The Watson Fuels guide to EV grant funding for businesses

This comprehensive guide explains all the key EV charger grants available in the UK, how you can access them, and just how much support they offer in setting up your own EV charging solution. If you’re not familiar with some of the EV jargon and terminology, jump to our handy glossary to help!

Understanding EV grant funding

The UK government offers various grants and funding schemes to support the transition to electric vehicles (EVs) and charging infrastructure set up. These grants aim to incentivise businesses, organisations, and individuals to adopt EVs and contribute to reducing greenhouse gas emissions and air pollution on the roads, as part of the Road to Zero strategy launched in 2018. 
With the goal of having all new cars and vans be effectively zero emission by 2035, the strategy includes promoting the use of electric vehicles, investing in infrastructure for charging stations, and implementing policies to encourage sustainable transport choices - the basis for many of the funds now available to support the take-up of EVs. [link to blog 3 here]

One of the key grants available is the Workplace Charging Scheme (WCS), which provides support for organisations towards the cost of installing up to 40 electric vehicle chargepoint sockets at their sites. Additionally, the EV infrastructure grant for staff and fleets, offers small and medium-sized businesses money off the cost of installing electric vehicle (EV) chargepoints.

Applying for EV grants as a business

EV infrastructure grant for landlords and residential car parks

Businesses and landlords can apply for an EV infrastructure grant to get financial support for the installation of multiple chargepoint sockets and the associated infrastructure work. This grant covers 75% of the costs, up to a maximum of £70,000 per year.

Each financial year, landlords can receive up to 200 grants for residential properties and 100 grants for commercial properties. These can be used across several properties and installations, or for one property alone. Applicants can receive up to 30 infrastructure grants per financial year for residential car parks to cover the costs of necessary work to install chargepoints.

To be eligible for the grant, you must be the building owner, a landlord or social housing provider. This can mean single-unit residential properties, such as flats and houses, multi-unit residential properties, such as apartment blocks, or commercially-let units.

Learn more about which chargepoint solutions are suited to your organisation. 

Additional grants in Scotland through the Energy Saving Trust (EST)

In Scotland, the Energy Saving Trust (EST) offers various funding opportunities for businesses and individuals to support the transition to electric vehicles and charging infrastructure. Some of the available grants include:

• Low Carbon Transport Business Loan
• Low Emission Zone Support Fund for Businesses
• Low Emission Zone Retrofit Fund
• Switched on Taxis Loan
• Used Electric Vehicle Loan for Businesses

Visit the EST website to explore the eligibility criteria and application process for these grants.

Workplace Charging Scheme (WCS)

The Workplace Charging Scheme (WCS) is a voucher-based programme managed by the government’s Office for Zero Emission Vehicles (OZEV) which provides eligible businesses, charities, and public sector organisations with support towards the costs of buying and installing EV chargepoints.

The grant covers up to £14,000 a year or 75% of the total costs of purchasing and installing EV chargepoints (inclusive of VAT). This is capped at a maximum of £350 per socket and 40 sockets across all sites per applicant.

Eligible applicants include businesses, charities, and public sector organisations and small accommodation businesses that meet the applicant and site eligibility criteria.

The key features of the WCS include:

• Vouchers covering up to 75% of the total costs of buying and installing EV chargepoints, including VAT, capped at a maximum of £350 per socket and 40 sockets across all sites per applicant.
  
  
• If you apply, you can only redeem your WCS voucher with authorised installers and approved chargepoint models only. The chosen installer will claim the grant on your behalf.
  
  
• The grant can be used towards the cost of buying and installing brand-new chargepoints, providing you maintain the chargepoint for a minimum of three years. You also need to provide evidence of a three-year on-site warranty on parts and installation.

Eligibility and how much you can save

To be eligible for the WCS, you must meet the following criteria:

1. Be a business, charity, or public sector organisation with dedicated off-street parking facilities for staff and/or fleet use.
   
   
2. Provide evidence that the site of installation is linked to the organisation and that the parking is dedicated wholly to staff and/or fleet use.

The amount of savings you can make through the WCS depends on the number of chargepoints you plan to install and the associated costs. 

How to access and apply for EVCP grants

To access and apply for electric vehicle chargepoint (EVCP) grants in the UK, businesses and organisations must follow specific guidelines outlined by the OZEV. Here are the key steps:

Applying for EVCP Grants

1. Create an account: Set up a landlord account on the OZEV grant portal. You need to provide an email address, a UK mobile phone number (to receive a security code), and a Companies House company registration number or a VAT registration number.

2. Find an approved installer: Let us know if you’re looking to make a claim for grant funding as part of your installation - we can help guide you through all the ins and outs of chargepoint grants as an OZEV authorised ChargePoint installer representative. 

3. Submit application: When applying, make sure you include the following information:

• One address for the installation site
• Watson’s OZEV authorised ChangePoint installer representative number
• The number of parking spaces the work covers (if applying for the EV infrastructure grant)

4. Use approved chargepoints: Applicants must use OZEV-authorised chargepoint models for the installation. Watson Fuels’ chargepoint partner, Rolec, is also OZEV-approved.

Find out how Watson can help you manage payments.

Additional support and information

Grants for educational institutions

The UK government provides a dedicated grant for state-funded schools and education institutions to install electric vehicle chargepoint sockets on their premises. This grant covers 75% of the cost to purchase and install chargepoints, up to a maximum of £2,500 per socket and 40 sockets across all sites (including any previous applications through the WCS).

Academy trusts can apply for up to the maximum of 40 sockets for each institution within the trust. Successful applicants will receive a voucher valid for 180 days, during which the installation must be completed using authorised installers and chargepoints.

Company Electric Car Tax

For businesses considering electric vehicles for their company car fleets, you’ll also want to consider the tax implications. Company car tax, officially known as Benefit in Kind Tax (BiK), is calculated based on the vehicle's P11D value (aka list price of the car), CO2 tailpipe emissions, and the employee's income tax band.

The BiK tax rate, set by HM Treasury, is usually collected through PAYE (pay-as-you-earn). Choosing low or zero-emission plug-in vehicles can result in considerable savings compared to equivalent petrol or diesel vehicles.

The government strongly incentivises full battery electric vehicles (BEVs) through favourable BiK tax rates, offering a more modest incentive for plug-in hybrid electric vehicles (PHEVs). With BEV drivers paying just 2% in 2023 and the company car tax rate on electric cars frozen until at least 2025, an increased uptake of fully electric company cars is expected to continue.

Glossary

Electric vehicle chargepoint (EVCP): A device that supplies electric energy for the recharging of electric vehicles.

Workplace Charging Scheme (WCS): A UK government initiative providing financial support to businesses for installing electric vehicle chargepoints at their workplaces.

Electric vehicle infrastructure grant: Funding provided by the government to support the development and deployment of electric vehicle charging infrastructure.

Energy Saving Trust (EST): The Scottish body offering various funding opportunities for businesses and individuals to support the transition to electric vehicles and charging infrastructure in Scotland.

Office for Zero Emission Vehicles (OZEV): The UK government office dedicated to promoting the adoption of zero-emission vehicles and supporting related infrastructure and policies.

Company Electric Car Tax: Company car tax, officially known as Benefit in Kind Tax (BiK), is calculated based on the vehicle's P11D value, CO2 tailpipe emissions, and the employee's income tax band to help companies transitioning to save on the costs.

Battery electric vehicles (BEVs): Vehicles powered entirely by electricity stored in onboard batteries, without the use of internal combustion engines.

Plug-in hybrid electric vehicles (PHEVs): Vehicles that combine a conventional internal combustion engine with a battery that can be recharged by plugging into an external power source.