Written evidence from Myenergi Ltd (ELV0095)
Electric Vehicle Inquiry – myenergi LTD Response.
About myenergi
myenergi, founded in 2016, is renowned for producing the world’s first solar-compatible EV charger – zappi. Alongside being able to charge an electric vehicle like any other charger, it has the capability to charge a vehicle from 100% renewable energy by constantly monitoring self-generation and diverting available renewable power to the charger. The company specialises in helping consumers to monitor, manage and maximise their own renewable generation, and use energy – including to charge an electric vehicle – in the smartest way possible.
As well as zappi EV charger, we also offer an innovative solar diverter and a smart home battery, which can all be connected to create an unrivalled home energy ecosystem, allowing consumers to control their energy in the way that works best for them. We are helping to pioneer a simple transition to renewable energy, through helping to create truly eco-smart homes. In 2023, myenergi shipped our 500,000th device, and as well as the UK, we currently operate in Germany, Benelux, Ireland, and Australia.
Inquiry
1. What are the main obstacles to the achievement of the Government’s 2030 and 2035 phase-out dates? Are the phase-out dates realistic and achievable? If not, what steps should the Government take to make the phase-out dates achievable?
myenergi believes that the Government’s 2030 and 2035 phase-out dates are not only achievable, but they are absolutely essential to ensure that the UK gets close to achieving decarbonisation targets. There are currently obstacles that the market needs to address to ensure that the current targeted phase-out dates are not pushed back.
We believe the main barrier to electric vehicle adoption is perception, from the purchase cost, charging cost and suitability for mileage. A recent poll by WA (communications consultancy) titled ‘Will Consumer Scepticism and the Cost-of-Living Crisis Remain a Roadblock to Rolling Out Electric Vehicles’ highlighted that 50% of those surveyed cited the high upfront costs of EVs was the biggest concern about the transition to electric vehicles. Recently, there has also been a lot of anti-electric vehicle propaganda published in the media, which is doing little to increase consumer confidence in the market, therefore will create obstacles in meeting the set phase-out dates of petrol and diesel vehicles.
myenergi also believes that the variety of electric vehicle model choices needs to expand by 2030, as if the model choice range is not there, this may also impact achieving the phase-out dates. There may also be concerns with the supply chain which could have an impact on achieving the phase-out dates, as although the UK is not demand-constrained (there is no shortage of consumers lining up ready to purchase an EV) there are not enough new electric vehicles reaching the UK market, with waiting lists now into years for some EVs. The current electric vehicle market is supply-constrained, largely because vehicle manufacturers cannot source enough batteries. The UK can produce about 50,000 batteries a year today, despite making more than 800,000 cars, which itself is a huge drop from the 1.7 million cars made here in 2016.
2. Do the 2030 and 2035 phase-out dates serve their purpose to incentivise the development of an EV market in the UK? To what extent are car makers focusing on one date or the other? What are the impacts of the deadlines on the ability of the UK supply chain to benefit and how could the Government seek to further support the development of the UK EV industry? Would the introduction of a plan with key dates and timescales support the development of the EV industry in the UK?
The most important way the Government can support the development of the UK EV industry is to offer certainty and detail in electric vehicle strategy and policy. myenergi agrees that a plan with key dates and timescales that industry have to adhere to will incentivise the development of an EV market, however, this would be redundant if the government then decide to push these dates back. SMMT Chief Executive Mike Hawes has commented on the lack of information the EV industry have been provided; ‘With a new Zero Emission Vehicle Mandate due to come into force in less than 120 days, manufacturers still await the details. Businesses cannot plan on the basic of consultations, they need certainty.’
3. What specific national policies, regulations or initiatives have been successful, or have hindered, EV adoption to date? Are these policies or initiatives fit for purpose?
The Electric Vehicle Homecharge Scheme allowed consumers to access a grant when purchasing an electric vehicle home charger and was an example of a successful initiative to enable home charging and encourage EV adoption. Another successful policy that encourages EV adoption in the Benefit-in-Kind company car tax rate. With a tax rate of just 2% compared to petrol- and diesel-powered cars that have a rate of up to 37% based on their emissions, the EV Benefit-in-Kind tax incentivises fleets to switch to electric.
We believe that EV adoption has been hindered by the lack of innovative approaches for people who want to charge their vehicle at home, but do not have access to off-street parking. We are starting to see local authorities trial solutions that will enable this, such as cable gullies that run through the pavement and allow someone to charge their vehicle using their own domestic supply without causing a trip hazard. However, this is still a very nascent technology and there are many barriers in place that are preventing this being an accessible and at scale solution at present.
Local authorities are the gateway to ensuring a successful electric vehicle transition. Trialling solutions is a positive step; however we believe that there should be mandates for local authorities to electrify on-street charging solutions, otherwise there will be over a third of the UK market who will simply have a huge barrier to EV adoption. The UK Government have to address this, or we will not decarbonise quick enough to meet Net Zero targets.
4. Given that the Government should apply a behavioural lens to policy—which involves people making changes to their everyday lives, such as what they purchase and use—is there a role for clearer communication of the case for EVs from the Government? If so, who should take the lead on delivering that?
myenergi agrees that there is a lot of misinformation in the media about electric vehicles that will result in confusion for consumers, and this has been particularly prevalent in the last few months. With the ICE phase-out dates fast approaching, and a reliance on the roll out of electric vehicles to meet Net Zero targets, the government have an important role to play in clearing up any confusion around EVs with the public. They have a duty to provide accurate, reliable, and free information and resources that are easy to understand and easy to access.
We believe that there needs to be a campaign detailing the benefits of electric vehicles (and other low-carbon technologies) and the importance of reaching Net Zero, in the same way that the government provided accurate and accessible information to the public about the Covid-19 pandemic, smart metering or the most recent Help for Households campaign.
5. What is your view on the accuracy of the information in the public domain relating to EVs and their usage?
As mentioned previously, there is a lot of misinformation in the public domain relating to EVs and their usage. Of course, there are also good resources, but this can often mean relying on consumers navigating through complicated information and assessing the accuracy of what they are reading. As already suggested, a public campaign presenting clear and accurate information is needed to be a source of truth for consumers unaware of the facts around electric vehicles and their usage.
6. What are the overall environmental benefits that would result from achieving the 2030 and 2035 targets?
Achieving the 2030 and 2035 targets will result in a reduction in tail pipe emissions and improvement in air quality, especially in more heavily congested areas. Although electric vehicles tend to have higher embedded carbon, the consensus is that the lifecycle emissions will be less overall, with researchers agreeing that the average lifetime emissions from an EV are up to 30% lower in the UK.
Electric vehicles are also often the gateway to other low carbon technologies such as solar PV, with Zap-Map reporting that EV owners are seven times more likely to have solar panels on their home. A solar PV system allows EV owners to charge their EV using renewable energy rather than drawing from the grid, therefore further reducing carbon emissions.
Consumers with home chargers are also able to participate in Demand Side Response services and help balance the grid during turn down events (when there is not enough generation to meet demand often requiring coal-fired power plants to be turned up) or turn up events (when there is not enough demand therefore requiring generation to be shut off- often renewable energy sources.) Consumers can also program their home chargers to charge their vehicles during time periods of low carbon intensity.
Achieving the 2030 and 2035 targets will also help to justify the investment case in renewables.
7. What are the likely costs that will be faced by consumers as a result of the Government’s phase-out dates for non-zero emissions vehicles? Are there policies or initiatives that the Government could use to specifically target barriers arising from unpredictable costs to the consumer, for example significant fluctuations in the cost of electricity, changes to road taxes, or the introduction of low emission zones?
The current phase out dates will only effect those who can afford to buy a new vehicle. We do not foresee any other hardship impacting consumers as a result of the Government’s phase out.
myenergi would like to see some clarification around the future of road taxation, as this is hard to comment on without knowing the full details.
EV Market and Acquiring an EV
These questions relate to the UK EV market and uptake of EVs by UK consumers.
8. What are the main routes for acquiring an EV? Which aspects of these routes are working well, and which aspects could be improved?
Electric vehicles are a popular company car choice, and a lot of consumers acquire an EV through this method. Also, over half of employers offer an electric vehicle salary sacrifice scheme, which can allow employees to purchase an EV with no upfront payment and at a discounted rate. Less than 10% of people buy a car outright so new electric vehicles tend to be either leased or financed.
9. What are the main consumer barriers to acquiring an EV, either through purchasing, leasing, or other routes?
As stated before, the high upfront costs of an electric vehicle is the main barrier to acquiring an EV. Vehicle supply can also be a barrier to acquiring an EV, due to some consumers waiting years to receive their new electric vehicle. We also think that currently there is a lack of model choice of EVs for consumers which may delay a consumer acquiring one.
myenergi also questions whether car dealerships are selling electric vehicles effectively. For example, if a consumer approaches a dealership intending to purchase an electric vehicle, but the dealership has internally incentivised the sale of an ICE car due to a large inventory, then the dealership may be promoting the benefits and sale of an ICE vehicle over an EV vehicle. We believe that this is an issue that needs to be explored and perhaps, regulated.
10. How is the Government helping to ensure that EVs are affordable and accessible for consumers, and are these approaches fit for purpose?
myenergi believes that the electric vehicle salary sacrifice scheme is working well to ensure that EVs are affordable and accessible. However, for those on lower income, this scheme still does not make the purchase of an EV affordable.
There is currently no incentives for used electric vehicles which the price range of will be a lot more accessible to many people on lower incomes. There should also be more focus on those consumers who cannot charge at home due to no access to off-street parking, however, they could be enabled to charge at home with more innovative solutions such as through-street charging.
11. Do you think the range of EVs on offer in the UK is sufficient to meet market needs? Which segments are under-served and why? Why is the UK market not seeing low cost EVs, particularly in comparison to China?
There is not an issue with the current range of electric vehicles on offer in the UK, however, if we get to mass adoption, there will need to be a bigger range of models and costs to meet all needs.
It is unlikely that European and Western car brands will compete with Chinese car brands, however, the UK might have a better aftersales service. Consumers do not buy only on price, but take other selling points into consideration, such as warranty etc.
12. What is the future role of L-segment and personal light electric vehicles, and how will that impact car ownership and usage? What is inhibiting their uptake?
There has been limited success from heavy quadricycles in the L-segment, mostly because quadricycles are basically still cars, therefore, a consumer may decide to simply purchase a new car for the same benefits.
13. What is your assessment of the current second-hand EV market? How is the second-hand EV market projected to develop between now and the phase out dates?
There has been a recent increase in second-hand electric vehicles which has benefited used car buyers. Consumers are now able to purchase a used EV with a 250mile+ range for the same price as a used ICE car in the UK. By 2030, the used EV market will be significantly larger for consumers with different budgets.
14. What is the relationship between EV leasing and the second-hand market and how do they interrelate?
There is a correlation between EV leasing and the second-hand market. If vast amounts of new electric vehicles enter the leased market, then in a couple of years, there will be a healthy supply of used EVs.
15. What barriers are there to achieving a sufficient supply of second-hand EVs, mindful that second-hand vehicles make up a high proportion of all vehicles purchased?
The supply of second-hand electric vehicles is increasing at the expected rate and will continue to increase. We do not foresee there being any barriers to achieving sufficient number of second-hand EVs in the years to come.
16. What is the value and role of alternative transport models such as car clubs and micro mobility vehicles in the Government achieving the 2030 phase out date, and how should the Government consider their roles and opportunities for use in transport decarbonisation?
Car clubs are a clear choice for electric vehicles as they are returned to base, thus providing opportunity for charging. Micro mobility vehicles are important to think about, as they could be an option for shorter journeys, reducing the need and usage of cars. However, they would need to be more regulated and more widely permitted as they are currently not legal to drive on the road.
17. Are consumers charged higher rates of insurance for an EV when compared to an internal combustion engine (ICE) vehicle, and if so, are these higher rates justified? Can the Government do anything to mitigate this?
myenergi are not aware of any significant evidence of higher rates of insurance for an electric vehicle. We understand that electric vehicles may be more expensive to repair because of a limited supply of parts, however, they also have fewer moving parts so will be less likely to develop mechanical issues compared to an ICE vehicle.
Experience of using an EV
18. What are the main challenges that UK consumers face in their use of EVs?
The main challenge in the UK for consumers who purchase an EV is the ability to home charge if there is no off-street parking. It is estimated that nearly a third of people in the UK do not have access to dedicated off-street parking.
There is also a challenge of the specific availability of charging infrastructure in certain areas. On a national level, there is sufficient charging points, but regionally there needs to be a more balanced level of public EV chargers.
Lastly, we believe that there is a challenge with the reliability of some charging networks today, although we do agree that this is improving.
19. What are the main benefits that UK consumers could realise from using an EV?
The main benefits that UK consumers could realise from using an electric vehicle is the increased savings from home charging. Charging at home whilst drawing from the grid is already more cost-effective than driving a petrol or diesel car, especially as wholesale energy prices are beginning to lower. However, there is also the benefit of using a solar-compatible EV home charger if the consumer has a solar PV system, essentially charging an EV completely with renewable energy, therefore costing the EV owner nothing to drive their car. Retailers are also increasingly offering Time-of-Use tariffs, allowing consumers to charge their vehicle during off-peak hours for a reduced electricity rate.
Electric vehicles are also smoother and easier to drive and produce less noise pollution than ICE cars. There are also electrification benefits extended beyond the use of the car to drive, such as timing the car to defrost prior to setting off on a journey.
There are also the environmental benefits of driving an electric vehicle as discussed in a previous response such as reduced carbon emissions.
20. How prepared are car dealerships, service networks, repairs and maintenance organisations, breakdown services and aftermarket suppliers to meet the growing EV uptake?
myenergi believes that there are still improvements to be made with all of the industries listed above.
21. How does the charging infrastructure for EVs need to develop to meet the 2030 target? Does the UK need to adopt a single charging standard (e.g., the Combined Charging System (CCS)) or is there room in the market for multiple charger types?
There is already a common standard for electric vehicle charging. Manufacturers that do not meet this standard in Europe are selling vehicles with a charging system that does not align with the infrastructure standard.
Significant private investment in the charging infrastructure is needed to meet 2030 targets and ensure that there is enough infrastructure to meet demand. There is already £6bn private investment lined up for charging infrastructure.
22. The Government recently published the draft legislation of “Public Charge Point Regulations 2023”. What assessment have you made of the draft legislation text, and what contribution will it make in ensuring the charging experience is standardized and reliable for consumers?
N/A
23. What assessment do you make of the requirements set out in the draft legislation of “Public Charge Point Regulations 2023” for charge point operators to make data free and publicly available, and how may this improve the EV charging experience for consumers?
N/A
24. In terms of charging infrastructure, are there unique barriers facing consumers in areas of low affluence and/or multi-occupancy buildings, such as shared housing or high-rise flats? Do you consider public EV charging points to be accessible and equitable compared to home-charging points? What can be done to improve accessibility and equitability?
There is an increasing disparity in cost – and therefore access – between electric vehicle drivers able to charge at home, for example using cheaper off-peak electricity tariff, and those reliant on more expensive public charging. Currently, there are very few on-street charging solutions available in which consumers can use their own domestic energy supply. Because of this, they cannot benefit from using their own renewable energy to charge their vehicle, or benefit from time-of-use tariffs, overall making the charging experience a lot more expensive if they do not have access to off-street parking.
Government can improve accessibility and equitability by looking into innovative solutions to allow those without dedicated off-street parking the ability to charge their vehicle using their own domestic supply.
25. Is there a financial benefit to the consumer of choosing an EV over an ICE vehicle? Are there further benefits, aside from financial, that a consumer may gain from EV use?
As mentioned previously, there are financial benefits with owning an electric vehicle over an ICE vehicle due to the cheaper running costs of an EV. Consumers who have access to a home charger can charge their vehicle using their domestic electricity supply. However, those who have a solar PV system will be able to charge their vehicle using renewable energy, effectively costing the consumer nothing to drive their car. There are also an increasing number of time-of-use tariffs being introduced in the market, which will allow consumers to charge their vehicles during off-peak hours at reduced rates.
Currently, there is no road tax for an electric vehicle, although this is set to change in 2025. Most electric vehicles are also ULEZ compliant, therefore will not receive a congestion charge driving through some areas of London.
The maintenance of an electric vehicle is also typically less than an ICE vehicle due to there being less moving parts.
End of life disposal of EVs
26. What options are there for consumers for end-of-life management of batteries and EVs, and what impact does this have on consumer attitudes towards buying an EV?
myenergi believes that there will undoubtedly be second (and possibly third and fourth) life uses for electric vehicle batteries, mainly in storage applications. There are examples of some car manufacturers recycling their electric car batteries when they reach the end of life, turning them into home battery storage systems.
27. What are the current regulations and responsibilities of disposal and recycling for EVs, and how effective are they? How much of the battery can be recycled from a technical standpoint, and how much of that is economically feasible?
Battery recycling will become a significant industry but the market for this has been delayed due to the unforeseen extended life span of electric vehicle batteries- lasting longer than many predicted. myenergi believes that acquiring a reliable feedstock of second purpose electric vehicle batteries will be an issue as there will be a lot of global demand for them.
28. Is there a risk that the residual value of EVs may be lower than the value of the EV as a source of recoverable critical minerals, and how might this effect the flow of EVs into the second-hand market?
N/A
National and regional issues
29. What are the challenges or concerns around grid capacity in relation to significantly increased EV adoption?
We know that the UK will need more electricity to deliver the EV adoption targets and Net Zero ambition (around 2-3X the total amount of electricity by 2050), and we know that renewables are not only the cheapest form of generating capacity, but they are also the quickest form of generating capacity to build. Energy security is imperative however, this needs to be achieved without creating a prolonged dependency on fossil fuels.
There needs to be a greater acceptance and less barriers for domestic flexibility by transmission and distribution network operators, as aggregated domestic capacity from EV charge points (and other energy smart appliances) can provide significant benefits for UK grid stability.
30. What is the role of distribution network operators in ensuring EV infrastructure can be rolled out sufficiently to meet 2030 target?
Distribution Network Operators have a responsibility to ensure that the infrastructure is sufficient to meet the energy demand that will be required to meet the 2030 target. It is critical that there is adequate investment in the infrastructure to not cause delay to the EV roll out.
31. What are the requirements, challenges, or opportunities for the development of public charge point delivery across the UK? How will the development of EV charging infrastructure in the UK interact with existing planning regulations?
The government have predicted that the UK will need at least 300,000 public charge points by 2030. The challenges will be ensuring that there are no regional disparities in the deployment of public charge points, and that the charge points are reliable and accessible.
32. What are the issues facing rural residents, urban residents, and sub-urban residents and how do they differ?
Consumers who live in rural areas may face issues of limited electric vehicle infrastructure. Rural drivers typically drive longer distances than urban drivers, and public charge points are usually spaced further apart, than those found in urban areas.
In urban areas, up to 60% of homes do not have access to off-street parking, therefore are likely to be unable to charge their electric vehicle at home using their own domestic supply, however, there is likely to be better public charging infrastructure.
33. What role do you see local authorities playing in the delivering the 2030 phase out target, particularly in relation to planning regulations, charge points and working with District Network Operators? How can government best support local authorities in their roles?
myenergi see local authorities playing a huge role in delivering the 2030 phase out target. As stated previously, on a national level there is a sufficient level of charging infrastructure, however on a regional level, there are some local authorities that are performing better than others regarding providing adequate EV charging infrastructure.
Last month, Vauxhall released research that indicated that 71.6% of UK councils do not have a published strategy for residential on-street EV charging. We also saw a report that stated that Norfolk County Council have delayed a project to install 46 new public charge points due to concerns about the chargers taking up too much space on pavements.
myenergi strongly believes that through-street charging (for example, installing a cable gulley through the pavement) will have a big role to play in enabling sufficient charging infrastructure, however there are currently regulations and potentially unnecessary bureaucratic restrictions preventing this solution from being realised at scale- for example, the need for expensive Section 50 permits to allow any such cable gulley to be laid into the footway. In terms of planning permission for such devices, we feel that applying for a cable gulley to allow through-street charging should be as easy as applying for a dropped kerb.
International perspectives
34. What are the successful approaches to the rollout and uptake of EVs in other countries, and what can the UK learn from these cases?
Other countries that have had a successful rollout of electric vehicles have had desirable financial incentives and established charging infrastructure. The Netherlands are an example of this, with over 50% of vehicles on the road being EV’s. The subsidy scheme for Electric Passenger Cars for Private Individuals (SEPP) contributes a financial subsidy towards new and used cars in the Netherlands and has the highest number of public EV chargers after China.
This is an example to government how progressive EV policy and financial incentives can contribute to a successful rollout of electric vehicles.