Fleet electrification is high on the agenda of companies’ mobility strategies. At least, it should be, taking into account the recent bill that will make cars with CO2 emissions even less fiscally attractive starting in 2023. But since electrified vehicles require charging solutions, one cannot be done without the other.

Therefore, companies electrifying their fleets should not only focus on the cars themselves, but also consider providing appropriate charging solutions. Providing a solid and transparent framework around charging solutions will only strengthen the electrification of the corporate fleet. There are several approaches to implementing this. Let’s take a closer look at these different options and their benefits and challenges.

As An Incentive On Top Of The Lease Or Purchase Budget

The most progressive solution is to offer the charging solution as an additional incentive, on top of the available budget. This not only sends a clear message that the employer is committed to the change, it also gives drivers the opportunity within their budget to possibly opt for an electric vehicle with a larger battery because the charging cost will not be deducted from their budget. Of course, from the employer’s perspective, this is the more expensive solution when implementing charging solutions in a company fleet, as the Total Cost of Ownership (TCO) will increase with the cost of the charging station.

By Integrating It Into The Lease Or Purchase Budget

A more cost-neutral solution is to integrate the charging solution within the available, current Total Cost of Ownership (TCO) budget. This makes sense because a charging solution is an integral part of the package when choosing an all-electric vehicle. From a business perspective, this is a budget-neutral implementation, since the TCO can be considered equal to internal combustion engine vehicles.

For drivers, this may mean that a portion of the lease budget is consumed by the charging solution. However, given the steady decline in purchase prices and strong residual value performance of recent all-electric cars, equivalent electric cars could be possible. In many cases, the net TCO cost of an electric company car is actually lower than that of a conventional company car, even with the additional cost of the charging solution included.

By Offering a Tax Break For Private Installations

According to Minister Van Peteghem’s recent bill, individuals who install a charging station at home are eligible for a tax deduction. For those who install the charging station before January 2023, a tax deduction of 45% on a maximum amount of EUR 1,500 per charging installation, per taxpayer, can be applied. That rate will drop to 30% in 2023 and to 15% in 2024.

This solution is basically the least complex for employers and offers some financial benefit to employees who install the charging station within the predetermined time frame. On the other hand, the driver still has to pay for the installation privately upfront.

In What Way Are Charging Solutions Best Purchased?

When the first e-cars entered the market some five years ago, leasing companies included the installation of charging infrastructure in the lease contract. Given the limited spread, the priority was to keep the sourcing process as simple as possible and align it with established conventional processes. Today, however, the number of drivers with electrified vehicles is growing at an astounding rate, and with it, the amount of charging solutions needed is also directly related. This in turn requires a stable, uniform and clear solution for the entire electrified commercial vehicle fleet, both today and in the future.

Two of the most common ways to purchase charging infrastructure are (1) through a leasing company or (2) through an independent partner.

Through A Leasing Company

Advantage: the ordering process for both a new commercial vehicle and the corresponding charging solution remains the same. No new or additional contacts are added to the delivery and communication chain. The cost of the corresponding charging solution can be added directly to the lease contract.

Disadvantage: Companies often work with different leasing companies. But they frequently change partners to install charging stations. In addition, most partners have their own reimbursement software, which means, for example, that not every employee is reimbursed at the same rate. Moreover, the reimbursement process itself can be different between two partners, depending on the agreements with the leasing company. This makes it difficult to communicate clearly to riders, and you may have to maintain different management platforms.

Through An Independent Partner

Benefit: A uniform charging solution can be provided for all drivers, independent of changes in partnerships between leasing companies and their respective installation partners. If all technical requirements are defined “future-proof,” the specific hardware can vary. When implementing a flexible solution, one installation partner can manage every step of the installation process, from audit, ordering to the installation itself. This one partner will thus be the single point of contact for all charging solution installations, regardless of where and which car is ordered. In addition, this partner can handle both home and office installations and provide a single charging pass that can be used at more than 95% of charging stations. This includes home and office charging stations. Choosing an independent partner is similar to choosing an independent fuel card partner: everything related to consumption is managed and billed through one partner. Both today and in the future.

Disadvantage: finding an independent installation partner is, by definition, equivalent to adding an additional – and unknown – supplier.

What With The Benefit In Kind For Charging Solutions?

Regarding the benefit the employee receives from the employer when the charging solution is installed at his home, there is no fringe benefit in kind (BIK) that will be charged for these charging solutions. The FPS Finance considers a charging solution to be an integral and necessary part of an electric company car and thus included in the benefit in kind of the company car. As the charging solution is not a private benefit of the employee, it will also not be subject to additional social security contributions and taxes.

This article was co-created with EY, expert in fiscality.