Are you a property developer or management agent having to comply with section 106 sustainable energy obligations?
Our simple guide to installing fully funded EV charging points with no outlay or ongoing costs
What is section 106 and why is this important?
Section 106 of the Town and Country Planning Act 1990, is in place to allow local planning authorities (LPA’s) to enter into a legally binding and enforceable agreement with a property developer for the purpose of restricting or regulating a development or use of the land.
Planning requirements under section 106 now need to include ‘sustainable energy policies’, ensuring that a new development generates a certain level of energy from renewable sources. Renewable sources can be as a result of solar panels on roofs or even wind turbines, but these can significantly add to the cost of building the development and therefore increase the price of a new home to prospective buyers.
Electric vehicle charging points qualify for Section 106 and they can be fully funded
Electric vehicle charging points qualify for Section 106 and they can be fully funded helping developers and managements agents avoid the cost burden of supplying the electric vehicle charging equipment, having it installed and then time being absorbed to manage it.
How to plan and prepare to meet Section 106 obligations with electric vehicle charging
We will help you get your development Section 106 and allow you to minimise the impact of your budget costs.
How many EV charging points do you need?
At present, there are no stipulations to say that you require a certain number of electric vehicle charging points for a set number of dwellings. All new build developments will vary in size, so we have tried to simplify how you should try to work out how many you should have installed.
In most case, communal electric vehicle charging bays are the most cost effective and sustainable solution for a new development.
The first step of this process is to understand the new developments parking arrangements.
All new developments that have a ratio higher than 1:1 for their available parking bays compared to dwellings are ideal for offering an EV charging area that can be used by all of the residents.
For example, we have been working with a property developer who is building a number of new developments, including a small village with 34 dwellings, and another development with three new apartment blocks.
Example: Small village
34 Dwellings [Ranging from 3 bedroom to 5 bedroom]
26 of the above dwellings have off road parking, 8 dwellings will use 18 communal parking bays (2 free bays, above 2:1 (2 bays to 1 dwelling) ratio)
For the village development, there is the capacity to utilise 2 bays for electric vehicle charging.
Example: Apartment dwellings
Block A 15 Dwellings 18 Parking Spaces (3 free bays, above 1:1)
Block B 19 Dwellings 21 Parking Spaces (2 free bays, above 1:1)
Block C 19 Dwellings 21 Parking Spaces (2 free days, above 1:1)
For each development, there is the capacity to utilise 2 or 3 bays for electric vehicle charging.
It can be very easy to assume that every resident should have their own EV charger, and for some smaller developments, this can be a sufficient solution provided the costs are not prohibitive. In most case, communal electric vehicle charging bays are the most cost effective and sustainable solution for a new development.
What type of EV chargers should be used?
There are many different types of electric vehicle charging points on the market, and they vary mostly by charging speeds.
If you have decided to supply an electric vehicle charging point for each development, then we would recommend a 7kW charging point, and in some case where you have a limited power supply, install 3.6kW charging points.
Where you are offering communal charging, installing 22kW power optimising charging points in each of the available charging bays is the best way to future proof your EV charging solution. Power optimising means that these can be down rated to a lower output if the power isn’t available at the time of the vehicles being charged. This eliminates any risk of power supply issues.
By having 22kW charging points, this will allow most vehicles to receive a minimum of 80% charge within 2 hours, and vehicles can then park their vehicle back in their designated space once their charge is complete.
With UK drivers travelling an average distance of 20 miles, it is very likely that vehicles will take significantly less time to charge their vehicle, approximate 20 minutes.
How do you prevent vehicles from occupying the charging bays for too long?
We recommend that you have a policy for the charging points that restricts the amount of time the vehicle can occupy the charging bay. The policy should be visible so that each driver understands the penalty for overstaying their time allocation.
There are three different ways to charge for usage, and these are all managed through the Charging Point Operator:
- Charging usage – £ per kw/h
- Time charging – £ per hour (Stops once charge is complete)
- Time occupied – £ per hour (Stops once car is disconnected)
Using the “time occupied” option is the most common for residential solutions and the biggest deterrent for EV drivers leaving their vehicle connected in the parking bay for excessive amounts of time. This has proved to work very effectively.
Nothing is ever free!
You can choose from three different ways to pay for installing your residential electric vehicle charging solution to make sure that you comply with section 106.
|Ownership option||Outlay||Management||Income / profit|
|Purchased||All upfront||Full management||Per charge / once capital is paid off|
|Leased||Fixed monthly costs||Full management||Per charge / above the monthly cost|
|Funded||None||No management required||Profit share or leasing the parking bays / all profit|
Purchased or leased
You have the option to purchase or lease your charging equipment which will require a financial outlay. When you take on purchasing the equipment, you will be responsible for managing and maintaining the charging points.
Risk: Medium to high
Fully funded charging units work on a completely different principal. These are conducted on a charged leasing contract for the parking bay, which means you will be paid for the space without any outlay.
For smaller developments which involve less than 10 electric vehicle charging points, it is likely that we will agree a fee with the developer to lease the parking bay over a fixed term. Developments requiring 10 electric vehicle charging points or more, we would recommend a profit share model, which slightly delays the time you receive an income, however the returns would be greater than simply the leasing the bay.
What happens if you sell the development?
It is not unusual for housing developments to be sold at a future date. As with all of the contracts that are associated with the development, the leasing or management arrangements will be passed onto the new incumbent landowner or management company.
Would you like to learn more?
Our helpful team will guide you through you through your options. You can call us on020 8895 6511 or email@example.com
You can send us an online enquiry and we will respond the next working day: