How do you build an EV charger business case for your site?

Build your charging business case from energy sold, the margin after electricity, annual operating costs and the capital your site contributes. Eligible workplace installations can receive up to £500 per socket, subject to scheme conditions [S1]. Keep grants separate until confirmed. Compare yearly host income for fully funded terms with ROI and payback for ownership-based options. Checked October 2026.

Last checked 17 October 2026

Why install chargers, and what demand should your business case use?

Write the purpose before estimating profit: serving visitors, supporting staff or charging your fleet. DfT reported 2,017,000 licensed zero-emission cars in the UK at the end of June 2026 [S4]. That is background context, not a forecast for your car park. Base your sessions on site evidence and record what remains uncertain.

For visitors, collect arrival patterns, dwell times and the charging available nearby. For staff, ask about cars, attendance and access to other charging. For fleets, use route energy and departure requirements. Keep the charging account separate from any hoped-for shop or hospitality spending until you can measure it. The utilisation guide helps frame questions about comparable sites.

Which funding model fits your site?

Request the same physical scope under each model. Ask bidders to identify capital contributions, ownership, operating costs and the exact income formula. These are comparison descriptions, not published market offers.

For a host agreement, ask about lease length, parking loss, tariff control, rates, liability and exit. For an equipment purchase, ask about maintenance and replacement. Read negotiating a host agreement before comparing income percentages.

What assumptions belong in an EV charger business case template?

An illustration, not a quote. Every commercial input below is an assumption, not a sourced cost benchmark or a utilisation prediction. Replace it with surveys, actual tariffs and written offers. Kilowatts (kW) measure power; kilowatt-hours (kWh) measure energy. Sessions are totals for the entire site, not for each socket.

The part funded provider is assumed to receive the remaining surplus and fund the remaining capital. The fully funded provider is assumed to pay all operating costs, with no host expenses. Neither is an actual offer. Clarify whether a quoted share applies before or after deductions.

What could your site earn, and how many years until payback?

Use these formulas: annual energy = daily sessions × energy per session × trading days. Receipts = energy × driver price. Operating surplus = energy × (driver price − effective energy cost) − annual operating costs.

For the mid case: 3 × 10 × 365 = 10,950 kWh. Surplus = 10,950 × (£0.50 − £0.25) − £600 = £2,137.50. Fully funded income = £5,475 × 10% = £547.50. Part funded net = £2,137.50 × 60% = £1,282.50.

Simple ROI = annual host net ÷ host capital × 100. Payback = host capital ÷ annual host net. Apply both ends of the capital range; for example, self funded mid-case payback is £8,000–£12,000 ÷ £2,137.50 = 3.7–5.6 years. Fully funded has no host capital in this illustration, so host-capital ROI and payback are not applicable.

These calculations exclude finance, tax, grants, depreciation, replacement, rent and rates. They hold use and prices constant. Long low-use paybacks may exceed the equipment or contract period: do not treat them as a credible investment horizon. If net income is zero or negative, there is no positive simple payback. Ask your accountant to review the actual model. See the ROI guide.

What site requirements and downside tests should you include?

A distribution network operator (DNO) manages the local electricity network. Obtain the relevant network assessment and quotation [S2]. Add confirmed supply, cable routes, parking, accessibility and council planning requirements to the decision pack. Ask your solicitor about property consent and land rights.

Reduce sessions and margin separately in your own worksheet. Add priced contingencies for unresolved work and check the effect of outages or losing public access. Ask the installer to price expansion and any load control separately. DfT reported 121,171 public chargers as of 1 July 2026 [S5]. Use national provision as context rather than converting it into a local sessions forecast.

Which grants and tax allowances can you include?

The Workplace Charging Scheme is capped at £500 per eligible socket, with the scheme running to 31 March 2027 [S1]. This illustration deducts no grant. Check eligibility before changing your capital contribution.

HMRC’s chargepoint first-year allowance extension runs to 31 March 2027 for Corporation Tax and 5 April 2027 for Income Tax [S3]. Check with your accountant; tax relief is separate from operating receipts.

What should you do next?

Bring your parking plan, usage evidence and electricity information to a survey. Ask bidders to replace the assumptions and return a comparable funding and operating schedule.

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