Jack Parser, Development Director at Crystal EV, says the time is right for electrical wholesalers to consider electric delivery vans and installing EV chargers at trade counters.

Close to one in five of all new vans registered in the UK in the year to April 2023 were electric – up 70% on the previous year. Given the additional cost of purchase, less convenient refuelling and smaller range than diesel ICE vans, why are so many UK businesses going electric?

Long-term thinking

While headline-grabbing tax breaks on commercial EVs and the available grants for businesses to install EV chargers are certainly incentivising the shift, fleet managers looking deeper into the sector are seeing a range of longer-term benefits. Cost savings on fuel and maintenance, improved operational efficiency, environmental benefits and goodwill from customers that brings, and even the profitability of operating trade counter chargers commercially and swinging the scales in favour of electrifying fleets.

While the upfront cost of EV vans is higher than that of their ICE equivalent, thanks to the cost of Lithium battery packs, electric vans offer significant running cost savings compared to their diesel or petrol counterparts.

With electricity generally cheaper than fossil fuels, the cost per mile for operating an electric van is substantially lower. Modern diesel vans can achieve around 6-7 miles per litre, costing circa 35p/mile @ 160p/litre. EVs like the new Ford E-Transit offer 2.5m/kWh, which is around 14p/mile even at a hefty daytime electricity rate of 35p/kWh. Get a better business tariff across the company or charge vehicles overnight, and that cost could be half!

Additionally, electric vehicles have far fewer moving parts, which translates to lower maintenance and servicing costs. Components like engines, transmissions, and exhaust systems are either simpler or non-existent in EVs, reducing the frequency and cost of repairs and reducing work downtime through breakdowns. Electric power trains will also last a whole lot longer than ICE, as Tesla’s recent 660,000km clocked on a Model S on its original battery demonstrates. The upshot is potentially a longer replacement time frame for vehicles, with proportionally lower monthly lease or purchasing costs.

Incidentally, that same E-Transit has a range of 150-200 miles on a single charge, depending on load. Plugged in and charged overnight, how many vans in your local delivery fleet do more than that mileage per day? If they do, the question becomes, where would they charge if they were not at the depot? Contrary to public opinion there is a huge and growing number of commercial chargers available. Just take a look at ZapMap, and there is barely a spot in England where you are more than 10 miles from a public charger.

Managed charging

On charging, one of the primary benefits of transitioning to electric vans is the ability to establish a unified charging infrastructure across your fleet. Unlike the often insecure and cumbersome use of fuel cards, electric charging can be centrally managed, reducing the risk of fraud and misuse. Charging stations can be installed at depots, warehouses, and trade counters, simplifying the refuelling process and ensuring that vans are always ready for their next delivery. For drivers charging at home, charges put into the company vehicle can be directly billed to the company (depending on the charger and energy supplier) and electronically protected against fraud or misuse as the charger establishes a connection with the vehicle.

How many customer vans visit your trade counters every day? Having installed chargers to fuel your fleet overnight, you can offer commercial charging to customers. The typical profit margin on commercial charging is in the order of 25p/kWh – or around £5.50 per hour per 22kW charger in use. Just a few chargers at each trade counter could prove lucrative, especially as more businesses turn to EV vans. Alternatively, charging on your site can be offered at a discount or embedded into a loyalty scheme to improve your customer attraction and retention.

Strategic move

As the adoption of EVs grows, having convenient charging options for customers sooner rather than later will set wholesalers apart from competitors.

The transition to electric delivery vans offers a compelling array of benefits for electrical wholesalers, from significant cost savings and environmental advantages to enhanced customer engagement and simplified fleet management. By carefully evaluating your specific needs and taking advantage of government incentives, electrical wholesalers can make an informed decision that supports their business goals and contributes to a sustainable future.

The shift to electric vans is more than a trend – it’s a strategic move towards long-term efficiency and competitiveness in the evolving wholesale marketplace.

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Ali Khan, Head of UK E-Mobility at Vestel, says the electric vehicle (EV) revolution is in full swing, and the transformation presents a golden opportunity to expand business and drive new revenue streams for electrical wholesalers and their customers.

As an EV charger supplier direct to the trade, as well as an OEM partner for many of the UK’s energy and fuel providers, Vestel UK is witnessing a rapid and significant increase in the demand for EV chargers.

The EV market overall has seen exponential growth over the past few years. The Society of Motor Manufacturers and Traders (SMMT) reported that UK electric car sales reached record levels last year, with over 300,000 battery electric vehicles (BEVs) sold. That is a massive 50% increase from the previous year.

Almost one in five (19.8%, SMMT figures) of all new vans hitting the UK roads in the previous 12 months were electric – up 70% on the year before. That is a monumental shift in the type of transport being used to move goods and service providers around and outlines the huge potential for the market; there are some 6 million commercial vehicles in daily use in the UK.

The rise in EV sales is not just a statistic but a clear indication of the future of transportation that is driving demand for chargers in homes and business premises. You’re already ahead of the game if you stock residential and light commercial (7kW-22kW) chargers. But if you don’t yet stock chargers, you and your customers are missing out on one of the most significant growth categories the electrical industry has seen for decades.

Charging demand

The increasing number of electric commercial vehicles drives the need for reliable and accessible charging infrastructure to new heights. For electricians and electrical wholesalers, this trend opens a vast array of opportunities to supply and install EV chargers across various sectors.

Thanks to government incentives on EV purchasing, including low road tax, low or zero charges in low emission zones, massively reduced benefit-in-kind tax for company cars, and consumers looking to be part of a greener future, the reasons for consumers to go electric are mounting. At-home is the most convenient charging solution for EV owners with a driveway or garage space. It is also the cheapest, particularly if you benefit from a low overnight tariff – which can be as low as 10p/kWh.

An estimated 20% of UK homes have direct on-property space for a charger, equating to around five million homes. Add in the number of commercial flats and apartments looking to install car park-based space-by-space charging solutions, and the potential residential customer base will be huge.

Businesses also recognise the benefits of installing EV chargers on their premises. This move is not only environmentally friendly but also makes good business sense. It visibly enhances brand Image and sustainability credentials, enables customer and employee charging benefits, and attracts environmentally conscious customers and partners. Businesses can offer charging as a free, subsidised, or loyalty-based service to customers, helping to drive repeat business.

It is not unusual for SMEs to monetise their EV chargers by offering them for public use. With the right pricing strategy, this can become a fully automated and profitable revenue stream, particularly in high-traffic areas. The UK government’s push towards zero emissions helps here, too, with grants and tax breaks available for businesses that install EV chargers, helping reduce installation costs and maximise returns on investment. With over 2m small businesses actively trading in the UK plus site branches of larger organisations, there is significant market potential for chargers.

Opportunity

For electricians, this means an increasing number of installation projects, many of them part-funded by government grants to businesses. From single-family homes to apartment complexes, SME and industrial estates, electrical wholesalers are perfectly positioned in the supply chain. Stocking a single charger that works equally well in the residential and SME spaces, capable of being configured from 7kW to 22kw and single or three phase, reduces stock SKUs and makes for the simplest proposition for electrical installer customers. The Libra model launching this month is a cutting-edge EV charger with flexible set-up options that are viable for a wide range of installations. For larger wholesalers and projects, Vestel can offer volume discounts, charger customisation, and OEM branding.

The rapid growth of the EV market presents an unprecedented opportunity for electricians and electrical wholesalers. By expanding your knowledge and offerings in the EV charging space, you can tap into a lucrative market that promises sustained growth and significant business potential. Together, we can power the future of transportation and drive the transition to a sustainable world.

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