The global energy crisis is sending shockwaves through every sector, and for the automotive industry, in which the switch to electric and hybrid vehicles was in full swing until 2022, the predicament is especially challenging.
Rising energy costs, compounded by the higher prices for production due to raw material shortages and other factors (e.g. a global backlog in microchip production), are significantly impacting the manufacturing and sale of vehicles. Amidst these concerns, speculation suggests that investments in electric vehicles (EVs) and EV charging stations may decrease short-term due to the market's uncertainty.
However, it's essential not to overlook the bigger, longer term picture. Despite the current challenges, the fundamentals that make electric vehicles attractive, especially for businesses, remain intact.
Harnessing The Power Of Efficiency
Despite the rising cost of electricity, EVs' operational efficiency presents a compelling argument for businesses. The superior energy conversion of EVs is the first piece of this efficiency puzzle.
Electric vehicles are more energy-efficient than their internal combustion engine counterparts. EVs can convert over 77% of the energy from the grid into motion. In comparison, traditional petrol or diesel vehicles only convert about 12%-30% of the energy stored in fuel into motion, with the rest lost to heat, noise, and other forms of waste.
This disparity in energy conversion translates to lower operational costs over the long term, offering businesses a more economical solution even during an energy crisis.
Furthermore, EVs' maintenance and servicing costs tend to be lower than traditional vehicles. The absence of complex mechanical components such as the gearbox and exhaust system in an EV reduces the potential for mechanical faults. This simplicity reduces the frequency of servicing and the overall maintenance cost, adding another layer of cost-effectiveness to the EV proposition.
EV Charging Stations And Alternative Solutions
For businesses, installing an EV charging station presents a solution that aligns with the operational requirements and energy-efficiency goals of EVs. EV charging stations allow businesses to manage their charging schedule, optimising for off-peak hours when electricity is cheaper. This strategy ensures the vehicles are ready for operation without significantly inflating the energy bill.
Furthermore, advancements in charging technology have seen the rise of solar-powered EV charging stations. These stations utilise renewable energy, creating a sustainable, cost-effective solution for businesses. They reduce dependence on the grid and contribute towards a business's carbon neutrality goals.
Home Charging: A Viable Option Amidst Energy Crisis
Despite the growing network of public EV charging stations across the UK, home charging remains the most viable option for many business EV operators. With the integration of a specially designed EV tariff, businesses can take advantage of super low-cost rates during off-peak times, usually overnight.
Home charging also provides the convenience of having the vehicle ready for operation at the start of each day without any detours to public charging stations. The simplicity and cost-effectiveness of this approach make it an attractive option for businesses during an energy crisis.
The Future Is Electric
The energy crisis presents significant, if temporary, challenges for businesses. However, the intrinsic efficiency of electric vehicles and the strategic use of EV charging stations, including home charging and alternative methods like solar power, offer a viable path forward.
Despite the current energy landscape, the shift towards electric vehicles remains a forward-thinking move, demonstrating a commitment to sustainability and long-term cost-efficiency.
For more information about the cost benefits of EV charging stations and for help implementing the right solution for your business, please call Lowe & Oliver today on 01865 411319.
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