Are you thinking about setting up your EV charging business somewhere in your neighborhood? Before you make that rush decision, have you thought about a proper EV charger location strategy? You shouldn’t base your decision on how fast people are adopting electric cars countrywide, but look at the prospective location you intend to set up the station.
In 2023, the US had over 1 million EVs sold for the first time. In 2024, this number rose by 21% to 1.7 million. Clearly, the need for charging stations is also rising. But this doesn’t necessarily mean that if you chose a location to set up a charging station, it would pick right away.
Your business might be optimistic about the EV potential, but not everyone around you is. So, unless you’ve got plenty of money to invest in a station that would stay idle until the next potential customer arrives, it’s best to build a stronger EV charger location strategy. Create a plan that can help you select an area with a high EV adoption rate.
Here’s a comprehensive take on how you can build a strong EV charging stations location strategy to guide you in setting up your business.
Understanding the Importance of Strategic Placement
Why not just pick a spot since there’s an EV wave blowing across the country? While the adoption rates are rising, most areas, especially non-metropolitan states in the south, like Mississippi and Alabama, still lack the proper infrastructure to support EV adoption. So, conducting a strategic placement survey can help you avoid losses during the early stages.
Here are more reasons why strategic placement is important.
Better Charger Utilization
Plus, the placement of your EV charging station directly affects the utilization and overall efficiency of the charging network. If you pick the wrong locations, it can lead to underuse, while strategically positioned stations can eliminate range anxiety and encourage even more people to go electric.
It wouldn’t be a wrong move if you paid a small fee to a research firm to find out the number of EVs in an area and the overall perception of the general public towards EVs. The firm can also help determine the types of EVs in a prospective area, which is important when making your decision.
Let’s say, for instance, the area you’re targeting has Teslas. It would be wise to have North American Charging Standard (NACS) chargers installed. That’s because all Tesla models use this type of charger, and other EV brands can too, as long as they have an adapter.
Better User Experience
What are some of the areas where people have prolonged idle times? Malls, residential areas, and offices. These make some of the best spots for setting up a charging station to improve the user experience. Users leave their cars charging as they go shopping, work, or chill at home. This offers convenience and eliminates the interruption usually associated with EV recharging.
Maximize ROI
Setting up an EV charging station is costly; there’s construction, purchase of charging equipment, marketing, permits, etc. Once your station becomes operational, you’ll need the revenue collected to cover all these costs. So, picking the right location lets you maximize your returns on investment (ROI).
With a good EV charger location strategy, you can pick locations that have high daily charging capabilities.
How to Create an EV Charger Location Strategy
Choosing the right location for setting up your charging station requires a careful plan. You need to factor in several considerations, from the number of EVs in an area to driver behavior. Here’s a comprehensive look at these factors and why they matter in your EV charging stations location strategy.
EV Driver Interest in Potential Areas
Remember, we mentioned something about hiring a research firm to do some surveys. Well, here’s another reason why you should before setting up a charging station. The potential area you choose must have a population with an interest in EV; a research firm can help you find out.
Even though the area might have a high adoption rate, it’s important to know how many EV drivers have a Level 2 charger installed at home. If the majority have a Level 1 or none, then they’ll definitely need a DC fast charger spot nearby, and that’s a great spot for installing your charging station. This ensures they can get to wherever they’re going on time and get back home without range anxiety.
How Many Charging Stations Already Exist?
If you’re thinking about an idea, there’s someone somewhere who has implemented it already. But does that stop you from implementing yours? Nope, you just need to be smart about it. So, if the area you’re eyeing already has a glut of charging stations dotting the landscape, it’s prudent to find another spot. However, again with the help of a research firm, if you find out these stations are not reliable, you stand a good chance of succeeding if you do things differently.
If you decide to compete against these stations, then ensure you do heavy marketing before your opening date. You need to paint your station as the “messiah” that has come to save them from the other unreliable lot. But do not overpromise; just ensure your chargers are as good as you say they are. There’s nothing as bad as running your first week with bad reviews and a ruined reputation.
Traffic Density and Patterns
Your EV charger location strategy needs to factor in the traffic density of an area; high traffic spots like office complexes, shopping centers, or city centers make prime locations for setting up a charging station. You need to analyze the local traffic data to identify these potential hotspots.
Consider the traffic flow patterns as well as user equilibrium principles to optimize charging station placement.
Shoppers in shopping centers typically spend about 30 to 40 minutes, so in such a spot, you’re better off setting up a Level 2 charger. these will be used for “top-ups” and not to fully charge the battery.
For high-traffic spots such as service plazas, you need to have faster charging options like the Omega DC Fast Chargers by Charge Rigs. These DC fast chargers are permanently installed and can output between 120kW and 320kW. Plus, they support NACS and CCS1 connectors to support a wider range of EVs.
Proximity to Supporting Infrastructure
An EV charging station needs sufficient electricity from a utility provider, unless you’re planning to rely on renewable energy sources. You’ll have to partner with the local utility provider to power your station without causing power shortages to the locals. As suggested by the US Department of Energy, you should engage the local utility company early enough in your plans.
Certain locations may be lacking enough power infrastructure, and therefore, an upgrade might be required to support high-capacity charging. This is why partnering with your local utility provider is crucial.
In addition, you’ll need the support of an EV charging network provider. Before picking one, ensure they have everything you’re planning to offer your customers, such as 24/7 customer support, different payment options, and reliable connectivity.
Becoming Compliant with Regulatory Requirements
This is another important factor to bear in mind when building a strong EV charger location strategy. Understand the local zoning laws and ensure you have all necessary permits to prevent constant disruptions of service by relevant authorities.
If your potential area has too many legal hurdles, it will turn out to be time-consuming and expensive to get your charging station up. So, start early enough; meet the local, state, or federal regulatory authorities during the initial planning phase.
Find out all the permits you need to get started. Also, determine how long the process of obtaining these permits is, and how tangled it can be. If possible, do some research with the local businesses to find out how difficult (or easy) it can be to build a new business from the ground in the potential area.
Understanding User Behavior and Demand Forecasting
Every business owner wants a prosperous future for their enterprise. To have a better growth probability in the future, you need to assess the location’s development potential. This should be done before your first day of operation to allow you to plan for expansion. If you sandwich your charging station between two brick-and-motor enterprises in a crowded site, you’ll most likely not have enough room to expand.
If the spot is restricted space-wise but has great potential for growth, you might as well consider adding a mobile fast DC charger to your charging inventory. An excellent choice for this is FLEXX Mobile DC Fast Chargers, capable of producing up to 120kW of charging power. With this, an EV driver within the premises, such as a shopping center, won’t need to come to your already crowded charging station. Instead, you can take the charger to them. And it will take about 8 to 15 minutes to reach 80% charge, of course, depending on other factors.
On top of that factor other considerations such as whether you intend to add amenities for refreshment and entertaining your customers. If that’s the case, ensure the growth potential of these amenities is included in your business growth plan.
Optimizing Charging Station Utilization
Once you’ve set up your EV charging station, you need to ensure that you’re getting the most out of it. How do you optimize charging stations?
Introduce Dynamic Pricing
Don’t just set fixed prices, no matter the time of the day. Remember that you’re battling competition. So, a flexible pricing allows you to attract more customers; set low prices for off-peak hours and encourage off-peak charging. For peak hours, have slightly higher rates.
Real-Time Monitoring
Have a system for monitoring charger usage and availability in real time. On usage, you can identify the chargers that are underutilized and make necessary changes to ensure they’re used optimally. As for availability, customers can tell when a charging point is available in real-time through their mobile app before visiting the station. This comes as a value addition, which goes a long way in enhancing customer experience and solidifying loyalty.
User Feedback
Customer feedback can help you identify areas where you’re performing well and where you’re not. This can, in turn, help you improve your services to meet customers’ preferences and needs.
Final Thoughts
With a properly developed EV charger location strategy, you’ll meet the growing customer demands and boost traffic to your station. As EV adoption rates keep going up, your business will be better positioned to benefit.
Understanding the types of chargers, considering factors in selecting the right site, and leveraging the solutions, such as those offered by Charge Rigs, you can create a reliable and efficient charging infrastructure. With our help, no matter your business model, you can get the guidance you need to set up your entire EV charging infrastructure. Charge Rigs can help you slash up to 40% of implementation costs by optimizing your energy usage. Contact us and get the help you need to set up your EV charging station project today.