Financing your electric journey in the UK: A guide to cost savings and benefits with EVs

The United Kingdom is leading the charge in promoting sustainability through a range of financial incentives. From grants for electric vehicle charging to tax exemptions on solar installations, there's something for everyone looking to make eco-friendly choices. Let’s dive into the details.

EV Infrastructure Grant for businesses

If you're looking at broader structural work needed for installing multiple charge point sockets, this grant has you covered. It offers up to £30,000 or 75% off the cost of such work. Every financial year, you can claim up to 30 infrastructure grants, each for a different property.

EV Chargepoint Grant for Residential

This grant offers up to £350 or 75% off to install a charge point, whichever is lower. Each financial year, you can claim up to 200 grants for residential properties and 100 grants for commercial ones, either for multiple installations or just one. The EV charge point grant has replaced the EVHS, and if you’re waiting for an EVHS decision, you don't need to apply again.

Eligibility Criteria for Renters and Flat Owners

As the shift towards sustainable transport picks up pace, flat owners and those in rented accommodations aren't left behind. It's vital to be clued up on the eligibility criteria to make the most of available schemes. Here are the main qualifications for flat owners and renters:

• Residence Type: Must either reside in rented accommodation or own a flat.
• Parking: Must have access to dedicated off-street parking.
• Vehicle Ownership: Must own, lease, or be a named user of an electric or plug-in hybrid vehicle.

Workplace Charging Scheme (WCS)

Businesses can get a reduction of up to 75% (capped at £350 per outlet) for installing up to 40 charge points, amounting to a potential saving of £14,000. This offer is available until 31st March 2024 and is open to all businesses, charities, and public sector workplaces that either own the property or have landlord consent and off-street parking. You can do infrastructure grants at the same time as WCS.

For business owners keen to further enhance their ROI, investing in a comprehensive backend system is advisable:

• Schedule Your Charge Points' Availability: Decide who can charge and when. Reserve charge points exclusively for staff during busy periods and open them up for public use during quieter times.
• Flexible Pricing Structure: Set a dynamic pricing strategy – opt to charge users by kWh or by the minute, incorporating a minimum fee if preferred. This system allows for individual charge point management, enabling different pricing for various user groups.
• Hardware Reliability: Built-in self-healing algorithms ensure the continuous availability and stability of your chargers.
• End-to-End Payment Solutions: Simplify the transaction process by collecting funds directly from users, eliminating any additional administrative hassle.
• Smart Queue System: This feature maximises charger use, offering a smart queue, reservations, and even in-app communication channels for EV drivers.
• Streamlined Administration: From collecting payments to downloading transaction data and tracking usage, everything becomes more straightforward.
• Central Management for Multiple Sites: Oversee all your charge points across different locations via a single unified back office, and set distinct access levels as needed.

No VAT on Solar Panels

Solar panel installations are VAT-exempt for homeowners, providing an affordable pathway to sustainable energy production and significant savings on electricity bills. If you own a home, there's no VAT to be paid on these installations.

Overall Cost Savings on Electric Vehicles

Electric vehicles are increasingly recognised not just for their environmental benefits, but also for their cost-effectiveness. With more favourable Benefit-in-Kind (BIK) taxation rates, diminished refuelling costs, and reduced wear and tear, the Total Cost of Ownership (TCO) for electric vehicles tends to be lower. Furthermore, opting for salary sacrifice instead of a car allowance can lead to even more savings, making it a financially astute choice in all respects

UK provides a plethora of financial incentives aimed at encouraging sustainable living, both for individuals and organisations. From EV charge points and infrastructure grants to the Workplace Charging Scheme and VAT exemptions on solar installations, the options are plentiful and rewarding. Making the switch to greener alternatives has never been more financially appealing, offering a win-win situation for both your wallet and the planet.

Paulina Poziomska
Managing Director, Volt-Age