The Costs and Benefits of Installing Workplace EV Chargers
With electric vehicle (EV) sales hitting a record high, more employees are driving electric cars. As a result, many businesses are investing in EV charging stations to meet employee needs. However, installing an EV charger comes at a cost. This article will explore the costs of installing AC workplace EV chargers, outlining how much it costs to install, maintain, and run a charging station. We will also discuss the potential revenue and cost savings that businesses can reap by installing EV chargers, along with the importance of future-proofing your investment.
The Costs of a Workplace EV Charger
Electric car drivers expect EV charging to be available wherever they go, including at their workplace. Workplace charging is already a popular charging location, with 34 percent of EV drivers regularly charging at their workplace. However, the cost of installing workplace EV chargers is a major hurdle for businesses.
The cost of an AC workplace charging station usually ranges from £1,100 per charging port, excluding installation costs. Different factors determine the price, including the charging station’s brand, model, functionalities, and installation complexity. Installation costs are usually between 60-80% of the total cost and can run up to tens of thousands, depending on the number of charging stations installed.
Maintenance Costs of a Workplace EV Charger
A maintenance-check of charging stations annually is recommended to ensure that any issues are identified early, such as broken cables and damaged sockets. Opting into a maintenance or service agreement with a trusted provider guarantees optimal uptime by identifying and fixing any defects early on, offering peace of mind and freedom from unexpected costs.
Running Costs of a Workplace EV Charger
The cost of running an EV charger includes the cost of electricity used. An average cost of £0.33 per kWh in the UK means that it costs around £21 to fully charge a Nissan Leaf or £33 for a Tesla Model S. If assuming 10 cars’ full charging for an 8-hour workday, it costs £212 to charge 10 Nissan Leafs and £330 for 10 Tesla Model S’s.
However, businesses can bear the whole cost of electricity or consider various business models for offering EV charging at the workplace.
Revenue and Cost Savings of Installing EV Chargers
Although the installation of workplace EV chargers is an expense, it can yield cost savings and even be a source of revenue in a few years, depending on the business model that businesses adopt. Charging employees a fee or offering a free service as a complimentary benefit are two examples of business models that can be implemented. For small businesses, it may not make sense to charge employees. For example, suppose you have installed five charging stations at a cost of £14,000, including installation. In that case, you charge employees a discounted rate of £0.40 per kWh and visitors a market rate of £0.65 per kWh. Supposing each of the five chargers is used once per day and there are an average of three employee sessions a day and three visitor sessions per day, it will take over 15 months to break even on your investment.
In addition, installing EV charging stations can unlock further savings by providing transparency and control over charging costs for businesses that operate a fleet of vehicles.
The Importance of Future-proofing Your Workplace EV Charging Investment
Getting ahead of the curve and investing in EV charging infrastructure can future-proof your organization and provide a high-value benefit that helps boost employee satisfaction and contribute to the organization’s sustainability strategy. Businesses can also retain high-skilled employees by providing a highly sought-after benefit. It is worth considering future needs, including likely developments in EVs and EV chargers.
Conclusion
Installing workplace EV chargers is a significant investment for any business, and it is essential to consider the upfront costs, maintenance costs, and running costs. However, the potential cost savings and revenue from installing EV chargers can make it a worthwhile investment. By building EV charging stations into a company’s portfolio, businesses can incentivize employees to switch to electric cars and reduce the organization’s carbon footprint, future-proofing their investment and becoming a direct source of profit.
