Switching over to cleaner energy and sustainable means has paved the way for electric vehicles (EVs) into transportation paradigms, offering opportunities for companies and organizations to utilize and gain from their sustainability image and customer outreach while future-proofing their existence. It can be installing EV charging stations in your business premises. The other way of cashing in on this growing trend is to install EV charging stations.
In this article, we will look at the benefit of having charging stations for EVs within a company. Further, it will cover commonly asked questions such as: Why should a business install EV charging? Is an EV charging station business profitable? and Which are the businesses that benefit most from installing EV charging stations? Several barriers, particularly the negatives surrounding setting up charging facilities for businesses, will be discussed; thereby regulating your decision-making.
Benefits of EV Charging Stations
Install EV chargers, which will be a business profitable activity. The market for electric cars is expanding continuously, and so is the demand by consumers for comfortable and handy charging points. And here is why you should fit this into your business:
It Attracts Environmentally Conscious Customers
Today’s conscientious consumers are socially responsible in matters concerning the environment. Electric vehicle owners try to support those companies that share their values regarding sustainability because electric vehicles are cleaner alternatives to gas ones.
An installation of EV charging stations will give evidence of your commitment to sustainability and environmental responsibility, thus aiding in attracting eco-friendly consumers that are inclined to shop, dine, or use your services while charging their electric vehicles. Studies testify that EV drivers frequent businesses with EV chargers more often, shopping and enjoying their premises while their vehicles charge.
Improved Convenience and Customer Satisfaction
With the establishment of an EV charging station, the customer experience is enhanced. The fact that many stores or restaurants or attractions offer EV charging facilities counts among the deciding factors for many EV owners when opting for shopping, eating, or visiting. By offering the service, you will ensure that these customers return again, stay longer, and are satisfied with their experience.
Charging infrastructure will improve your competitive advantage if you have heavy EV driver traffic. Passersby might be tempted to stop by because they are able to charge their cars while running errands or dining.
Entering a Growing Market
The electric vehicle market is in a transformation stage and growing fast. Various industry reports agree in saying that in the coming years there is going to be massive growth in the sales of electric vehicles, while arguments are also being put forth for EVs representing 40% of the total car sales on a global level by 2030. This development will give the businesses a golden opportunity to enter a market that is not so well known.
Installing charging stations at your business will once again secure growth since EV owners are constantly growing in numbers with a real need for charging facilities. Such progressive steps would ensure fulfillment and provide an edge whenever the demand for charging infrastructure heightens.
Receive Government Incentives and Tax Breaks
Most governments in the world provide financial help for business persons who install EV chargers. These incentives, in the form of tax credits, rebates, or grants, could defray the initial installation costs. In some places, businesses can even enjoy continuous energy credits or reduced utility rates for consuming cleaner energy sources to power these chargers.
Thus, with the help of these incentives, the financial weight of putting up charging stations will be reduced for your business while at the same time saving the environment.
Generate New Sources of Income
A charging station business also lodges some income streams into your business. Charging stations, normally, are paid by the amount of electricity consumed while charging a vehicle, that is, it charges per usage. Hence, the utilization of public facilities will, from then on, enrich your pocket.
Furthermore, the companies can gain an income increment by providing premium services like faster charging or bundled packages, which may include discounts or loyalty points for customers who frequently charge their vehicles at the outlet. For instance, a retailing company may use the EV charger as part of a larger service to entice customers to keep spending time shopping.
Improve Your Brand Image and Public Relations
The space attracts an understanding of CSR corporate social responsibility. Installing EV chargers sends a strong public statement regarding the coherence of your company with Sustainability, Innovation, and Future Transportation. It can, therefore, improve a brand image, place the business farther away from competitors, and enhance customer loyalty.
Most importantly, your business might receive positive coverage in the press for adopting environmentally friendly technologies, which can even add to the reputation in the community; for many consumers, it is critical to be associated with a business that actively promotes green cause initiatives.
Is an EV Charging Station Business Profitable?
It is a tough investment in the present day but with time, it does turn out to be a positive profit venture. Here are a few ways that an EV charger business can make money:
Charging Toll
Charging fees are the simplest way to make money from an EV charging station as the charges differ from business to business and are usually computed based on energy consumed in kWh or charging time. Sometimes, these fees are determined depending on your location and the type of installed charger (e.g., fast chargers vs. standard chargers).
For instance, for a standard Level 2 charger, charging fees could be something like $0.10-$0.40 kWh, with numerous fast chargers charging much more. The potential revenue that you will get depends on the number of customers using the charger, the duration of their charging session, and the fee structure you choose.
Increase in Footfall and Best Sales
Mentioned above was the increase in foot traffic through EV chargers to your business, wherein customers are attracted and observed that they would spend some money in your store while charging their car. Thus, an EV charging station sometimes indirectly boosts sales.
Secondly, the EV owners will most likely be a higher-income group who would want nothing more than convenience coupled with the sustainability factor, making such a target very much desired by the business.
Adjoining Charging Networks
Some businesses enter into contracts with reputable charging networks to make their charging stations available for use (Tesla Supercharger, Electrify America, ChargePoint). In this scenario, businesses receive either a cut in revenue generated through the charging station or a rental fee for leasing space for a third-party charging network.
The advantages of such arrangements allow a company not to incur heavy investments into installing charging stations and operational burdens with its use but benefit from the revenues generated through the charging station.
Which Businesses Can Benefit More from EV Charging Stations?
That being said, while pretty much all businesses will benefit from the installation of electric vehicle charging stations, some sectors are slightly better placed than others. Here are a few suited to the types of businesses that could benefit profoundly:
Retail Stores and Shopping Malls
Retail, mostly when prevalent in an area that is highly populated with EVs, stands to benefit from stimulation of footfall by the installation of EV charging stations. While those customers being shopped would use their vehicles for hours, they would actually have much greater sales potential through charging.
Restaurants and Cafes
Another good point for customer attraction is enabling the charging of one’s EV at an eatery, where one has his or her meals or beverages while already taking care of charging the vehicle. Many EV owners drive their cars to some other site when charging.
Hotels and other Hospitality Facility
These are the spots where EV charging stations can be positioned and marketed as a selling tool for overnight guests. As the number of travelers who drive electric vehicles increases, the ability to recharge at the hotel would swing the scale in favor of the establishment.
Offices and Industrial Sites
In providing EV charging stations for their employees, businesses would propagate sustainability and create attractive workplace settings. Charging stations are a demonstration of the organization’s commitment to sustainability, and in some instances, they can help a company be more carbon-neutral.
Public Areas: Airports, Parks, and Rest Stops
Public places such as airports, parks, and highway rest stops are the perfect examples of EV charging station locations, as they serve as convenient places for long-distance travelers to stop and charge. Besides bringing glory to themselves and making some money, these places provide a most needed service.
What Are the Disadvantages of EV Charging Stations for Businesses?
While there are installation benefits, it is important for a business to consider those challenges before deciding to install them:
Initial Installation Costs
The initial installation of EV charging stations requires massive upfront facilities that involve costs involved in purchasing the chargers and setting up electric systems. Sometimes it also calls for an upgrade of the electric infrastructure of the business. Above all, there are some incentives from the government to pay for the cost, which is still a great initial investment.
Maintenance and Management Operations
EV charging stations require regular maintenance concerning functionality and safety. This maintenance and management activity includes conducting routine inspections and necessary repairs and may also require some upgrades if the technology is adopted into new forms. Most businesses will also need to set up a payment system as well as monitor usage, which leads to additional costs.
Space Requirements
Because space will be occupied in your parking lot or your garage, installing an electric vehicle charger means losing that space. For businesses with poor parking, this could be a reduction of points of customer parking in your business, which could in turn start to dent other areas of your business processes.
Uncertainty of Return on Investment
The bottom-line profit of an EV charger business may change based on a few conditions: the location of your business, demand for charging, and the number of customers using these chargers. High-traffic areas with numerous EV drivers will return better on investment rather quickly.
Conclusion
One of the things to mention about the EV charging stations for commercial use is their several advantages. Other than attracting customers who are more inclined toward green issues, improving the convenience for existing customers, and enabling new revenue streams, the biggest advantage that these and other forms of EV chargers offer to companies includes being among the first ones in such a dynamically shifting market.
Since electric vehicles have been already growing in demand, now is the perfect moment when businesses need to get EV charging installed. While they embark on this novel technology, businesses also contribute to building a greener future and eventually enjoy good returns on their investments.