Business Energy Glossary
What is commercial EV charging?
Commercial EV charging refers to electric vehicle charging infrastructure installed at UK business premises. The installations range from simple 7 kW workplace destination chargers up to multi-bay 350 kW ultra-rapid charging hubs. Commercial EV charging requires careful consideration of the electricity supply capacity, the charger type, the user model (employee, customer, fleet), and the tariff structure. The decisions made at planning stage have significant long-term cost and operational implications.
EV charging is one of the fastest-growing new loads on UK business electricity supplies. Workplaces, retail destinations, hotels, fleets, and dedicated public charging hubs all need EV infrastructure. Understanding the basics of commercial EV charging is increasingly relevant for any business managing premises or fleets.
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Types of commercial EV charging
| Type | Power | Charge time | Typical use |
|---|---|---|---|
| Slow (AC) | 3 to 7 kW | 6 to 12 hours | Workplace overnight, residential |
| Fast (AC) | 7 to 22 kW | 2 to 6 hours | Workplace, hotel, destination retail |
| Rapid (DC) | 50 to 100 kW | 30 to 60 minutes | Public rapid charging, fleet depots |
| Ultra-rapid (DC) | 150 to 350 kW | 15 to 30 minutes | Public charging hubs, major routes |
The right type depends on dwell time. Workplaces where vehicles park for a full day suit slow or fast AC charging. Destinations where vehicles park for 1 to 3 hours suit fast AC or rapid DC. Highway and public hubs where short turnaround matters need ultra-rapid DC.
Electricity supply capacity
EV charging is a substantial new load that may exceed existing site capacity:
- A single 7 kW charger can typically be added to a standard 100 A single-phase supply without upgrade if no other significant loads are running.
- A single 22 kW charger requires three-phase supply and meaningful spare capacity (usually 30 kVA or more).
- Multiple fast or rapid chargers often require significant ASC increases or new connections, depending on existing site demand.
- Ultra-rapid hubs almost always require new high-capacity grid connections, sometimes with substantial DNO contribution.
Planning EV charging without checking the supply capacity is one of the most common installation mistakes. Early engagement with the DNO is essential for any installation above a few chargers.
Cost of commercial EV charging
Indicative 2024 installed costs:
| Type | Hardware cost | Installation cost |
|---|---|---|
| Slow workplace AC (7 kW) | £800 to £1,500 | £500 to £2,000 per charger |
| Fast workplace AC (22 kW) | £1,500 to £3,500 | £1,500 to £5,000 per charger |
| Rapid DC (50 kW) | £25,000 to £50,000 | £10,000 to £40,000 per charger |
| Ultra-rapid DC (150 to 350 kW) | £60,000 to £150,000 | £30,000 to £100,000+ per charger |
Installation cost includes electrical work, civil works (cable trenching, foundations), back-office software, payment systems, and signage. Grid connection upgrades are additional and can be substantial for larger installations.
EV charging tariffs
Three contract considerations:
- Electricity supply tariff. The contract under which the business buys electricity. EV charging consumption is billed at the standard contract rate. Some suppliers offer EV-specific tariffs with cheaper off-peak rates.
- Workplace charging tariff. The price the business charges employees or visitors for using the chargers. Can be free (employee benefit), at-cost, or commercial pricing.
- Public charging tariff. For chargers open to the public, the rates charged per kWh delivered. Typically £0.45 to £0.85 per kWh for rapid charging in 2024.
Time-of-use electricity tariffs allow the business to optimise charging cost by encouraging or scheduling overnight charging at lower rates.
Revenue from EV charging
Commercial EV charging can generate revenue in three ways:
- Direct sales. Charging customers or visitors per kWh delivered, with a margin over the cost of electricity.
- Workplace charging fees. Subsidised or full-cost charging fees from employees, recovering some of the installation cost.
- Indirect benefits. Increased dwell time at retail destinations, attractive workplace benefits supporting recruitment and retention, alignment with corporate sustainability commitments.
For public-facing chargers, payback typically depends on utilisation. A rapid charger delivering 4 to 6 sessions per day at 30 to 50 kWh each can recover its installation cost within 3 to 5 years. Low-utilisation chargers may not pay back during their operational life.
Installation considerations
Key factors:
- OZEV grants. The Workplace Charging Scheme (WCS) provides up to £350 per socket for SME and public sector workplace installations. Other grant schemes apply to specific use cases.
- Load management. Software-controlled load balancing across multiple chargers can multiply the number of chargers installable within a given supply capacity.
- Smart charging. Time-shifting charging to off-peak hours reduces costs and supports grid balancing.
- Solar PV integration. Combining EV charging with on-site solar can offset import costs during daylight hours.
- BESS integration. Battery storage can support EV charging by storing solar generation or off-peak grid imports for use during peak charging periods.
For larger commercial EV charging installations, a specialist installer or energy consultant typically conducts a feasibility study covering site capacity, charger specification, grant eligibility, and revenue projections.
commercial EV charging FAQs
What is commercial EV charging?
Electric vehicle charging infrastructure installed at UK business premises. Includes workplace chargers, destination chargers, fleet depot charging, and public rapid charging hubs.
What size electricity supply do I need for EV charging?
A single 7 kW charger can usually be added to a standard 100 A single-phase supply. A single 22 kW charger needs three-phase supply with meaningful spare capacity. Multiple fast or rapid chargers often require supply upgrades or new connections.
How much does commercial EV charging cost to install?
A 7 kW workplace AC charger costs £1,300 to £3,500 total. A 22 kW fast AC charger costs £3,000 to £8,500. A 50 kW rapid DC charger costs £35,000 to £90,000. Ultra-rapid 150 to 350 kW chargers cost £90,000 to £250,000 or more per bay.
Can I claim grants for installing EV chargers?
Yes, for some use cases. The Workplace Charging Scheme (WCS) administered by OZEV provides up to £350 per socket for SME and public sector workplace installations. Other grant schemes apply to specific situations.
How do EV chargers affect my electricity bill?
Adding EV charging increases overall consumption, which adds to the electricity bill at the contract unit rate. Larger installations may push up maximum demand, increasing capacity charges on HH supplies. Smart charging and off-peak scheduling can mitigate the cost impact.
Can I generate revenue from public EV charging?
Yes. Public-facing chargers charge users per kWh delivered, typically £0.45 to £0.85 per kWh for rapid charging in 2024. Payback depends on utilisation. Higher-utilisation chargers (4 to 6 sessions per day) pay back faster than low-utilisation installations.
Should I combine EV charging with solar PV or batteries?
It depends on the use case. Solar PV can offset daytime charging cost. Battery storage can shift solar or off-peak grid imports to support peak EV charging. The combination can improve economics, particularly for workplace charging where vehicles park during daylight hours.
What is load management for EV charging?
Software-controlled load balancing that distributes available electricity supply capacity across multiple chargers dynamically. Allows more chargers to be installed within a given supply capacity than simple fixed installations. Important for sites with high charger density relative to grid capacity.