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UK firms embark on in £13.6bn EV investment drive

960 640 Stuart O'Brien

UK businesses are set to adopt more than 163,000 electric vehicles (EVs) this year as part of a major investment in fleet electrification.

According to a new study by Centrica Business Solutions, the increase would see over a third (35%) more business operated EVs on the road by the end of 2022, compared to the 121,000 registered by firms last year.

The research also found businesses spent £11.6bn on EVs and supporting infrastructure in 2021 and are planning a 15% spending increase over the next year, taking the total investment in fleet electrification to £13.6bn.

The majority of fleet operating businesses (62%) said they expect to operate a 100% electric fleet within the next four years, comfortably ahead of the 2030 ban on new petrol and diesel vehicles.

More than four in ten (44%) said they had increased the number of EVs in their fleet over the last 12 months.

Key drivers for take up include meeting sustainability targets (59%), demand from employees (45%) and pressure from customers to be more environmentally friendly (43%).

Despite the record levels of planned investment, almost two thirds (63%) of businesses are worried about accessing public charging points to keep their fleet moving.

To overcome the charging challenge, almost half (48%) of firms have installed EV charging points at their premises, with more than a third (36%) planning to invest in on-site charging infrastructure in the next 12 months.

The research also revealed that two fifths (40%) of businesses have invested in renewable energy generation technology such as solar panels to power their fleets, while a further two fifths (43%) plan to do so in the year ahead.

Greg McKenna, managing director of Centrica Business Solutions said:The UK continues to make significant inroads towards achieving its electric vehicle ambitions and it’s encouraging to see UK businesses prioritising investment in the journey towards electrification over the next 12 months.

“Businesses will continue to play a vital role in achieving the UK’s green transport ambitions, but with a record number of EVs expected to enter the UK this year, we must ensure the supply of vehicles and wider charging infrastructure is robust enough to meet the demand. Combining energy technology such as solar panels and battery storage into the wider charging infrastructure will help harness renewables and reduce the demand on the grid during peak charging times.”

The report is available to download here.

UK firms ‘to invest £15.8bn’ in EVs this year

899 599 Stuart O'Brien

UK firms spent £10.5bn on electric vehicles (EVs) and on-site charging points during the year to March 2021, and are now planning £15.8bn of investment in the same area over the next 12 months – a 50% increase year-on-year.

That’s according to research from Centrica Business Solutions, which says two fifths (40%) of those questioned said they had increased the total number of EVs within their fleet between April 2020 and March 2021.

Of these businesses, six in ten (58%) cited the need to meet corporate sustainability targets as the biggest driving factor behind their increased adoption of EV, followed by reducing operational disruption caused by low and zero-emission zones (51%) and the attraction of the lower maintenance and whole-life costs offered by EVs (37%).

Four in ten (43%) businesses hadn’t increased EV numbers at all and 10% decreased their EV fleet size. Range anxiety was reported as the chief concern for a third (34%) of these firms, followed by the need to prioritise business investment elsewhere during the height of the coronavirus crisis (32%).

Despite this, two-thirds (67%) of all companies polled claimed they are well-prepared to operate a fully electric fleet by 2030, when the Government’s ban on the sale of petrol and diesel vehicles comes into effect.

46% of businesses polled plan to install charging points on their premises to facilitate the uptake of EVs across the next twelve months, although more than a third (37%) have already installed this infrastructure. The research also revealed that three in ten (30%) firms have already invested in on-site technology capable of generating the energy to charge their fleet of EVs, such as solar panels, while almost half (48%) plan to do this in the future. 

Greg McKenna, managing director of Centrica Business Solutions, said: “Despite the disruption of the past year, it’s encouraging to see investment in EVs remain a key priority for many businesses. The fact that firms are planning to increase their spending so dramatically over the next 12 months is proof that more businesses are recognising the advantages of adopting low-emission vehicles, especially as they recover from coronavirus and seek to create sustainable growth.

“Now that 2030 is set in stone as the end of new petrol & diesel sales we need to ensure three things to help get us there, sufficient electric vehicles to meet demand, reliable charging infrastructure that’s available to all and a flexible energy system that can deliver green power where it’s needed.”

Rachel Maclean, Transport Minister, said: “As we accelerate towards our net-zero future, I’m delighted to see UK firms at the forefront of the electric vehicle revolution.

“With British businesses set to increase their investment in electric vehicles by 50%, the message is clear – the future is electric. With generous government grants and tax incentives which could save drivers over £2,000 a year, there has never been a better or more exciting time to make the switch.”