EV Charging: How It Works, How Much It Costs and the Financial Support Available (1/2)

Electric vehicles are here to stay and with boosted government incentives, ambitious diesel-reduction targets and a wider variety of available chargers than ever, now is the time to seriously consider investing.

Electric vehicles are all the rage. In fact, purchases have increased exponentially over the past few years, with last year seeing the largest annual increase in registrations to date. More than 175,000 electric vehicles were registered in 2020, showing a 66% growth since 2019.

With every new trend comes a new revenue opportunity. This article will explain how electric vehicle charging works, how much it costs and the types of financial support available for businesses looking to invest in EV charging facilities. 

What types of EV charger are available?

EV chargers are available as rapid, fast and slow models. Slow charging (up to 3.6kW) takes approximately 6-12 hours, fast charging (7 - 22kW) takes approximately 3-4 hours and rapid charging (43 - 50kW) takes around 30 minutes. 

Electric vehicle chargers are either AC (alternating current) or DC (direct current). An alternating current flows both ways, whilst a direct current only travels one way. All electricity from the grid is AC, converting to direct current inside plugs before being used by appliances. The same process occurs for EV charging; the majority of EV chargers are AC, meaning that the current is converted to a direct current inside the car using an internal converter. Some rapid car chargers are DC, which is partially why they are able to charge so quickly, as the conversion process occurs pre-charging. 

DC chargers are usually larger and more expensive due to this, often available for the highest range of rapid charging, 50 kWh.

How Much Do EV Chargers Cost and Is Support Available? 

The cost of a commercial EV charging point can cost somewhere between £1,000 and £2,500 +VAT, although this is also subject to extra install costs, depending upon your particular needs and the site in question. Slower chargers are generally cheaper, making them the most common type within small and medium-sized businesses.

There is also government help available to business owners seeking out EV charging. Since 2018, the government has been running the Road to Zero scheme, aiming for 70 percent of UK-produced vehicles to be low-emission EVs by 2030, with the sale of new diesel vehicles also prohibited by this time. Over £1.8 billion has been invested to aid the green economy through zero-emission vehicles. 

As part of this push towards low carbon travel, the government also launched the Workplace Charging Scheme (WCS), which rewards businesses for investing in EV charging facilities with a £350 contribution for every port on up to 40 sockets across all sites per business (maximum £14,000 total per organisation). 

Earlier this year, the government invested a further £50 million boost to the scheme, stating that the increase “will mean that small accommodation businesses, such as B&Bs can benefit from the funding, helping rural areas.” 

With the government’s commitment to halting diesel vehicle production within the next thirty years and increased funding being directed at low carbon transport options, it’s fair to say that electric vehicles will someday outnumber petrol and diesel models. Investing in EV charging ports now means that you will attract new customers seeking out EV charging and benefit from their boom in popularity before more charging stations are built. You can also do so knowing that these facilities will remain popular, even as more stations are built, thanks to the scale of government targets.

If you are interested in cutting your carbon emissions more generally and saving money in the process, GridDuck can help. We offer hospitality businesses with a way of monitoring, automating and controlling their energy usage. To find out more, schedule a quick and informal chat with Miles today.