_Electric vehicles: The top 5 reasons to install EV charging points now

Current situation and market growth for EV charging stations

The move away from fuel for both financial and environmental reasons has created a massive surge in interest in electric vehicles. By 2035, UK governmental legislation will prevent the sale of petrol or diesel cars. To match the stock gap, the International Energy Agency (IEA) forecasts that global EV stock will need to grow by 36% a year, reaching 245 million vehicles in 2035.

Installing EV charging stations on commercial real estate offers several benefits to landlords and owners. Here, we explore the top 5 reasons for doing so.

1. Hitting ESG targets

Providing EV charging points means landlords can improve their ESG credentials and achieve their net zero carbon targets. By installing EV charging stations, they are showing a commitment to promoting sustainability and corporate ESG agendas. Many individuals and businesses actively seek greener options and might prefer companies that align with their values.

2. Financial benefits of EVs

If employees use workplace charging services through electricity supplied by the employer, businesses can recover the 20% VAT cost charged when charging cars in public places due to business mileage.

Landowners have a couple of options. They can either take the charger fully funded by the installer and receive rent from the infrastructure company, giving them a steady income without being affected by the frequency of use. Alternatively, they own the charger by buying it, meaning they get full returns from a higher capital investment. Either way, landlords can expect a healthy return from EV charging points. However, this will vary depending on location. A side benefit to this is that EV charging stations can also increase footfall, therefore an increase in local amenities used.

3. EV charging sites future-proof assets

Whilst there is still a lack of EV charging points across the UK, they will become a 'must have' in future developments for most asset classes due to the emphasis the government is putting on EVs.

Real estate equipped with EV charging stations can also command higher resale and rental values due to the added convenience and attractiveness to potential tenants or investors.

4. Regulatory requirements and incentives

Some regions and municipalities are implementing regulations that require a certain number of charging stations in parking areas, especially in new developments. Landlords who provide these stations can avoid fines and penalties.

Building an EV supply chain remains a key strategic priority for the UK government and feeds into the ESG agenda. In the future, government incentives, grants, or tax credits might be available for installing EV charging infrastructure, which can offset installation costs.

5. Extended customer dwell time

For commercial properties, providing charging stations can increase footfall and encourage customers to spend more time on the premises while their vehicles charge. This can lead to increased spending on-site.

Landlords, owners and investors can position their commercial assets at the forefront of a transformative era.

How can we support your EV requirements?

Conducting a thorough feasibility assessment and considering the property's and its stakeholders' specific needs will help determine how to approach EV station investment.

Our Electric Vehicle team is well-positioned to advise on the rapid move towards EVs.