With almost one million EV chargers, across public, private, and workplace sites, the UK’s transition to cleaner mobility is progressing. Home chargers lead the way, with an estimated 809,000 installed. However, with only 57,510 workplace chargers estimated, a significant stride in the electric future depends on businesses.
The good news is that research, conducted by Drax Electric Vehicles, has revealed that almost one in three (32%) businesses are planning to install EV chargers this year (2024).
“The future is electric, and many businesses are gearing up to electrify their operations, whether that be company fleets or destination charging. For those who lease their workspace or site, there is an extra set of unique challenges,” says Naomi Nye, EV charging specialist, at Drax Electric Vehicles.
What’s preventing leaseholders from installing workplace chargers?
Rightfully so, many businesses are concerned when they don’t own their property. There’s also not enough official guidance for commercial leaseholders online to find answers and the next steps to approach freeholders.
With this, many have now taken to social forums for consultation, asking, “Do I need landlord approval to install EV chargers at my business?” and “What can I do if my landlord refuses the installation of EV charge points in the UK?”
For commercial leaseholders, challenges span from landlord approval and cost implications to infrastructure barriers and a perceived lack of support. Research found that one in three people was unaware of governmental EV grants and financial incentives, potentially leading to this perceived lack of support.
Naomi also shares that “despite 31% of businesses believing the world’s moving towards electric, not owning the property or site feels restrictive. However, with the right electrification strategy, you can confidently navigate these hurdles to install charge points and help your business, team, and customers feel optimistic about the switch to EV. That’s why we’re working with companies across the UK to plan and execute tailored strategies effectively and efficiently.”
Is it worth the hassle with landlords to install EV chargers at your site?
There’s a good level of understanding from decision-makers on how EVs can positively affect an organisation’s progress towards commercial and environmental, social and governance (ESG) goals. Not to forget that offering workplace chargers can also improve employee satisfaction and job retention while helping to future-proof your business for years to come.
Naomi adds, “the road to electrification may seem daunting, but it’s full of countless benefits. We must make the process as simple and seamless as possible to help businesses of all sizes and complexities make the switch.”
Five steps for commercial leaseholders to prepare for success
Naomi Nye, EV charging specialist at Drax Electric Vehicles, shares the five things that commercial leaseholders must consider before, during, and after approaching a freeholder:
- Assess the business case and feasibility
The first step for a strong strategy is to evaluate the need for EV chargers. This can include surveying your employees, clients, or fleet requirements to determine the demand.
Following this, you should conduct a preliminary site assessment to source potential locations for the chargers. You will also need to evaluate the existing electrical infrastructure compared to the EV charger requirements.
Working with an electrification partner can simplify this process and ensure that your evaluations are accurate. EV partners will continue to offer more value through consistent customer service and ongoing support.
Leaseholders should also ensure that the right internal stakeholders are involved in this process early on. Having their buy-in will minimise disruption in the latter stages of installation.
- Review and understand your lease agreement
One of the major reasons holding leaseholders back from approaching their freeholders is their existing lease agreement.
If your lease restricts the construction of additional structures, you can ask the freeholder to give a licence for alterations before an EV charger can be installed. There’s no obligation for the freeholder to do this, however, it’s worth the discussion.
It’s also recommended to consult with legal advisors to ensure compliance with your lease terms and regulations.
- Draft an electrification proposal
This should be detailed and clear to ensure your freeholder is well-informed of your plans to install EV chargers.
The proposal should include the type and number that you plan to install, as well as the planned locations and infrastructure requirements. Several regulations, like Building Regulations PAS1899, BS8001 and RC59, should all be considered when planning the location of EV charge points.
Benefits of installing the chargers should also be included. For example, the environmental impact, potential long-term cost savings, and advantages to the freeholder, employees and/or customers.
Following this, you should share the estimated installation and operational costs, along with grants, subsidies, and incentives for the freeholder to read. A full timeline of the installation will also be required.
- Seek approval from the facilities manager, management agent or freeholder
Once you feel comfortable and confident in your understanding of the lease agreement and your proposal, it’s time to engage with your main contact. Whether that’s a facilities manager, a management agent, or the landlord directly.
Your main contact should always be fully informed regarding EV charger installation at the site. This ensures you are compliant and respectful of your agreement. Although it may seem difficult, recent research into landlords’ perceptions has found that they are more willing to accept EV charging.
You should present the proposal and negotiate the required terms to move ahead. They might have concerns related to liability, cost-sharing, and maintenance which you’ll need to be prepared to address.
- Installation planning and management
Once you’ve negotiated and the freeholder has approved the proposal – with a signed agreement – you can move ahead with the installation process.
You may also need to obtain permits, apply for available financial support, and upgrade electrical infrastructure before installing the EV chargers. Thorough testing should also be carried out prior to using the new EV charge points.
Finally, don’t forget the key considerations that a freeholder will have in their mind
- The financial implication of installation and maintenance. Cost-sharing models, financing options, potential grants, and incentives will be expected in the negotiations. It’s important that there’s clarity and written confirmation of who bears the cost of installation and ongoing maintenance.
- Local restrictions. If the site is situated in a conservation area or a listed building, planning permission may be needed before installation.
- The logistics and potential disruption. Ensure a clear installation timeline outlines potential disruptions and coordinates with other property management priorities.
- Clear liability and necessary insurance. Agreed liability and appropriate insurance coverage will be needed to install and operate EV chargers.
- Property value and enhancement: Ultimately, installing EV chargers should make the property more desirable and attractive for the freeholder to agree. Their priority will be maintaining or improving market competitiveness of their property.
Installing EV chargers as a leaseholder requires careful planning, clear communication with your freeholder, and adherence to legal and regulatory requirements. However, with the right approach and comprehensive strategy, installing charge points will future-proof your business and our environment.
