Commercial EV Charging Costs – A Guide

Posted 8th April 2024

Moving towards a greener future, the UK government has laid down ambitious targets to achieve zero emissions from vehicles by 2035. At the core of this environmental shift is the push towards widespread adoption of Electric Vehicles (EVs). This transition, however, is not just about switching from petrol to electric vehicles; it hinges significantly on the development of a robust and efficient Electric Vehicle charging infrastructure. For businesses, the shift represents both a challenge and an opportunity for increased revenue and efficiency amongst their fleets.

The installation of commercial EV charging points is rapidly moving from a supplementary service to a core necessity for businesses across the UK. With the government’s objective that by 2030, 80% of new cars and 70% of new vans sold in Great Britain will be zero emissions, the demand for accessible and efficient charging infrastructure is set to skyrocket. This article has been written to help you understand the financial expectations of setting up commercial EV charging stations. From initial surveys through to installation costs and ongoing operational expenses. We also cover income potential and available government incentives. The goal of this article is to empower you to make informed decisions about investing in EV charging infrastructure and future proofing your business.

The Cost of Commercial Charge Points in the UK

Achieving sustainable transportation means urging businesses to adapt by installing commercial EV charging stations. These installations are not just an infrastructural upgrade but a forward-looking investment to a greener future. The cost of commercial charge points in the UK varies. AC charger installation is easier to determine as there are less variables. AC EV charger installation can start from £3500-5000+ per install. For DC this is more dependent on the power output of the charger, as smaller DC’s (40-60KW are far cheaper than 180+KW DC Chargers). However, no EV installation project is the same so it’s important to understand these costs will vary depending on your requirements.

Installation Costs for Commercial Electric Vehicle Charging Stations

The initial setup of commercial EV chargers involves several cost components. Broadly, installation costs can range from £2,000 to six-figure sums, depending on the complexity and requirements of the project. Key factors affecting these costs include the charging speed of the EV chargers—slow (3kW), fast (7kW or 22kW), and rapid (up to 150kW)—and the number of chargers needed to charge your existing fleet now and in the near future as your business grows. As expected fast and rapid chargers, especially DC chargers, command higher prices due to their advanced capabilities perfect for bigger commercial vehicles. Rapid Chargers over 180KW will cost more to install than smaller chargers around 40-60KW.

The costs of commercial electric vehicle charging stations

 For a business to install a charging station for electric vehicles, the cost is on average around £1000 to £1500 +VAT per charge point. Of course, this price will differ depending on the number of chargers that are required, the model, the communication requirements, and other considerations. The most notable cost factor is the power output, with higher power chargers comes higher rated supplementary electrical equipment which can quickly increase costs. When looking at this change for a business, you must consider the entire charging infrastructure and not just the charge points alone. 

The hardware costs of charge points

 This is the cost associated with the equipment used for the physical charge point. The price will depend on the power you want, and the different features included. The quality of the build will also have an impact on cost. Using a fully accredited and licenced electrical contractor like ElectrAssure is highly recommended. Our time served in industry allows our hardware agnostic approach to ensure the best unit(s) selected for your specific business requirement.

Commercial installation cost

 The installation costs will include the labour costs for experts to fit the charge points on site. There are different options that will affect the final cost of installation, such as wall-mounted chargers versus concreted bases. The number of  chargers required and the complexities of how the electricity supply from the grid will reach the charge points is an important consideration too. 

Factors Influencing the Installation Cost

There are various things that might affect the overall cost of installing commercial EV chargers. The choice of chargers you require is an important consideration. With multiple charging options ranging from slower workplace charging to fleet DC rapid chargers. Each brings its unique price tag, influenced by the technology it harbours and the charging speed it offers. Moreover, the installation terrain itself—the physical and electrical infrastructure required—can markedly sway the cost. It’s not merely about the charger; it’s about fitting it into the existing landscape in a manner that’s both functional and financially viable.

Grid reinforcement is a cost often overlooked

 For some businesses, the existing infrastructure suffices. Yet for others, a significant portion of the budget must be allocated towards enhancing the grid’s capacity to accommodate the new demand. This grid reinforcement, although unseen, is crucial for a seamless integration of EV charging into a business’s operations.

You might be able to install commercial charging stations on your premises within upgrading your current supply, but if you need to increase capacity to your site. At ElectrAssure our team will work closely with you to understand your growth potential and plan for the future. It’s important to be prepared that when the time comes and you want to increase the charging capabilities at your site it will incur future investment.

Are there any on-going costs for EV chargers on business premises?

 Charge points will require regular maintenance to ensure they remain in top condition, and this is a cost that should be considered prior to installation. Our maintenance teams are on hand all year round and are fully committed to ensuring your fleet downtime is minimal.

Operational Costs and Management Systems

After installation, operational costs come into play. These include electricity consumption, maintenance, and the operation of Charge Point Management Systems (CPMS), which are crucial for managing the charging network efficiently. CPMS costs can vary depending on your requirements. For example, ElectrAssure offer 3-5 year maintenance packages. Other variable costs may include the number of card/user accounts you require.

Income and Profit Potential for Businesses

The installation of EV chargers not only supports environmental goals but also presents a new revenue-generating opportunity for businesses. By leveraging government grants and optimising the charging infrastructure, businesses can explore significant income and annual profit potentials per charge point.

Offering public EV charging points has the potential to generate additional income for businesses. This is where a set usage fee covers the cost of charge points. A fee is placed on the charge point that matches the operational costs, with an additional margin that pays back any hardware and installation costs with a profit. 

Are there any financial incentives for a business to install EV charge points?

There are several EV Grants and Incentives introduced by the UK government to help businesses install EV charging stations on their premises. The Workplace Charging Scheme offers up to £350 per charger, with a maximum of 40 chargers on one site. This can save up to 75% of the costs for businesses. The cost of a commercial EV charger is around £1500 +VAT, including installation etc. When you factor in the contribution from the government, this lowers the cost to around £1150 +VAT.

 To be eligible for the Workplace Charging Scheme, a business must:

• Have off-street parking
• Have a clear outline of why the business needs electric charging points
• Have charging points installed by an OLEV-approved supplier

 The scheme is not available for retail outlets, hospitality venues that have guest parking available, or commercial car parks. Once eligibility is confirmed, a voucher is issued for an OLEV installation, and the business has four months to complete the installation of the new EV charging points.

Incentives for fleet operators

Small and medium-sized businesses (SMEs with 249 employees or less) are entitled to £15,000 OZEV grant funding per building/site or 75% of installation costs. There must be a minimum of five parking bays that are dedicated to EV charging in order to qualify. Funding is capped at £500 per parking bay for future infrastructure needs or £850 per parking bay where there will be a working electric vehicle charging point. Charge points must be for exclusive staff or fleet use to qualify. You can claim up to 5 grants in total, but each claimed grant must be for a different site.

• To qualify for this infrastructure grant, applicants must be:
• Registered with Companies House or be VAT registered.
• There must be at least one working charging station already in place after the first round of funding.

ElectrAssure offers intelligent EV charging solutions and Charge Point Management Systems for businesses looking to transition and install EV infrastructure on-site. As the growth in electric vehicle use increases, an expansion of charging points is necessary. By future proofing your business means you can also benefit from it in terms of employee morale and retention, effective fleet management, reduced costs on fuel. Along with these benefits, Government Grants and Incentives help to make this transition as easy as possible upfront making your move to electric a sustainable long-term choice.