Are EV charging stations worth it? Are Car Charging Stations Profitable? If you’re a retail or hospitality business owner, property manager or developer, landlord or even a city planner in an area where many residents drive electric vehicles, you may be wondering, “Are EV charging stations worth it?” Are Car Charging Stations Profitable? It’s a legitimate question and concern, and it’s cheap to install EV charging infrastructure.
The worth of Electric Vehicle (EV) charging stations depends on various factors, and it can vary based on individual circumstances. Here are some considerations to help you determine if EV charging stations are worth it:
Usage and Demand:
If there is a growing demand for electric vehicles in your area, installing charging stations can attract more customers or serve the needs of existing ones.
The location of the charging station is crucial. Stations placed in strategic locations, such as along popular routes or in busy urban areas, are likely to see more usage.
Regulations and Incentives:
Check local regulations and government incentives for installing EV charging stations. Some regions offer subsidies or tax credits to businesses that install charging infrastructure.
If you own a business where customers spend a significant amount of time, like a shopping center or restaurant, installing charging stations can be a customer service amenity and an incentive for EV owners to choose your business.
Costs and Returns:
Consider the initial installation costs and ongoing operational expenses. The return on investment may take time, but it could be worthwhile in the long run if there is sufficient demand.
Assess the growth of the electric vehicle market. If the trend suggests a significant increase in EV ownership, investing in charging infrastructure may become more valuable over time.
Explore partnerships with EV manufacturers or energy companies. Collaborations can provide support, share costs, and enhance the overall value proposition.
Environmental and Social Responsibility:
Some businesses install charging stations as part of their commitment to sustainability and corporate social responsibility, even if the direct financial return is not immediate.
Are Car Charging Stations Profitable?
Maximize Profits With Revenue From EV Charging Stations
The easiest way to maximize revenue from EV charging stations is to bill customers for their use. Especially in areas where chargers are in high demand, customers are willing to pay for charging capabilities on the road. One survey from E Source discovered that EV owners were willing to pay up to $3 per hour for charging, and 12 percent were willing to pay $4 per hour — even if it only costs them $0.75 per hour to charge at home.
Convenience and reducing range anxiety, or the concern that your EV will run out of power when you’re not close to a charger is worth the price of convenient EV charging stations away from home. In fact, 7 percent of EV owners said “price does not matter,” when they need a charge.
Increase Foot Traffic at Your Place of Business
Several studies have revealed that EV charging stations attract new customers and increase the amount of time customers spend within a store or restaurant, which leads to increased sales. Charles Satterfield with Atlas Public Policy said during a panel hosted by the Center for Climate and Energy Solutions the indirect income from increased foot traffic is “usually more significant than user fees from the charging itself.” Other than that, it increases customer satisfaction, which often leads to customer retention and overall marketability of your business.
Plenty of Room for EV Owners at a California Hotel
A multinational hotel chain that offers EV charging capabilities at over 3,000 of their locations has seen indirect revenue increases through the installation of EV chargers at many of their locations, including one Southern California location. The hotel owners said the new EV charging capabilities have driven a new stream of overnight guests, along with those who stay in the lounge and restaurant long enough to charge their vehicles and enjoy a meal.
Are EV charging stations worth it? Are Car Charging Stations Profitable? It's important to conduct a thorough analysis of your specific situation, considering local factors, market trends, and your business goals before deciding whether installing EV charging stations is a worthwhile investment for you.