Industry Leading Charging Services
Electric Vehicle Charging @WORK WHITEPAPER © Connect Consultancy 2016 | www.apielectrical.co.uk | www.apiev.com | contact: info@apielectrical.co.uk
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CONTENTS 3
3 | Plugin Hybrid & EV cars registrations Surge in UK - 2012 - May 2017 - workplace implications  
4 | The need for a business charging
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infrastructure for staff and visitors
5 | Fleet EV Sales - Key Considerations - A
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Must Read for Fleet Managers
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6 | Benefits of Providing Business EV Charging - Misconceptions are Dispelled.
7 | Confidence in Change & Growth - Trialling and Testing EV Charging to prove effectiveness and justify further investment
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Electric Car Market Statistics 97,000 Plug-in Car & Van Gov Grant Claims by March 2017
EV sales double in 2016 and 10 TIMES Forecast from 2014
12,518 UK Public Charge Points Available
The 10 best-selling brands in the UK now offering an EV as part of their model range.
BACKGROUND During 2015 the sales of ultra-low emission vehicles in the UK continued the upward surge to a record breaking 288% growth over the previous year, already certain models have established a strong presence on Britain’s roads, such as the top-selling Nissan Leaf, the Mitsubishi Outlander PHEV, BMW i3 and Renault Zoe. Plug-In Hybrids take EVs Mainstream The Introduction of Plug-in hybrids have quickly taken an increasing market share - A trend that looks certain to continue, (but with even greater effect), as car manufacturers realise the opportunity of very attractive incentives: Purchase Grants, 100% Benefit in Kind and Salary Sacrifice - Ownership / Leasing Incentives. These - plus the low running and maintenance costs has meant a rapid and continual influx of new plug-in models to their existing portfolios. CAUSE & EFFECT ~ Where Do EV Drivers Charge? With increased choice, incentives and demand for EVs comes the need for a suitable charging infrastructure and with it a shift in the mindset of businesses and home owners. Cars are parked for over 90% of the time whether at home or at each destination, including @work. Plug-in drivers fully charge cars typically at home - but crucially expect to ‘top-up’ at every available destination while the car is inactive and parked.
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The Need For a Business Charging Infrastructure for Staff and Visitors
CHARGING BEHAVIOUR Charging an electric car has more similarities in concept to lap-top and mobile phone charging than fuelling a combustion engine vehicle at a petrol station.
Because the cars have much larger batteries than computer devices, even more consideration has to be given to the time it takes to fully charge. This creates an ‘opportunity charge’ mentality - where the drivers (and their car’s sat navs, that form part of a sophisticated charging networked ecosystem, are always on the look out for any opportunities - to ‘top-up’ their charge. With the exponential rate of EV vehicle growth, steadily-improving mileage range - and the time factor in charging them, the need for EV charging facilities plays an integral and vital part in the EV eco-system. Put simply… EV drivers need more places to charge and they will spend most
time
charging - either @HOME or @WORK.
@DESTINATIONS 10%
@WORK 30%
@HOME 60%
Tesla Model S (pictured left) A five seat luxury EV capable of going 0 to 60 in 2.3 seconds. EV and Plugin-Hybrid EV (PHEV) sales using projected figures from DfT (for all registered new cars) are also moving fast… From 1.3% to 7% in 3 Years. The exponential growth of plugin cars is set to continue with Government incentives committed through to at least 2020.
# Sales ~ # Drivers ~ # Employees 7% of all new cars with plugin requirements registered by 2020 would mean approximately 1 in 15 employees driving to work would expect charging facilities. Before that time comes businesses need to begin to implement charging @work with a projected estimate per ~ 1000 staff of 8 EV drivers (2016) 18 per 1000 (2017) up to 97 per 1000 by year 2020 - This means 10% EV market share - or put another way - 1 in 10 employees driving plugin cars and requiring and expecting to charge @work.
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FLEET EV SALES Key Considerations
Car ‘Sales’ is almost a misnomer in itself… With 86% of all new cars registered being part of a finance plan. 30 Million registered cars in the UK are made up of 51% private and 49% company-owned fleet cars.
Fleets are typically leased and have a significantly shorter lifecycle than privatelyowned cars. While the average private car is 7.5 years old, 85% of leased company cars are under 3 years old. This means that fleet cars drive the private market (leased cars are resold on to the private second-hand market). 72% of EV and Hybrid Plugins were registered to business fleets in 2016 - An increase of 45% on 2015. Plug-In cars are increasingly attractive to businesses due to their ultra-low running and maintenance costs and similarly for their numerous associated financial incentives, such as the WCS Workplace Charging Scheme offering a discount of £300 per socket - installed at a business (up to 20 per location). •
The rapid adoption in fleets is a strong barometer for the direction of how the private market will unfold in 2-3 years time.
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More importantly however, this unpredicted growth in demand isn’t factored into the DfT sales projections detailed above.
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Based on the current fleet sales progress reported, it is possible to project EV company car sales forward for the next 5 years.
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Based on this projection, by 2020 approximately 20% of all fleet sales will be either a Pure BEV (Battery EV) or PHEV (Plugin—Hybrid EV.
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This equates to 1 in every 5 company cars sold in the UK being a ‘pluggedin’ car.
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To handle this market shift, businesses will need to incorporate EV charging infrastructure as they adapt their fleet.
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As Battery technologies and range improve over the next few years BEV cars will re-emerge from paving the way for hybrids to being the norm.
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Charging Up Your Business
The Benefits: • • • • • •
Tax Rewards Cost Savings Employee Benefits CO2 FootPrint Positive Brand Image PR and Connectivity to EV
Business TAX %
Employee TAX %
Benefits
Benefits Cost-effectively support employees
Make Your Business eligible for enhanced capital allowances • •
Enhanced Capital Allowances Significantly increase the amount you can write off against yearly taxable profits.
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Standard allowance 8 -18% (dependent on fleet emission levels) Petrol / Diesel Cars
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versus
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Fuel cost savings £2000 per year
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Electricity cost to business approx £150 per year (If provided to staff for free).
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When buying a company car… Petrol / Diesel Cars are taxed 20% (benefit-in-kind tax)
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• 100% capital allowance write down for Plug-in EVs
Equivalent to an 8.5% yearly pay rise
• versus 8% (benefit-in-kind tax) for PHEVs
5% (benefit-in-kind tax) for using fleet EVs
COST SAVINGS Petrol / Diesel
Vs
Electric / PHEV
EV Charging helps businesses reach environmental targets Petrol Vehicle Fuel £2,250/year Road tax £300 Maintenance £300 BIK £6,000 8-18% capital allowance
Electricity used to charge EVs and the reduced CO2 created can be discounted from total energy consumption and significantly lower any carbon tax payable.
Electric Vehicle Fuel £150/year Road tax £0 Maintenance £150 BIK £1,500 100% capital allowance Purchase grant £5,000
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CONFIDENCE IN CHANGE & GROWTH Electric cars are now an accepted and major part of all car manufacturer’s R&D and planned new releases. With this rapid evolvement and change - EV charging @work can be scaled to allow trialling and testing to prove effectiveness and justify further investment and rollout as demand grows.
As demand for EV Charging grows…
…Businesses with a lack of charging facilities could face a negative impact… Reports from USA already show how friction is caused by insufficient charging, as coworkers and visitors unplug other’s cars causing disputes and ill feeling.
Testing - Planning - Scaling - Revenue and Expenditure Adequate EV charging facilities are going to become as integral to businesses as wi-fi signal and accessibility is today - Similarly the access afforded EV Charging and how it is costed, scaled and managed… Implementation of EV parking and charging access requires planning and managing. For example smartphone access to charging facilities for employees and accommodating visitors with temporary access codes. Revenue and Expenditure is another key consideration as is energy cost factoring or recovery. ‘Fee - or Free’ charging for customers or variations (similar to wi-fi access now)… Limiting charge time allowance per bay to help accommodate demand from other drivers needing a charge - to implementing charge fees for overstaying - by allowing free top-ups - with fees incurred per hour above a set limit. Back-end management solutions and integration - allowing even a centralised network over multiple sites nationally for larger businesses. More EVs require more charging bays - EV Chargepoints with a load balancing facility becomes an important factor - to allow multiple cars to charge from the available supply - without the risk of over-loading and tripping. Back-end management extends to monitoring employee use: In the near future (as EVs market share grows) - employee’s EV B.I.K taxation will not be overlooked so favourably by HMRC and so a managed solution that tracks employee’s benefits through charging @work will calculate for annual reporting of benefits in kind (tax form P11D).
info@apielectrical.co.uk | 0161 327 2092
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