Insights

Part Two: Practical Considerations When Installing an EV Chargepoint

26/08/2021

This is the second of our three-part series on EV chargepoints. Our clients are increasingly looking to install EV chargepoints at homes and in commercial settings and we set out below the practical considerations when doing so, including: the installation process; the cost; the technology and how to ensure it does not become redundant; and the Government grants and benefits on offer.

Part one analysed the current and proposed regulation of EV chargepoints and can be found here.

The Installation Process

First, it must be determined whether the proposed location has the capacity to meet the charging demand by checking with an electrician or Distribution Network Operator (DNO).

If the supply is adequate (which is likely in residential locations where one chargepoint is being installed), the chargepoint can then be installed. If the supply is not adequate, grid network upgrades or reinforcements may be required.

The process for installing EV charge points is as follows (and usually takes 2-3 hours in residential locations):

  1. The cable routes are run from the power supply to the proposed location of the charge point.
  2. Electric cabling will be run from the supply point to the individual car parking spaces.
  3. The cabling is connected to the power supply.
  4. The physical charge point is installed (either a wall-box or a free-standing charger).

The energy supplier must be notified within 28 days of installation.

An alternative, if developing a building or site, is to install the routes for the electric cabling only (which as mentioned in Part One, may be a requirement under the EPBD). This route is significantly less costly than installing the full charge point but enables the installer to avoid expensive retrofitting costs at a later date.

It is unlikely that people who live in terraced houses or high-rise buildings/flats or those with off-road parking will be able to connect a chargepoint to the wiring of their home. Instead, an electricity connection will need to be applied for so that the EV can be charged away from the home. Additionally, tenants need to obtain the homeowner's permission before installing a chargepoint.

(Image: Planning electric vehicle charging infrastructure: a review of modelling options. Metais, M.O.,Jouini, O.,Perez, Y.,Berrada, J.,Suomalainen, E).

EV charging infrastructure and equipment 

EV charging infrastructure and equipment can be purchased outright or leased from a third party.

Purchasing the equipment will involve paying upfront for the cost of installation of the charging station, the hardware, the software and for maintenance. When analysing the cost benefits of doing this, the quality and life expectancy of the equipment should be considered.  

On the other hand, leasing the equipment will involve periodic payments (whether monthly or annually) and these will cover the above costs. The lease term offered by EV charging infrastructure companies varies but is typically between 1 and 5 years.  It is important to check, if funding is being received, that any funding provisions allow for the leasing of this equipment.

How much does an EV charge point cost to install? 

The cost of installing an EV chargepoint will be dependent on:

  1. The number of chargers being installed.
  2. The amount of EVs that will be capable of being charged at any one time.
  3. The type of EV.
  4. The speed at which the EV will be charged.
  5. Whether the site has a grid connection.
  6. Whether upgrades to distribution infrastructure are needed. For large EV charging projects, if the upgrade serves several businesses or homes, the DNO may agree to refund a portion of the cost of the upgrade after the charge points become operational).  

According to OVO Energy, a 7KW chargepoint tends to cost between £450.00 and £800.00 and a fast charger could cost around £1,500.00.

The types of EV chargepoint 

There are currently three main types of chargepoint which provide different amounts of electric power and therefore vary in the amount of time it takes to charge an EV fully.  

They are as follows:

  • Rapid charger: takes between 20 and 30 minutes to charge an EV to 80%. Use 43KW of energy.
  • Fast chargers: take between 1 and 4 hours to charge an EV fully. Use from 7 to 22KW of energy.
  • Slow chargers: take between 8 and 12 hours to charge an EV fully. Use 3KW of energy.

A new energy supply will generally not be required for charge points requiring up to 7KW of energy. For anything more than this, current energy capacity is unlikely to be sufficient and will require an upgrade.

For commercial sites or in multi-residential buildings, the level of upgrade needed will depend on the capacity of the local network and is likely to result in additional installation costs.

Will the technology become redundant? 

The Government proposes a minimum 7KW mode 3 charge point (where the vehicle is connected directly to the electrical distribution network via a specific socket and plug dedicated circuit) both for residential and non-residential buildings.

Whilst some early home installations are 3.6KW, anticipated increases in battery sizes and technology developments could make chargepoints less than 7KW obsolete for future car models. 7KW is therefore considered to be sufficiently future proofed for standard home charging.

The Government has proposed that all chargepoints installed under the building regulations should be untethered (socket only, with the cable not attached) to allow for different connectors for different cars and to ensure any EV can be used by the charge point that is being installed.

Note that current thinking suggests that the lifecycle of EV charging technology will last around 25 years. 

What Government grants/benefits are on offer? 

In its Ten Point Plan for a Green Industrial Revolution, the Government has proposed £1.3 billion of funding for investment in charging infrastructure over the next 4 years. As such, the following grants/benefits are on offer for the installation of EV charge points:

  • The Office for Zero Emission Vehicles' Electric Vehicle Homecharge Scheme provides EV drivers with 75% of the cost of installing the charge point up to £350.00. The scheme can be utilised for those installing a smart charger, with off-street parking, providing the date of installation is not more than 4 months ahead of the date of delivery and providing an Office for Low Emissions Vehicles (OLEV) approved charge point installer is being used. The scheme is applicable to those living in rented and leasehold accommodation.
  • The Workplace Charge Scheme offers businesses with off street parking for employees, vouchers for £350.00 to contribute towards the costs of installing a charge point, for up to 40 charge points. This has been opened up to small to medium enterprises (including accommodation businesses such as B&Bs) and the charity sector.
  • There is a special regime giving accelerated capital allowances for EV charge points. This should be discussed with an accountant. Please also note that for electricity in public places, VAT is chargeable on the electricity supplied at a rate of 20%. In residential areas, you pay the domestic rate of 5% VAT. If an individual charges their EV at work, an employer can recover the VAT for the energy used for business mileage.
  • £20 million in funding has been announced for councils to improve the on-street charging infrastructure in their local areas (see here).

Please note: this is for information purposes only and no legal advice is given.

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