Should I get charging points for my fleet?

Demand for plug-in vehicles is growing quickly in the UK, and business fleets are at the forefront of that change. Helped by new incentives for company car drivers, almost one in five (18.5%) new cars registered in 2021 was either plug-in hybrid or electric, according to the SMMT, with two thirds of that volume going to fleet and business users.

Workplace charging is important because:

• It can support electric pool cars, reducing grey fleet mileage
• It broadens the use case for electric vans, as these still have a limited range
• It is usually cheaper to use than public charging networks, so could cut travel expenses
• It provides convenient charging for drivers, especially if they have long commutes or can’t plug in at home

Workplace charging is important because:

• It can support electric pool cars, reducing grey fleet mileage
• It broadens the use case for electric vans, as these still have a limited range
• It is usually cheaper to use than public charging networks, so could cut travel expenses
• It provides convenient charging for drivers, especially if they have long commutes or can’t plug in at home

The Government recognises the importance of workplace charging for helping drivers and businesses to go electric, so there is financial support in place for fleet managers to install charging equipment:

• The Workplace Charging Scheme covers up to 75% towards hardware and installation costs, capped at £350 per outlet (so units which can charge two vehicles simultaneously qualify twice). Funding is available for up to 40 outlets and can be spread over multiple applications, with no requirement to already have plug-in vehicles on fleet.
• Businesses may be able to claim 100% First Year Allowance for charging points and until April 2023, so the full cost can be deducted from that financial year’s profits before tax. An enhanced 130% ‘super deduction’ may also apply to some of the costs incurred.

There are more than a thousand chargepoints eligible for the Workplace Charging Scheme. Prices range from between a few hundred pounds for the most basic units, to several thousand for the fastest ‘rapid chargers’, and installation costs depend on how close the chargepoint is to a suitably strong electrical supply. Additional costs can be identified during a survey.

Chargepoint installations have become a routine task for electricians, and the process is straightforward:

• Talk to us: LeasePlan has worked with thousands of fleet managers as they deploy electric vehicles. Our consultancy team can help develop a charging solution suited to your operational needs and answer any questions you have during the process.
• Check your supply: OZEV recommends businesses carry out an electrical survey before applying, to identify any additional upgrades. To qualify for funding, each outlet must be capable of supplying 3kW, even if two vehicles are connected to the same chargepoint.
• Get permission: Funding is available for leased premises, with the landlord’s permission. Otherwise, chargepoints are classed as permitted development and restrictions only apply for listed buildings, monuments and conservation areas, or installations within two metres of a public highway.
• Apply for the scheme: Applications for the Workplace Charging Scheme begin by filling in a form online. Eligible charging bays must be off-street, allocated to staff and fleet vehicles, and can only be at a home address if this is your primary place of work.
• Installation: To be eligible for funding, installation must be carried out by one of OZEV’s 9,000 authorised electricians, and they will also claim the grant on your behalf once the work is complete.

According to the latest Government figures, average UK-wide energy prices for businesses are between 15p and 18p per kilowatt-hour (kWh). For a typical mid-size electric car – such as the Kia Niro with its longer-range battery – that equates to between £9.60 and £11.50 for a full charge.

Some workplace chargepoints will log energy consumption by user, which means costs can be charged back to the driver. However, as HMRC doesn’t class electricity as a fuel, employers can offer it for free without this being taxed as a benefit – even if the employee is just a passenger.

Funding is available for an almost bewildering choice of chargepoints, which means fleet managers can tailor workplace charging networks to the needs of their vehicles. The most important factors to consider are:

• How long will your vehicles be parked? Charging rates are measured in kilowatts (kW), and the scheme provides funding for units offering between 3.5kW (adding 12 miles per hour plugged in) and 62.5kW (up to 250 miles per hour). Vehicles parked for several hours at a time should only need slow (3.5-7kW) AC chargepoints. The fastest DC ‘rapid chargers’ are significantly more expensive, and usually only required where vehicles have short turnaround times between shifts.
• Do your electric vehicles have the same charging connector? Compatibility issues are disappearing. Most new cars and vans, whether they’re plug-in hybrid or electric, have the same Type 2 connector and AC chargepoints will either have a tethered cable to match, or a socket for drivers to bring their own. Socketed units can help where the fleet includes vehicles with different connections, similar to plugging different devices into the same USB port.
• What usage data do you need? Chargepoints must have a data connection to be eligible for OZEV funding, and this means some can be integrated into a back-office system to monitor usage. Units can be left on ‘open access’, or locked with keys, cards or tags – the latter enabling usage to be assigned to individual drivers and preventing unauthorised access. LeasePlan can provide solutions for each use case.
• Is your electrical supply future-proof? With renewed company car incentives, a wider choice of vehicles and deadlines for phasing out petrol and diesel engines, plugging in will quickly become the norm. It’s worth considering your fleet’s future charging requirements during the electrical survey and, where possible, installing some headroom for additional chargepoints later on.

LeasePlan is one of the UK’s biggest vehicle funders, and a founding member of the Climate Group’s EV100 electric fleets initiative. We’ve worked alongside fleet managers from a wide range of organisations as they’ve switched to electric, and we recognise the importance of developing a workplace charging solution tailored to your needs. To discuss your next steps, please contact us.