Finance and grants

National Grid – EV myth busters

If Boris has his way petrol and diesel cars will no longer be sold in the UK from 2035, so before long, far more of us are going to be behind the wheel of electric vehicles. Graeme Cooper, National Grid’s Project Director – Electric Vehicles, addresses five myths about them.

Capacity

There are two aspects to whether we have the capacity to manage lots of EVs being plugged in at once – whether we have enough energy and then whether we have sufficient capacity on the wires that carry that energy to where it’s needed.   

With the first of these, the energy element, the most demand for electricity we’ve had in recent years in the UK was for 62GW in 2002. Since then, due to improved energy efficiency such as the installation of solar panels, the nation’s peak demand has fallen by roughly 16 per cent. Even if the impossible happened and we all switched to EVs overnight, we think demand would only increase by around 10 per cent. So we’d still be using less power as a nation than we did in 2002 and this is well within the range of manageable load fluctuation. 

More complicated though is the issue of when that power demand actually happens – is it all at once or spread through the day and week? 

The traditional evening peak of electricity demand is between 6 and 8pm, and this might well coincide with people returning from their commute and plugging in their cars. 

If we want to provide sufficient infrastructure and energy for EVs as cheaply as possible for consumers, we ideally don’t want to add to that evening peak and need to spread that demand better. 

With this in mind, recently the Government’s EV Energy Taskforce recommended that all future car chargers should be ‘smart by design’. This means that no matter what time you come home and plug your car in at, it will charge when you need it but will pause during that evening peak when energy is most expensive and demand on the grid is highest. 

When it comes to the capacity of the wires required to deliver that power to the nation’s EV charging points, National Grid’s transmission system is ever-evolving and suitably robust to cope with the forecast uptake in EVs. That said, some targeted investment is likely to be needed to ensure there are appropriate places where drivers can access sufficient high power charging away from home. This particularly needs to be on the motorway network to give confidence to those travelling longer distances, to ensure charging does not interrupt those journeys. Fortunately there is already a lot of electricity infrastructure right next to our motorways as power lines are often run beside them for practical reasons. 

The other point to bear in mind here is that the switch to EVs won’t happen over night and will occur gradually over the coming years.

From the start of the Industrial Revolution up until 2017, the ‘dirtiest’ thing we did as a country was make electricity. However the way we generate power has evolved and our energy system is getting greener all the time. Last year, 2019, was a record breaking year and more electricity was generated by clean sources than fossil fuels. With the growth in onshore and offshore wind farms and the closure of a number of coal plants, transport is in fact now the most polluting thing we do as a nation. 

Emissions

From the start of the Industrial Revolution up until 2017, the ‘dirtiest’ thing we did as a country was make electricity. However the way we generate power has evolved and our energy system is getting greener all the time. Last year, 2019, was a record breaking year and more electricity was generated by clean sources than fossil fuels. With the growth in onshore and offshore wind farms and the closure of a number of coal plants, transport is in fact now the most polluting thing we do as a nation. 

Cost

It’s true that products based on new technology do tend to be more expensive for early adopters but as they become more mainstream and volumes increase, prices typically come down. EV battery prices are already falling which helps with this. So we absolutely expect the upfront cost of new EVs to reduce over the next few years. 

For those looking to buy used rather than new, the current uptick of supply in new EVs will hit the second hand EVs market in three or so years’ time.  

It’s important to look not just at the initial outlay for your car but the ‘whole life cost’, which means considering how well it retains its value and its running costs. It seems that EVs are depreciating less than petrol and diesel cars, so you might well get more payback when the time comes for you to trade in or sell on.  

Even though EVs currently have higher purchase prices, they’re cheaper to run – costing much less than petrol or diesel, at as little as 2p per mile if you charge at the right time of day or night. EVs have fewer moving parts too, meaning they should also have lower servicing costs.

Batteries

The lithium ion technology in our mobile phones is not dissimilar to those in an EV but what is different is that these cars have effective power management systems that guard the long-term health of their batteries. Most manufacturers are offering battery warranties of seven or eight years, or around 100,000 miles but there’s a reasonable expectation that they will actually last longer than that and indeed outlive the car itself. 

Even if a battery became no longer fit for use in the car it won’t end up in that landfill site, as it can either be recycled, or given a second life as an energy storage unit for homes or businesses.

Range

Really simply the sweet-spot for the range of an EV is between 200 and 300 miles, this gives the optimal balance between cost and range. Most people don’t need a range of more than this – after the time it takes to drive this distance most of us need a pit stop anyway. 

Statistically the first car in a family does around 37 miles a day on average and any second car covers around 11 miles daily. Understandably people don’t however buy for their average journeys, they buy for the longest ones they do. In reality when we take longer trips, most of us already do stop for 15 to 20 minutes at a service station to grab a drink and perhaps head to the loo or fill up on petrol or diesel. That would be all the time it takes to power up your EV via the new range of ultra-rapid chargers that are already available. This is why National Grid has proposed the optimum locations for adequate grid capacity to enable others to provide ultra-fast chargers, ensuring that nobody on the strategic road network (motorways and principle dual carriageways) is further than 50 driven miles from ultra-rapid charging. This will give drivers consistency, continuity and therefore confidence that their first or only car can be electric. 

See full article at National Grid.

0% APR Offer Making Used Smart Cars A Popular Consumer Choice

Everybody wants more for less. That is apparently why more and more value seeking consumers are turning to pre-owned smart cars. There are some good reasons that pre-owned smart cars are moving quickly from area car dealers. One of the biggest is that the innovative, distinctive looking vehicles are being embraced since an approved used smart can now be purchased at 0% APR from smart dealers. The 0% finance offer is for up to three full years. That’s an attractive offer for any vehicle, especially a used one. It makes a pre-owned smart particularly attractive.

The smart car was introduced in 1998, and for over 15 years it has been a trendy choice for those looking to make a statement about the environment. This is in great part due to its extremely economical use of petrol. Others have turned to a smart fortwo because it is perhaps the ultimate commuter vehicle that is exceptionally simple to park. It demure size also makes finding parking spaces a bit easier, particularly in large cities. Whilst you won’t find extravagance and exotic amenities in a smart fortwo, you will find an exceptionally affordable mode of transportation that many have found to be reliable and fun.

The 0% finance offer is bringing in a variety of buyers for the smart cars, but there are other reasons the pre-owned smart is getting so much attention recently. Buyers get complimentary 12 month roadside assistance, a year-long unlimited mileage warranty, and MOT test failure cover. These are proving to be popular perks, especially on a used vehicle. Smart dealers apparently are comfortable in providing these additional perks due to the rigorous multi-point inspection each vehicle undergoes prior to being offered for sale. In addition, each vehicle has its mileage and history verified. Smart dealers are even offering a 30 day, 500 mile exchange program for those who may discover another smart fortwo they like.

This 0% APR smart car on finance offer on approved used smart cars is certainly gaining attention from consumers. It appears to be another way in which the automaker is setting itself apart. It is also another way in which they are giving car buyers more for less.

We know that smart is providing their new and used car customers with value. What is next for the smart car? You can find out in this article from the Telegraph. It has details and photos of the new 2014 smart fourjoy concept car. The car made its debut at the Frankfurt Auto Show and it gives some indications as to what smart enthusiasts can expect in the future.

UK DOT updates Plug-In Grant status

The UK Department of Transport has recently updated it list of EV that are eligible for grants. The grant covers 25% of the car with a £5,000 cap.

UK government extends electric van subsidy

The EV Van subsidy scheme, which was first announced last month, means buyers can get 20% off the cost price of a new vehicle, up to a maximum of £8,000. This scheme is actually an extension of the plug-in grant launched for ordinary domestic cars last year.

Under that scheme anyone buying from a list of eligible vehicles (they have to meet a list of criteria for safety, range and low emissions) can get up to £5,000 off the showroom price.

Yet despite the deal, take-up has been slow. Government figures show there were just 892 applications made for the plug-in grant in 2011, despite the fact that several big manufacturers launched new, electric models for the first time. The bulk of those applications also came in the first quarter of the year, with the figure tailing off to just 106 for the final three months.

The UK government is determined to fund electric motoring for at least another three years, as part of its plan to meet ambitious emissions targets.  “Our new grant demonstrates that you can be a motorist and still be pro-environment,” says Transport Secretary Justine Greening.

“The new plug-in grant also makes business sense as it’s been estimated that a small electric van will typically cost £100 less in fuel for every 1,000 miles driven compared to a diesel equivalent.”

It is not just the grant either. If you drive an electric vehicle you can benefit from zero-rate company car tax and you won’t pay the congestion charge in London.

There are plenty in the industry that believe electric motoring is currently more suited to business use than to domestic use. Think of all those white vans dashing around your town or city. They will cover no more than 100 miles in a day (that’s the rough range of an electric van), and the companies don’t use them at night, so it is easy to plug them in at the depot ready for the next day.