As we get closer to 2030 are you ready to go electric?

While the speed, battery charge range and battery life of electric cars are all improving, and charging is cheaper than petrol or diesel, the main concern for many businesses is the availability of the charging structure. To make the change viable, the charging structure will need to be dramatically extended, and the Government’s target is to provide 3 million charge points by 2025.

At present, using public charging points can be problematic, as there are multiple types, you may need to carry adaptors and the costs are unpredictable. Businesses can apply for a grant from the Government’s Workplace Charging Scheme to reduce the cost of installing charge points on their premises and certainly, over time, more homes will also have charge points installed.

While 3 million is still only a small proportion of the 38 million vehicles currently on the road, there is definitely a move towards electric. UK sales of new petrol and diesel cars are set to be banned from 2030 and, over the next three to five years, the value of diesel and petrol cars is going to drop, as the days of buying outright and managing depreciation come to an end. Diesel and petrol vehicles can also be subject to financial penalties if they enter a low emission zone.

To help encourage the use of electric vehicles, a number of financial incentives are available. Government grants as well as reductions in tax costs aim to make electric motoring more affordable. The UK Government’s Plug-In Car Grant (PICG) currently offers £2,500 off the cost of an electric car, but only for those costing less than £35,000. To be eligible, the vehicle must have CO2 emissions of less than 50g/km and be able to travel at least 70 miles with zero emissions.

For commercial vehicles, the Plug In Van Grant (PIVG) offers 35 percent or up to £3,000 off the purchase price of electric vans up to 2,500kg gross vehicle weight (GVW). Those between 2,500kg and 3,500kg GVW can also claim 35 percent or up to £6,000.

Because they emit no CO2, electric cars costing less than £40,000 are currently exempt from annual road tax (click here for Vehicle Excise Duty, VED), producing a sizable saving on running costs, and company car drivers will pay just 2 percent benefit-in-kind tax (BIK). In addition to tax savings, EVs may also be entitled to other benefits, such as free charging on the Public Charge Point Network and discounted parking in some car parks.  
 
One thing is clear: by driving electric the savings soon start to stack up, making them an affordable alternative to petrol or diesel. It’s certainly a good idea to take a test drive for around an hour to get a good feel for driving electric, especially if you spend a lot of time on the road.

The incentives will continue to evolve as EVs become more popular on our roads, so it’s always worth checking what EV grant is offered before you buy. As we get closer to 2030, however, and the combustion car sales ban, these incentives may well decline, so now may be the best time to make the shift to electric.

If you’re considering making the move to electric, you’ll also need to check out insurance costs. To find out more, please give us a call and we will be happy to provide further information about tailored insurance to suit your needs. Call NLIG on 01992 703007 or email insurance@nlig.co.uk