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How Installing Electric Vehicle Charging Technology Can Unlock Benefits for Industry

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How Installing Electric Vehicle Charging Technology Can Unlock Benefits for Industry eBook LEADING THE CHARGE How Installing Electric Vehicle Charging Technology Can Unlock Benefits for Industry. p. 03 1. Introduction p. 05 2. EVs in the UK p. 07 3. Financial incentives p. 09 4. Benefits for employers p. 11 5. Installing EV technology – Dos and Dont’s p. 13 6. Key takeaways 3 The adoption of electric vehicle (EV) technology is moving at a faster rate than initially predicted and the UK’s charging infrastructure needs to develop in order to keep up. That being said, where there are challenges, there are opportunities. For any organisation with the space and resources to install EV charging points, there is no better time to invest. The UK is now committed to ending the sale of internal combus- tion engine vehicles (ICE vehicles) by 2035 in order to support legally binding carbon reduction targets by 2050. This target and the resulting need to increase the number of EV charging points has led to a series of financial incentives for busines- ses and individuals interested in installing the technology on their properties. These incentives are in addition to a long list of benefits that we can achieve with a relatively simple, low-cost installation of proven technology. As a leader in electric vehicle charging solutions, dedicated to accelerating the shift to sustainable transportation, Wallbox has been at the forefront of this shift. We recognise the value of EV adoption and understand the benefits it is already bringing. And that’s why we’re guiding businesses through their own transition with market-leading solutions. From businesses with large car parks such as shopping cen- tres and hotels, to office developments and business parks, this guide will support UK businesses across all industries to help them identify the incentives, unlock the benefits and join the EV revolution. 4 EVs in the UK Sales of EVs continue to grow in line with global sustainability targets, and this has inevitably led to an increased demand for EV charging points. Undoubtedly, some progress is being made. The number of charging points in the UK almost doubled between 2017 and 2019, and there are now more than 32,000 individual charge points, which is more than the number of petrol forecourts1. However, more installations are still needed as EV sales soar. The Government’s aim is to end the sale of ICE vehicles by 2035. Pure electric models account for 12% of all new vehicle registrations and, notably, this is the only category of growth in recent months1, with about 301,000 registered electric vehicles in the UK at present. Demand, therefore, continues to outstrip supply of charging points, even with the recent growth in char- ging infrastructure. In addition, much of this increase has been in domestic insta- llations but a rising number of EV drivers also require public charging points. Around one third of households in the UK don’t have a driveway or garage and they can’t install home charging points2. Even those who can, often need to top-up batteries while away from home. There is a clear need for more public chargers. “Convenient and affordable charging infrastructure is crucial in the switch to electric vehicles.” Energy Saving Trust 1 Petrol forecourts - months 2 Points 5 Total number of EV charging connectors in the UK 6 Financial incentives The UK Government has introduced a number of financial incentive schemes to help facilitate the switch to EVs and, recognising the importance of building a charging infrastructure, the incentives are not just limited to vehicle owners. There are tangible benefits for workplaces looking to install charge points too. The Workplace Charging Scheme This is the primary incentive scheme for employers, including those with public parking facilities. Using a simple online application form, organisations can claim up to £14,000 to help fund the installation of EV charging points on site. More on this voucher- based scheme for workplaces: • Available to businesses, charities and public sector organisations. • Offers 75% off purchase and installation costs, up to a maximum of £350 per socket. • Available for a maximum of 40 points per organisation, across all sites. This was previously restricted to 20 charge points, but in just a couple of years the figure has been doubled to reflect the growing importance of (and demand for) electric vehicle charging. • Successful applicants have six months to install the equipment and make a claim once the voucher has been issued. • A similar scheme is also available for individuals, offering the same contribution towards one charging point per household To be eligible for the scheme, applicants must “declare a need for EV charging equipment”, must be located in England, Wales, Scotland or Northern Ireland, and must have dedicated off-street parking. The Workplace Charging Scheme also states that grants are only available to the property owner, or to an occupier if they have consent from the landlord. In addition, businesses that install charging infrastructure can access tax benefits through a 100% first-year allowance for expenditure incurred on EV charging equipment. 7 w Incentives for Purchasing EVs In addition, there are a number of schemes to support the purchase of EVs including private and fleet purchases. These include: • The Plug in Grant: offering discounts on the purchase of low emissions vehicles, including cars, vans, taxi and large vans/ trucks. • Low Carbon Transport Business Loan: interest free loans available to Scottish businesses, which can be used to finance EVs. • Vehicle Excise Duty Exemption: EVs are exempt from vehicle tax in the UK. • Company Car Tax: tax offsets are available for businesses who purchase EVs. • Cleaner Vehicle Discount: EVs are exempt from the London Congestion Charge and the Birmingham Clean Air Zone, which will be introduced in 2020. £14,000 – the total grant available to businesses under the Workplace Charging Scheme to support installation of EV charging technology. 8 Benefits for employers There are other benefits of installing EV charging technology on site, particularly for organisations with large car parks such as shopping centres, hotels, office developments and business parks. Drive Footfall Despite the rapid growth of EV charging facilities across the UK, charging infrastructure remains inadequate to meet projected demand for EV vehicle sales. With more drivers seeking charging points, installing facilities in a business car park can help to drive footfall and dwell time, encou- raging customers to use on-site facilities. It can also enable the car park to appear on leading ‘locator’ websites and apps, such as Electromaps, which offer EV users visibility of local charging points. Some review sites have even started to include ‘EV charging availa- ble’ as a filter when searching for hotels and other venues - another way to drive competitive advantage and stand out on increasingly influential review sites to entice potential customers. Reduce Emissions Eligible larger organisations in both the private and public sectors are now required to monitor and report their energy use and/or carbon emissions under a variety of schemes including the Energy Saving Opportunities Scheme. Facilitating EV use by installing EV charging points can not only demonstrate a commitment to sustainability – which is becoming increasingly important to consumers – but also help to support a switch to EVs across the workforce, including fleet vehicles. In fact, fleet investment in electric vehicles is predicted to increase by 50% over the next two years, as firms follow the lead of sustai- nability pioneers like British Gas. The firm made the UK’s largest commercial EV order in July 2020 with 1,000 new electric vans. 9 Generate Profit Charging for the use of an EV charging point can generate a gross annual profit of around £200 based on a profit of 4p per kWh through a charging station serving one customer per day, for 250 days of the year using 25kWh per charge. Electricity can also be sold at cost or offered for free to entice customers. Support EV use amongst staff Providing on site charging facilities for privately owned staff vehicles and fleets can reduce costs and improve productivity. Charging while employees are at work reduces the need for them to go off-site to charge their vehicles, whilst fleet drivers can ensure a fully charged vehicle at the start of the day. Switching to EV fleet vehicles can also reduce employee fuel cost reimbursements, lower Class 1A National Insurance contributions and cut vehicle maintenance costs because EVs are inherently more reliable than ICE vehicles, with fewer mechanical parts prone to failure. Boost employee engagement Various studies have shown that taking steps to reduce an organisation’s carbon footprint and supporting employees in switching to EVs has a positive impact on employee engagement and employee retention. And the impact is greater for future workforces too. Nearly 40% of millennials have chosen a job because of company sustainability and nearly three quarters say they would be willing to accept a smaller salary to work for a company that is environmentally responsible. Gain insights With a Wallbox charger, businesses can also track how long people use the charger and the cost of the electricity, which makes it easy to assess ROI. The data is readily available and easy to share, which enables employers to tap into tax benefits and other incentives. Future-proof your business As mentioned, the UK has a target to end the sale of ICE vehicles by 2035 and sales of EVs are increasing year after year. Installing charging technology will ensure an organisation is well placed to capitalise on this shift as more drivers make the switch to electric. 10 Installing EV technology - dos and don’ts Do: Don’t: • Research and access financial incentives inclu- • Simply buy the cheapest option – consider the ding the Workplace Charging Scheme.
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