adi Vehicle Charging Solutions Responds to Government’s New Electric Car Grant
In July, the Government announced a new Electric Car Grant (EGC) to provide financial support to EV buyers purchasing zero emission cars priced under £37,000. Robert Byrne, operations director at adi Vehicle Charging Solutions, warns that the grant alone isn’t enough to provide tangible support to consumers.
He said: “We understand the mixed reaction from consumers. The grant is limited in terms of the boxes that need to be ticked for a purchase to be eligible. There are some tight restrictions which rules out a significant number of vehicles from the scheme.’
Whilst the government have confirmed more than 30 vehicles on the approved list only two vehicles achieve the full £3,750.00 (level 1) grant currently. The majority have only been approved for the £1,600.00 (level 2) grant due to the restrictions imposed’.
“If we look at the funding which was in place back in 2011 through the Plug-in Car Grant (PiCG), which was £5,000 for new EVs and PHEVs – this doesn’t come close.”
“However, for those who want to buy an approved EV that's under £37,000, the grant is certainly a benefit. But it should be said that many electric vehicles, at the cheaper end of the market, are not eligible at this time.
What needs to change
Many people have suggested alternatives or additional to Grant schemes one of which is levelling up in with the existing tax system, this could help. There are significant differences in the price of energy at home and at public charging hubs, Robert flags this difference in cost of the energy at public charge points as a major issue for consumers.
“EV owners re paying up to 20% VAT at public charging points, compared to around 5% at home. You can pay as little as five pence per kilowatt hour at home, if you charge at the right times. On public infrastructure you can pay between 60 to 85 pence per kilowatt depending on where you are in the UK – it's ten times the price. Addressing this gap is another measure the Government could take to make a bigger impact. And it’s a benefit that would apply to all EV drivers.
EV drivers relying solely on public charging could save around £211 per year if the VAT were reduced to 5%, according to Zapmap.
And Byrne believes more inclusive benefits would be helpful for those looking into buying second-hand EVs, too.
“The second-hand market is good option for EV ownership currently. There are lots of low-mileage ex-fleet cars at very reasonable prices, i.e. similar to the comparable ICE vehicles. Because it is a relatively young market there are issues with buyer confidence linked to risks with battery quality and lifespan, vehicle warranties, and maintenance support from the vehicle manufacturers.
“Batteries are a particular cause for concern amidst consumers but based on the emerging evidence it seems performance is much better that original expected.’
A new study by Arval, based on 8,300 used electric vehicle (EV) battery health certificates from 30 brands across eight countries, shows that EV batteries last well beyond manufacturer warranties. The findings reveal the average battery health is 93% across all tested EVs. And 98% of EVs maintain over 80% battery health, even after covering up to 200,000 km.
Charging infrastructure
Although a positive step forward, Robert raises some vital questions regarding the £63 million boost into charging infrastructure.
“The investment in cross-pavement charging raises several questions. We certainly see the benefit of it for those who are without a driveway. However, it could potentially present issues for health and safety, as well as from a security perspective. Will channels in the pavement be used correctly/safely? Is this the best use of public money?
“Regarding the investment into key infrastructure, for instance £8 million to install chargers at NHS sites, is simply not enough in the grand scheme of things. There's a significant amount of money that goes into building this type of infrastructure. So, how many chargers does £8 million buy us?
“There’s no doubt that additional any investment into the EV market is positive, but this must be spent in a sensible way. It’s worth asking whether the resent budget does provide more support or will it mean a reduction of real practical support for both new vehicle buyers and existing owners.”
About adi Vehicle Charging Solutions
At adi Vehicle Charging Solutions, we provide consultation, design, installation, maintenance and network management of electric vehicle charging point infrastructures.
Our goal is to help build the infrastructure that’s currently needed for electric vehicles across the UK by providing solutions for sustainable power systems using renewable energy, battery storage and micro grid operability.
