Electric vehicles (EVs) have arrived!
We stand at the precipice of a potential motoring revolution!
The reason being EVs are already engaging to drive, cheaper to run, and a more environmentally friendly option. You may also be surprised to hear that electric cars are also fun to drive and highly responsive.
The torque available from an electric motor means that the initial acceleration offered by even standard EVs can be more than that offered by many sports cars. Batteries are typically located low down in the car’s chassis, dropping the centre of gravity and allowing improved ride and handling characteristics. It means electric vehicles for businesses and individuals are now a viable, cost effective option.
Plugging in your car at work, home, or while out shopping can be easier than petrol station visits. This works out cheaper in terms of fuel consumption and can be better use of your time. You can do it during the working day, on a shopping trip, or at night making use of low energy tariffs.
EVs are better for the environment than hybrids, petrol, or diesel options. They have zero tailpipe emissions at the point of use. Further reductions in emissions can be achieved if accompanied by charging through a renewable energy provider. This can form a key part of an organisation's corporate social responsibility policies.
The lower running costs of an EV need to be considered from a total cost of ownership perspective. A simple purchase price comparison doesn't convey the full investment benefits for businesses.
There are less taxes to pay. Fully electric vehicles are zero-rated for Vehicle Excise Duty (VED), potentially removing a three-figure sum from annual car running costs. If you operate a company car scheme in your business and choose EVs then you will also have 0% Benefit in Kind tax applied in the tax year 2020-2021.
EVs reduce running costs compared to conventional cars. Take fuel costs which are around 70% lower for EVs if overnight home charging electricity is used. As an example, a potential cost of 12-15 p/mile for petrol/diesel compared with 3-4 p/mile for EVs.
This can be further reduced with photovoltaic panels installed at your business premises, or home, along with a battery management storage system linked to a smart electric charger. Despite higher energy prices (per kWh) when charging on the public network (around twice the price of domestic electricity tariffs) fuel costs will still be lower than that for petrol or diesel cars.
Evidence from fleets also shows that EVs can reduce service, maintenance and repair costs by more than half, compared to petrol or diesel alternatives. This is because EVs have fewer components that require maintenance, making servicing and any repairs simpler and cheaper.
The rise of Clean Air Zones (CAZ), as already seen in London with the Ultra-Low Emission Zone, is going to make it increasingly expensive to drive conventional vehicles into cities and urban areas. To ensure you are paying no fines or the lowest possible rate for these zones, EVs are the preferable option.
Cities such as Oxford, Birmingham, and Leeds are all preparing to introduce such measures. You need to be thinking about how this will affect the running cost of operating a company car, or fleet.
Despite all these benefits to going electric there are still some things to think about.
EVs have a high upfront cost. You make the cost back against a conventional car on the fuel, tax, service, maintenance and repair savings over the lifetime of the vehicle. This means you have to utilise it well.
Low mileage usage should raise the question, do you or the business need to own a vehicle outright? Joining a car club scheme or renting a car every now and then might be a preferable, cost effective option. Sharing cars could also become a future trend.
We can help your business with a shared EV solution that accommodates for multiple low mileage users. This provides the opportunity for further utilisation by allowing authorised users access to it out of office hours when they need a car. This can help reduce car ownership, if people know they can use a vehicle at work, for meetings, and errands in their spare time. They will then likely use greener options more when journeying to work.
There is already an emphasis for more public transport use, walking, and cycling. Remember such options should be considered first to help alleviate congestion and parking issues common to so many urban areas.
Currently, there are still limited choices for vehicles. If you have a specific make and model in mind you might not be able to find an electric version. A lot more are coming to market in the next few years however, so it's worth keeping an eye out.
If you don't have your own driveway, or garage, to install a charge point, or access to a charge point at your business premises, it can be difficult to charge an EV. In some areas there is still limited access. The Government has invested millions of pounds into this infrastructure, but it may take more time for complete coverage of the UK.
In Oxfordshire specifically, [ui!]uk are working on two Innovate UK projects named ELECTRA and Park Charge. ELECTRA, will let you book a charge point when you need it through a smart phone application. Park and Charge will provide up to 300 charge points in car parks near to residents who don't have access to off-street charging. They can then charge their car after work within walking distance from where they live.
Finally, be aware that there's still resources and emissions resulting from the production of these vehicles. Batteries, like the ones in your smartphones, contain rare earth metals. Many come from less economically developed countries, with lax labour laws and health and safety records. Significant emissions result from extracting these materials out of the ground and transporting them to manufacturers.
helloEV can help businesses go electric. This is done by carrying out an analysis of your fleet of cars to understand the benefits of going electric, or introducing shared EVs. We can provide you with:
helloEV also provide EV test drives for you and your fleet drivers (silence, speed and ease) to increase awareness. Perhaps it's time your business joined the next car revolution!?
The content of this post is up to date and relevant as at 12/11/2019.
Please be aware that information provided by this blog is subject to regular legal and regulatory change. We recommend that you do not take any information held within our website or guides (eBooks) as a definitive guide to the law on the relevant matter being discussed. We suggest your course of action should be to seek legal or professional advice where necessary rather than relying on the content supplied by the author(s) of this blog.
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