Installing electric vehicle charging stations can put your commercial property ahead of competitors, as experts predict the EV market could grow to more than $800 billion by . Establishing the right EV charging station payment and pricing policy for your office building, multifamily property, multi-use space or retail venue is an investment in your future.
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So what is the ROI of an EV charging station (or several)? How can you structure your EV charging station payment system to maximize your returns while keeping visitors happy? There are multiple ways for your business to reap returns. Here&#;s what to know as you assess the ROI and value of installing EV charging stations.
Before you begin calculating the ROI of EV charging stations, it&#;s important to consider the tax incentives and rebates that come with the purchase and installation. Currently, the IRS offers up to a 30% tax credit off the cost of commercial EV charging stations up to $30,000. Since President Joe Biden has expressed his support of electric vehicles, these tax credits may be extended or even enhanced in the future. Plus, states offer additional incentives and cash rebates beyond what the federal government provides.
Property managers, for example, have choices when it comes to structuring their EV charging station payment system for maximum ROI. Of course, you can always opt to enjoy the multiple benefits of EV charging stations and offset charging costs and expenses with utility or state programs, while attracting tenants and residents.
Through the EV Connect platform, you can tie charging privileges to membership or residency. You can also offer free charging as a reward to loyal customers or members while billing other one-time visitors. All payments can be processed using the EV Connect platform. You can also offer free charging as a reward to loyal customers or members while billing other one-time visitors. For example, someone who&#;s part of a hotel&#;s rewards program might receive free charging, whereas a one-off guest would be charged directly. The model is completely flexible and up to you.
If you decide to charge visitors or tenants in your building, you also have a few different options. Our experts can provide data driven analytics and industry knowledge to align your pricing policies with your revenue goals. You&#;ll also have a dedicated customer success manager who can offer ongoing support so you can continue to optimize your EV charging business.
One of the simplest systems is flat-fee, pay-as-you-go charging. Drivers would pay one rate regardless of how long they stayed plugged in. For many people, the convenience of EV charging means they won&#;t mind paying full price for a quick charge &#; and the cost outlay will balance out for you.
On the other hand, metered billing means drivers pay only for the charge they need. It can be calculated by parking time, energy use or charging time. Paying by energy use may work best if you don&#;t power your chargers via solar energy &#; especially if you live in an area with high electric costs or smart metering that bills you different electric rates based on peak usage times.
Metering by charging or parking time, however, can keep your payment structure simple and straightforward for customers. They will see the value because they are only paying for the power they receive or the time they spend at your charging station. This model may be best for retail locations, where drivers come and go and you&#;re servicing a steady stream of different customers each day (rather than recurring visitors).
Whatever billing system you decide to use, the EV Connect app makes it easy to let customers pay directly through their smartphones. The easy pay-by- model represents a significant advantage over traditional gas stations for ICE vehicles where cash payments are inconvenient and credit or debit card payments often carry higher prices.
You can also indirectly increase your business profits through the ROI of EV charging stations. As more people drive electric vehicles, providing the best driver experience increases in importance to continue attracting people to your business. EV charging stations not only bring in new customers, but studies have shown they increase the amount of time people stay in the store. One study found a positive correlation between the time people spent in a clothing store and the amount of money they spent.
If you&#;re a landlord or property management firm, you&#;ll find that retailers and restaurants, in particular, will be more likely to stay in a location that attracts high-quality customers. This is also true with multifamily housing including high-rise buildings and luxury complexes. Since most EVs are still on the pricier side of passenger cars, EV charging stations attract more financially stable customers who also care about sustainability and the environment. One study by CarMax/CleanTechnica revealed that 65% of EV owners are over 40, 70% are college educated and close to 70% make $75,000 or more per year. A study from TrueCar.com discovered that Ford Focus electric car owners have an average annual household income of $199,000 while Fiat 500e owners had a household income of $145,000.
Adding EV charging to Class A properties can increase the value upon resale. Not only are you selling a building with steady, consistent tenants, but you&#;re providing a coveted amenity for this demographic. If you couple EV charging stations with solar panels to feed them energy, you can reduce the overall net operating costs of your building.
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Many property managers have concerns about structuring their EV charging payment system and whether they will earn a profit from the stations. There are many ways to increase the ROI on EV charging stations. EV Connect consultants can help you with everything from installation to establishing the right pricing policy for your property.
Electric vehicles are taking over the streets, and that means drivers are looking for more places to charge. The rapid rise in EVs is creating an opportunity for those willing to learn the tricks of the trade. See how you can invest in EV charging stations and play a role in the future of transportation.
If you are noticing more electric vehicles on your daily commute, it&#;s not just you. Battery electric vehicle sales hit another record in the second quarter of , rising to 196,788 as overall new vehicle sales slumped 20%.
The electric vehicle share in the US rose to 5.6% compared to 2.7% in the second quarter of . Automakers are introducing new EVs to the market with more range, superior technology, and zero emissions giving drivers a reason to make the switch.
According to information from the PEW Research Center, 42% of Americans say they would consider purchasing an electric vehicle. The survey was taken before the historic climate bill passed, giving new incentives to buy an EV. What&#;s more interesting is the breakdown by age group.
Moreover, over half of them live in urban areas. Although it is true most EV owners charge at night, a growing number of people living in cities rent. A new study from Harvard shows overall rental vacancy is at its lowest since the mid-s.
Source: NMHC tabulations of American Community Survey microdata, US Census Bureau. Updated 7/Younger generations are those more likely to be renters, and many apartment complexes don&#;t have EV charging stations installed yet. Nearly 50% of people under the age of 30 rent, while 10% of those ages 65+ do.
Electric vehicles are expected to account for the majority of vehicles on the road by . However, the most common reason Americans (58%) say they would not purchase an EV is because they fear it will not give them enough range.
Although much is being done to alleviate this fear, there is an opportunity for businesses to participate while contributing to the future of transportation (and earning an extra profit).
The Biden Administration has rolled $5 billion in funding over the next five years through the NEVI program to build a national network of EV charging stations.
Electrify America, a subsidiary of Volkswagen, is working to build a fast charging network across North America.
Automakers like Tesla are also building their own Supercharging network to enable their drivers the freedom to go anywhere. Meanwhile, many of the people in the category above (younger drivers looking to purchase EVs) are looking for more convenient options on their daily routes.
For business owners, this presents an opportunity. And for those that don&#;t own a business but still want to get involved, there are ways for you to invest in EV charging stations.
EV chargers at Walmart Source: WalmartTo give EV drivers more options, you can install chargers at your business. In particular, if customers stay for more extended periods of time, it may be worth considering. For example, a quick stop (under five minutes) may not be worth it, but it&#;s a different story for restaurants, entertainment venues, bars, clubs, malls, small businesses, and even workplaces.
Installing EV charging stations is an investment in your business. As electric vehicles continue gaining market share, having convenient charging options can help drive traffic with increased visibility.
Many popular digital map services (like Google Maps) now offer solutions to find charging stations, while others like Plugshare are specifically designed to locate them.
That being said, having electric vehicle charging options available can drive business. There are over $2 billion in utility-provided rebates and $60 million in government grants to help you get started (see what incentives are in your state here). Companies like ChargePoint make it easy with different charging options and valuable tools to help you manage data.
If you don&#;t own a business and still want to invest in EV charging stations, you can always opt to own a piece of one of the companies listed above. For example, buying stock in companies like Tesla (TSLA) or ChargePoint (CHPT) can give you exposure to the expected massive growth in electric vehicles and its supporting factors over the next several years.
To gain exposure to the entire electric vehicle market, an ETF like KraneShares Electric Vehicles & Future Mobility ETF (KARS) has holdings in companies like Tesla, ChargePoint, Nio (NIO), Albemarle (ALB), BYD, Rivian (RIVN), Lucid (LCID), Aptiv (APTV) and more.
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