In our last blog, we spoke about the environmental benefits of charging your electric vehicle at home. However, businesses across the region will want to know about another deciding factor, its bottom line – the financial benefits of workplace charging.
Of course, these vary depending on a number of key factors including the size of a business and its industry. However, there are a number of positive financial factors that will impact all businesses when making the switch to electric charging.
In this blog, we will take a look at these factors including the grants available, tax, maintenance and ongoing benefits for customers and employees.
Electric Vehicle Grants
First things first, you’re going to need an electric vehicle in order to get charged. The good news is, the Government is currently offering grants for both electric cars, and electric vans.
Cars – Purchasers of cars that are eligible for the grants can claim up to 35% of the vehicle cost back up to a maximum of £3,500.
Vans – The grants available when purchasing a van are even higher where you can claim back 20% of the vehicle cost up to a maximum of £8,000.
Other forms of electric vehicles are also available. Take a look at the government website for further information.
Electric Vehicle Charging Grants
It’s not just your new fleet of vehicles that are eligible for government grants. A business can claim back up to 20 electric vehicle charging point installations in the workplace. This is a huge saving that means another potential £10,000 that is currently available.
Electric vehicles are exempt from vehicle excise duty. Considering that this is often hundreds of pounds per vehicle, switching to electric can have excellent financial benefits.
It’s no secret that vehicle charging is much cheaper than regular petrol or diesel-fuelled engines. But how much? Let’s take a look at an average consumption:
Petrol Vehicle A at an average of 45 miles per gallon, travelling 25,000 miles per annum at the UK average fuel cost of 127.5p a litre will cost £3,220 in fuel.
An Electric Vehicle can be fully charged for approximately £8.40 and have a range of 200 miles. Travelling 25,000 miles in a year, this will cost just £1,050. A 67% reduction in cost.
This is just one example of the savings based on an average-sized vehicle. There are many variants to consider, however, at approximately one-third of the cost on average, vehicle charging really starts to add up.
Maintenance and Servicing
Due to less moving parts and no oil to change amongst many other factors, typically electric vehicles cost less to maintain and service. A Motor Research article reporting on a CAP HPI study found that the servicing of electric vehicles costs approximately 23% less than a petrol vehicle.
As well as the cost savings and grants available, your business can also benefit from the capital allowance. Any vehicles purchased count towards profits before you pay your tax.
Workplace Charging Benefits to customers
The financial benefits don’t stop there. There are also the knock-on benefits from having charging points installed at your business. Having the facility to charge a customer’s vehicle gives your business a step up above your nearest rival and more potential income.
Workplace Charging Benefits to employees
Benefits to your employees can help to boost morale. Consider a charging point as just this. If your staff are happy, they’ll be motivated to go the extra mile for your business. A motivated workforce can have tremendous effects on a business’ bottom line.
Boost Your Business Benefits
This is just a start to the financial benefits your business could reap by going electric. Every business will have its own unique benefits too. By keeping ahead of the trend, you will be saving money in the long run. It has not been confirmed how long grants will be available so be sure to act fast. You do not have to wait until your vehicle has been delivered, grants are available to any business with a vehicle on order too.
Trust in a family firm and a local business to install your workplace charging points. At Go Electric, we take any hassle out of the install process for you. We offer a free site survey and are available to answer all your questions regarding electric vehicle charging.