your vehicle fleet is one of the company's largest expenses after payroll. Switching to electric is no longer just a branding choice: it is a financial decision that CFOs and fleet managers must be able to calculate line by line. To address this, Benjamin Bury, Sales Director at Qovoltis, and Dorian Jorry, co-founder and COO of Evera, compared the total cost of ownership (TCO) of electric versus internal combustion vehicles over 5 years in a webinar. This article summarizes their figures, updates them with 2026 tax regulations, and details the levers that make an electric fleet profitable.
TCO: The only reliable indicator for comparing electric and internal combustion
Comparing two vehicles based solely on their purchase price or monthly lease payment almost always leads to a poor decision. The Total Cost of Ownership (TCO, for Total Cost of Ownership) adds up everything a vehicle costs the company over its period of use: acquisition or lease, energy, maintenance, insurance, taxes, benefits-in-kind, and, for electric vehicles, charging infrastructure.
What TCO includes, and what is often overlooked
Four items make the difference between electric and internal combustion: acquisition, energy, corporate taxes, and employee benefits-in-kind. The latter two are most often underestimated because they do not appear on the dealer or leasing company's quote. Yet, these are the areas where the gap is widest in favor of electric vehicles.
Webinar assumptions
The comparison presented by Evera is based on two pairs of comparable vehicles: a city car (Peugeot e-208 vs. internal combustion 208) and a family SUV (electric Skoda Enyaq vs. internal combustion Peugeot 5008). The assumptions are common to both pairs: 125,000 km driven over 5 years (25,000 km per year), electricity at €0.25 incl. tax per kWh, fuel at €1.60 incl. tax per liter, and €2,900 for a charging station installed per electric vehicle. For an annual view of long-term leasing on another model, also check out our electric vs. internal combustion car TCO comparison.
Acquisition: A €4,000 to €4,600 extra cost to put into perspective
This is the only area where electric vehicles start at a disadvantage. According to the webinar, an electric vehicle costs €4,000 to €4,600 more over 5 years than an equivalent internal combustion model, factoring in the purchase price and residual value at resale. This extra cost remains real, but two tax mechanisms reduce it from the moment of purchase.
A higher depreciation ceiling for electric vehicles
For companies subject to corporate income tax, the depreciation of a passenger vehicle is only deductible up to a ceiling that depends on its CO2 emissions. This ceiling is €30,000 for a vehicle emitting less than 20 g/km (meaning an electric vehicle) compared to €18,300 for those between 50 and 160 g/km, and only €9,900 for those over 160 g/km. On an SUV like the Enyaq, this represents up to €11,700 in additional deductible depreciation compared to a combustion-engine SUV at the same price.
Malus: Electric vehicles are exempt, while combustion engines are increasingly affected
As of January 1, 2026, the CO2 penalty applies starting at 108 g/km and can reach as high as €80,000. Even a city car like the 100 hp petrol Peugeot 208 is now subject to a €260 charge. Electric vehicles remain exempt. However, as of July 1, 2026, they may be subject to a weight-based penalty if they do not meet the minimum eco-score: verifying this criterion before ordering has become essential.
Energy: €2,100 to €3,400 in savings per vehicle
This is the area where the gap widens the fastest, and it can be measured down to the last liter and kilowatt-hour.
5-year energy cost comparison table
Source: Qovoltis x Evera webinar. Calculations over 5 years, including charging station, with recovered VAT deducted.
Even when including the purchase and installation of a charging station in the first year, electric vehicles remain the winner in terms of energy: the cost of the station is offset by the price difference between the kilowatt-hour and the liter.
How rising fuel prices in 2026 change the equation
The webinar's assumptions are conservative. As of September 18, 2026, SP95-E10 is averaging €2.17 per liter and diesel €2.39, an all-time high. Recalculating the same table with fuel at €2.17/L, the total energy cost for the combustion-engine 208 rises to €11,754 and for the 5008 to €14,105. The savings for the electric versions then climb to €5,182 for the city car and €7,116 for the SUV, more than double the webinar's figures, assuming electricity prices remain unchanged. In other words: the more volatile oil prices are, the more an electric fleet protects your budget.
VAT: 100% recoverable on electricity, 80% on fuel
The table includes a point that is often overlooked. For passenger vehicles, companies can recover 100% of the VAT on charging electricity, compared to only 80% for diesel and petrol. Over 125,000 km, this difference in treatment also works in favor of electric vehicles.
Smart charging: the lever that makes the difference
The energy cost of an electric fleet is not fixed: it depends on the time, the location, and how the vehicles are charged. This is where the TCO can be reduced even further, going well beyond simply replacing one vehicle with another.
Charging during off-peak hours
At the August 2026 regulated rate, the kilowatt-hour during off-peak hours costs about 25% less than during peak hours. Scheduling vehicle charging at night, whether at the depot or at employees' homes, is enough to capture these savings without changing daily routines. For a fleet of 20 vehicles covering 25,000 km per year, this represents several thousand euros in annual savings.
Manage power rather than oversizing it
Plugging in ten vehicles at the same time at the end of the day, without smart management, requires subscribing to an electrical capacity far greater than what is actually needed. Dynamic load management distributes the available power among the connected vehicles based on their needs and departure times. This allows the company to avoid subscription increases or costly grid connection upgrades.
Supervise to prevent downtime
A broken charging station means a vehicle that won't be on the road the next day. Remote monitoring and preventive maintenance detect faults before they leave an employee stranded. To estimate these gains for your own fleet, the Qovoltis charging ROI calculator provides the recommended number of charging stations for both the office and home, along with expected annual savings, in just 90 seconds.
Fleet taxation: a €2,000 to €4,000 advantage for electric vehicles
According to the webinar, tax benefits save over €2,000 on a city car and up to €4,000 on an SUV over 5 years. Three mechanisms explain this difference in 2026.
Annual CO2 and pollutant taxes: total exemption
The two annual taxes that replaced the former TVS, based on CO2 emissions and air pollutants, do not apply to 100% electric vehicles. For combustion-engine vehicles, these taxes add up every year, and their rates are becoming increasingly stringent.
Fleet greening tax: 18% low-emission vehicles in 2026
Companies with at least 100 light vehicles must reach an 18% share of low-emission vehicles in their fleet by 2026. Below this threshold, an annual incentive tax applies, set at €4,000 in 2026 (up from €2,000 in 2025) and rising to €5,000 from 2027 onwards, calculated based on the gap to the target. Every electric vehicle added to the fleet directly reduces this liability. For parking-related obligations, see our article on corporate charging station requirements.
Low-Emission Zones (LEZ): access to city centers remains a key issue
On May 21, 2026, the Constitutional Council struck down the repeal of low-emission zones that had been planned under the simplification law. Existing LEZs therefore remain in effect. For a fleet operating in urban areas, an electric vehicle guarantees access to these zones, regardless of any future restrictions.
Benefit in kind: a win for both the company and the employee
When a company vehicle is used for private purposes, it is considered a benefit in kind, subject to social security contributions for the company and taxable for the employee. For 100% electric vehicles provided between February 1, 2025, and December 31, 2027, this benefit qualifies for a 70% reduction, capped at €4,641.60 per year under the flat-rate valuation method, provided the vehicle meets the minimum eco-score. Furthermore, electricity costs paid by the employer are excluded from the calculation.
According to the webinar, this dual effect represents up to €7,000 in savings for the company and up to €8,000 for the employee over 5 years. This is a compelling argument for gaining internal buy-in for the switch to electric. The charging station installed at an employee's home is also not considered a benefit in kind for the duration of the contract: all scenarios are detailed in our guide on thebenefit in kind of an electric car and its charging station.
Where to start when electrifying your fleet
The webinar presents the case of an SME that reduced its fleet TCO by 34% in four months. Results like this rarely come from the choice of vehicle alone; they stem from a structured four-step approach.
- Analyze actual usage : daily mileage, whether the vehicle returns to the depot or home at night, and the proportion of employees living in detached houses. This determines where to install charging stations.
- Choose vehicles eligible for the eco-score : this is the requirement for the 70% reduction on the benefit in kind and the exemption from the weight-based penalty.
- Size your charging infrastructure for the office and home : an employee who charges at home overnight costs less than charging on the public network. If the employee is a tenant, the procedure is detailed in our guide on theinstallation of a charging station for a tenant employee.
- Monitor and measure : track consumption by vehicle and by employee to invoice or justify every kilowatt-hour.
FAQ
Is an electric vehicle fleet really cheaper than a combustion-engine fleet?
Yes, over time. Over 5 years and 125,000 km, the €4,000 to €4,600 higher purchase price per vehicle is offset by energy savings (€2,100 to €3,411), tax benefits (€2,000 to €4,000) and the benefit in kind, according to the Qovoltis x Evera webinar.
Which companies are affected by the fleet greening tax in 2026?
Companies with at least 100 light vehicles. They must reach an 18% share of low-emission vehicles in their fleet in 2026; otherwise, an annual incentive tax applies, set at €4,000 in 2026 and €5,000 from 2027 onwards, calculated on the shortfall from the target.
What is the energy cost for an electric fleet vehicle over 5 years?
For 125,000 km, including the charging station and after deducting recovered VAT, the total energy cost is €6,572 for a Peugeot e-208 and €6,989 for a Skoda Enyaq, compared to €8,667 and €10,400 for their combustion-engine equivalents with fuel at €1.60/L.
What are the tax benefits for a company electric vehicle in 2026?
A 100% electric vehicle is exempt from the annual CO2 and air pollutant taxes and from the CO2 penalty, and benefits from a €30,000 deductible depreciation cap, 100% recoverable VAT on electricity and a 70% allowance on the benefit in kind, capped at €4,641.60 per year.
How can you reduce the charging costs of an electric fleet?
By charging during off-peak hours, which are about 25% cheaper than peak hours under the French regulated tariff in August 2026, by managing power levels to avoid oversizing your electricity subscription, and by prioritizing charging at the depot or at home rather than on the public network.
Key takeaways
- The 5-year TCO, not the purchase price, is the only reliable indicator for comparing an electric fleet with a combustion-engine fleet.
- The €4,000 to €4,600 higher acquisition cost per vehicle is offset by energy savings, tax benefits, and the benefit-in-kind.
- Energy savings amount to €2,100 to €3,411 per vehicle with fuel at €1.60/L, and over €5,000 at September 2026 prices.
- In 2026, electric vehicles benefit from a combination of annual tax exemptions, a €30,000 depreciation cap, 100% recoverable VAT, and a 70% reduction on the benefit-in-kind.
- Smart charging (off-peak hours, power management, monitoring) is the key to reducing total costs by up to 40%.
Learn more
- Electric vs. combustion engine TCO: a comparison for businesses
- Benefit in kind for electric vehicles and charging stations
- Charging stations at an employee's home
- Charging station requirements for businesses
- Fleet charging ROI calculator
- Qovoltis charging solutions for businesses
Sources and references
- Qovoltis x Evera Webinar: Combustion vs. electric, how to reduce your fleet's total cost by up to 40%
- LégiSocial: 2026 vehicle benefit in kind
- Service-Public Entreprendre: taxes on the assignment of passenger vehicles
- Compta-Online: deductibility limits for passenger vehicle depreciation
- Drive to Business: annual incentive tax for the acquisition of low-emission vehicles
- L'argus: 2026 ecological penalty
- L'argus: 2026-2028 weight-based penalty
- Keobiz: VAT recovery on passenger vehicles
- Selectra: regulated electricity rates as of August 1, 2026
- EnerGeek: Diesel prices hit a record high (09/18/2026)
- Weka: The Constitutional Council strikes down the repeal of low-emission zones
Article updated in September 2026. Information verified as of the publication date. Webinar results are based on the stated assumptions and will vary depending on the vehicle, usage, and energy prices. This article is provided for informational purposes only and does not constitute legal or tax advice.
