If you’re a commercial property owner, you may be wondering about the profitability of electric vehicle (EV) charging stations. Many drivers are switching to EVs and need places to charge them while on the go. The EV market saw a record-breaking 7.8 million vehicles sold in 2022. And with government incentives increasing worldwide, that number will grow exponentially in 2023. With more than 40 million EVs expected to be on the road by the end of the year, there are clear indications, particularly in America, that the transition to EVs is on the horizon. Which means it will need a robust EV infrastructure to support it. So what does this mean for CRE property owners like you? For starters, it means EV charging stations can be profitable to own. It also means that EV charging stations will attract more customers to your property. And thanks to companies like Chargie, the installation process is quick, easy, and often times 100% covered by government rebates and incentive programs.
Drivers Pay For Electricity Consumed
Commercial properties attract visitors, tenants, residents, and employees, all of whom are ideal charging customers. It’s simple, just like selling gas or any other dispensed product – people pay for what they use. EV infrastructure companies like Chargie install and set up their EV charging network at commercial properties, and through the use of an app, drivers can charge and pay for the amount of electricity consumed. The property owner sets the price and revenue is generated accordingly. Whether that’s at a profit is completely up to them.
According to recent research, consumers are willing to pay the same or more for charging than they would for comparable amounts of gasoline. People on the go who need to charge value convenience over cost – even if they can charge for less at home. And many EV owners have luxury vehicles, so they aren’t as concerned about the price. For example, when they choose between charging at a preferred time and paying more vs. paying less and charging at a different time, 71% of EV owners say they would pay more. How much more? 33% would pay up to $60 more per month. This creates an opportunity for commercial property owners to charge premium pricing.
How Much Can You Earn From a Commercial EV Charger?
Commercial EV charging stands to make commercial property owners a sizable return on investment. Even if they have a level 2 charger at home, research shows that EV drivers will pay up to $3 an hour to charge their EV at a commercial EV charging station. Moreover, 12% said they would happily pay $4 an hour for level 2 public charging. For reference, a home level 2 charger costs about 75 cents an hour to charge.
And, the income opportunity for commercial businesses increases with installing fast chargers (level 3). 36% of EV drivers say they will pay 25% more for a fast charger, while 17% would pay 50% more to access a quicker charge.
Research shows that a good 7% of EV owners say that, when they need a charge, price is no object.
Can Commercial EV Chargers Attract More Customers to My Business?
The profitability of EV charging stations can be measured in more ways than just the sale of electrical consumption paid by drivers. EV charging is an amenity that draws more visitors to your property. And areas with a higher volume of EV drivers stand to attract many more customers to a property.
If an EV owner has a choice between two comparable shopping malls, for example, they are far more likely to choose the location where they can charge their vehicle. Additionally, research has shown that visitors will spend more time shopping while charging their vehicles, which increases sales for tenants of commercial properties. And, even though EV owners are spending more money while shopping, they report increased customer satisfaction. EV chargers make your property a more desirable location, provide opportunities for residual sales, and create the ability to tap into a repeat business model. Major corporations like 7-Eleven, with its new 7Charge program, and Subway, with its rollout of small-format electric vehicle charging stations and Subway Oasis charging parks, have already begun taking advantage of this opportunity.
Drawing more customers to your property, coupled with customers spending more time and money on your property, means that installing EV charging stations will increase your property’s value. This drives more businesses to want to be located on your property, which means you can charge your tenants higher rent.
Can Businesses Make Money Off of Commercial EV Chargers?
In short, yes. EV charging stations can be profitable for many reasons. Commercial property owners generate revenue directly from the EV chargers themselves. EV charging stations draw more customers to your property, and those customers are statistically proven to spend more time and money while their EV charges. Increasing both amenities and revenue opportunities for new and existing tenants increases the value and desirability of your property. Which means you can charge higher rent to tenants. And thanks to companies like Chargie, installing commercial EV chargers has become shockingly easy and potentially low to no cost.
How Do I Install Commercial EV Chargers at My Business?
Here at Chargie, we do all the work of installing commercial EV chargers for you.
1. Survey and evaluate
We’ll send a team to survey and evaluate your property. We’ll determine the best location(s) for your charging stations and determine how much construction work is needed and if there are any necessary electrical upgrades.
2. Plan and design
Our team of expert engineers will work closely with you to design a charging station layout that meets your property’s needs.
3. Permit and approve
Like with any construction project, your city or town will require you to have proper permits. Chargie handles all the details and paperwork for you. We work directly with cities and utilities until your plans are approved. This includes maximizing any rebate and incentive programs available. Most of our clients have 100% of their installation costs covered.
4. Install and validate
Chargie manages all parts of the EV charger installation, including building the physical infrastructure, deploying a wireless network to connect it, and conducting extensive testing. This installation process takes as little as two weeks and minimizes any disruption to your tenants and visitors. You are now ready to generate income.
5. Manage and operate
Our work doesn’t stop once your stations are installed. We’ll help you manage and operate your EV charging stations with 24/7/365 monitoring and support. Additionally, we’ll make sure you can easily view network insights and metrics.
Let us help you satisfy the growing demand for commercial EV charging. Reach out to us today to get started.