Powering up Schools for the future

The UK Government has a target of 300,000 charge points being installed by 2030.  The public sector, including education is expected to play a significant role in this process with up to 50,000 electric vehicle (EV) chargers to be installed at schools, colleges and universities.

Like many employers, schools face a growing demand for EV chargers just as energy costs reach record highs. 

Various energy services companies are partnering up with charger businesses to help expand the public sector EV network.

However, at a time of unprecedented energy (and other) costs, is installing EV chargers the right thing to do?  Will the Government’s rollout plans make life easier for teachers and other drivers by offering an affordable and accessible alternative?

To begin with, to make electric vehicles viable, it’s important for their drivers to know they’ll be able to charge their ride. School campuses can play an important role in building EV infrastructure for their communities. 

The Community Hub

A school, college or university doesn’t just close down and go quiet when lessons end. They are major centres of focus within a community. They can see more activity than most locations in any given town or city. That wide-ranging use makes them a perfect fit for EV charging stations. 

Generally, charging stations should be put where they’ll see the most use. So, an education campus is ideal because they generally aren’t just for students — they’re used by the whole community.

Commitment to Sustainability

Despite some criticism about the sustainability of battery production, EVs are overall much better for the environment and they’re continuing to improve. This makes installing charging stations one of the better green ideas for education centres who want to demonstrate a commitment to sustainability.

However, EVs need charging stations. As long as people are worried that they won’t be able to charge their car, use of such transport is going to be restricted.  

One incentive to get people to use more EVs is to increase the number of charging stations available. So, installing EV charging stations on campuses helps bring us closer to a sustainable future.

Places of learning help set a precedent in the community. They are places that can advocate for arts and sciences and a better world. They look to the future. Prospective students look for exactly that. 

They will want to see green ideas in action on campuses.

Additional Revenue?

While EV Charging Stations are an investment, they are one with a decent possibility of a return.

Students, teachers and the community spend hours on campus, and often full days, so it’s an ample opportunity for them to fully charge their cars. 

While you may decide to offer a per-term fee for EV charging (much like you would a parking pass), you can also open chargers up to passers-by and visitors and charge them per kilowatt hour or session. You could even consider staff incentives, such as free charging.

Installation Costs

For many the cost of installation of EV chargers is not currently a viable option. To counter this, finance plans are becoming available which offer longer-term, fully serviced contracts, for EV charging without upfront investment.

There are other forms of financial assistance. The Office for Zero Emission Vehicles (OZEV) have been appointed by the UK Government to manage and distribute Workplace Charging Schemes (WCS) funding for electric car charge points.

Businesses (including educational establishments) can claim up to £14,000 off the cost of their EV charging points under the WCS.

Companies can purchase up to 40 EV charging points at a subsidised cost, with each charging unit having as much as a £350-price reduction.

Taking this further, one manufacturer has launched its Electric Schools campaign for the new academic year, offering up to 30 selected primary schools a free electric vehicle (EV) chargepoint to highlight the link between EVs and clean air. The campaign also strives to inspire young learners on how EV technology will revolutionise the way we travel and use energy, by paving the way for driverless cars and energy management systems, like vehicle to grid.

Feedback on such an initiative is that young learners are more engaged than ever with the environment and issues like air pollution and climate change. This campaign highlights how EVs can be part of the solution. 

Staff Incentives

There are potential tax benefits for staff wanting to switch to EVs.  If your organisation includes a trading entity, there could be additional corporation tax savings.

Acquiring an affordable electric car is becoming easier. Not only are vehicle manufacturers offering an increasing number of electric models, but there are now various new ways to access electric vehicles too. An electric car salary sacrifice scheme is one of them – and can be a particularly cost-effective way to drive an EV.

A salary sacrifice scheme enables your employees to acquire a new company car, fully serviced, maintained and insured for a fixed period of time, typically 2 or 3 years. All they have to do is add fuel or charge the vehicle.

An employee saves money by exchanging part of their annual salary for a car and added services before it is taxed, thereby reducing the amount of tax and national insurance they pay. The employee will obtain a new fully maintained and insured vehicle, cheaper than they could otherwise obtain. The car will be treated as a company car for tax purposes.

Your establishment will engage with an EV fleet provider. As the employer, you will benefit from reduced National Insurance Contributions (NICs) and, potentially, corporation tax relief. The car will be treated as a company car for tax purposes.

Due to the favourable Benefit-in-Kind rates for electric and plug-in hybrid company cars, a salary sacrifice scheme is the most cost-effective way to drive a brand-new electric car. Although the benefits don't stop at low company car tax, there are a plethora of benefits for both the employee and the employer.

Employees:

• Reduced tax and National Insurance costs
• Maintenance, servicing, insurance, road tax, accident management, tyres and breakdown cover are all included, the employee just adds electricity or fuel.
• Tax-free benefit if employee offered free charging on site.
• Due to the payment for the vehicle being made via the employee’s salary they do not need to pass any credit checks.
• With no deposits or an old vehicle to sell, the employee can change their car every 2 or 3 years with ease.

Employer:

• An employee benefit allowing staff access to a brand new car with everything included at a fixed cost for the contract period.  Helps promote staff retention and recruitment.
• Reduced carbon footprint - encourages low-emission motoring due to financial and tax benefits of electric and plug-in hybrid vehicles.
• Reduced employer National Insurance costs.
• Meet legal obligations to ensure that an employee’s vehicle is reasonably safe to use, fit for purpose and lawfully on the road.

E-Bikes

There is another tax-based incentive - the cycle to work scheme.  This is another salary sacrifice scheme that allows employees tax and NIC savings on the purchase of a new bike.  This includes electric bikes.

In Conclusion

Although there are various considerations to be taken into account, there are good reasons for wanting to install EV charging stations on campuses.

It can help the environment, make use of extra space that is already accessible by the community, forge partnership opportunities and position an education facility as forward-thinking.

Whatever the reason, there is much to gain from installing EV charging stations on campus.

If you would like to discuss how to proceed with EV charging stations, please contact your usual Bishop Fleming advisor or a member of our Tax or Education teams.