2 February, 2024

Cost Analysis of EV Charging Stations for Businesses

EV charging stations are in high demand and many businesses are considering whether it is worth installing them for their fleets, employees and workplaces. However, the cost of installing EV charging stations is significant. If you’re hesitant to install EV charging stations for your businesses, we’ve put together a comprehensive cost analysis of EV charging stations for businesses, detailing the initial and ongoing associated costs, as well as exploring the return on investment and benefits to a business. 

Why Is It Important to Consider All Costs of EV Charging?

With the average cost of a commercial EV charging station in the UK costing between £1000 to £1,500, before any applied grants or financial support, installing EV charging stations is not cheap. They can be a significant investment for many companies, especially those that are considered SMEs (small and medium-sized enterprises). This is why it is so important to consider all the costs of EV charging before taking the plunge, especially the costs that go beyond the installation.

What are the Costs Associated with EV Charging Stations? 

The costs associated with EV charging stations for businesses go further than the initial installation costs. Make sure you’re aware of the additional and ongoing costs associated with EV charging. 

The Initial Investment

The initial investment in EV charging stations is what many predominantly look at. Usually a significant upfront cost, there are many other aspects to be aware of.

Equipment Costs

Charge point equipment will include the hardware, cables and connectors needed. There are various types of EV charge point models on the market, all of which provide different charging speeds, aesthetics, number of sockets and other features. You can choose from AC or DC charging stations and models range from 22kW to 350+kW. The type you choose and how many you install will largely influence your overall equipment costs.

Installation Costs

You will need to employ a professional EV charge point installer to install your EV chargers. Installation costs will include expenses associated with site preparation, electric work, labour, as well as any infrastructure upgrades, such as trenching, needed to the national grid to allow for the charge point install. 

Wheel Stops & Parking Bays 

Businesses may also want to add additional elements to their EV charging bays to protect the EV charging equipment as well as promote the bay for EV-only use. Installing wheel stops and barriers, painting bays and applying signage will all incur additional costs. 

Compliance

Depending on the site, some businesses may have to obtain certain permits to ensure they remain compliant with local legislation and regulations, such as if the building is a listed property or within a conservation area. It is therefore important to factor in any costs associated with this when making a cost analysis of EV charging stations. 

Operational Costs

Operations costs are the recurring costs associated with the running of the charge points. It’s important to note that for as long as your charge points are in operation, these costs will incur.

Electricity Costs 

Your charge points will use electricity to operate so it is recommended to be aware of the predicted rise in energy usage once they are up and running and the details of your energy tariff, including peak demand charges. You can therefore estimate your electricity costs which will be vital when deciding whether to go ahead with installing EV charging stations for your business.

Maintenance Costs 

To ensure their ongoing safety and efficiency, your EV charging stations will require annual maintenance checks and also may need additional maintenance to fix any issues from time to time. These are ongoing costs that need to be considered, especially if you are planning on installing multiple charge points at your business. Any repairs and spare parts will incur additional costs and it’s always recommended to plan for any potential unexpected costs when it comes to technology. We recommend businesses take out a reliable maintenance contract for your charge points that provides ongoing maintenance and cover for repairs and faults. 

Our inCharge Maintenance Service is used and trusted by some of the UK’s leading organisations. 

24/7 Monitoring

Some businesses may choose to take out a monitoring contract for their EV charging stations which includes 24/7 remote monitoring of any issues or problems with the charge points. There is nothing more frustrating for EV drivers or businesses than out-of-use charge points, but a remote monitoring service will be able to instantly identify issues and fix them remotely whenever possible. Most of the time any issues will be solved in a matter of minutes with users and charge point owners none the wiser. If they can’t be fixed remotely, the monitoring provider can organise a repair and update the business on the issue so that it can put the relevant actions in place i.e. block off the charging bay. 

Management Software

Management software is not essential for EV charge points, but many businesses do consider it a good option, especially if they wish to supply public, fleet or workplace EV charging, have multiple charge points and wish to use them as a profitable revenue stream. Management software will be an additional cost on top of the charge points and is usually paid for on a subscription basis. 

Financial Incentives

With the UK aiming to be net-zero by 2050, there are several incentives available to encourage businesses to install and use EV charge points, some of which have significant financial benefits. 

Government Incentives & Grants

The UK government has a selection of incentives and grant schemes to help offset the initial costs of EV charge points. These include the Workplace Charging Scheme (WCS), the Electric Vehicle Chargepoint Grant and the Infrastructure Grant. These grants can currently save businesses up to £15,000 on the initial installation.

Utility Programs

Many utility companies also have special tariffs in place to encourage businesses to install EV charge points. These are designed for those with EV charging stations on their sites and can provide cheaper off-peak charging rates at certain times. These are worth researching to understand the impact on your potential electricity costs. 

Return on Investment (ROI)

Understanding your ROI for business EV charge points is key for a cost analysis.

Calculating ROI

Calculating your ROI and the payback period is key for understanding if installing EV charge points would be beneficial to your business and when you will start to see the return. Take a look at the potential financial gains by considering factors such as the increase in customer traffic and revenue from charging fees. 

Recurring Revenue Streams 

Choosing whether you want to turn your EV charging stations at your business into a recurring revenue stream will have an impact on your ROI. Allowing people to use your charge points for a fee will create a recurring revenue stream that will turn your initial investment into a profitable channel of income. There are many monetisation strategies to take on so make sure to do some research into which one is right for your business. 

Future Costs

These costs may not come into effect at first, but they are still important to take into account when completing a cost analysis of EV charging stations for businesses. 

Scalability

There may come a time when a business wishes to expand its EV charge point system, adding new charging stations to the site. Planning for future scalability is important and knowing whether the current charging infrastructure can accommodate additional EV charge points, especially as the uptake of EVs increases and charge point demand rises. 

Technology advancements 

Considering the evolution of technology is also important when evaluating the success and longevity of a business’s investment into EV charge points, as new advancements may impact your current set-up. Planning for future upgrades would be sensible in the long term.

What are the Benefits of Investing in EV Charging Stations for Businesses?

• Improve Customer Loyalty
• Provide Better Employee Benefits
• Improve Company’s Sustainable Image 
• Increase Customer Footfall
• Attract a Core Demographic of EV Drivers 
• Create a Recurring Revenue Stream
• Reduce Fleet Costs 
• Reduce Business’ Carbon Footprint

Are EV Charging Stations a Good Business Investment?

The Opportunities 

Installing EV charging stations can create a whole host of opportunities for businesses such as introducing a recurring stream of revenue, improving employee satisfaction, increasing footfall and reducing carbon emissions. The European Energy Agency (EEA) actually found that the total carbon emissions of an electric car are between 17% and 30% lower than driving a petrol or diesel car. 

The Challenges 

The challenges of EV charging stations for businesses mainly surround the upfront costs, however, there are many government grants and schemes which make this more achievable. There are also ongoing maintenance and management costs that need to be considered and accounted for, but monetising the charge points can help cover these costs and form a reliable stream of revenue. 

Embracing EV charging stations is therefore not just a step towards environmental sustainability but also a strategic business decision and by conducting a thorough cost analysis, businesses can start to make informed choices surrounding the installation of commercial EV charge points that also align with their financial goals.

EV Charging for Businesses with eFaraday 

At eFaraday, we take the stress away from installing EV charging stations for some of the UK’s leading businesses. We specialise in installation and are an OZEV-approved installer. We provide a 5* maintenance and monitoring contract called inCharge that provides a reliable maintenance and 24/7 monitoring service that identifies and fixes issues fast. We also give businesses full control of their systems with our iEquos powered management platform that allows for complete customisation and control of each charge point, from setting opening hours to charging fees and queuing systems. 

If you want to find out more about what we have to offer, speak to the team to find out more.