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Thinking about investing in EV chargers for your business? Then congratulations, you have already taken the first step to improving your business footfall and adding a value-added complementary service that customers will appreciate.
But don’t take our word for it! Here’s a cool statistic to show how much the EV charging sector is growing month over month:
By January 2024, the UK had 53,677 public electric vehicle (EV) charging devices, which is a 45% increase from January 2023 – and by March 2024, the number of charging points had increased to 59,590 across 32,322 locations, which is a 47% increase from March 2023.
With these staggering numbers, it is clear that there is a huge demand for EV chargers in the UK. Since the number one selling car in the world as of now is an EV, it is no surprise that customers are backing the EV trend and are actively looking for places that are “EV friendly”.
Keep in mind that EV charging can take up to 20 minutes for super-fast charging to up to 2-6 hours for fast and slow charging ports. Customers actively seek out EV-friendly businesses so that they can charge their vehicles and get errands done at the same time!
So, if you are currently on the fence about investing in an EV charging station, then this guide will help you decide by providing a cost-benefit analysis of EV chargers for business premises.
Read on to learn more!
Did you know that the UK government is already working towards and has declared a ban on the sale of new petrol and diesel cars by 2040? That’s right, not only are global car manufacturing giants actively trying to phase out diesel and petrol engine cars, but they are also investing heavily in large-scale EV charging stations for new customers.
In the context of the UK, this ambitious plan is in line with the country’s vision to reduce carbon emissions by phasing out non-environmentally friendly vehicles. Furthermore, the country will also be awarding several incentives to purchase zero-emission electric cars and also on installing EV charging points and stations.
So, logically, getting on the trend and investing in the future right now is the best way to get yourself ahead of the curve.
EV charging stations, like every other business service, require constant iteration which is why businesses must get plenty of experience now so that they can grow their customer services and improve their brand image for the long term.
For EV owners, charging on the go is all about spending time wisely.
As mentioned above, the charging time for EV chargers can vary, which means that customers with EVs will actively seek out businesses that provide EV chargers so that they can charge their vehicles wherever they go.
From a business perspective, having EV charge points can be an important service that can enhance customer experience and increase the footfall of the business.
Before we dive into numerical analysis, here are some of the top benefits of commercial EV charger businesses:
With the UK actively trying to phase out traditional gasoline vehicles, it has become apparent that the future of transportation is very likely to be electric. This is why many customers are trying to make the switch now to reap the benefits of this technology.
This is great news for businesses who are looking for complementary services to make their customers happy. According to statistics, more than 50% of charging stations are co-located with retail businesses or businesses where customers are likely to spend more than 30 minutes.
Installing an EV charger can help businesses improve footfall with customers who own EVs. Furthermore, depending on the type of EV charger, EV drivers can spend at least 20 to 40 minutes on the premises and are likely to explore the business’s offerings more intently.
The secret to a successful business is to offer something others aren’t. So, if your competitors are lagging on current trends then this is the right time to get ahead and provide your customers with more value.
Think about it, in an ever-competitive market, there is only so much that you can do to win customers – and dropping prices and offering discounts isn’t a sustainable model! So, why not offer a service that gives customers an incentive to visit your business premises?
If you run a store or retail business, then it’s likely that a large percentage of visitors who own EVs will want to go to a business that provides them the comfort of charging their vehicle.
Just installing even one (or a couple of) chargers can give your business an advantage and perhaps even bring in a new segment of customers!
Just like customers, if you run a non-retail business, you might unlock new benefits for employees by installing an EV charging station at your business premises.
Employee turnover can be very expensive and bring about potential downtimes, which is where employee benefits come in. Apart from other retention policies, the benefits that you provide to your employees can go towards job satisfaction.
As per statistics, millennials are quickly taking over the global workforce and this new workforce is even more aware of global trends! Likely, modern employees will make the shift to electric vehicles which is why it would be wise for businesses to offer EV charging ports.
In the UK, much like everywhere else, there are three main types of EV chargers: ‘slow,’ ‘fast,’ and ‘rapid/ultra-rapid’ chargers.
As you might have guessed, the names of these chargers hint at their charging speeds. Slow chargers take the longest while rapid chargers charge a battery in hardly a few minutes.
Now that you know the details and benefits of EV chargers for businesses, let’s look at the cost of these chargers.
The total cost of a commercial EV charging point depends on numerous factors such as:
On average, you can expect a cost between £2,000 and £3,000 + VAT for installing EV charging stations at a typical business premises. Keep in mind that there are also funding options for businesses that can qualify business owners for a £450 grant under the Office for Zero Emission Vehicles (OZEV) Workplace Charging Scheme (WCS).
To be eligible for the grant, business owners must declare a need for the charge points on the grant application form. This can include reasons such as encouraging staff members and employees to switch to electric cars, charging an existing fleet of business EVs, or providing a charging solution for customers.
Here are the typical requirements of EV chargers for businesses in order to be eligible for funding:
Now let’s look at some considerations.
If a business receives a £450 grant from the government and the net installed cost of the charging points amounts to £2,550 + VAT, the charger can viably give you an effective Return on Investment (ROI) within 3 to 6 years making the initial investment worth it in the long run.
Keep in mind that EV chargers are monetised! So, the direct way to earn from an EV charging point is by earning an income through it.
Let’s suppose an employee or customer who doesn’t have a charging port at home charges their EV using 25kWh each charge for 250 days a year. If you charge them at a profit of 4% per kWh, you can make a £1 profit each day, amounting to a £250 gross profit per year.
The annual running costs depend on the chargers and management model, with the average cost not likely to exceed £100 per charger per year. By subtracting the annual running costs from the annual gross profit, you’ll be left with a £150 annual net profit from a single charging point!
With one user per day (weekdays only), the payback time for the charger can be 6 years, and with two users per day, the payback time can be twice as quick covering the total costs in 3 years.
If you think about it, 3 to 6 years is a decent ROI time for the charging points considering the numerous benefits that they provide to the customers/employees, brand image, and the business as a whole.
Fortunately, business owners don’t have to completely fund their EV project for their business! The Office for Zero-Emission Vehicles (OZEV) offers a Workplace Charging Scheme (WCS) that can be used to reduce costs by up to 75%.
Capped at £350 per socket, the grant can be used to claim up to 20 single or 10 double charging stations.
Here are a few businesses that can benefit the most from a well-maintained and managed EV charging station:
Electric vehicles will eventually take over roads in the UK.
However, to speed up the process, there must be sufficient charging stations to support the switch from traditional to electric cars.
While home charging will always be the primary charging source for electric vehicle owners, with 43% of EV owners not having access to off-street parking, relying on business-provided EV charging points is the next best solution.
Here are a few legal requirements that businesses looking to invest in EV charging stations need to keep in mind:
It is expected that by 2050, there will be an extra demand of 18 gigawatts that could place a strain on the grid which will likely require reinforcements on both the national and local levels.
Although the additional transmission level costs are generally covered by the taxes charged on the electricity supply, any additional work required at the distribution level is passed on to the business installing the charging points by the District Network Operators (DNOs).
In some cases, DNO consent may be required before installing one, or any number, of charging points to the electrical wiring on site.
According to the alternative fuel regulations, electricity and hydrogen are being regulated to ensure that they are supplied to vehicles and ships all over the UK to minimise dependency on oil, subsequently contributing to a low carbon footprint.
These regulations ensure that the technical specifications for charging points are met according to the BSI standards, which include socket outlets, vehicle connectors, and even customer experience standards.
Businesses that plan on monetising charging points need to ensure that their payment process complies with consumer laws.
Keeping with the requirements under the Consumer Rights Act 2015 and the Consumer Protection from Unfair Trading Regulations 2008, the prices charged by EV charging point operators must be reasonable and transparent for all users.
The quality of the equipment and the expertise with which it is installed are crucial to how effectively an EV charging point will operate.
This is why businesses must go for highly professional and trained electrical installation companies, like Calder Electrical, to get any type of EV charging installation.
The equipment needs to be manufactured according to the latest technical standards and the business owners must ensure that they receive manufacturer warranties providing evidence of its standard. Both the manufacturer and the business can be held accountable for gaps in safety policies for EV charging stations or equipment faults.
There are several legal considerations for where you install the EV chargers on business premises.
For wall-mounted EV charging points, a few of the conditions include the electrical outlet not exceeding 0.2 cubic meters and not facing or being within 2 meters of a highway.
Similarly, for upstanding EV charging points, the charger hub height cannot exceed 2.3 metres in all areas except residential premises, where the maximum height is 1.6 meters.
At Calder Electrical, we install EV chargers in line with the current regulations and can offer a government incentive to reduce the installation costs for both domestic and commercial properties.
There are various chargers currently in the market and it can be a little confusing to choose the best one for your needs.
We will take out the hassle and provide you with the most suitable and affordable option, ranging from the standard systems to the smart ones that are becoming increasingly popular.
We are authorised and registered OZEV installers and our charge points come with a 3-year warranty. We offer all kinds of different options to choose from, such as wall-mounted to freestanding pedestal units with different types of chargers and charging speeds.
Contact us here or call us on 0800 612 3001 for our expert opinion and more information on the cost-benefit analysis of EV chargers for business premises
