By Andrew Grover, the founder and CEO of Advantage Utilities (www.advantageutilities.com)
Recharging Revenues: the case for EV charging points
With the hospitality industry still recovering from the impact of the pandemic, maintaining footfall and increasing revenue remains front of mind for pub, restaurant and hotel owners across the UK.
One such revenue generating activity more and more licensees are exploring is the installation of Electric Vehicle (EV) charging points. In terms of the market opportunity, a report by Deloitte estimates that there could be seven million EVs on the UK’s roads by 2030. Now that energy price caps have been introduced by the Government, this amounts to a significant number of potential customers looking for a place to charge their car while they go about their daily lives.
With over 395,000 pure-electric cars on the UK’s roads by the end of December 2021, demand for EV charging points will only continue to increase. There were also a further 740,000 plug-in hybrid models on the roads during the same month, and last year alone saw 305,000 new EV registrations – a rise of 74% in comparison to 2020.
There’s no denying the future of the Electric Vehicle market is bright. But what should hospitality businesses consider when deciding if installing EV charging points is for them?
Future-proof your business
Interestingly, England became the first country in the world to introduce mandatory electric car charging points for new-build homes and businesses in July 2019. Three years on, future-proofing homes and businesses remains a significant move in preparing for the forthcoming switch to EV, especially considering the ban of the sale of new petrol and diesel cars by 2030 which the government has announced. With this in mind, providing EV charging points could become as necessary as providing parking in the future.
Put your premises on the map
Once you’ve installed an EV charger on your premises your business will be included on websites and smartphone apps that help drivers locate charging facilities around the country. Even if a driver chooses not to use your facilities at that point in time, knowing that you’re there may mean they visit you in the future, or mention you to other EV owners.
Attract new customers
Despite the fact that EV infrastructure is being expanded and invested in throughout the UK, people still have some degree of ‘range anxiety’. If people know they’re able to charge up at your premises, it means they may spend money with you that they haven’t before, or wouldn’t otherwise spend.
Consumer interest in food sustainability and hospitality businesses’ Green credentials has skyrocketed in the past decade. Providing facilities for those driving EV vehicles will become increasingly important to consumers who are encouraged by forward-thinking businesses that strive for sustainability.
Recoup the cost
Despite some businesses worrying about the cost, installation of EV charging points is made more attractive through the Government’s Workplace Charging Scheme. The scheme covers up to 75% of the total costs of purchase and installation, capped at a maximum of £350 per socket. EV charging points are also included in the Government’s super-deduction tax allowance, making the investment even more cost-effective for hoteliers.
Of course, each pub, hotel, restaurant or caterer is unique and has its own set of customer needs and wants. Whereas installing EV charging points might be an obvious priority for some hospitality businesses and a potentially strong revenue stream, others may decide it’s not the right time for them.
However, those that do make the investment now will be able to get ahead and gain competitive advantage through a green, sustainable income stream for their business.
About the Author
Andrew Grover is the founder and CEO of Advantage Utilities and has over 20 years’ experience in commercial energy broking. Advantage Utilities now has over 40 dedicated and highly skilled staff in energy trading, legislation, financing and technology. Leveraging strong industry partnerships, they negotiate the purchase of millions of pounds of energy every year.
For more information visit www.advantageutilities.com.