With the growing number of all-electric vehicles (EV) on the roads in the UK today, there is a huge opportunity for businesses to provide EV charging infrastructure to meet consumer demand. As a business owner, or as the owner/manager of commercial real estate who needs to install commercial EV chargers; or, if you are a person or group looking to potentially invest in the installation of EV chargers at a business location, understanding the cost to install commercial EV chargers will be extremely important.

This article will provide the necessary information regarding the costs of installing commercial EV chargers including costs associated with installation (it will be helpful to understand factors affecting costs), potential return on investment from installing commercial EV chargers, and other typical questions about commercial EV charger installation costs.

What Is The Average Cost To Install Commercial Electric Vehicle (EV) Chargers In The UK?

There are a number of factors that will influence what your total cost to install an EV charger will be in the UK. Various factors will include the size of the commercial EV charging stations being installed as well as whether you are installing multiple stations or only one station will be important in helping you estimate costs. As a rough guide, most businesses should anticipate paying between £1,500 and £15,000 for each EV charging station that they install. For example, when using an average Level 2 EV charger with a single outlet, your base installation costs will likely be close to the bottom end of this range. However, if you install some ultra-fast EV charging stations, your installation costs will significantly increase.

Site preparation, upgrades to your existing electric service and software integration will all contribute to the total installation costs for your commercial EV chargers. Therefore, businesses and commercial property owners will need to consider these factors when estimating the costs associated with installing EV chargers. Electric vehicle (EV) charger installation costs, as well as being able to construct your budget correctly. Consider all of the costs listed above when establishing your budget for installing EV chargers.

Factors That Influence Commercial EV Charger Installation Cost UK

There are many different factors that determine your cost to install commercial EV chargers:

1. Type of Charger

The type of EV charger you will install will be a major determinant in the total cost incurred for installation. There are three types of EV chargers:

• Level 2 Chargers: Appropriate for EVs that are parked for extended periods of time (e.g., hotels, offices, and multifamily residential complexes). These chargers are less expensive than DC fast chargers and will range between £1,500 and £5,000/unit.
• DC Fast Chargers: A fast-charging option for high-volume locations such as petrol stations and shopping centre car parks. DC fast chargers will range from £10,000 to £40,000/unit.
• Ultra-Fast Chargers: Chargers with ultra-high-power output capability that can charge an EV in under 30 minutes. These chargers are the highest cost of the three types of EV chargers, and frequently cost greater than £50,000/unit.

2. Number of Charging Stations

Installing multiple charging stations will allow for a decrease in the average cost per unit since some of the installation costs such as a site evaluation and a site preparation, will be divided among multiple chargers, and not just incurred once for the entire project.

3. Electrical System Infrastructure

You may be required to upgrade your existing electrical system, which can impose significant costs. Upgrades to your electrical system may include the installation of a new transformer, upgrading the existing circuit panel, and increasing the grid’s capacity to connect to the location where the EV chargers will be installed.

4. Installation Location

There are several ways that location impacts your project’s total installation costs. If you are installing in an urban area, you may find yourself with an increase in labor costs (due to higher prevailing wages) and permit fees. On the other hand, if you are installing in a rural area, you may incur additional site preparation costs due to the need for additional grading or other ground improvements.

5. Software/Networking Features

Many EV charging stations include software/networking features that provide capabilities such as monitoring usage, troubleshooting remotely, and providing a means for customers to pay. These types of features do add cost to a charging station installation but add value to your overall system as they provide the ability to generate revenue, enhance operating efficiency, and help you improve customer experience.

How Much Profit Can a Commercial EV Charging Station Make?

Commercial EV charging stations can generate substantial amounts of annual revenue. A single commercial EV charging station can generate significant annual profits, averaging between £1,000 and £1,500 per year, depending on factors such as: installation site location, pricing model employed, and usage rates experienced by the stations. A charging station installed in a high traffic area such as a highway corridor, city centre, or popular tourist destinations that also have multiple fast and/or ultra-fast charge stations could generate substantially higher amounts of annual profit than indicated above.

Installing EV charging stations can also help increase the number of customers you attract to your business; hence increasing revenue from other types of businesses that you may operate, such as retail or hospitality.

Government Incentives Available for Commercial Charging Stations

There are numerous funding options available through the UK government to help businesses installing Electric Vehicle (EV) charging stations, due to the UK government’s commitment to reducing greenhouse gas emissions through the installation of EV charging stations.

Workplace Charging Scheme (WCS): This scheme offers funding to small to medium-sized businesses installing EV chargers at their facility, with grants of up to £350 per socket installed. Businesses can obtain grants for a maximum of 40 sockets, saving up to £14,000. This financial assistance will lessen the burden on initial installation costs and allow more businesses to provide EV charging services.

Frequently Asked Questions

How much does a commercial EV charging station make annually?

The estimated profit of using a single commercial EV charger in the UK is between £1,000-£1,500 annually. However, a commercial EV charging station with a high volume of customers, multiple chargers and an optimized pricing structure could achieve much higher profits. Additionally, it could also result in more customers at your premises through another form of promotion.

What is the timeframe for installation of a commercial EV charger?

The installation timeframe will vary based on the complexity of the installation. A basic installation could take 1-3 days; however, if the project requires major electrical upgrades or additional work at the installation site, this could take several weeks.

Do I have to upgrade my electrical system to install a commercial EV charger?

This is contingent upon your current electrical capacity and what type of commercial EV charger you want to install. Typical fast or ultra-fast EV chargers require significant upgrades to the electrical system, including adding transformers or increasing the capacity for a grid connection.

Are there grants available in the UK for commercial EV charger installations?

Yes, the Workplace Charging Scheme (WCS) will provide grants of up to £350 per charging socket installed, for a maximum of 40 sockets installed per business. Therefore, the costs for installation will be considerably less for many businesses.

What maintenance is required on a commercial EV charger?

Regular maintenance will be necessary to ensure that the charging units remain operational. This includes regular cleaning, inspecting for any damage to the units, updating the software, and making repairs if needed. A maintenance contract is available to minimize the workload for business owners.

How to attract more EV drivers to use my charging station?

To attract users to your station, consider factors like where you place the station, provide adequate signage, or a competitive pricing structure. Another way to get users is to have your charging station listed on EV maps or apps, and offer customers the added value of having free Wi-Fi, restrooms, shops, or cafés nearby.

Installing commercial EV chargers in the UK to capitalize on the current and projected growth of electric vehicles and environmentally friendly forms of transportation is a significant opportunity for businesses. Understanding the commercial EV charging station installation costs and the factors that affect them, such as type of charger, site preparation for installation, and electrical upgrades, is essential to effectively install EV charging units. Companies also need to consider the potential for more revenue and more engagement from customers due to the use of the chargers after they are installed. By using available government grants, working together with professionals for the installation, and selecting the best chargers from the available options, companies can make a sound business investment that is beneficial to both their financial objectives and the environment.