Home charging presents an attractive solution for many fleet operators, offering significantly lower costs compared to public charging networks. Additionally, vehicles can charge overnight, ensuring a fully topped-up battery at the start of each day, which minimises potential downtime.
Research consistently shows that most electric vehicle (EV) drivers prefer home charging. National Grid’s studies indicate that about 75% of EV owners charge their vehicles at home. Similarly, Zenith’s survey of nearly 2,800 EV customers revealed that 69% primarily charge off-street at home.
David Lewis, co-founder and CEO of MoveEV, states, “As a general rule of thumb, home charging is a win for fleet managers and drivers alike. However, certain scenarios make a home-first approach to charging less feasible.” These include fleet vehicles returning to a central depot overnight and the high proportion of properties unsuitable for home charging.
A Fleet News survey highlights that vans spend 76% of their time charging at work, with the remaining time split between home and public charging due to limited off-road charging opportunities.
Cost Considerations
The cost of home charging for employers encompasses two main elements: the installation of an AC charge point at the driver’s home and the cost of the electricity used for charging. A survey by Fuel Card Services found that 61% of fleets assist employees with installation costs, 33% offer interest-free loans for charge points, and 28% cover the cost outright. Notably, there is no benefit-in-kind (BIK) tax liability if employers cover these costs.
Leasing companies often allow charge points to be included in contracts when ordering EVs, with payment arrangements varying between employer and driver. Home charging is notably cheaper than using the public network, where costs can vary significantly based on factors such as network provider and charger speed.
Zapmap reports that in March, the weighted average price for public charging was 56p/kWh for slow/fast chargers and 81p/kWh for rapid/ultra-rapid chargers. This translates to 17 pence per mile (ppm) and 24ppm, respectively, while a standard home tariff from E.On, for instance, is approximately 25p/kWh, or roughly 8ppm.
Further savings can be achieved if employees opt for EV-friendly tariffs, which offer lower rates during off-peak hours. E.On’s NextDrive Fixed V3 tariff, for example, offers an off-peak rate of 6.9p/kWh, reducing the cost to around 2ppm.
Accessibility Challenges
A significant issue with home charging is the inability to install domestic chargers at many UK homes. Research by Lloyds Bank suggests 44% of homes are unsuitable due to a lack of off-road parking. Other challenges include employees living in flats or having parking spaces too far from a wall or building.
Solutions such as those from Pavecross and Kerbo Charge can address these issues for some properties. These products involve embedding charging cables in shallow channels in the pavement, ensuring safety and accessibility. Kerbo Charge is available in nine local authority areas, including Central Bedfordshire, Milton Keynes, and Stirling. EV drivers will need council permission to install these solutions, with applications made online.
The Government has extended its £350 charge point grant to EV drivers without off-street parking, covering up to 75% of the cost of buying and installing a charge point. Renters will need landlord permission for installations.
Another consideration is the electricity supply’s capability to support different charging rates. Some properties may only support charging at 3.6kW or even just 2.3kW, impacting the ability to fully charge an EV overnight.
Mileage Reimbursement
Reimbursement for home-charged business mileage can be managed in several ways. The HMRC’s advisory electricity rate (AER) is currently nine pence per mile, although this may not always cover the actual cost of electricity. Another method involves calculating the actual cost of electricity consumed, which can be complex.
Paul Hollick, chair of the Association of Fleet Professionals (AFP), notes, “It can be mind-blowingly complicated to collect all of the transaction data to reimburse employees accurately. Therefore, many fleets avoid it.” A practical solution is to pay the AER and add a top-up amount to reflect the true cost.
Solutions such as Rightcharge and Allstar Homecharge offer systems to accurately record electricity usage and facilitate reimbursement. Allstar Homecharge pays energy suppliers directly for home and public charging sessions, invoicing employers accordingly. Rightcharge makes direct payments to employees’ energy suppliers for the EV charging portion of their bills.
In summary, while home charging offers substantial benefits for fleet managers, careful consideration of costs, accessibility, and reimbursement methods is essential to maximise efficiency and cost savings.