What are the pros of investing in an EV charging station?
Electric vehicle charging stations are a fantastic business opportunity to attract customers that are proven to spend money in the site host when business while also spending money on electricity at the charging station.
With billions of dollars in grant money available for a limited time, now is the time to see which grants and incentives might apply to your business. There are many grants available, and the application process can be confusing without the help of an expert. For that reason, Impower Connections has a dedicated grants team to advise our clients on their applications and assist with the entire process. EV adoption is increasing each year, and it pays to get ahead.
As an EV station site host, your business will appear on several EV charging site locator maps, giving your business visibility with a wide range of clientele that are proven to spend money inside the business and at the charging station.
Having EV charging stations gives your company a competitive advantage and can help you connect with and profit from more customers and additional revenue streams. For gas station owners, the need to add EV charging is one of critical importance because gas sales will start to decline as EVs become a dominant vehicle type in the market.
In addition to attracting more customers, your charging stations can promoting customer-to-business interaction, which gives the business an edge in gaining more customer insights through the charger’s point of sale platform. With more insights into your customers, you can better market to them and increase return visits with deals catered to that customer.
Electric vehicle charging stations promote the reduction of greenhouse gas emissions to benefit air quality in your community. Federal requirements mandate that emissions be reduced by 45% by 2030.
EV charging stations can help you fulfill corporate social responsibility commitments by being environmentally friendly, while offering positive side benefits of helping businesses increase revenue per visit and retain employees.
EV adoption is increasing each year. One incentive for qualifying commercial vehicles weighing less than 14,000 pounds is up to $7,500, and those that weigh more than that can qualify for up to $40,000 for commercial tax credits.
Beginning January 1st, 2023, fueling equipment including electric vehicle charging stations installed through December 31st, 2032, will be eligible for an Alternative Fuel Vehicle Refueling Property Credit of 30% or up to $100,000. This is the 2023 Electric Vehicle Tax Credit – Alternative Fuel Vehicle Refueling Property Credit.
What are the disadvantages of investing in an EV charging station?
Installing an EV charging station can be expensive. However, our experts will help you understand grants, tax credits, and rebates that are available, advise you on your eligibility, and assist with the application process.
EV charging stations are new technology. They are placed outside in harsh environments and used by people that may be new to the platforms and hardware. Maintenance is critical to making your EV charging stations a productive revenue stream. Chargers typically come with a warranty, but you want to have a relationship with a reliable partner to help maintain you chargers proactively so you can maintain a high “up time” ratio. Up time indicates the percentage of time that chargers are fully operational.
Impower Connection provides long term maintenance and service on EV chargers so you never have to worry about your chargers. For our clients, when a charger goes down, we get notifications alerting us to the issue so we can address it. We also handle changing filters, fuses and sensors proactively to help clients avoid their chargers going down.
How do EV charging stations provide different revenue streams?
Businesses can generate additional income by setting charging fees that can be changed depending on the time of day and the demand. The Charging Locations app puts your business on a map to help drivers find nearby charging stations, improving your reputation and visibility as a business. EV charging maximizes store spending by attracting customers to your business through the added revenue stream of EV charging.
What are the positive environmental impacts?
Transportation is the biggest source of carbon dioxide which is emitted through tailpipes. Electric vehicles running on electricity instead of gasoline will not have the same effect on the environment. The adoption of electric vehicles is the future of green transportation. Eliminating exhaust emissions results in cleaner air. Because they are quieter, EVs also reduce noise pollution. Research shows high noise pollution levels contribute to depression, anxiety, sleeplessness and other chronic illnesses. Electricity does not have a risk of hazardous environmental spills like gasoline.
Will electric vehicles become the main form of transportation?
COVID-19 has accelerated the adoption of electric vehicles as the market is less volatile and consumers participate in the launch of new models. Allied Market Research predicts the auto market will reach $823.75 billion by 2030, while Fortune Business Insights expects the U.S. EV market to reach $137.43 billion by 2028. An executive order in the United States in August of 2021 set an ambition for EVs to represent 50% of Light Duty Vehicle or Light Commercial Vehicle sales in 2030. A Zero Emissions Vehicle mandate was issued, which has been applied to fifteen states requiring automakers to sell a certain number of EVs each year. Many automakers have plans to go all-electric. The U.S. Postal Service has committed to buying 66,000 electric vehicles.
What if I invest in a system and no one uses it?
In many ways, there is a return on investment when deciding to get EV charging stations. Tax incentives, rebates, and grants could reduce the cost of EV charging infrastructure if you qualify. Each state offers different incentives. EV charging stations attract new customers to your business and incentivize them to stay longer in your store. EV chargers can also increase the resale value of your property. Chargers are a coveted amenity at commercial properties.
How do I charge customers for using my electricity?
Each charger will have a point of sale platform that enables users to pay for electricity whether using the charger or through a smart phone app. You can charge your customers for the electricity used and you can charge an additional fee for using the charger itself through a connection fee.
You can change the price you charge for the electricity based on demand wither through a flat rate or by time spent charging. You will want to consider your costs for the electricity and the infrastructure that you have invested in.
If you live in an area with high electricity costs, a cost-efficient way to charge would be calculating their cost based on charging time and time of day used, and this is calculated using your meter if your electric rates fluctuate based on peak electric usage times.
We advise keeping your chargers on a separate meter so you can get a better grasp of the cost of electricity used for charging stations.
What can I do to make my charging station popular and profitable?
Another popular route to make your charging station popular and profitable is to offer members specific incentives such as a free charge after so many charges have occurred.
How do I market my site so people can find it?
A benefit of implementing EV charging stations into your business is attracting customers by making your location visible on public charging maps. Simply register your stations on Apple Maps or Google Maps to gain additional exposure. Businesses can also tell their current customers about the addition of the EV charging station on their social media sites to help generate buzz about the new amenity.
What are the ownership models used for EV charging systems? Should I lease my property to a third party or operate chargers that I own on my site?
The two most common models used to charge stations are: 1) The site owner owns the system, sets the electricity price and retains all the profits. 2) The station owner leases a portion of the existing business site to a company that installs, owns, and operates the charging system, meanwhile providing the site owner with a portion of the profits.
Impower Connection encourages site owners to take the plunge and retain full use of their site while retaining all the profits of the EV charging stations. While getting and maintaining EV chargers may seem like a daunting task, our service model is designed to make EV charging station ownership easy. We represent the leading EV charging hardware brands and provide you with recommendations about which hardware meets your needs and budget. We handle all the civil and electrical engineering, installation, permitting, all the associated site improvements such as lighting, signage, parking lot markings and help you maintain your system for the long term. Having full control of your stations and retaining all of your profits is vital for entrepreneurs. It has been reported that on average charging stations net $30,000 in profits each year per unit. We can help you retain maximum profits to you can maximize the return on your investment and give you the freedom and flexibility to set your price for electricity.
Sources:
https://electrificationcoalition.org/clean-fuel-standards/
https://electrificationcoalition.org/treasury-releases-clarifying-information/
https://electrificationcoalition.org/treasury-releases-clarifying-information/
(https://uk.mer.eco/news/undeniable-benefits-of-ev-charging-stations-for-business-mer/)
(https://www.un.org/en/climatechange/net-zero-coalition)
https://ecobnb.com/blog/2020/11/benefits-electric-vehicles-environment/
https://www.un.org/en/climatechange/net-zero-coalition
https://www.fortunebusinessinsights.com/u-s-electric-vehicle-market-106396
https://www.iea.org/reports/electric-vehicles
https://www.alliedmarketresearch.com/press-release/electric-vehicle-market.html
Here is the IRS form for EV tax credit 2023: https://www.irs.gov/pub/irs-pdf/f8911.pdf
