Should you take fixed rent or a revenue share for EV chargers?

Fixed rent makes your contracted payment less sensitive to charger use; a revenue share ties income to sales and the deduction rules. Neither removes payment or contract risk. Public charging attracts 20% VAT [S1], [S7], so compare the same receipts basis. Request low, middle and high use calculations before trading predictable rent for potential upside. Checked October 2026.

Last checked 17 October 2026

How much income could fixed rent or a revenue share pay your site?

Compare a defined payment, rather than a percentage in isolation. Fixed rent sets a contractual amount for use of your land. A revenue share changes with the charging receipts included in its definition. A hybrid might combine a base payment with a share, but ask whether these are added together or only the larger amount is paid.

Lease guidance identifies fixed rent, profit-based rent and minimum-base arrangements, and stresses clear payment definitions [S2]. None establishes what your site will be offered. Ask for the payment start date, suspension events and the payer’s identity. Fixed rent still depends on that payer meeting its obligations.

Use the revenue-share guide for payment definitions and the fully funded guide for the ownership model. Rent versus share is a payment choice; fully funded, part funded and self funded describe who contributes capital.

What charging price and revenue definition should you compare?

Ask whether the share applies to driver receipts before or after VAT, refunds, energy and transaction charges. Public charging is standard-rated at 20% VAT [S1], [S7]. A percentage of VAT-inclusive payments is different from the same percentage of receipts after VAT. Profit share introduces further deductions.

Request control and reporting clauses covering these points:

• Who sets the driver price, and who can change it?
• Are staff discounts, roaming transactions and promotions included?
• Is the share calculated before or after energy and other operating costs?
• What transaction records support each statement, and when is payment due?
• Can you challenge deductions and inspect supporting records?

Use the charging cost tool to explore driver prices and business electricity price data for context. Neither predicts utilisation. Ask for evidence from comparable sites rather than treating a national electricity benchmark as your purchase price or a forecast of charging demand.

At what level of use does revenue share overtake fixed rent?

This is an illustration, not a quote or an offer. All operating inputs below are assumptions. A kilowatt (kW) measures power; a kilowatt hour (kWh) measures energy. DC means direct current. Sessions refer to the whole charger, not each connector. No additional shop or hospitality sales are counted.

The upgrade is a separate line: published guidance gives £40,000–£150,000 for a main supply upgrade [S3]. The illustration assumes other site works fit the installed allowance; obtain an itemised scope. No grant is deducted. VAT recovery is assumed for the operator’s costs; check that assumption with your accountant.

Annual energy = sessions/day × 20 × 365. Charging receipts = annual energy × £0.50. Fully funded share income = receipts × 10%; fixed rent remains the assumed £1,200 under every use scenario.

The crossover is £1,200 ÷ (10% × £0.50) = 24,000 kWh/year. Dividing by 20 kWh and 365 days gives about 3.29 sessions/day. That result follows only from these assumptions. A higher rent, lower share or extra deduction moves the crossover. Model closure days and downtime by reducing sessions actually completed.

How does paying capital change ROI and payback?

For the same illustration, annual operating surplus = energy × (£0.50 − £0.25) − £1,200. Assume self funded keeps that surplus on £70,000 capital. Assume part funded pays £35,000 and receives 50% of that surplus, with no extra fees. These are invented scenario terms, not market offers. Fully funded host capital is assumed zero.

ROI means return on investment: annual net income ÷ host capital × 100. Payback = host capital ÷ annual net income. The part funded and self funded ratios match because both contribution and surplus are halved. The long low-use payback is mathematical, not a statement about equipment life. Figures exclude tax, financing, inflation, replacement capital and unresolved property costs. Add those before an investment decision.

Which contract and tax questions matter before choosing?

Ask your solicitor to check lease length, exclusivity, rent review, redevelopment, relocation, assignment, payment suspension and removal. Record who pays for insurance and repairs, and whether the site is restored after removal. Lease guidance highlights break rights, reinstatement and insurance allocation [S2].

HMRC includes payments for licences to use land within property receipts [S5]. The label revenue share does not settle your tax treatment. Give your accountant the actual land, equipment and service obligations. Keep VAT on charging distinct from VAT on your host payment; this guide does not determine the latter.

HMRC lists qualifying chargepoint equipment bought before April 2027 for first-year allowances [S6]. An allowance reduces taxable profits rather than returning the purchase price; check with your accountant.

What should you do next?

Run your assumptions through income and payback, prepare a site check and read negotiating a host agreement. If energy exposure is central, start with cut energy costs. Then get matched with an installer that covers your area.

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