From January 2026, electric vehicles lost their Congestion Charge exemption. EVs registered on Auto Pay now pay £13.50 per day, Plug-in hybrids (PHEVs) pay the standard £18 per day.That £4.50 daily difference still favours electric vehicles, but it is smaller than before.
Combined with tighter profit margins and evolving TfL ZEC (Zero Emission Capable) requirements, the powertrain decision carries more financial weight than it did a year ago. Renting rather than buying lets you test the right fit before committing.
Understanding the Powertrain Options
There are two powertrain types available for PCO rental in London. Each suits a different driving pattern and level of charging access.:
- Full electric (BEV): battery only, zero tailpipe emissions, 150 to 400 or more miles of range, requires regular charging
- Plug-in hybrid (PHEV): petrol engine plus a larger battery giving 20 to 40 miles of electric range, can charge externally with petrol as backup
Weekly Rental Costs
The weekly hire rates in London vary within:
| Car type | Rates per week | Example |
|---|---|---|
| Electric | £200 to £350 | Kia lower, Volkswagen higher |
| Plug-in hybrid | £190 to £320 | Skoda or Kia EV3 mid-range |
All packages include insurance, maintenance, breakdown cover and MOT. Drivers pay separately for fuel or charging, the Congestion Charge, parking and mileage overage.
Daily Running Costs
The cost gap between powertrains is visible in fuel and charging:
- Electric with home charging: 3p to 6p per mile
- Electric with rapid charging: 12p to 18p per mile
- Plug-in hybrid in electric mode: 4p to 7p per mile
- Plug-in hybrid in petrol mode: 10p to 14p per mile
On zone charges, registered EVs pay £13.50 per day in the Congestion Charge zone, compared with £18 per day for PHEV vehicles. Both EVs and PHEVs remain exempt from the £12.50 daily ULEZ charge. EVs also save an estimated £1,000 to £1,500 per year on maintenance compared to PHEVs, because they have no oil changes and fewer moving parts overall.
Charging vs Refuelling
Electric charging options for working drivers:
- Home charging: 6 to 12 hours overnight, cheapest and most convenient
- Rapid charging: 30 to 60 minutes per stop, expensive and cuts earning time directly
- Destination charging: slower but usable during natural breaks
London has over 87,000 charge points across the UK, but only around 214 locations in London offer free charging, which represents roughly 1% of all UK charge points. For drivers, a petrol fill-up takes around five minutes at any forecourt, and PHEVs take 3-5 hours for a full battery charge, though this is optional. Plug-in hybrids offer more day-to-day flexibility but cost more per mile than a home-charged electric vehicle.
Which Powertrain Wins for Different Driver Profiles
| Types of drivers | Plug-in hybrid | Electric |
|---|---|---|
| High-mileage airport drivers covering 1,000 or more miles per week | Best as petrol backup removes range anxiety and motorway charging stops | Challenging as rapid charging costs erode margins and long stops cut earning hours |
| Mixed-mileage drivers covering around 600 miles per week with occasional Central London trips | Without home charging wins as electric mode for city driving, petrol for longer runs | With home charging wins as the lowest cost per mile and Congestion Charge savings accumulate quickly |
| Part-time low-mileage drivers covering 200 to 400 miles per week | Not the best | Best as lowest running costs, manageable home charging, occasional rapid charge acceptable |
The 2026 Congestion Charge Impact on Your Decision
For a driver working five days per week in the congestion zone across 260 days per year:
- Electric on Auto Pay: £13.50 per day × 260 days = £3,510 per year
- Electric saves £1,170 per year on the Congestion Charge alone
Electric vehicles can save £3,000 to £5,000 or more annually, with added home charging savings and lower maintenance costs.
How Your Decision Framework Should Be
Before choosing, think about:
- Do you have home charging access? If yes, points to electric, if no, points to plug-ins
- What is your weekly mileage? Under 600 miles suits electric, 1,000 or more suits plug-in hybrid
- How many days do you work in Central London? Five or more days make the electric Congestion Charge saving significant
- Can you manage 30 to 60-minute charging stops? If not, the plug-in hybrid is the safer choice
Start with short-term PCO hire to test what actually works for your hours, routes, and take-home pay. If the vehicle suits your work, Hertz’s Rent2Buy programme gives you the option to move toward ownership with weekly payments, so you can begin with flexibility and step into a longer-term plan only when you are ready.
FAQs
1. Is an electric actually cheaper than a plug-in hybrid for PCO rental in 2026?
It depends on your charging access. With home charging and regular Central London work, electric is cheaper overall. Without home charging, a PHEV often delivers better weekly take-home.
2. Do plug-in hybrids make sense in 2026?
Yes, for high-mileage and airport-heavy drivers. PHEVs give you electric mode for city driving and petrol backup for long trips.
3. What if I don't have home charging?
If you rely on public rapid charging, your electricity costs increase. In that case, a plug-in hybrid at 4p to 14p per mile is often the more profitable choice.