How electric vehicle charging sites can benefit farmers
Ceri Breeze/Alamy Stock Photo The Ten Point Plan for a Green Industrial Revolution, published late last year, sets out the government’s approach to accelerating the UK’s path to net-zero emissions.
This includes a commitment to end the sale of new petrol and diesel cars and vans by 2030.
All new vehicles will be required to have a significant zero-emissions capability (plug-in and full hybrids) from 2030 and to be 100% zero emissions from 2035.
Jeremy Dawson, director of Strutt & Parker’s land management team in Stamford, Lincolnshire, advises on the opportunities that the move to electric vehicles could bring to farmers and landowners.
See also: More diversification advice and case studies
One in seven new cars has a charge plug
Almost one in seven new cars sold in the UK in 2021 are expected to have a plug, according to the Society of Motor Manufacturers and Traders. This is an increase from one in 10 in 2020 and one in 30 in 2019.
At the end of July 2021 there were more than 590,000 plug-in vehicles on the road, with about 290,000 battery electric vehicles (BEVs), which are also referred to as a pure electric vehicles.
There were about 300,000 plug-in hybrid electric vehicles (PHEVs) registered.
Last year saw the biggest annual increase in number of registrations, with more than 175,000 electric vehicles registered – a growth of 66% on 2019 – despite the impact of coronavirus.
Charging points – the numbers
According to Zap-Map, a website that enables drivers to locate charging points in the UK and Ireland, 15,876 locations had a public charging point in August 2021.
There were 25,126 devices at these locations, with a total of 43,174 charging connections.
Greater London had the most charging points, followed by the south-east of England, and then Scotland.
The different types of charge points are typically defined as:
- Slow or trickle (3-5kW) – These points are commonly used to charge a car at home overnight, taking between six and 12 hours to reach a full charge.
- Fast (7-22kW) – These chargers tend to be found at places where you might typically spend an hour or more, like supermarkets and leisure centres. A 7kW charger can add 20-30 miles of range for each hour of charge, while a 22kW unit can add 60-90 miles of range an hour.
- Rapid (25-99kW) or Ultra-rapid (100kW+) – These are the chargers typically found at motorway services or increasingly now at electric vehicle charging stations close to large A-roads. The ultra-rapid versions can charge a car in as little as 20-40 minutes.
A report by the Competition and Markets Authority concluded while it is difficult to know precisely how many charging points will be needed, at least 280,000 to 480,000 public charge points are likely to be needed by 2030. This is more than 10 times the current number.
There will also need to be a suitable mix of different types of charging spread across the UK.
What opportunities are there for farmers to provide sites for charging?
The infrastructure needed to support electric vehicles includes:
- Charging points in homes and holiday cottages – some estates are already putting charging points in rental properties as they are refurbished, to help attract and retain tenants. Charge points generally include two plug-in points, one at 3.6 kW and the other at 7.2 kW.
- Charging points at work – these are likely to be increasingly needed at let commercial properties, such as rural offices and workshops, to attract and keep tenants.
The provision of charge points for staff and visitors could boost the environmental credentials of an estate or farm and pave the way for modern businesses with fleets of electric vehicles. Most would offer both 3.6 and 7.2 kW charge options.
- Charging points in car parks – rural estates with visitor attractions need to consider how to meet demand for charging facilities from their existing customer base and whether they could attract more visitors by providing such a service.
This could include open houses and gardens, farm visitor attractions and farm shops. However, it is important to to consider the typical dwell time of customers – if customers are only popping in very briefly then they may not have enough time to charge, so a point may not be utilised.
A choice will need to be made between offering the service as a loss leader to pull in visitors, charging a fee that covers costs only, or seeking to use charging points as an opportunity for a small amount of income generation.
The level of utilisation of the charge point will clearly be a crucial driver of the overall profitability of the scheme. It is important that each business case is assessed individually to identify the correct charging equipment and pricing strategy.
A driver on a short journey is less likely to want to pay to charge than one who may have travelled a significant distance to reach you and therefore has a longer onwards journey.
- Electric vehicle charging stations – these are public charging points and on a much larger scale than anything a rural business might undertake on its own account (See panel).
Considerations for diversified businesses
Diversified businesses may want to provide charging stations for customers.
Some businesses may want to offer trickle or fast charging to maximise the number of drivers they attract to a retail location and increase the “dwell time” at that location to encourage on-site spending and grow brand loyalty.
Evidence is emerging to suggest a visitor’s “dwell time” is increased by 50% at retail locations where shoppers are charging their vehicles.
The options for installing EV charging points at offices and rural retail complexes are varied.
The right solutions may depend on the footfall of the site, the number of charging points you wish to install, the upfront installation costs and whether the parking facility is open to the public or not. If not, the investment will be reliant on a customer-funded model, blended with government grants available.
Costs and grants
A fully installed type II 7kW double header charging unit would typically cost around £1,500 after the government’s Workplace Charging Scheme grant has been applied.
This grant is available for businesses to reduce the cost of having an EV charge point installed at their premises.
Under it, businesses can claim up to 75% of the total cost of installation, up to a maximum of £350/socket, with the following conditions:
- Maximum of 40 sockets across all offices for each applicant
- No existing EV is required
- A need must be shown for the sockets when applying for the grant, for example, to provide charging for visitors, or an incentive for the uptake of plug-in vehicles for staff
- EV charge points must only be fitted by an accredited Office for Zero Emission Vehicles installer
How people pay is another consideration – customers tend to prefer contactless systems as it is easy. Some chargers require customers to download an app or even order a radio-frequency identification (RFID) card, which is much less convenient.
Leasing or selling land for Electric Vehicle Charging Stations
There are opportunities to sell or lease land to the operators of this type of site, adding them to existing fuel stations or creating new stand-alone electric-only stations. Leases are the most common model. Strutt & Parker is advising clients leasing land to electric vehicle charging station operators such as Gridserve, Osprey and Fasned.
What are the essential elements of a good electric vehicle charging station site?
For standalone rapid charging stations (providing a charge in 20-30 minutes), the main requirements are to be close to a main road with high traffic flows and/or amenities and good proximity to the electricity grid. This will be either a major motorway or A-roads in urban and edge-of-town locations and 0.5 to 2.5 acres in size.
Operators’ requirements are:
- Plot sizes of 400-2,000sq m, greenfield or cleared brownfield
- Prominent locations with high traffic counts (30,000-plus vehicles a day in non-urban locations, 20,000-plus vehicles a day in urban locations)
- Proximity to driver amenities such as toilets and refreshments
- Good accessibility and visibility from main carriageway.
What are the business models for rapid charging electric vehicle charging stations?
Network operators are typically seeking a long lease of 25 years and will install and fully operate the rapid chargers as part of the agreement. It will pay the landowners an annual rent or a share of the profit – whichever is the greatest – and this is usually a term of the agreement. The operators would apply for planning permission and be responsible for paying the planning costs.
What is the realistic rental potential from charging electric vehicle charging stations?
As with all property values it’s about location, location, location. Rents are typically about £12,000/year initially, rising to more than £50,000/year, subject to turnover, for a site of between 0.5 and 0.75 acre.