Understanding electric mobility
Understanding Electric Mobility reveals the potential of electric vehicle fleets. It also explains how and why more and more companies are making the strategic choice to switch to electric power, for more environmentally-friendly and cost-effective mobility.
What is an electric vehicle fleet?
A electric vehicle fleet is a group of electric vehicles owned or leased by a company for the business travel of its employees. These cars can be used for a variety of tasks (transporting goods, providing personal services or transporting employees). Electric vehicles for business use are powered by rechargeable batterieswhich can be recharged using various recharging infrastructures.
Also read → Electric vehicle fleet: the complete guide
Why do companies go electric?
Many companies are currently making the transition to electric power for a number of reasons. On the one hand, the advantages of electric vehicles are numerous. They reduce greenhouse gas emissions, cut operating costs thanks to reduced maintenance and lower energy consumption, and enhance a company's reputation as an environmentally responsible player. On the other hand, governments are increasingly offering subsidies for electric vehiclesmaking the purchase of these vehicles more affordable for companies.
Planning the switch to electricity for small businesses
It has become essential for SMEs to plan their transition to electricity. Far from being simply a constraint, this approach actually represents a genuine opportunity for modernization and differentiation. Switching to electricity offers numerous benefits, such as a reducedcarbon footprint and lower energy costs over the long term.
What actions have been taken?
France is working hard to promote the use of electric and hybrid cars. By 2022, the country aims to have a fleet of one million plug-in vehicles (600,000 electric cars and 400,000 plug-in hybrids).
The French government has launched a 250 million euro plan to help small and medium-sized enterprises (SMEs) reduce their carbon footprint. The plan comprises 10 measures to diagnose, finance and support companies in their energy transition. Based on diagnoses carried out by experts, companies can apply for financial support in the form of loans of up to €1 million. These loans can be used to finance actions identified during the diagnostics, or to finance energy-saving equipment and services.
Also read → Carbon footprint: understand and act!
How to choose the rightrecharging infrastructure provider?
When it comes to choosing a supplier of charging infrastructure for electric vehicles, there are several factors to consider. In France, the the development of charging infrastructures for electric vehicles is being vigorously encouraged to keep pace with the growing number of electric vehicles on the road.
The development of these infrastructures is mainly driven by public developers, with a perceptible emergence of private offerings. Public intervention is essentially needed to improve the regulatory framework and make private investment more attractive.
Some key points to consider when selecting a charging infrastructure provider:
- network coverage: ensure that the charging infrastructure offers adequate coverage in the areas where your employees drive most often,
- types of recharging: recharging infrastructure providers can offer different types of recharging, including local recharging at home, recharging at work, top-up recharging and long-distance recharging,
- recharging speed: recharging speed may vary depending on the type of charging station used. Ensuring that the supplier offers fast charging options is essential if you need them,
- customer service: don't forget to check the quality of the supplier's customer service. Good customer service can make a big difference in the event of a problem.
| Terminal type | Power output |
|---|---|
|
AC Single-phase |
3.7 - 7.4 kW |
|
AC Three-phase
|
11 - 22 kW
|
|
DC
|
50 - 250 kW |
What government assistance is available?
There are a number of government subsidies available in France to help companies finance an electric car recharging infrastructure (IRVE).
The ADVENIR bonus
The ADVENIR bonusbonus, introduced by ADEME and financed by the energy savings certificates (CEE), is an initiative designed to support the development of charging infrastructure for electric vehicles in France. It offers significant financial support to companies, local authorities and private individuals wishing to install charging points for electric vehicles.
This bonus offers up to €960 excl. towards the cost of supplying and installing a charging station. The exact amounts vary according to the type of beneficiary and the installation location.
| Private parking (for trucks) | Private parking lot (open to the public) | Private parking (fleets and company employees) | |
|---|---|---|---|
|
Rate of assistance |
50 %
|
30 %
|
20 %
|
|
Aid limit (per recharging point) |
2 200 à 960 000 € |
1 000 à 9 000 € |
up to €600 |
The tax credit
The 2023 IRVE tax credit is a government initiative to encourage businesses to invest in more sustainable mobility solutions. This tax credit offers a significant tax reduction for companies that install electric car charging stations on their sites. It allows you to deduct 75% of the cost of purchasing and installing the charging stationup to €500. The aim is to facilitate the transition to electric vehicles by making recharging more accessible and practical for companies using these vehicles.
The amount of the tax credit is generally based on the total cost of installing the charging infrastructure. This includes not only the cost of the charging equipment itself, but also costs associated with their installationsuch as the necessary electrical work. By offering this tax credit, the government hopes to encourage companies to bear part of the cost of the transition to greener mobility.
Reducing VAT rates
Reducing the VAT rate for IRVEs is a tax measure designed to encourage businesses to invest in this essential technology for the transition to more sustainable mobility. By reducing the VAT rate, the cost of installing these infrastructures is reduced, making the investment more attractive to businesses. The VAT rate is reduced to 20% on the cost of installation, installation and maintenance of charging stations.
By reducing the VAT rate on the installation of charging infrastructure for electric cars, the government is reducing the cost of such installations for SMEs, which may encourage greater use of this infrastructure.
Community support
Some local authorities offer additional support for the installation of charging stations. We recommend that you consult your your local authority's website for more information.
Local authorities play a crucial role in helping companies to install recharging infrastructures. In France, for example Ademe (French Environment and Energy Management Agency) has launched a call for "Electric vehicle charging infrastructures" projects in 2019, with a budget of 100 million euros. This call for projects aims to support the deployment of IRVEs across the country, particularly in non-interurban areas.
For example, the the Île-de-France region has set up a scheme to support the installation of charging points for electric vehicles in condominiums, businesses and public places. The plan provides financial assistance of up to up to 50% of the installation costwith a ceiling of 1,500 euros per charging point for condominiums and businesses, and 1,000 euros for public places.
The region Auvergne-Rhône-Alpeshas launched a plan to support the installation of charging stations for electric vehicles, with a budget of 3 million euros for 2023.. The plan provides for financial assistance of up to 50% of the installation cost, with a ceiling of 3,000 euros per charging point.
Also read → Aid for the installation of charging stations in 2023
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The crucial role of charging infrastructure
The crucial role of charging infrastructures highlights the importance of these key elements in the growth of electric fleets. The different types of recharging infrastructure available explain why their presence is essential to support the growing adoption of electric vehicles by businesses.
The different types of recharging infrastructure
Electric charging infrastructures fall into two main categories, private and public charging infrastructures. Private infrastructures are generally installed in homes or on company premises, while public infrastructures are accessible to all and are often located in public places such as parking lots or service stations.
These infrastructures can also be classified according to their recharging speed. A distinction is made between fast-charging stationswhich can recharge a battery in less than an hour, and normal recharging stations, which require several hours for a full recharge.
Why are recharging infrastructures essential to the growth of the electric fleet?
The development of charging infrastructures is a key factor in the growth of electric vehicle fleets. Indeed, the charging time andbattery are two major concerns for companies considering the transition to electric vehicles. The availability and accessibility of recharging points can greatly influence a company's decision to equip itself with an electric fleet.
A sufficiently dense and reliable recharging network can minimize service interruptions due to a discharged battery and increase fleet management efficiency. What's more, the cost of recharging facilities can be offset by savings on fuel and maintenance.
In France, the electric charging infrastructure has developed significantly. In January 2023, there were 1,355 stations and 5,013 charging pointsmainly located at service and rest areas on motorways and trunk roads, or less than 1,000 meters from an entrance or exit on these roads.
The aim of the French government and the automotive industry was to have a fleet of one million plug-in vehicles by 2022, including 600,000 electric vehicles and 400,000 plug-in hybrids. To support this development, a vigorous roll-out of charging infrastructures for electric vehicles (IRVE) was required.
Studies have been carried out to identify current and future needs in terms of IRVE and to determine the factors guaranteeing the appropriate deployment of charging stations. These studies have also highlighted a number of best practices for stimulating the charging station market, such as on-demand charging stations and urban hubs.
The emergence of a private-sector offer is already perceptible in France, notably through the installation of infrastructures on retailer parking lots or freeway rest areas. Today, public intervention is essentially needed to improve the regulatory framework and make private investment more attractive.
Operational recommendations have been formulated to improve deployment in France. These cover all types of recharging:
- local charging at home and at work (including on-demand charging stations),
- top-up charging and long-distance charging.
These recommendations are aimed at both the private sector and the public authorities, and call for regulatory changes, market structuring and communication or communication initiatives.
Conclusion
France is striving to become a world leader in electric mobility. The country is therefore committed to an ambitious energy transition. The government has set up initiatives and grants to encourage the deployment of electric vehicle charging infrastructures (IRVE) and the transition to more sustainable mobility. However, electromobility is not limited to the availability of electric vehicles. The key to this transition lies in the provision of an adequate, accessible and reliable recharging infrastructure.
In conclusion, France has made significant progress in electromobility, but there's still a long way to go. Establishing a solid recharging infrastructure is essential if electric mobility is to become a reality for everyone. The combined efforts of government, businesses and citizens will be needed to make France a leader in electric mobility in the years to come. Ready to take the plunge? Contact our Beev experts if you have any questions. We'll get back to you within the hour.
