Electric vehicle recharging: what are companies' obligations?

Over the past decade, the electric car has been booming, with registrations expected to grow by around 62% by 2020, partly due to strong consumer demand. This growth has also been boosted by recent government regulations aimed at tackling the climate and environmental crisis. In order to support the development of electric vehicles and meet the high demand from our fellow citizens for recharging infrastructure in public and private parking lots. A timetable of regulations to curb combustion-powered mobility has been set, along with obligations for companies and their professional fleets. professional fleets.

This guide will give you the steps to follow, or inform you about the obligations of companies faced with the new imperative of the energy transition.

Installing charging stations in parking lots: an obligation under the LOM

Today, whether you're a property developer or the owner of a parking space linked to your business, everyone has to meet a set of specifications imposed by the Government, and reinforced by the French Mobility Orientation Act (LOM).

Understanding the LOM law and its implications for companies

The Loi d'Orientation des Mobilités (LOM) adopted in December 2019, represents a major turning point for sustainable mobility in France. Not only does it provide a framework for the development of the infrastructure needed to support the rise of electric vehicles, it also lays the foundations for greener, more inclusive mobility. For companies, this law translates into precise obligations, particularly with regard to the installation of charging infrastructures for electric vehicles.

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Pre-equipping parking lots

These specifications call for a certain amount of pre-equipment, i.e. the installation of cables and devices to supply future load points. All the points to be respected concerning this pre-equipment are specified in this legal text. 

Equipping parking lots with recharging stations

In the case of new buildings for which planning permission is requested after March 11, 2021, 20% of parking spaces must be equipped with charging stations. This standard also applies to existing buildings scheduled for renovation.

Depending on the capacity of the parking lot in question, the percentage of infrastructure to be installed for recharging low-carbon vehicles fluctuates from 5 to 20%, as shown in detail in the following table:

The LOM law makes no distinction between the different types of activity linked to parking lots, so any tertiary, industrial, public or commercial activity is not exempt from these new regulations. It also covers existing buildings and those undergoing renovation, to increase the effectiveness of these regulations.

Technical and regulatory requirements

Implementation of the LOM law requires installations to comply with a set of technical and regulatory criteria defined to ensure the safety, compatibility and efficiency of charging infrastructures. Here are the main points to consider:

• Safety standards: All installations must comply with European safety standards, in particular IEC 61851-1 for electrical charging systems. This includes protection against overcurrent, short-circuit and current leakage to earth.
• Compatibility : Charging stations must be equipped with type 2 plugs, in accordance with EN 62196-2, to guarantee compatibility with the majority of electric and plug-in hybrid vehicles available on the European market.
• Accessibility : In line with accessibility regulations, charging infrastructures must be accessible to people with reduced mobility (PRM). This includes installation at a suitable height, clear signage and easy-to-use interfaces.
• Recharging power: The LOM law encourages the installation of charging stations with a minimum power of 7 kW to guarantee a reasonable recharging time. Of course, the power must be adapted to the needs of users and business activity.
• Connectivity : Bollards must be equipped with remote control systems for better energy management and user services such as reservation, electronic payment and recharge tracking.
• Sustainability : Companies are encouraged to adopt sustainable solutions, such as installing kiosks powered by renewable energy sources or integrating intelligent energy management systems to optimize consumption.

Complying with these criteria not only enables us to comply with the law on greening fleets, but also to offer a reliable and safe recharging infrastructure for users.

Horizons 2025: low-carbon mobility in everyday life

It is important to note that the LOM law provides for a significant change from January 1, 2025, requiring public parking lots to have an electric charging point for every twenty parking spaces. A charging point must also be accessible to people with reduced mobility (PRM).

However, this point will be inapplicable if the work required to adapt the electrical grid to meet such needs (upstream) is greater than the installation of charging stations and points.

Although surprisingly ambitious at first glance, these regulations in fact merely reflect the commitments made by France and the European Union. A number of other regulations are in the process of being implemented, such as ESG criteria and the CSRD directive.

Financing and assistance available for the installation of charging stations

The transition to electric mobility represents a significant investment for companies. Fortunately, a number of financial support schemes have been set up to facilitate this commitment.

The ADVENIR project: support for your energy transition

In order to make this drastic change more fluid and facilitate its adoption, the Government introduced aid as early as 2016 through the ADVENIR project to support the development of charging infrastructures among businesses and condominiums. This project allocates itself a budget of 120 million euros to finance more than 60,000 new charging points before 2024. 

To find out if you are eligible, visit our "Guide: everything you need to know about the Advenir bonus".

Tax credits and exemptions

Investment in electric vehicle charging infrastructure can benefit from an advantageous tax framework, designed to encourage companies to play an active part in the energy transition:

• Crédit d'Impôt pour la Transition Énergétique (CITE ): Companies are eligible for the CITE tax credit, which allows them to deduct part of the cost of environmentally-friendly equipment from their income or corporation tax. For the installation of charging stations, the CITE can cover up to 30% of eligible costs, subject to certain conditions and limits set by the regulations.
• Accelerated tax depreciation: In addition, companies can benefit from an accelerated tax depreciation scheme for investments in certain energy-efficient equipment, including electric vehicle charging stations. This reduces the net cost of the investment by accelerating the deduction of acquisition and installation costs from taxable profits.
• Exemption from Cotisation Foncière des Entreprises (CFE): Certain local authorities offer an exemption from Cotisation Foncière des Entreprises (CFE) for establishments that make environmentally-friendly investments, including the installation of charging stations. This measure is designed to lighten the tax burden of companies committed to eco-responsibility.
• Reduced VAT: In certain cases, work linked to the installation of charging stations can benefit from a reduced VAT rate, particularly when the installations are carried out in existing buildings. This reduction in VAT can significantly reduce the total cost of installation for the company.

To maximize the benefits of these tax incentives, companies are advised to consult a chartered accountant or tax advisor. These professionals can help navigate the complex landscape of tax incentives, ensure that projects are eligible for the various incentives, and optimize the tax return to make the most of the incentives available.

Tax credits and exemptions

Businesses can also benefit from tax credits for the purchase and installation of charging stations, as well as tax exemptions linked to investment in environmentally-friendly equipment. These incentives, which are regularly updated, are designed to reduce the net cost of investment for businesses.

Regional and local funding

In addition to national grants, regional or local subsidies may be available, depending on your geographical location. These grants, often managed by regional councils or conurbations, are designed to support local initiatives in favor of energy transition and sustainable mobility.

Green loans and other banking facilities

Companies can also turn to dedicated financial products, such as green loans, offered by many banking institutions. These preferential-rate loans are designed to finance environmentally-friendly projects, including the installation of charging infrastructure for electric vehicles.

The electric vehicle, or the great replacement for combustion-powered vehicles...

These strict and decisive obligations have not been taken at random; they are about responding appropriately to the growing demand for electric vehicles and meeting our commitment to carbon neutrality by 2050.

This pledge, made in line with the IPCC reports and the scientific community, aims to accelerate the energy transition of European Union countries in order to stabilize global warming at 2 degrees Celsius.

It was against this backdrop that the European Commission banned the sale of combustion-powered vehicles by 2035. This provision has propelled the production of electric vehicles, with major investments being made throughout the automotive industry. Toyota, for example, has invested $14 billion to develop more competitive batteries. 

This has naturally boosted demand for electric vehicles, as the Comité des Constructeurs Français Automobile points out in the following graph:

Implications for companies and the need to adapt

Faced with this transition, companies in all sectors need to review their vehicle fleets and mobility policies. Adapting to a fleet of electric vehicles is not just a question of regulatory compliance, but also an opportunity to reduce carbon footprints and benefit from a greener image. Investment in recharging infrastructure thus becomes a strategic issue for companies, requiring long-term planning and consideration of future needs.

Technological advances and enhanced competitiveness

Continuous innovation in the field of electric vehicles, particularly in terms of batteries, range and recharging times, is a key driver of their growing adoption. Technological advances not only make electric vehicles more competitive than combustion-powered models, but also open up new prospects for professional use, offering solutions for long-distance or intensive use, for example.

The crucial importance of a suitable charging infrastructure

The deployment of an adequate charging infrastructure is a central pillar of the transition to electric vehicles. For companies, this means not only complying with legal obligations, but also anticipating the changing needs of their fleet. A well-planned recharging infrastructure ensures continuity of operations and contributes to a company's overall energy efficiency, while supporting sustainable development objectives.

Collaboration and strategic partnerships

A successful transition requires close collaboration between companies, electric vehicle manufacturers, recharging infrastructure providers and public authorities. Strategic partnerships can facilitate access to innovative recharging solutions, help share best practices and accelerate the adoption of electric vehicles in business fleets.

Are you concerned by the LOM law? 

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