IS IT REALLY TIME TO GO... ELECTRIC?
THERE are more than 355,000 electric cars on Britain’s roads. Whether pure electric, plug-in hybrid or a hybrid where electric takes just some of the load, they account for about 5 per cent of new vehicle sales.
But these numbers are set to spiral as manufacturers power ahead with new models against the background of a Government commitment to end the production of new petrol and diesel cars by 2040.
The revolution has been more than 100 years in the making – as long as the electric car’s nemesis, the internal combustion engine.
In 1897, the London Electrical Cab company deployed a fleet of electric cars in the capital. These were powered by batteries with a 50-mile range between charges. But the firm struggled with technical issues and opposition from horsedrawn cabbies and closed down before the 19th Century was out.
The motor industry renewed efforts to electrify as long ago as the 1960s. Sir Clive Sinclair tried to popularise the vehicles in the mid-1980s with his in famous C 5. A big turning point came in 1997 with the launch of the Toyota Prius hybrid car in Japan. Since then most manufacturers have been investing in electric and hybrid options.
Jaguar’s chief executive said recently: ‘One thing is clear, the future is electric’, as he announced that by 2020 the luxury car maker would produce only electric or hybrid cars.
Volvo has made a similar pledge for 2019 while Tesla, the company that has made electric a desirable option even for some diehard petrolheads, will soon launch its more affordable Model 3 – at $35,000 (£26,400).
Competition is increasing but there are snags as well as benefits.
THE BENEFITS
FINANCIAL INCENTIVES: Apart from the warm feeling of saving the planet and reducing health risks, green- minded motorists receive financial encouragement to buy. Government discounts help l i ghten t he hefty purchase prices – cutting them by £4,500 for fully electric and £2,500 for certain hybrid plug-in models under £60,000. Some dealers also offer eye-catching finance deals and may throw in free charging. Owners can also apply for a grant of up to £500 on the purchase of a dedicated home charger, reducing the bill to between £200 and £300.
LOW RUNNING COSTS: A charge of 100 miles costs between £2 and £4 in electricity. This compares to between £12 and £15 for petrol and diesel for t he same distance, according to the Energy Saving Trust.
Savings are greatest when charging overnight at home using a lowrate electricity tariff. Energy suppliers are courting this market.
Ecotricity lets customers use its network of motorway chargers without paying the usual £3 connection charge. Ovo Energy allows customers access to the Polar Plus network free for 12 months (usually £7.85 a month). Good Energy has a cheaper home tariff for electric car owners. TAX SAVINGS: Purchase a pure electric car for less than £40,000 and there is no vehicle excise duty to pay. Owners of plug-in hybrids must pay £130 a year from the second year onwards. Electric cars and some hybrid models are also exempt from the £11.50 London congestion charge.
Employees with low emission cars obtained through an employer’s salary sacrifice arrangement get tax and employer National Insurance advantages. They also pay a lower ‘benefit in kind’ tax on the perk. FREE OR DISCOUNTED PARKING PERMITS: These are offered by many local authorities.
THE SNAGS
HIGH UPFRONT COSTS: Owners can pay t housands of pounds more to buy an electric car compared to a conventional motor, even with the Government discount. Colin McKerracher, of research group Bloomberg New Energy Finance, says plug-in battery prices explain the higher cost. He adds: ‘ The batt ery pack makes up between 30 and 40 per cent of the car price. But costs are falling fast. By 2030 we expect the battery to represent 18 per cent of the total.’ CHARGING CHALLENGES: Depending on the car and battery, a single charge lasts between 100 and 300 miles at most – a worry when on long journeys. Charging points can be hard to come by and recharging can take 30 minutes for a rapid charge or several hours for a slow charge. LI MITED PUBLIC CHARGERS: There are about 13,000 charging points (1,100 are rapid versions) in Turn to Page 94
5,000 locations in the UK, provided by different networks, according to website Zap-Map.
Availability is increasing with local authorities and businesses incentivised to install charging points.
Destinations such as the National Trust, hotel chains and supermarkets are investing heavily. Employers can also apply for grants towards installing chargers in the workplace.
Melanie Shufflebotham, director of Zap-Map, which provides a map of charging points via its app, says: ‘Charging is getting easier. One company is installing them in lampposts.’ DIFFERENT RATES: Some networks or charge points within networks are free but for others there is a usage fee on top of the electricity tariff. Energy company Ecotricity, the main provider of charging points at motorway services, charges about 17p per unit of energy. There is a £3 connection fee for each session – waived for its home energy customers. INSURANCE: Pure electric cars cost more to insure – on average £330 more than for a standard car, according to website comparethemarket.
The higher premiums reflect the scarcity of electric cars, their higher upfront cost and the use of battery technology that requires specialist repairers.
The cost of insuring a fancy Tesla will naturally be greater than for a modest Nissan Leaf, the best selling electric car, due to the materials and the profile of the typical owner.
Simon McCulloch, director at website c o mparethemarket, says that the higher insurance cost can be enough to swing an undecided buyer back towards buying a petrol or diesel model.
This hurdle will diminish as electric vehicle sales grow.