With the 2035 deadline of making the transition to electric cars, many businesses have started to adopt Electric Vehicles (EVs) for at least some part of their company car fleet. Looking at the latest figures from The Society of Motor Manufacturers and Traders Limited (SMMT) there are almost 25% more fleet cars on the road today than the same time last year. EV registrations have increased in the year to date with Plug-in Electric Vehicles (PHEVs) seeing a 31.5% uplift, Hybrid Electric Vehicles (HEVs) up 13% and fully electric cars up 10%, collectively accounting for almost 35% of new car registrations.
But with the move to EVs comes the need for a solid and reliable EV infrastructure – including charging stations, power grids, and network connectivity – which businesses should consider ahead of transitioning their fleet. According to the Alan Jones Company Car Report 2023, over half of the companies surveyed have an EV charging facility at the office where employees can charge their vehicles, demonstrating that some companies understand the importance of EV infrastructure.
What is EV Infrastructure?
When we hear the term EV infrastructure, we’re generally referring to the charging network, but there are other elements such as power grids and network connectivity to consider too. For example, are we sourcing and generating enough electricity to cope with increased demand for energy?
Given that the number of EV chargepoints across the UK needs to increase significantly to meet future demand, it could be argued that the physical chargepoints are the highest priority ahead of the electric needed for them. The Government has forecast the UK to have 300,000 public chargepoints by 2030 and over 800,000 public chargepoints by 2040 to cope with the transition to electric. Currently, there are only 45,000 public chargepoints across the UK.
Do we have the technology in place to handle the increase in network connectivity needed to charge EVs?
Depending on the type of charging application, which could include residential, multifamily, workplace, fleet or public, a different type of network connectivity could be required.
Level 1 EV chargers don’t require network connectivity, as they’re simply plugged into a 120V household plug socket. Usually, this type of charger is supplied by the manufacturer when the EV becomes part of your fleet. They do provide the slowest charge, with an output between 1.3 kW and 2.4 kW, which is approximately 5km of range per hour of charging. Therefore, an eight-hour overnight charge offers about 30-40 miles of range. For Battery Electric Vehicles (BEVs) or Plug-in Hybrids Electric Vehicles (PHEVs) with smaller batteries, charging can be quicker. This type of charging is suitable and accessible for your employees at their residential home with minimal set-up needed.
Level 2 chargers are dedicated EV charging units that may or may not be hardwired. These chargers use a 208V-240V power source and deliver an output range from 6.2kW to 19.2kW. A Level 2 charger provides an average of 32 miles of driving range per hour of charge, so typical charging time is around 4-8 hours from empty to full. However, exact charging time varies dependent on battery size. This type of charger is suitable for employees who could charge at home, if you or they are willing to pay for the installation costs, or for drivers out on the road, who might be making planned stops in their journeys to charge.
DC Fast Charging is the quickest way to charge an EV, these chargers are generally available at public locations. They can range in output from 50kW to 350kW and can recharge an EV battery to 80% in as little as 15 minutes, up to 45 minutes, the speed depends on the vehicle’s voltage capacity. These types of chargers are not in high volume publicly (there are more Level 2s), costs for fast charging are higher, and different connectors are needed – CCS, CHAdeMO, and Tesla Supercharger. It’s recommended fast chargers are only used when necessary, so it’s important that your drivers have access to other charging methods.
If you haven’t made the switch to EVs yet, click to find out what solution is right for your fleet.
Building a Smart EV Infrastructure Strategy
Strategic planning for EV infrastructure development is key to running and maintaining an efficient fleet. In preparation, your business should consider:
- Fleet size, vehicle types, and daily usage patterns.
- Power capacity at your facilities and potential upgrades.
- Availability of Government grants and incentives for EV infrastructure.
Upgrade costs and available grants details are below in Overcoming Charging Concerns.
Managing Your Electric Fleet
Having a robust EV infrastructure strategy empowers your business to effectively manage your electric vehicle fleet.
Key benefits for your business include:
Reduced reliance on fossil fuels and lower overall fuel costs.
According to the Winter 2023 All Costs report, the average price of petrol and diesel has gone up over the last 12 months, and although the cost of electricity varies dramatically from car to car, depends on location and energy supplier and differs from public charging to home charging, there’s still potential to make savings on fuel costs. Equally, fuel efficiency depends on driving style, road and weather conditions, as well as the size of the battery.
Improved sustainability and positive environmental impact.
With Electric Vehicles having lower CO₂ emissions, you can build the sustainability of your business.
Potential tax savings and financial incentives associated with EV ownership.
Salary sacrifice schemes are an attractive benefit when it comes to Electric Vehicles, as the current Benefit-in-Kind (BiK) rate for EVs is 2% for cars with under 75g/km of CO₂ emissions. The Government has outlined that BiK won’t increase above 5% until after 2028.
Enhanced employee satisfaction with a modern and eco-friendly fleet.
Keep your employees feeling happy, rewarded and motivated by giving them affordable access to a brand-new EV.
Overcoming Charging Concerns
Range and charging anxiety are still considered as potential challenges for EV drivers. Long distance journeys have to be planned out for fully electric vehicles or plug-in hybrids if these drivers want to utilise the electric part of the engine.
Costs to install electric chargers are another concern, whether at home or at business premises, with the average cost of a home charger installation being between £600 – £1,000, which should cover the EV charger itself and the labour costs. For businesses, the Energy Saving Trust reports the cost at anything from £1,500 up to £35,000, with the speed of charging being a significant factor in the price variation.
Under the Electric Vehicle Homecharge Scheme, grants are available from the Office for Zero Emission Vehicles (OZEV) but there’s certain eligibility criteria. If you have a small to medium business, grants are available for installing multiple EV chargepoint sockets. The grant covers 75% of the cost of the work, up to a maximum of £15,000 and you can get up to five grants but they must be across five different sites. This could be a beneficial enhancement in addition to home charging for your employees, especially if they have limited access to home charging.
Despite the challenges, there’s evidence the Electric Vehicle charging infrastructure is growing, as according to ZapMap: ‘At the end of January 2024, there were 55,301 electric vehicle charging points across the UK, across 31,445 charging locations. This represents a 46% increase in the total number of charging devices since January 2023’.
There are also strategies you can consider to optimise charging schedules and minimise downtime, these could include:
Charging infrastructure at work
A major investment, but if it’s fit for purpose now and for the future, it could be a beneficial enhancement, especially if they have limited access to home charging.
Renewable energy
Use renewable energy such as solar, wind or hydropower to charge your EV fleet and this could help to reduce your carbon footprint. Or utilise a green energy tariff, which is when the energy supplied is fully or partly renewable, and charging when green energy is more available – and cheaper.
Share or rent out your chargepoints
This could act as an extra source of income to help offset the cost of installing the EV chargers.
The importance of aftercare
Maintain chargers in a serviceable condition, ensure you don’t overload or install too many chargers in one location and sustain ample power capacity for your fleet.
Smart chargers are another way to manage energy consumption efficiently. These chargers optimise the charging process based on preferences your drivers set, as well as taking into account electricity pricing, the best time of day to charge and your battery level.
Your employees can set their preferences in the smart charger app on their phone or laptop, and then the smart charger will intuitively charge the car based on the credentials set.
Note: With the recent change in Government, the schemes and grants could be subject to change.
The Future of EV Infrastructure
In February 2023, the Government in power, made a pledge of £56 million of funding to increase the number of EV chargepoints across the UK. This is on top of the £1.6 billion already committed to the charging network.
Along with the new LEVI Capability Fund to help local authorities upskill for their chargepoint strategy and the On-Street Residential Chargepoint Scheme, the Government has invested over £2 billion to support the move to zero emission vehicles.
All of this funding is helping drive decarbonisation of the UK’s transport system forward, and should provide more certainty for your employees who have access to an EV via a car benefit.
In terms of charging speeds and battery range, Electric Vehicle technology is continuing to develop all the time, with so many motor manufacturers already producing electric models. The range of models available is increasing and new manufacturers are starting to enter the UK market.
The Government and Ofgem are also taking steps to deliver affordable, green power using the Electric Vehicle smart charging action plan. The policy paper details the aims of the plan:
- To make smart charging the affordable, convenient choice for consumers.
- To provide the right business landscape for electric vehicle smart charging products.
- To create an energy system ready for electric vehicle smart charging.
With the uptake of Electric Vehicles continuing to rise, the need for a convenient home EV charger that’s cost effective is becoming more important, and the market is responding accordingly, as we’re seeing improvements on the types of EV home-charger available. Read EV Home Chargers Guide – All You Need to Know to find out more about home charging solutions.
Note: With the recent change in Government, the strategy and funding could be subject to change.
EV Expertise from Car Benefit Solutions
The transition to an electric fleet will be different for every company, and it may not be right for your business to go fully electric today, but there’s multiple options for electrifying your fleet. Equally, the EV infrastructure plays a pivotal role in ensuring a smooth transition.
If you’re looking for a fleet partner that can help you make the transition to EVs, get in touch with us today.