8 minute read
The drive towards a green mobility model has created a future-proof revenue opportunity for elecrical contractors
from ECN June 2021
OPPORTUNITY NOx
The drive towards a green mobility model has created a future-proof revenue opportunity for electrical contractors.
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The cars we drive and the fuels we use are changing – rapidly. With an eye on climate change, the UK Government will ban the sale of new petrol and diesel vehicles by 2030. While the news has been challenged by old school motorists, it’s a positive development for the electric vehicle (EV) industry – and electrical contractors eager to break into a profitable and rapidly-expanding new market.
Green mobility is the future of transport and the number of EVs on our roads is rising sharply. But it’s accepted that the UK’s charging infrastructure needs to expand significantly and that ‘range anxiety’ is still a real and uncomfortable emotion for EV motorists.
The latest statistics, compiled by Zap-Map – a continually-updated, UK-wide map of charging points – show that the UK urgently needs more chargers to cope with increasing demand.
As of May 2021, there were 510,000 electric vehicles registered in the UK. And despite the pandemic, there were an astounding 175,000 EV registrations in 2020. This represented a 66% increase on 2019 data, a figure that is even more impressive when you consider the overall new car market declined by 29.4% last year, according to the Society of Motor Manufacturers and Traders (SMMT).
But while there are more than half a million EVs on our roads, there were just under 24,000 charging devices in May.
Installer in the field
Incentives are driving the EV revolution
“UK motorists are rapidly embracing the switch to EVs and why wouldn’t they, given the grants available, tax benefits, operational, maintenance and fuel savings to be had?” explains Karl Anders, Managing Director of innogy.
“But to keep up with the pace of change, the UK urgently requires more chargers in the ground so drivers and businesses can keep moving and the momentum of the EV switch doesn’t flounder.”
The need to significantly grow the UK’s charging infrastructure presents a new and valuable business opportunity for the electrical contracting industry. Crucially, entering the EV market as a charging point reseller gives forward-thinking electrical businesses an opportunity to offer an exciting new product and service that is future-proof. innogy, a division of European electric utility powerhouse E.ON, is supporting the increasing number of electrical contractors that have already spotted the long-term potential within the EV arena.
Karl says: “The Government has made funds available to accelerate the large-scale rollout of the EV charging infrastructure and that’s driving the installation market.
“With sales of new fossil fuel-powered vehicles set to end this decade, more businesses are moving towards electric fleets and encouraging their staff to drive an EV. And then you have property landlords that are looking to make their customer experience better and more sustainable.
“These are just two potential customer groups that will require a lot of EV charging points now and into the future.
“Some electrical contractors may have customers that are seriously looking at EVs already. Becoming a reseller of high-quality technology gives the contractor another profitable service they can offer at exactly the right time.”
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Vehicle charging using an innogy charger
Market access via a reputable partner
innogy was one of the first companies to pioneer eMobility technology. Since 2008, it has been masterminding large-scale charging installations in the UK and across Europe through a network of reliable partners. innogy is the trusted eMobility partner for organisations that include DHL, Vodafone, Aldi, Ford, Porsche, Renault and VW.
The company is unique in the charging point market. As well as providing state-of-the-art EV charging hardware, it has also developed its own eOperate software that allows charging point owners to run their network at optimum performance.
“The beauty of the reseller opportunity is that an installer won’t just put a charger in the ground and move to the next job,” Karl points out. “There are ongoing monthly revenue opportunities through charging software technology and network management.
“It’s a future-proof model and the fact that our products are flexible and adaptable means they can be matched to a reseller’s level of competence or experience in the EV field.”
Training electrical contractors for EV
Once a company has been identified as a viable charging point reseller and installer, innogy provides the training to equip the electrical contractor for success in the EV field.
And this comprehensive training package is free.
“Once we’ve checked the electrical contractor meets the requirements of becoming an EV reseller and will be able to deliver the volume of sales that our business is familiar with, it’s a streamline process to train them for business installations,” explains innogy Technical Manager, Luke Williams.
“The first step for a prospective reseller and installer is to undertake our AC or DC training. This is currently taking place on MS Teams but as restrictions ease, we will resume face-to-face training.
“The training allows them to understand the products we offer, the installation requirements, how to configure them and how to successfully commission them.
“All partners must also complete a City & Guilds Electric Vehicle Charging course which is mainly theory based but builds on the installation expertise and insight we provide.
“Gaining the City & Guilds qualification is crucial because it allows the installer to claim installation grants from the Government’s OZEV (Office for Zero Emission Vehicles) scheme.”
And that’s the beauty of the current EV revolution.
Grants to support a smooth EV transition
Not only is the Government incentivising consumers and fleet operators to switch to ultra-low emission vehicles via grants and tax benefits, it’s also supporting the businesses that are providing the early market products and skills to expand the UK’s EV infrastructure.
OZEV, previously known as the Office for Low Emission Vehicles (OLEV) and connected to both the UK Department of Transport and the UK Department of Trade, Energy and Industrial Strategy, has ring-fenced £900 million to position the UK at the global forefront of ultra-low emission vehicle development, manufacture and use.
Once an innogy-trained reseller has received their certificate of qualification and letter of accreditation, they can register as an OZEV-authorised installer and apply for Government grants via the Workplace Charging Scheme (WCS) or Electric Vehicle Home Charging Scheme (EVHS).
“Once a business has chosen an OZEV installer to install their charging point, the installer can apply for a Government grant on the customer’s behalf,” says Karl. “The installer can then invoice the customer for the price of the installation – minus the grant amount.
“The scheme, which offers up to £350 per socket (and up to 40 sockets per company) towards the upfront purchase or installation fee, rewards EV customers for their commitment to a green mobility future. And it ensures installer business remains buoyant because the Government is offsetting some of the customer’s initial costs. It’s a win-win situation for all parties.”
As well as training, innogy can provide its resellers with expert guidance on how to manage the daily operating requirements of the charging point, encompassing the optimisation of charging hours and tariffs – on commercial premises.
Recognising that electrical contractors joining the EV market may need a little extra support when they first enter the installation field, innogy operates an ‘open door’ policy around its training. It also grants its accredited resellers access to a reseller partner portal that contains a raft of support and marketing material.
Luke says: “For the first couple of installs, I always make myself available to give guidance during the process – if our new partner feels its required. We don’t just leave the installer to fend for themselves.
“We recognise the importance of having a competent network of resellers representing the innogy brand, that can deliver at volume and maintain the very highest standards of customer service.
“I’m always available to oversee any stages of the customer delivery and fitment process or to answer any questions the reseller may have.”
Capitalising on a new mobility trend
The rapid development of the EV market is showing no signs of abating and has created a perfect storm for ambitious electrical contractors.
Climate change awareness is driving societal change, Government incentives and policy are supporting the shift to green mobility, and today’s hardware and software solutions are formidable.
But even more crucially, the EV revolution provides a genuine opportunity for the electrical industry to diversify, capitalise on a new mobility trend and embrace a fresh revenue stream with longevity.
Innogy, innogyevcharging.com
Training is taking place on MS Teams
