What should you check in an EV charging lease agreement?

Check the land rights, payment formula, operating duties and exit route together. In England and Wales, the Landlord and Tenant Act 1954 can affect renewal; excluding renewal protection requires a prescribed process [S2], [S3]. A revenue percentage alone cannot show your return. This is information, not legal advice; ask your solicitor to review the actual agreement. Checked October 2026.

Last checked 17 October 2026

Is this a lease, a licence or an equipment contract?

Start by asking what you are granting. A land lease can give the operator possession of defined bays. A licence permits land use. Equipment hire concerns the charger itself. These questions overlap, but buying or hiring a machine does not settle the rights needed to occupy your car park.

HMRC identifies exclusive possession, a term and an intention to create an interest in land as lease features. It says the substance of the arrangement matters more than its label [S1]. Ask your solicitor to apply that distinction to your site. Read lease versus licence before accepting a document headed simply “hosting agreement”. This page is information, not legal advice.

What land rights and dates should the agreement define?

Take a marked plan to your solicitor. Ask for separate treatment of the occupied area and rights across the rest of your land. Use this negotiation checklist rather than assuming a standard form covers your needs.

Ask your solicitor to check your existing lease and title before granting rights. Do not promise bays already allocated to another tenant. A distribution network operator (DNO) manages the local electricity network; ask which proposed cable and supply rights extend beyond the charging bays.

Can the agreement continue beyond its stated expiry?

In England and Wales, qualifying business tenancies can have renewal protection under the Landlord and Tenant Act 1954. GOV.UK explains that many business tenants have a right to renew [S2]. A printed expiry date alone should therefore not be your redevelopment plan. Ask your solicitor whether the particular arrangement qualifies.

Section 38A permits exclusion of sections 24 to 28 subject to formal requirements. Article 22 and Schedule 2 of the amending Order set out the warning notice and declaration process [S3]. This must be addressed before contractual commitment. Use a solicitor practising in the property’s jurisdiction; do not apply this England and Wales explanation to Scottish or Northern Irish land.

How do the funding model and payment formula affect your return?

Under fully funded, the provider pays, installs, owns and operates; you provide the site and receive rent or a share. Under part funded, you contribute capital for an agreed larger share. Under self funded, you buy the equipment and retain income after operating costs. Ownership and buy-out rights still need express terms.

Specify whether a share applies to sales before costs or to a defined margin. Request settlement statements, audit access, permitted deductions, payment dates, treatment of refunds and a method for changing prices. Put electricity, capacity charges, software and maintenance against a named payer. Treat business rates, insurance, injury claims and damage to neighbouring property as explicit allocation questions for your solicitor.

An illustration, not a quote

This destination-site example uses alternating current (AC) equipment. kW means kilowatts of power; kWh means kilowatt-hours of energy. The source gives £1,400–£2,500 for one installed 7 kW workplace charger [S4]. Groundworks, cable runs and connection are extra; scope omissions also need checking [S5].

Annual energy = sessions × 12 × 365. Sales = energy × £0.50. Operating net = energy × (£0.50 − £0.20) − £600. For mid use: 2 × 12 × 365 = 8,760 kWh; sales £4,380; operating net £2,028. Fully funded income = sales × 10%; part funded net = operating net × 60%. Simple annual ROI = host net ÷ host capital × 100. Payback = host capital ÷ host annual net.

At mid use, the capital range gives self funded payback of £2,400–£3,500 ÷ £2,028 = 1.2–1.7 years. These are assumed cash flows before tax, financing, replacement, downtime, losses and any unlisted fees. They are not offered contract terms. Enter your costs in income and payback.

GOV.UK lists qualifying new, unused chargepoint equipment bought before April 2027 for 100% first-year allowances [S7]. This reduces taxable profits, not the invoice. Check with your accountant; no tax relief is assumed above.

What happens after faults, insolvency or an early exit?

Ask for separate fault acknowledgement, attendance and restoration commitments. Public operation also brings statutory duties; a maintenance paragraph does not replace the Public Charge Point Regulations [S6].

Have your solicitor test break clauses for redevelopment, prolonged failure and unpaid sums. Request clear notice methods, cure periods, compensation calculations and limits on assignment. For insolvency, discuss step-in arrangements, funder rights, access to equipment and a funded removal mechanism. Do not assume insolvency automatically returns usable chargers to you.

Agree who safely disconnects and removes equipment, foundations and cables. Record the original surface condition and the reinstatement standard. Put handover records, residual software access and final settlement in the exit schedule. Use contract lock-in and exit and host agreement negotiation to prepare your solicitor’s brief.

What should you do next?

Use the guides hub, site checker and charging cost tool. Check business electricity benchmarks when exploring cutting energy costs. Bring the draft agreement and site plan to get matched with an installer that covers your area, then obtain your own solicitor’s review.

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