Electric vehicles aren’t yet compulsory, but they soon will be. For many businesses, it might mean as few as two more replacement cycles of their fleet vehicles. Is your business EV ready?
Although the deadline for the ban on sales of petrol and diesel vehicles has been delayed until 2035, 80% of new cars and 70% of new vans sold in Great Britain are set to be zero emission by 2030, just six years away.
If you aren’t already planning your switch to an EV fleet, now might be the time to start if you want to avoid the rush. However, it’s important to bear in mind the implications for your business beyond the make and model of the vehicles; depending on the size of your operation, you will also need to consider whether your business has the infrastructure to support it. Below, we identify seven points that will need your attention before you make the leap to EV.
Before we get to the seven points, let’s first explore some of the benefits of making the switch to EV sooner rather than later:
- Clean Air Zone charges – Clean air or low emission zones are now in place in many UK cities: Bath, Birmingham, Bradford , Bristol, Portsmouth, Sheffield and Tyneside (Newcastle and Gateshead) all have designated zones where vehicles that don’t meet the clean air zone minimum standard have to pay a charge to drive through them. The charge ranges from around £8 per day for cars, vans and taxis to £50 for buses, coaches and HGVs.
The charges in London are higher. The Ultra Low Emission Zone (ULEZ) charge is £12.50 per day for vehicles 3.5 tonnes and below that do not meet emissions standards or are not exempt. For lorries, vans or specialist heavy vehicles over 3.5 tonnes; and buses, minibuses and coaches over 5 tonnes; the Low Emission Zone (LEZ) charge ranges from £100 to £300 per day for vehicles that don’t meet the emission standards. - Company car tax benefit – Until 2025, electric vehicle drivers are being taxed on just 2% of the list price while the tax for non-electric vehicles can be as high as 37%. Businesses can also deduct the full cost of buying or leasing an electric vehicle from their pre-tax profits, resulting in a lower tax bill.
- Reduced running costs – The cost-of-living crisis and associated rising energy costs have cast doubt on whether EVs are cheaper to run than cars with combustion engines; however, fleet management group Rivus reports that “overall service, maintenance and repair (SMR) costs for fully electric light commercial vehicles (LCVs) are 20% lower than for internal combustion engine (ICE) equivalents, while the service costs are 65% lower.”
- Enhanced environmental credentials – Switching to an EV fleet can demonstrate a business’s commitment to sustainability to its customers, enhancing its reputation, as well as help it deliver on its sustainability goals.
7 things you need to consider when planning the switch to an EV fleet
We’ve outlined above some of the reasons why switching to an EV fleet makes sense, but the transition will require careful planning. It’s advisable to seek expert advice from a utilities consultant who can guide you through the process.
Whether you are thinking about providing charging facilities for a handful of company cars or a full delivery fleet, there are several important factors that will need to be evaluated to ensure your charging infrastructure is able to meet the load demands of an EV fleet:
- On-site power availability – depending upon your type of businesses and premises, your existing electricity supply may not be sufficient, meaning an upgrade of existing cables and meters could be required. For example, you could have a smaller low voltage supply needing upgrading to a larger high voltage connection involving a substation.
- Charging speed – standard chargers will charge a car in about eight hours, and a van or a truck could take 12 hours or longer. By contrast, ultra-fast chargers can take as little as half an hour but with a pay-off of shorter battery life.
- Charging point compatibility – unfortunately, not all EVs are the same. Different manufacturers have different connectors and charging standards; so, depending on the assortment of vehicles in your fleet, you may need to cater for multiple charger types.
- Fleet size – consider how many vehicles might need to be accommodated at any one time.
- Scalability – make sure that any new charging infrastructure and electricity supply not only meets your businesses needs now but can be scaled up as your business changes or grows.
- Management and maintenance – as well as managing your charging station on a day-to-day basis, it’s important to ensure a repair and maintenance plan is in place too.
- Regulations – safety of, and accessibility to, charging infrastructure will need to be carefully managed.
At Connectus Utilities, we guide you through every step of your transition to an EV fleet, supporting you with:
- Development of your charging infrastructure strategy
- Site feasibility assessments and surveys
- Hardware selection, ground works and installation
- EV Software analytics solution and payment platform
- Ongoing maintenance, customer support and management
- Funding model choices
We can even advise on your company fleet strategy development, vehicle suitability and driver training.
Get in touch with us today and see how we can help you transition your fleet.
