What Factors Influence The Cost Of Installing A Commercial EV Charging Station?

An increasing number of businesses are investing in commercial electric vehicles (electric cars and vans), and for good reason. Electric vehicles (EVs) are the future of transportation. To support this rising trend, more and more business owners are installing commercial electric vehicle charging stations at their premises.

There are multiple advantages to this. Installing EV charging points at your commercial premises can significantly benefit your business, employees, and customers as well as the environment. We’ll explore those further in this blog.

The UK government has set an objective that by 2030, 80% of new cars and 70% of new vans will be zero emissions. So the demand for EVs, and the associated accessible and efficient charging infrastructures, is only going to increase.

But what does it cost? Would an EV charging solution be a sound investment for your business? To help inform your decision, we’ve put together this guide. We’ll explore the main aspects to consider and the costs associated with electric vehicle chargers for your business.

Why install commercial EV chargers at your business premises?

There are many benefits of introducing EV charging capabilities at your workplace. Those are benefits to you as a business owner, your employees and to the environment. Sounds good doesn’t it?

Here are some great reasons to provide EV charging solutions at your workplace:

• Offset carbon emissions: Installing EV charging points shows your business is playing a part in achieving global sustainability goals. Electric vehicles reduce overall carbon emissions and contribute to a greener planet.
• Boost employee satisfaction: Firstly, you incentivise and reward employees who are EV drivers. They can recharge whilst at work, making their commute easier. Secondly, aligning your company with green initiatives has a feel good factor which raises employee morale.
• Impress your customers: Similarly, your customers can benefit from your convenient EV charge points in your car park. In turn, that can attract new customers, increase footfall and encourage loyalty.
• Generate an additional revenue stream: You could charge EV drivers to use your electric vehicle chargers. These tariffs can provide a steady revenue stream to offset the installation and operational costs. That makes it a more cost-effective solution.
• Increase property value: Having an EV charging infrastructure is a forward-thinking and valuable addition to your commercial premises. It increases its appeal to tenants, customers, and investors.
• Future proof your business: Fuel-powered vehicles’ days are numbered, and demand for electric vehicles is soaring. Consequently, so is demand for electric vehicle chargers. Having them onsite meets a current, and future, business need.
• Enhance brand reputation: An EV charging infrastructure provides a clear signal that your business is committed to sustainability. It can be the deciding factor in a client choosing your business over a competitor.

Key factors affecting the cost of installing an EV charging infrastructure

The cost of installing an EV charging station at a commercial property will vary depending on your specific charging needs, environment, resources and more. It’s not a ‘one size fits all’ solution. After all, there’s a big difference between adding a single electric car charger at home to a complete charging station installation in a commercial environment.

Here are 10 factors that will affect the total cost of installing and maintaining EV charging stations.

1. Type of charging station

There are different levels of EV charging stations – from a standard home charging unit to a high spec, fast charging solution. The type of charger and infrastructure that you choose will affect your overall charging station cost.

• Level 1: Slow chargers with basic infrastructure. This is a typical home charging option and the lowest cost.
• Level 2: Faster AC chargers using 240V are suitable for most commercial or public EV uses. Most public charging stations have level 2 chargers.
• DC fast chargers: These high-powered, rapid chargers use 480V and require a more complex infrastructure. They have the most rapid charging speeds and a higher cost.

Unsurprisingly, smart chargers with more complex technical features like network connectivity, load management, and user authentication cost more than basic units.

2. Number of chargers

It may sound obvious, but it’ll cost more to install multiple chargers. The hardware costs (the equipment used for the actual charge point itself) will vary depending on the quality, the features included, and the amount of power required.

However, when you install multiple chargers you can benefit from economies of scale. For example, the cost of creating trenching and cabling won’t increase drastically whether you’re installing two or 20 electric vehicle chargers.

3. Electrical infrastructure

How good is your current power supply? If your existing electrical infrastructure doesn’t have the capacity to support your new EV charging solution, it’ll need an upgrade. That electrical upgrade could involve new transformers, distribution boards, or an increased connection from the grid.

You also need to think about the distance between the electric vehicle charger and the power output. The further the chargers are from the main power supply, the more cabling and trenching you need. That distance will increase or decrease labour and material costs.

4. Groundworks

Your specific business site will impact the costs too. If it has uneven or complex terrain, it may require more groundwork like excavation, levelling or resurfacing. The length and depth of the trenches required for cabling can affect costs significantly too.

Then there’s the positioning of the charging points themselves. Will they be wall mounted, attached to posts or another structure? All of those variables impact the cost.

5. Permits and compliance

Most of the time, you don’t need planning permission to install electric vehicle chargers. However, it’s a different case if your premises is a listed building or in a conservation area for example. Depending on your building, its location and the local council’s policies, there may be additional administrative costs.

It’s also important that you comply with electrical safety standards. BS 7671 regulations provide the minimum requirements for the unit’s wiring. BS EN 61851 stipulates a minimum level of protection against the weather. Work may need to be undertaken to ensure your installation meets safety standards and complies with environmental regulations.

6. Connectivity and software

For commercial settings, chargers often require internet connectivity for monitoring, billing, and usage tracking. That Ethernet or 4G connectivity will add further costs. It may also affect the location of the charging units.

On top of that, there may be technical costs such as software updates and subscription fees for charging station management systems.

7. Amenities and additional features

Additional features for chargers, such as shelters, lighting, or signage, can improve the user experience, but will increase costs. You’ll need to weigh up those benefits with your budget.

Also bear in mind that accessibility improvements, such as ramps or designated parking bays, may be required for compliance. There will be costs associated with that too.

8. Energy requirements

How will you power your EV charging infrastructure? Installing renewable energy sources (like solar panels) or energy storage systems (batteries) to power the chargers will involve initial costs but may reduce operating expenses in the long run.

9. Installation and labour costs

We always recommend using experienced and qualified OZEV-approved professionals to design and install commercial electric car charging points. The labour costs for specialist contractors can vary greatly. It’s a good idea to get quotes to compare rates and find the specialist team that suits your business needs.

10. Ongoing maintenance costs

When it comes to electrical installations, it’s best not to simply set and forget. Regular maintenance and inspections are required. This adds to the lifetime cost of the installation.

You may need to upgrade your utilities too. Higher energy consumption may mean increased electricity tariffs or system upgrades. These ongoing charges need to be factored into your total cost calculations.

Look out for funding and incentives

The good news is that there are UK Government grants and tax incentives to help businesses install EV charging stations on their premises. They can offset some of the installation costs, which is really helpful.

The UK government’s Workplace Charging Scheme is offered by the Office for Zero Emission Vehicles (OZEV). It offers up to £350 per charger, with a maximum of 40 chargers on one site. As with any grant or incentive, you’ll need to check your eligibility as there are a variety of criteria.

Find out the cost of installing electric vehicle chargers at your business premises

Whilst a ballpark figure for an electric vehicle charger is typically £1,000 to £1,500 + VAT, there are many variables that will affect the total cost of installing commercial EV chargers.

Your choice of chargers is a big thing. Deciding between high tech rapid chargers and slower workplace chargers will make a considerable difference to the total cost. Then there’s the number of chargers and where you decide to position them.

Your site and its physical and electrical infrastructure will sway the cost. The amount of groundworks, trenching and cabling required will make a big difference to the costs. And don’t forget the admin, ongoing maintenance, and energy bills.

We’d be happy to provide you with a quote, and to discuss cost-effective pricing solutions to meet your specific business needs. Please get in touch to chat with our knowledgeable, experienced team of professionals.