Electric vehicles (EVs) are becoming more and more popular in the United Kingdom, with sales increasing each year. As EVs become more common, the demand for EV charging stations is also growing. This presents an opportunity for investors who want to invest in this emerging market. In this article, we will provide a guide on how to invest in EV charging stations in the UK.
The UK government has set a target of net-zero carbon emissions by 2050, and EVs are seen as a key part of this plan. The government has also announced a ban on the sale of new petrol and diesel cars from 2030, which is likely to further increase the demand for EVs and EV charging stations.
There are two main ways to invest in EV charging stations in the UK: investing in companies that manufacture or operate charging stations, or investing in charging stations directly.
Investing in Companies
There are several companies in the UK that manufacture or operate EV charging stations. Some of the largest players in this market include BP Chargemaster, Pod Point, and InstaVolt. Investing in these companies can be done through buying shares in the company on the stock market.
BP Chargemaster, for example, is a subsidiary of oil and gas giant BP. The company operates more than 7,000 charging points across the UK and has plans to expand this number further. Investors can buy shares in BP on the London Stock Exchange (LSE) and gain exposure to BP Chargemaster’s EV charging business.
Another option is to invest in a renewable energy company that has a focus on EV charging. Good Energy Group is one such company. Good Energy is a renewable energy supplier that also operates EV charging stations. The company’s shares are listed on the LSE and offer investors exposure to the growing market for renewable energy and EV charging.
Investing in Charging Stations Directly
Investors can also invest in EV charging stations directly. This can be done through buying and owning a charging station or investing in a charging station network.
Owning a Charging Station
Investors can buy and own a charging station themselves. This requires finding a suitable location, obtaining planning permission, and purchasing and installing the charging station. Once the charging station is up and running, the owner can charge EV owners for the use of the station.
There are several companies in the UK that sell EV charging stations to individuals and businesses. Pod-Point, for example, sells a range of charging stations that are suitable for home use, business use, and public use.
Investing in a Charging Station Network
Investing in a charging station network involves investing in a company that operates multiple charging stations across the UK. These companies have already obtained planning permission and installed the charging stations, making it easier for investors to get involved.
One such company is Gridserve. Gridserve operates a network of EV charging stations across the UK and has plans to expand this network further. The company’s charging stations are powered by renewable energy, making them an attractive option for environmentally conscious investors.
Another option is to invest in a crowdfunding campaign. Several companies have used crowdfunding to raise money to install EV charging stations across the UK. Investors can contribute to the campaign and receive a return on their investment once the charging stations are up and running.
Conclusion
Investing in EV charging stations is a relatively new market in the UK, but one that is set to grow rapidly in the coming years. Investors can choose to invest in companies that manufacture or operate EV charging stations, or they can invest in charging stations directly. Owning a charging station requires finding a suitable location, obtaining planning permission, and purchasing and installing the charging station. Investing in a charging station network or a crowdfunding campaign can be an easier way to gain exposure to the market. As the demand for EVs and EV charging stations continues to grow in the UK, investing in this market could prove to be a wise decision.
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