The Perks of Going Electric: Why It’s Time to Make the Switch

(Posted on 19/08/24)

You’ve probably noticed more electric vehicles on the roads lately, and maybe you’ve been toying with the idea of making the switch yourself. With manufacturers racing to outdo each other in the EV market, the options are more enticing than ever. But what’s really in it for you? Whether it’s for business, personal use, or the whole family, the benefits of upgrading to an electric vehicle might just surprise you—and not just because you’ll never have to visit a petrol station again.

Financial and Operational Benefits

Switching to an electric vehicle (EV) isn’t just about going green—it’s also about saving green. One of the most immediate benefits you’ll notice is a significant reduction in your fuel expenses. Charging an electric car is considerably cheaper than refuelling a petrol or diesel vehicle.

Of course, the exact cost of charging can vary based on several factors, such as the vehicle's battery capacity, local energy rates, and the speed of the charger. Generally, while a larger battery means a higher charging cost, it’s still a small fraction of what you’d spend on fuel. So, even though you might pay more to top up a bigger battery, you’ll find that your overall running costs are much lower compared to traditional combustion engines.

According to Pod Point, the average cost to fully charge an electric vehicle at home is around £13. Charging at public locations averages £26, while using a rapid charging point—common on motorways and service stations—costs about £19 for a 30-minute, 90-mile charge.

For businesses with a fleet of vehicles, these savings can quickly add up, making the switch to electric a smart financial decision.

Many businesses have concerns about the practicality of charging electric vehicles, especially when downtime could mean lost revenue. While EVs now boast impressive ranges—some models can go over 400 miles on a single charge—the worry about waiting for a vehicle to recharge is understandable. However, rapid charging solutions are increasingly available, significantly reducing wait times. With rapid charging, drivers can restore up to 80% of their battery in under 45 minutes, making it easy to top up during a break. As technology continues to advance, companies like NIO are even offering battery-swapping services, where a fully charged battery can be installed in just a few minutes. These innovations are quickly making charging concerns a thing of the past.

When it comes to maintenance, electric vehicles offer another major advantage. With far fewer components than traditional combustion engines, EVs are simpler and less prone to mechanical issues, resulting in lower maintenance costs. This simplicity means fewer breakdowns and less time (and money) spent on repairs, making EVs not just more environmentally friendly, but also more cost-effective in the long run.

Plus, with regulations like ULEZ (Ultra Low Emission Zones) in place, electric vehicles help businesses avoid costly emissions charges, adding another layer of savings. Ultimately, the shift to electric vehicles can have a positive impact on your business’s bottom line—without the drawbacks many fear.

Environmental Benefits

There's no question that electric vehicles offer significant environmental benefits. By producing zero emissions, they are a much greener alternative to petrol and diesel vehicles. As more individuals and businesses become conscious of their impact on climate change, switching to electric vehicles is an effective way to reduce greenhouse gases. For companies with fleets, this switch can dramatically lower your overall emissions, contributing to a healthier planet.

Beyond the obvious environmental impact, going green is also good for your business image. Consumers and potential employees increasingly prefer to engage with companies that take sustainability seriously. By adopting electric vehicles, you not only reduce your carbon footprint but also enhance your reputation as an environmentally responsible business—something that can attract both customers and top talent.

Tax Benefits for Businesses

With the UK government’s net zero target looming in 2050, businesses are feeling the heat to clean up their carbon footprints. Luckily, there are plenty of grants and incentives to make the transition to electric vehicles (EVs) a bit easier on the wallet.

Take the ULEZ scrappage scheme, for example. It offered grants to businesses willing to part with their old, polluting vans and minibuses in favour of shiny new electric models. It’s like the government saying, “Out with the old, in with the green”—and they’re even helping foot the bill.

On top of that, there’s a grant available until March 2025 that helps small and medium-sized businesses cover the costs of installing EV charging points. It’s not every day the government offers to help you plug in, so it’s worth considering while it lasts.

Then there’s the Benefit-in-Kind (BIK) rate for EVs, currently sitting at a comfortable 2% until 2025. Compare that to the 37% you could be paying on a gas-guzzler, and suddenly the idea of going electric looks pretty attractive. Think of it as a little reward for doing right by the planet—plus, it keeps a lot more of your hard-earned cash in your pocket.

And if you’re buying new, all-electric cars, here’s another perk: they’re eligible for a 100% first-year allowance. That means you can deduct the entire cost of the vehicle from your taxable profits right away—because who doesn’t like a nice, big tax break?

So, while the pressure to go green is real, the financial benefits of making the switch to electric vehicles are very much worth a closer look. After all, saving the planet and saving money? Now that’s a win-win.