Building a business case for Electric Vehicle Charging

This guide will teach you everything you need to know to put a business case together for EV infrastructure in your business. Before starting… 

What are you looking to achieve? 

Are you looking:

• To prove to investors why we should install EV chargers?
• For a simple strategy to overtake my competitors and increase brand reputation?
• For long-term projects to increase the amount a customer spends on site?
• For a way to increase your business’ yearly revenue?
• To find out information on potential funding?

Business strategy alignment & EV chargers

In order to encourage the uptake of electric vehicles and chargers across the UK, the government has several discounts available to both the public and to businesses. With a net-zero goal of 2050, these incentives have been introduced as a solution to the upfront costs involved in purchasing new electric vehicles and installing electric car charging points for business.

Plug-in Car Grant (PICG)

Applicable to a range of brand new EVs, OZEV has created a grant to aid drivers in switching to ultra-low emission electric vehicles (ULEVs). The Plug-in Car Grant is available via car vehicle manufacturers and dealerships and is automatically applied upon purchase of the electric vehicle, so buyers don’t have to do a thing in order to benefit from this great incentive. Currently, it’s confirmed that the PiCG will last until the 2022/2023 financial year - however, an additional £620 million has been pledged towards EV grants, so it’s believed that the timeframe for this grant will be extended in the future.

So, how much can you actually save through this grant? Depending on the type of vehicle purchased, you may be granted up to £1,500 or 35% off the total cost. The grant applies to any electric vehicle with a retail price under £32,000 (including delivery and VAT) - including cars, vans, trucks, and motorcycles. For a full list of eligible vehicles, check out the government website.

Electric Vehicle Homecharge Scheme (EVHS)

On top of the PiCG, if you purchase a Category 1, 2, or 3 vehicle you will also be eligible for the Electric Vehicle Homecharge Scheme (EVHS). This scheme offers a financial contribution towards the cost and installation of a home EV charger. Upon selecting a home charge point installer, the installer will apply for the scheme on your behalf and the discount will be deducted from the total cost.

To receive this grant, you must own an eligible electric vehicle and have off-street parking at your residence. It is important to note that this scheme will only be available to homeowners who live in flats and people in rental accommodation from April 2022 - no longer being applicable to owners of single-unit properties - so avoid missing the boat and enquire as soon as possible!

This scheme offers a one-time 75% contribution towards the total cost and installation of a home charge point, with a cap of £350. If you’re based in Scotland, an additional contribution of up to £250 is available from Energy Saving Trust.

Workplace Charging Scheme (WCS)

Geared towards businesses rather than individual drivers, OZEV also offers the Workplace Charging Scheme (WCS). This workplace EV charging grant provides a discount on the purchase and installation of workplace charging stations as an incentive for staff members to transition towards driving electric vehicles.

To receive this workplace EV charging grant, applicants must successfully meet the criteria outlined on the government website, as well as having an eligible site for installation. A business, charity, or public sector organisation can claim for up to 75% off a maximum of 40 sockets, capped at £350 each - saving up to a whopping £14,000.

Commercial businesses can benefit in a variety of ways and we have looked at some of them below:

EMPLOYEE PERKS

• Workplace charging will become crucial to many employees.
• Being able to charge at the workplace is a great benefit to employees and helps encourage the uptake in the use of electric cars.
• Workplace charging is a great model as employee cars are left idle for long periods of time during the day in office car parks and fleet vehicles overnight.
• Introducing workplace charging can be a great company perk. Happy employees are more productive and loyal to the company which has a positive impact on the working environment.

FINANCIAL SAVINGS

• Installing charging stations through the Workplace Charging Grant allows you to switch from petrol company cars to electric, the benefits of which are numerous but include massive cost savings.
• You can save more than £1,000 for every 10,000 miles driven in a commercial fleet as well as saving on employee fuel costs. It also eliminates the employee benefit in kind tax on a company car.

SUSTAINABILITY

• In society we are becoming more and more conscious of the environment. Electric cars produce fewer emissions through their lifecycle in comparison to conventional petrol or diesel cars.
• By creating a green fleet, you can reduce carbon emissions sending an eco-friendly message throughout your business.

On-street Residential Chargepoint Scheme (ORCS)

If upon reading about the Electric Vehicle Homecharge Scheme you felt crestfallen to learn that you require off-street parking at your residence to be eligible, don’t fret. The On-street Residential Chargepoint Scheme (ORCS) offers funding towards 75% of the cost of procurement and installation of on-street EV chargers. 

Via the Energy Saving Trust, on behalf of OZEV, this scheme further supports the transition towards the UK’s net-zero goal and further encourage EV use. Local authorities, such as city councils, can apply for this scheme providing they have the appropriate permissions from the relevant highway authority. During the 2021 to 2022 financial year, the maximum ORCS funding that OZEV will fund per charge point unit has been increased to £13,000 to allow room for higher electricity connection costs.

Thanks to the various grants available via OZEV, ultimately, there’s a high chance that there is a solution to cushion the cost of purchasing an electric vehicle and installing an electric vehicle charging station. Whether this is off-street charging via the EVHS, public charging via the ORCS, or the home-based and workplace EV charging grants, there are many government-funded options available to encourage an electric Britain. If this has piqued your interest and you’d like to find out more about the discounts and grants available for EV charging, you can download the full guide below.