Surge in Installations: Electric Vehicle Charging Points

We have seen an increase in the use and manufacture of electric vehicles, requiring an increase in the provision of supporting infrastructure particularly electric vehicle charging points (“EVCP"). Here we consider the benefits and impact of that market for owners of commercial property.

At the end of January 2025, there were an estimated 1.4 million fully electric cars in the UK. As no new petrol and diesel cars are to be sold in the UK after 2030, and vehicle manufacturers have sold an increasing number of electric-only models since 2024, this number will only increase. For commercial property owners this creates both opportunities (e.g. the ability to modernise and be at the forefront of developments which reflect public demand and changing habits) and challenges (e.g. navigating the process).

Not every commercial property is suitable for EVCP installations. Each EVCP will require a parking space plus areas around it to locate the EVCP itself, and either have or be able to provide the necessary access and infrastructure to run the EVCPs. In some circumstances that will require space for a dedicated substation. The owner's title should also be reviewed to identify any prohibitions or consents required to grant those rights. Likewise, any leases should be checked to ensure that installing EVCPs would not breach those lease terms, e.g. with prescribed minimum number of car park spaces; no build zones or visibility splays; rights for the landlord to resume common parts. For those properties which are suitable for installing EVCPs, there are many benefits.

Why install EVCPs?

Offering EVCPs can significantly boost a development's attractiveness, positioning the property as part of a modern and adaptable development which will appeal to a broad range of tenants. Many tenants now see EVCPs as a key requirement when assessing the location and suitability of a property for their employees and customers, as well as enhancing their own sustainability goals.

Owners also benefit from such measures which enhance the sustainability credentials of a property - many owners install EVCPs to boost a property’s green credentials, underlining the owner’s commitment to good Environmental, Social and Governance (ESG) policy. Installing EVCPs can help to satisfy ESG reporting requirements and potentially enhance a property's value as (i) availability of EVCPs makes the property more desirable to more tenants (potentially meaning higher rental values), and (ii) the rent from the EVCPs is additional income for the owner. All this will potentially lead to a higher valuation and sale price/return.

Navigating the process

Most EVCPs are being ‘retrofitted’ to properties by installing them in existing car parks. The process can be quite complex as not all car parks and properties will be suitable:

• owners and their EVCP developer or provider will need to consider and agree what works, kit and infrastructure are needed;
• the property will need to be assessed to ascertain if it can accommodate all of the EVCPs and ancillary kit, and cabling and access required;
• the EVCP provider will design the EVCPs and will usually be the party to apply for planning permission and a connection to the existing electrical grid (either from an existing supply or via a new substation);
• once planning and a grid connection have been confirmed, the relevant legal documents will need to be put in place. The list is not exhaustive, but would likely include EVCP and/or substation leases; ancillary licences for works / licence to alter agreements; and third-party consents e.g. from head landlords, existing funders, and existing tenants;
• on occasion it may be appropriate and possible to let the EVCP provider onto site before the legal documents are signed up. In which case an early access licence would be granted to protect both parties, usually providing that the EVCP installer can carry out the works at their own risk and providing termination rights should the main legal documents / overall transaction not proceed; and
• once the legal documents are signed up, the developer or EVCP provider will carry out the installation works. Often no rent will be payable until the chargers are ‘live’ / can charge electric vehicles.

Owner’s considerations

From the owner’s point of view, there are a various considerations when agreeing to an EVCP lease, including:

• whether the EVCPs are supported by their own dedicated substation or can be powered from an existing supply (assuming it is sufficient to power the EVCPs as well as maintain the current usage);
• whether the property is better suited to longer term (cheaper) slow rate chargers, or higher cost fast chargers;
• the commercial terms of the EVCP lease, including:
  • the rent level and whether that includes an element of turnover/usage rent, and
    
  • the period of the EVCP lease – note that where the owner has a leasehold rather than a heritable/freehold title, the owner will need to ensure that their leasehold lease is of a sufficient period to enable them to grant the EVCP lease. Note that the owner will need to take a different approach if they are located in Scotland, or in England and Wales;
• whether a new substation is required. If so, whether that should be dealt with by transferring the heritable/freehold title for it to a substation operator with ancillary rights of access, cabling and the like; or if it is more prudent to grant the substation operator a substation lease, with those ancillary rights being lease rights; and
• if a substation lease is being granted, the owner needs to consider the lease period. Substation leases are usually for c60 years, and the same considerations apply here as to the EVCP lease period.

Key takeaways

The benefits to owners of installing EVCPs are significant in terms of ESG credentials; the potential property value increase; additional income; and the benefit to its tenants and customers. That said, with every innovation and opportunity comes the need to consider the underlying commercial aspects, suitability of the property, and the permutations and process.