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Return home8.3. Funding mechanisms
Decarbonising fleets needs high upfront investment, but public sector funding options can reduce costs. Charging infrastructure offers long-term savings, with funding mechanisms helping manage initial expenses.
Decarbonising fleets is a necessary and significant step in changing how we use transport and energy. Although energy use will become cheaper in the long run, achieving this requires a substantial initial investment. However, public sector organisations can access funding options that reduce the upfront costs. The trade-off is higher operational costs, but it may still make decarbonisation more feasible in the long term.
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To switch your fleet to EVs, you must be able to charge your vehicles. While you can use public charging, installing your own charging infrastructure at key locations will be much cheaper in the long run. This requires significant initial investment, ongoing maintenance and back-office systems management.
While installing charging infrastructure will be cheaper in the long term, you may not be able to cover the upfront cost. You may also have concerns over the skills and knowledge required.
Many charge point operators (CPOs) offer full packages, including vehicle management and funding mechanisms. The CPOs cover the installation cost and recuperate the money through an overhead fee as part of your charging cost. This means you can outsource charging your fleet. In some cases, the vehicles can also be provided.
There may be some limitations. For example, the CPOs may stipulate that the public can charge at certain times of day, set a minimum usage level, or only agree to install rapid charging. This option is likely cheaper than using public charging but more expensive than the DIY route, where you cover all expenses and management in-house.
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The Energy Systems Catapult ‘Net Zero Go’ has a guide to financing options for local authorities (sign up is required).
Some organisations give funding and loans to local authorities in the UK, such as Salix Finance, UK Infrastructure Bank, and PWLB Lending.
The Scottish Futures Trust has more detailed guidance on funding mechanisms and EV charging infrastructure.
