Ultra-low - Grant Funding - ULEV

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Ultra-low - Grant Funding - ULEV
Ultra-low
  Your guide to Ultra-Low
  Emission Vehicles

FAQs

ULEV Technologies

Introduction to Charging

Tax Benefits

                            Grant
                            Funding
Ultra-low - Grant Funding - ULEV
ULTRA-LOW EMISSION VEHICLE

                            Technologies
                      An Ultra-Low Emission Vehicle (ULEV) is defined as any car
                     or van that emits 75g/km CO2 or less. It is expected that this
                 definition will change as technology advances, with vehicles requiring
                  lower tailpipe CO2 emissions and increased zero emission ranges.

                 Additionally, to be eligible for the Plug-In Car Grant (PICG), which offers up to
                 £3,500 off the price of a brand new car, a vehicle must have CO2 emissions
                      of less than 50g/km and be able to travel 70 miles with zero tailpipe
                    emissions. It is also worth noting that no equivalent definition currently
                  exists for trucks, although the Office for Low Emission Vehicles (OLEV) has
                   committed to the development of an Ultra-Low Emission Truck definition.

02   ULTRA-LOW
Ultra-low - Grant Funding - ULEV
Technologies

                                                                                             BATTERY ELECTRIC VEHICLES
                                                                                                                               BEV
                                                    TECHNOLOGY: Battery electric                 provide greater than a 60% reduction in
                                                    vehicles operate on stored electrical        CO2 emissions.
                                                    energy. The energy is stored in a battery    AVAILABILITY: There are a growing
                                                    pack which transfers the electricity         number of cars and vans available from
                                                    to a motor, which in turn provides the       mainstream manufacturers including
                                                    propulsion through the wheels.               BMW, Hyundai, Kia, Nissan, Renault,
                                                    ENVIRONMENTAL: With zero                     Tesla and Volkswagen. Battery electric
                                                    emissions from the tailpipe, EVs are         trucks are also available from lower
                                                    significantly cleaner than conventional      volume vehicle manufacturers.
                                                    petrol or diesel vehicles. Even when the     COST: Most battery electric vehicles
                                                    carbon intensity of electricity generation   cost between £20,000 and £100,000,
                                                    is taken into account, EVs can still         depending on the make and model.

PHEV                PLUG-IN HYBRID ELECTRIC VEHICLES

TECHNOLOGY: Plug-in Hybrid vehicles             quality in urban areas. Environmental
offer the best of both worlds, with a           and cost savings increase the more the
zero-emission range of around 20 – 30           vehicle is driven in electric mode.
miles, and then the convenience of a            AVAILABILITY: There has been a surge
petrol or diesel engine to drive longer         in demand for PHEVs in the UK over
distances. In plug-in hybrid vehicles both      the last few years due to them being
the electric motor and the engine can           a convenient step towards greener,
drive the vehicle.                              cheaper motoring. Models include the
ENVIRONMENTAL: Plug-in hybrid                   Mitsubishi Outlander PHEV, BMW 330e
vehicles reduce overall emissions by offering   and many more.
zero emission operation for a limited           COST: Most plug-in hybrid electric
range before the engine is used. The zero-      vehicles cost between £30,000 and
emission range should be prioritised            £100,000, depending on the make and
for use in city centres to improve the air      model selected.

                                                                           RANGE-EXTENDED ELECTRIC VEHICLES
                                                                                                                         REEV
                                                    TECHNOLOGY: A range-extended                 can be operated in zero emission mode
                                                    vehicle is a battery electric vehicle        for around 50 to 100 miles, before the
                                                    that runs on electricity but includes an     range extender engine is used.
                                                    auxiliary power unit known as a ‘range       AVAILABILITY: There are currently no
                                                    extender’. The range extender (usually       range-extended electric cars on sale in
                                                    a small petrol engine) drives an electric    the UK, but taxis are available and vans
                                                    generator which charges a battery that       and trucks with this technology will soon
                                                    supplies the vehicle’s electric motor        be coming to market.
                                                    rather than driving the wheels and allows    COST: Most range-extended electric
                                                    for an increased range from the vehicle.     vehicles cost between £30,000 and
                                                    ENVIRONMENTAL: Range-extended                £100,000, depending on the make and
                                                    vehicles reduce emissions because they       model selected.

                                                                                                                                   ULTRA-LOW   03
Ultra-low - Grant Funding - ULEV
Grant Funding

     Grant
     Funding
     for ULEVs
     You can get a discount on the price of brand new low
     emission vehicles through a grant that the government
     gives to vehicle dealerships and manufacturers. You do
     not need to do anything if you want to buy one of these
     vehicles - the dealer will include the value of the grant in
     the vehicle’s price. The amount of the grant depends
     on which category the vehicle is in…

       Cars
       Must have CO2 emissions of less than 50g/km and
       can travel at least 70 miles with zero emissions.
       AVAILABLE GRANT: 35% of the purchase
       price, up to a maximum of £3,500.

       Vans
       Must have CO2 emissions of less than 75g/km and
       can travel at least 10 miles with zero emissions.
       AVAILABLE GRANT: 20% of the purchase
       price, up to a maximum of £8,000.

       Motorcycles
       Must have no CO2 emissions and can travel at
       least 31 miles between charges.
       AVAILABLE GRANT: 20% of the purchase
       price, up to a maximum of £1,500.

       Mopeds
       Must have no CO2 emissions and can travel at
       least 19 miles between charges.
       AVAILABLE GRANT: 20% of the purchase
       price, up to a maximum of £1,500.

       Taxis
       Must be purpose-built taxis and have CO2
       emissions of less than 50g/km and can travel at
       least 70 miles with zero emissions.
       AVAILABLE GRANT: 20% of the purchase
       price, up to a maximum of £7,500.

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Ultra-low - Grant Funding - ULEV
Charging

Introduction
to Charging

E
    lectric vehicle charging is dependent both on technology
    built into the vehicle and that built into the charging
    infrastructure. For example, when the charging capability of
    the vehicle is less than that of the charger, then the vehicle
    will charge only at the maximum speed allowed by the
    vehicle. When the charging capability of the vehicle is greater
    than that of the charger, then the vehicle will charge at the
    maximum rate allowed by the charger. Charging rates, as
    shown below, vary from slow chargers, which can take more
    than 12 hours to completely replenish a battery, to rapid
    chargers, which can provide 80% in 20-30 minutes.

                                                                             ULTRA-LOW   05
Ultra-low - Grant Funding - ULEV
Charging

     Slow                                                         Dual Socket Ground Mounted 3.7kW
     (AC) 2.3-3.7kW                                               PURCHASE COST: £700-£2,000
                                                                  INSTALLATION COST: £300-£500
     CHARGE TIME:
                                                  3 Pin Plug
     0-100% in 10-12 hours

     Fast                                                         Dual Socket Wall Mounted 7kW
     (AC) 7-22kW                                                  PURCHASE COST: £1,400-£2,000
                                                                  INSTALLATION COST: £100-£350
     CHARGE TIME:
     0-100% in 2-4 hours
                                                   Type 1         Dual Socket Ground Mounted 7kW
                                                (Commando)
                                                                  PURCHASE COST: £1,400 - £2,500
                                                                  INSTALLATION COST: £2,000 - £5,000

                                                                  Dual Socket Type 2 Ground Mounted 22kW
                                                                  PURCHASE COST: £1,700-£2,200
                                                                  INSTALLATION COST: £2,000-£5,000

                                                   Type 2
                                                                  Dual Socket Type 2 Wall Mounted 22kW
                                                 (Mennekes)
                                                                  PURCHASE COST: £1,700-£2,200
                                                                  INSTALLATION COST: £2,000-£5,000

     Rapid                                                        Dual Socket Type 2 and CHAdeMO
                                                                  Ground Mounted 43kW & 50kW
                                                   Type 2         PURCHASE COST: £15,000 - £20,000
     (AC) 43kW                                   (Mennekes)       INSTALLATION COST: £10,000 - £30,000

                                                                  Triple Socket Type 2, CHAdeMO and CCS
     (DC) 50kW                                                    Ground Mounted 43kW and 50kW
                                                 CHAdeMO/         PURCHASE COST: £15,000-£30,000
     CHARGE TIME:                                JEVS G105        INSTALLATION COST: £10,000- £30,000
     0-80% in 30-40 minutes

                                                CCS Combo 2
                                                    DC

                                                                      (£ Excl. VAT and any Workplace or Home Charge Grant Schemes)

     The Go Ultra Low Nottingham programme is currently           Most people charge at home overnight and
     installing a network of more than 200 charge points across   this can cost between £1.50 and £2 per charge
     Derby and Nottingham. This will be a paid-for network        for around 80 miles depending on your
     that residents will be able to access at a reduced tariff.   electricity provider.

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Ultra-low - Grant Funding - ULEV
Grant Funding

                 Grant Funding
                 for Charge Points
                 OLEV
                 Grant payments are available to aid the cost of charging infrastructure via OLEV. Grants are available for
                 both workplace and home charge points assuming the installation meets OLEV’s funding criteria.
                 MORE INFO: www.gov.uk/government/collections/government-grants-for-low-emission-vehicles

Renault Kangoo
                 Nottingham Workplace Travel Service
ZE Van           In addition, your business may be eligible to receive grant funding of up to £25,000 from the
                 Nottingham Workplace Travel Service to help with the costs of installing electric vehicle charge points.
                 MORE INFO: www.transportnottingham.com/projects/workplace-travel-service-grants-and-advice

                 Guidance
                 Guidance on the fundamentals of what is required during a charge point installation project, from equipment
                 considerations through to location choice and stakeholder involvement, has been produced by the UK
                 Electric Vehicle Supply Equipment Association (UK EVSE) in partnership with Western Power Distribution.
                 DOWNLOAD FREE: http://ukevse.org.uk/resources/uk-evse-wpd-local-authority-guidance

                                                                                                                      ULTRA-LOW   07
Ultra-low - Grant Funding - ULEV
Tax Benefits

                                                                                                                   Nissan
                                                                                                                 e-NV200
                                                                                                                      Van

     Tax Benefits
     for Ultra-Low
     Emission
     Vehicles
                                                                             Benefit in Kind
                                                                             The provision of a company car that is available for the
                                                                             employee’s private use is treated as a benefit in kind (BIK).
                                                                             The benefit is valued as an ‘appropriate percentage’ of the
                                                                             car’s total list price and is dependent upon the car’s CO2
                                                                             emissions. The emissions figure can be found on the car’s
                                                                             registration document (V5C). A tax calculator is available at
     Both private and business users of ULEVs                                www.hmrc.gov.uk/calcs/cars and rates for ULEVs are
                                                                             shown in the table below.
     receive a number of tax benefits…
                                                                             CO2                Zero              2019/20       2020/21
                                                                             emissions          emission
                                                                             (g/km)             mileage

        Vehicle Excise Duty (VED)                                            0                                    16            2
                                                                             1-50               >130              16            2
        This is a tax applicable to all vehicles driving on UK roads. Pure
                                                                             1-50               70-129            16            5
        electric cars are exempt from paying VED to offer full support
                                                                             1-50               40-69             16            8
        for those opting for the very cleanest cars and vans. All cars
        that emit less than 75g/km CO2 will pay less road tax in the first   1-50               30-39             16            12
        year, delivering additional cash savings for plug-in hybrids on      1-50
Ultra-low - Grant Funding - ULEV
Tax Benefits

Workplace electric
vehicle charging
The government announced in the 2017 Autumn Budget
                                                                     Enhanced Capital Allowances
that employer-provided electricity, provided from workplace          (ECAs):
charging points for charging employees’ own electric vehicles,
is exempt from being taxed as a BIK from 6 April 2018.               An ECA allows a business to write off the whole cost of an
However, the provision by an employer of a charge point for an       asset against taxable profits in the year of purchase. ECAs are
employee at their home does give rise to a BIK.                      available for certain energy and water efficient technologies.
                                                                     ECAs for cars are based on their CO2 emissions. Cars
                                                                     purchased with CO2:

                                                                      	
                                                                       Of 50g/km or less qualify for a 100% First Year
                                                                       Allowance (FYA). This allowance only applies to new
Van Benefit Charge                                                     cars. Cars that are leased also do not qualify;

This tax is levied when an employer provides an employee with           p to 110g/km qualify for a writing down allowance at
                                                                       U
a van for private use. The charge is set at a flat rate: £3,430        18% a year;
in 2019-20. Zero emission vans are currently only liable for a          ver 110g/km qualify for a lower ‘special rate pool’
                                                                       O
proportion of the full van benefit charge: 60% for 2019-20.            writing down allowance of 8% a year.
This will increase on a tapered basis reaching parity with the
main rate in April 2022.                                             The government announced in the 2016 Budget that it will
                                                                     extend the 100% FYA for low emission cars until April 2021.
                                                                     The government is due to review the case for the FYA and the
                                                                     appropriate emission thresholds from 2021 in the 2019 Budget.

Van Fuel Benefit Charge
If an employer gives an employee a van to use which is subject
to the van benefit charge and the employer pays for their            FIND OUT MORE
fuel, the employee will need to pay a fuel benefit charge. Van
                                                                     Further details of the taxes and benefits applicable to ultra-
fuel benefit charge is set at a flat rate, £655 in 2019-20. As
                                                                     low emission vehicles can be found here:
electricity is not treated as a fuel, it is not subject to the van
fuel benefit charge. This means that if an employer allows an        https://assets.publishing.service.gov.uk/government/
employee with a company van to recharge at work, this does           uploads/system/uploads/attachment_data/file/709655/
not fall under van fuel.                                             ultra-low-emission-vehicles-tax-benefits.pdf

                                                                                                                              ULTRA-LOW   09
Ultra-low - Grant Funding - ULEV
FAQS

     Ultra-Low
     Emission Vehicles

     FAQs
        Doesn’t the electricity                          Isn’t the manufacture                              miles over a four year period. One car
                                                                                                            was 7kW fast-charged 3,800 times
     for ULEVs just come from                         of ULEVs worse for the                                and 3.3kW trickle-charged 7,000 times
     fossil fuels?                                    environment than petrol and                           during its working life.

                                                      diesel vehicles?                                    Most vehicle manufacturers offer extensive
         The electricity used to charge electric
     vehicles ultimately comes from a range of                                                            battery warranties, for example Nissan offers an
                                                          According to a report written by Ricardo,
     sources within the grid, some of which use                                                           8-year, 100,000-mile battery warranty on the
                                                      the CO2 emissions of manufacturing an
     fossil fuels. However, in a country such as                                                          new LEAF, during which time Nissan will provide
                                                      average electric car are approximately 50%
     the UK with a mixed energy grid, electric                                                            a new battery free of charge if there is a
                                                      higher than the average petrol car, half of which
     vehicles are much cleaner than their petrol                                                          failure or if degradation reaches an unacceptable
                                                      stems from the production of the battery.
     or diesel counterparts.                                                                              level (-25% from original capacity).
                                                      However, these battery production emissions
                                                      are mitigated over the lifecycle of the vehicles
     Of electricity generated in 2017, gas
                                                      due to the lower in-use emissions, resulting in        Isn’t the driving range of
     accounted for 39.7% whilst coal accounted
     for only 6.7%. Renewable electricity
                                                      lower overall emissions of around 30%.              electric vehicles very low?
     generation was 98.9 TWh in 2017, a
     record high, and up nearly a fifth, due to          Don’t the batteries need                             The driving range of a typical electric vehicle
                                                                                                          on sale today exceeds the daily mileage of
     increased capacity and higher wind speeds.
                                                      replacing all the time?                             more than 95% of vehicle journeys in the UK.
     Renewables’ share of electricity generation is
     29.4%, second only to gas. Nuclear remains
                                                         While electric car batteries do experience
     broadly steady at 20.9%.                                                                             For longer journeys, public charging points
                                                      some degradation over time, examples have
                                                                                                          (including rapid chargers, which can charge an
                                                      shown that this happens too slowly to be
     Furthermore, as the grid decarbonises with                                                           electric car to 80% from empty in around 30-
                                                      considered a concern:
     the increased use of renewable energy sources                                                        40 minutes) can be used. However, with real-
     such as wind and solar, an electric vehicle’s     	
                                                        A Tesla vehicle in the US lost 6% of its          world ranges of 177 miles and 279 miles on
     emissions will continue to reduce over time.       capacity after driving over 200,000 miles         £30,000 electric cars such as the Nissan LEAF
                                                        for shuttle company Tesloop.                      and Hyundai Kona respectively, many medium
     A number of charging networks such                                                                   to long range journeys can be achieved without
                                                       	
                                                        C&C Taxis in Cornwall use Nissan
     as Ecotricity and the POLAR network                                                                  charging midway.
                                                        LEAFs, which have retained over 70%
     exclusively use renewable energy.                  of their battery capacity after 174,000

10   ULTRA-LOW
FAQS

   Does the payload affect                             Isn’t the grant for plug-in
range in electric vans?                             cars ending soon?
    Studies have shown that payload can have            Changes were recently made to the plug-
a significant effect on the range of electric       in car and van grants, removing most current         Jaguar I-PACE
vans, with a fully laden vehicle losing almost      plug-in hybrids from the scheme and reducing
50% of its available range.                         the grant amount for full electric vehicles (see
                                                    table above). According to the Government’s
However, as the typical payload for most            Road to Zero Strategy, these grants will
uses is nearer 50%, a much smaller range            continue in some form until at least 2020.
reduction would occur. Most electric vans are
currently popular for urban delivery solutions,
with generally shorter journeys, therefore the
                                                       Ecotricity chargers at
potential loss of range will be less of an issue.   motorway services are just
                                                    as expensive as petrol,
   Can’t electric cars                              aren’t they?
only be charged at public
                                                        If an EV was only charged at Ecotricity
charging points?                                    rapid chargers it may well cost as much to run
                                                    as a petrol vehicle. However, these facilities are
     Most electric vehicles come with a cable
                                                    designed for occasional use on long journeys,
with a 3-pin plug to allow for easy charging
                                                    with most charging taking place at home or at a
at home or anywhere without a designated
                                                    workplace where electricity is much cheaper.
charging point, although charging times
will be significantly increased. However, it is
                                                    Charging at home or at the workplace will cost
recommended that a charging point should be
                                                    around 2-3p a mile, as opposed to 12-14p a
used rather than a 3-pin socket.
                                                    mile for a typical petrol or diesel car.

                                                                                                                            ULTRA-LOW   11
The ULEV
                                       It offers three key services to the     IMPORTANT: Support from the
                                       public and private sector:              ULEV Experience programme does
                                                                               not affect an organisation’s ability to
                                        	
                                         Fully-funded fleet reviews:

Experience
                                                                               apply for a grant of up to £25,000. The
                                         providing an independent
                                                                               ULEV Experience is funded separately.
                                         assessment of the potential
                                         to integrate ultra-low emission

Programme                                cars, vans and trucks within a
                                         company fleet

                                        	
                                         Free ULEV trials: enabling fleets
                                                                               Eligibility
                                                                               FLEET REVIEWS/ULEV
                                                                               EXPERIENCE LOANS: If you’re a
                                         to trial electric or plug-in hybrid
                                                                               business or organisation (large or
                                         vehicles
The ULEV Experience is a                                                       small, public or private sector) across
                                        	
                                         Local engagement events:              the Nottingham area (e.g. a business
programme dedicated to                   enabling operators to network         covered by the Nottingham Workplace
supporting businesses to                 with peers and gain additional        Parking Levy) then you are eligible to
                                         understanding of ULEVs.               receive support.
understand, trial and implement
                                       The programme is part of Nottingham     NOTE: National organisations
low emission vehicle technology
                                       City Council’s Workplace Travel         need to demonstrate a presence in
and is funded by Nottingham City       Service, a programme through which      Nottingham to qualify (e.g. an office or
                                       a business can receive a grant of up    a depot). However, the exact level of
Council’s Go Ultra Low City project.   to £25,000 to support sustainable       support offered to such organisations
                                       travel infrastructure and workplace     will be subject to a discussion with
                                       travel improvements. This includes      the ULEV Experience Project Team.
                                       electric vehicle charge points, cycle
                                       parking, showers, pool e-bikes, car     EVENTS AND ENGAGEMENT:
                                       sharing and car parking management.     The programme of events is open to all
                                       A contribution of 25% (financial or     organisations, but where spaces are
                                       in kind) is required from businesses.   limited, priority will be given to those
                                       Public and voluntary sector             organisations that meet the definition
                                       organisations are fully funded.         of involvement for Fleet Reviews/
                                                                               ULEV Experience Loans, as above.

For more information visit www.ulevexperience.co.uk
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