Drax offers financing options to spread the cost of EV charging implementation

We’ve all seen the growth in the numbers of EVs on the roads and recognise the implications for businesses. With the ban on the manufacture and sale of internal combustion engine vehicles (ICEs) approaching – and the increasing importance of visible commitments to sustainability – organisations need to act.

However, our recent research showed that less than half of UK organisations have installed any charge points. The most commonly cited reason for hesitancy is, predictably, cost. The initial outlay required for necessary groundworks, hardware purchase and installation is often more than organisations can cover within a single financial year.

Spreading the cost – and the risk

Horizon Energy Ventures financing solutions will, first and foremost, take away the potentially daunting upfront cost of EV infrastructure implementation. For many organisations, the available funding models will mean the difference between making fleet electrification and/or providing destination charging facilities a reality – and not.

For organisations already preparing electrification plans, spreading the cost could provide:

• The scope for installing more charge points
• The scope for installing charging facilities across more locations
• The means to cover any unexpected power-upgrade works (particularly relevant in the instance of electric HGVs and buses, which require more powerful hardware to charge)
• The opportunity to upgrade plans to include higher-specification hardware
• The opportunity for additional investment to improve future-proofing

Having a clear picture of monthly costs for a period of five years, for example, also gives organisations cost certainty – around which they can plan other expenditure.

A trusted partner

At Drax Electric Vehicles, we’re excited to be working with Horizon Energy Ventures – an EV financing specialist with a track record of helping companies invest in sustainable energy infrastructure.

Horizon Energy Ventures offers flexible funding solutions that can cover the whole cost of organisations’ EV charging investments (see below). This includes design and additional connection costs, hardware, installation, additions such as barriers and bay marking, associated software and ongoing operations and maintenance.

“Asset finance provides a simple and CapEx-free way for organisations to benefit from Drax Electric Vehicles’ charging infrastructure solutions. We’re thrilled to be working with Horizon Energy Ventures due to their experience and expertise in providing EV funding solutions and their flexible approach to finance. The partnership means we can help customers fund an entire infrastructure programme over a five-year period, supporting their – and the UK’s – transition to electric vehicles.”

Naomi Nye – Head of Sales, Drax Electric Vehicles

We’re particularly pleased to be able to offer the ‘sale and leaseback’ funding model, the first of its kind in the marketplace. Suitable for organisations with charging assets already installed, it offers the potential to free up large sums of capital for investing in other business-critical activities.

Three basic options

The three core options Horizon Energy Ventures offer are ‘operating lease’, ‘finance lease’ and ‘sale and leaseback’. All of them cover direct infrastructure, infrastructure upgrade and asset replacement costs. There’s also the potential for including operating and maintenance costs within your lease contract, too, for the simplicity of one bill per period.

‘Operating lease’ tends to suit organisations that prefer to rent charging equipment – possibly because they lease their premises. It’s also suitable for those that want the option of updating their leased hardware at the end of the contract.

‘Finance lease’ is useful for businesses keen to install charging assets now but prefer to spread the related capital cost over a number of years. It also gives businesses the additional option of taking on ownership at contract-end.

‘Sale and leaseback’ helps organisations who’ve already installed chargers to release capital for other purposes – repaying over a term of several years.

"We're excited to partner with Drax and their world-class EV charging infrastructure solutions division. Drax services benefit UK businesses through a mix of excellent acquisitions, recruitment and supply chain development. We’re looking forward to providing right-fit finance options for the optimised technology solutions Drax offers. This will both help their customers accelerate and expand the rollout of EV charging assets – and enable quicker operational decarbonisation."

David McCoubrie – Head of Sales, Horizon Energy Ventures

A simple process

If one of the funding models suits your needs, the application and approval process is simple.

After contacting us requesting details of options, we’ll chat with you about your situation, your aims and the suitability of the frameworks, providing indicative costs. Based on this, you can request a firm ‘finance agreement’ quote – we’ll pass this on to Horizon Energy Ventures along with our installation costs. If everything’s in order, you’ll sign the agreement and make an advance payment – and we’ll begin installation.

You’ll only start making ongoing payments once your hardware’s operational.

Find out more

To learn more about the benefits, the financing frameworks and the sign-up process, head to our website or call us on 0345 646 1630.