How to Make Money from EV Charging Station
Electric vehicles (EVs) are becoming popular in the US, with about 2 million on the roads. Experts predict that this number will skyrocket and increase ten times by 2030. This is a big deal, right?
But here's the catch- even though many people are switching to EVs, the number of charging stations isn't growing fast enough. Currently, there are only around 125,000 charging spots, way fewer than the number of EVs present.
Considering how quickly people are embracing EVs, we'll need about 30 million charging spots in the US by 2035. That's a lot more than what we have right now. It is an opportunity for anyone with some space to make money by setting up EV charging stations.
However, before you jump in, you need to know how to set up your charging station to increase profits. As professionals in the electric vehicle market, we can guide you on how to make money from EV charging stations.
So, put all your undivided attention here and make it worth the read!
Why Should Businesses Install Commercial EV Charging Stations?
Businesses and organizations have a compelling reason to consider installing commercial EV charging stations. With the evident surge in the demand for electric vehicles (EVs), the decision to set up charging infrastructure becomes increasingly necessary. It is reason enough to install a commercial charging station.
But we do not want to give half-baked information. There are many more reasons to install EV charging stations for business, and these are very advantageous too.
So, let us delve into it-
1. Increases Foot Traffic and Customer Base
EV charging would take approximately one hour or so. So, what would the public do for so long when on a trip, especially a long journey? We know no one likes to waste time. So why not give them a reason to stop at your station? Thus, it is critical to provide the necessary amenities till the car charges.
When EV drivers know they can charge their vehicles while nearby, they are more likely to choose your establishment. It can enhance the overall customer experience and contribute to increased foot traffic.
For instance, we have seen charging stations in a shopping mall in its parking lots that boost foot traffic. As a result, EV owners visit this mall over others. It leads to higher footfall, longer shopping durations, and increased revenue for the stores within the mall.
High foot traffic areas like hotels, medical bodies, theatres, restaurants, gas stations, or car dealers are great places. This is a phenomenal installation benefit of EV charging stations for businesses.
2. Additional Electric Charging Revenue
Beyond the initial charging station investment, businesses can generate additional revenue by charging EV owners for using their charging stations. It creates a new stream of income and can contribute positively to the overall profitability of the business.
Businesses having electric vehicle (EV) chargers can make extra money by charging customers for using the charging equipment. EV charging fees can be based on electricity used, time spent connected, or subscriptions. You can consult experts for the prices and then decide.
No matter what they choose, businesses can earn more money and enjoy the financial advantages of having EV chargers. Some can even decide not to charge anything. They offer free electric charging as a bonus for their customers and employees.
3. Environmental Aspect and Corporate Social Responsibility
Many have become conscious when buying products or services. Conscious, in terms of eco-friendly methods.
Businesses should consider installing EV charging stations for a couple of reasons. First, it's good for the environment and shows that the business cares about being eco-friendly. When customers buy products or use services, they often want to support environmentally responsible businesses.
Having EV charging stations is a way for a business to prove it's committed to being green and reducing its environmental impact. It is especially crucial as many companies aim to reach goals like having zero carbon emissions.
Plus, when a commercial space provides EV charging, it becomes easier for those who care about the environment. There is reassurance to use electric vehicles that don't produce harmful emissions.
By doing this, the business sends a clear message that it wants to help reduce pollution and rely less on fossil fuels. It's a win-win- good for the planet and good for the business's image.
4. EV Chargers Put Your Business on the Map
Installing electric vehicle (EV) chargers at your business puts the business on the map. It makes people notice more, and hence visit whenever possible. The enterprises are at benefit if your EV station appears on the GPS.
And guess what? People, who drive electric cars will notice you for sure. It can attract more customers because they see your business as modern and up-to-date. Your place will be on the highlight.
Drivers are always in search of places where they can charge up, and if your business has that, it's like a magnet for them. When you install EV chargers, it makes your company look awesome. It brings in a whole new group of customers who appreciate what you're doing for the environment. It's perfect in every way.
5. Government Incentives and Support for Commercial EV Charging
Many governments offer incentives and support for businesses that invest in EV charging infrastructure. It is another great reason to install commercial EV charging stations. These can include grants or tax credits. They make it financially advantageous for businesses to adopt EV charging stations.
The government has rebate policies and tax breakups for businesses that support EV charging. Every state in the US has some incentive from the government. Businesses should check it and use it.
For instance, a retail chain receives government grants for installing EV charging stations at multiple locations. The grants cover a significant portion of the installation costs. All making it a financially savvy decision while contributing to the broader national goal of promoting electric vehicle adoption.
6. Top of the Competition
Soon, every company with parking areas would set up EV chargers. It will make them feel relevant and fulfill customer needs. So, our advice would be to start with it right away. Why wait for others when you offer it now and gain a competitive edge?
Future-proof all the business needs by presenting basic amenities now so that you remain at the top sooner. It will prove to be advantageous for the future.
7. Happy Employees
Millions of workplaces have had complaints of work dissatisfaction due to different reasons. Apart from inadequate pay, they have quibbled about low perks/incentives. We think happy employees bring better results for the business. Installing EV charging stations would be a great way to show you care for employees. It gives them incentives to charge their workplace while doing their duties.
Providing incentives would mean better productivity, employee retention, and satisfaction. They would spread the word about one such benefit- making it best for your commercial and EV charging business.
How To Make Money From EV Charging Stations?
After many market studies, we think setting up electric vehicle (EV) charging stations is a smart move to boost your business. As the demand for EVs rises, people need convenient places to charge their cars. You can easily tap into this growing market.
Here are some simple ways to make money from EV charging stations and grow your business.
1. By Setting Up Suitable Charging Fees
Monetizing EV charging stations can be difficult, considering the aggressive competition. The initial step- after installation- is deciding how to charge for the service to make money from your EV stations. As the owner, you have the flexibility to set and change the charging fees.
It might involve establishing a fixed fee when a charging session starts or the vehicle connects, along with a variable rate based on the energy consumed. You are in control of your pricing strategy, allowing adjustments as needed.
Charging users for public charging comes in various methods:
- Time-Based- This charges users according to how long their charging session lasts.
- Energy-Based- Users are billed based on the amount of electricity used during the charging session.
- Fixed-Rate- It involves a set fee, like a monthly subscription.
- Hybrid Pricing- It combines both energy and time-based charging.
2. By Providing Charging Speed According
Let us talk about how different electric vehicle (EV) charging speeds can match up with different businesses.
- Slow and Steady (Level 2 AC)- This charging speed adds about 30 to 40 miles of range per hour. It's great for places where people stay parked for a while, like some stores, restaurants, theaters, and workplaces. It works especially well for locations where folks park for eight hours or more, like homes and hotels.
- Quick and Speedy (DC Fast Chargers)- These chargers can add a whopping 150 miles of range in just an hour or even faster. They are perfect for spots where people won't park their cars for long, like gas stations, shops, and fast-food joints.
The trick is to match the charging speed with how long people typically stay at your place. This way, EV drivers have a great experience, and your business can make more money.
3. By Increasing Customer Spending
Offering EV charging is a fantastic opportunity for commercial spaces. It brings customers to your business, it boosts the time and money customers spend while waiting for their vehicles to charge. This, in turn, helps grow the ROI of EV charging stations.
Once, a big retailer discovered that when they added EV charging, customers spent three times more in their store. Their spending increased consequently. So, give something that your customers like. Generally, restaurants or shopping malls take up most of the time and money. Businesses need to think accordingly and plan.
We think customer spending plus adding charging can have a positive impact on your business!
4. By Giving Special Offers for Charging at EV Stations
We know how customers love discounts and other offers that are beneficial for them. It is human nature to get attracted to something like this.
Making money from EV charging stations can include offering special deals to attract more customers. So, running special promotions, cashback offers, or other things can bring more drivers to your store.
Promote these special offers at the charging station, through your original business, or through popular charging apps that drivers use. This way, drivers have even more reason to join you and spend their money at your business.
Imagine a charging station offering a "Charge and Save" deal- drivers get a discount on their charging session. This encourages them to charge their EVs at your station and brings them back to your store for more purchases, creating an advantageous situation.
5. By Improving Business Reputation with EV Charging Stations
Brand reputation is the key to success and higher revenue. People will look into the company reviews and works before connecting with them. When you improve your business reputation, you see the after-effects.
How to improve a business reputation? There are several ways to do so.
Build a better customer care system- Bring some changes in the process of customer care. It can be the operational or interactive changes. Focus on prompt service and see how people change their thoughts regarding your business.
Provide a great location for customers and tag the charging station on popular map sites like Google Maps and Waze. The more people see you on maps, the better it is for the business's revenue and reputation.
- Have dedicated charging apps- It’s logical to think that those who use electric cars must have smartphones, too. Therefore, collaborate and have an EV charging app with incredible user interfaces and features. It will be good for your business reputation.
- Having a customized charging station- Displaying your business logo or brand color through the charging stations improves your corporate image impressively.
- Sustainable impressions- We have become increasingly environmentally conscious. Hence, having EV charging stations linked with your business establishes a new brand image. You get the prestigious sustainability certificate for your location. It is great for building a reputation.
6. By Cross-Selling Products To Make More Money
We have made it clear EV demands are rising quickly, and the public needs well-located places to charge their cars. Therefore, businesses can use the opportunity to cross-sell other products or services while customers wait for their vehicles to charge.
Create special deals or discounts for EV users, encouraging them to make additional purchases. For instance, if you have a convenience store, offer discounts on snacks or beverages to customers who charge their EVs. You can have merchandise as well. It boosts your overall sales.
7. By Using Charging Stations for Advertising
Imagine turning your EV charging stations into advertising spaces. Allow businesses to advertise on or near your charging stations. You can also partner with local businesses or EV-related companies to promote their products or services.
Businesses can pay to promote their products or services while people charge their electric vehicles. It is like turning your charging stations into mini-billboards, creating a great deal for you and the advertisers.
Let's say you host an EV charging station at your restaurant's parking lot. You want to attract more customers, so you pay to display ads on the charging stations. As EV owners plug in their cars, they see mouth-watering pictures of special dishes or exclusive discounts.
It grabs the attention of potential customers and brings in extra revenue for your business. This is smart advertising, beneficial both for your business and EV station. So, how do EV charging stations make more money? It's through such advertising.
8. By Making The Location Easy to Find
Isn’t it great when you find things easily and quickly? This is the same feeling customers want. It will be a great way to make more money. Ensure that your charging station is well-marked with clear signage visible from a distance. Use recognizable symbols and colors associated with EV charging. This way, drivers can easily spot it as they approach your business or parking facility.
We have mentioned this before, but let us convey it again. Make sure your EV charging station is listed on popular navigation apps and websites that EV users frequently use. It includes apps like Google Maps, PlugShare, or specific EV charging network apps. Being easily searchable online can significantly increase the visibility of your charging station.
For instance, if own EV charging stations for hotel, place prominent signs at the entrance and along the driveway indicating the location of the charging area.
9. By Delivering a First-Class EV Charging Experience
Providing a premium experience at your EV charging station can attract more users and create opportunities for additional revenue. Electric vehicle owners are willing to pay for added convenience, speed, and comfort during the charging process.
There are several ways to do it-
- High-speed charging offers- Invest in fast-charging infrastructure that reduces the time needed for charging. Offering high-speed charging attracts users looking for a quick and efficient charging experience, and they may be willing to pay a premium for the convenience.
Providing Waiting Area-
We suggest creating a comfortable and inviting space for EV owners to wait while their vehicles charge. People will love it if you provide them with seating, shade, and amenities like Wi-Fi or refreshments. Charging stations located in beautiful locations can attract users who are willing to spend more during their wait.
- User-friendly Payment Method- Develop a user-friendly mobile app or payment system allowing EV owners to easily pay for charging services. Streamlining the user experience can make your charging station more attractive and encourage repeat business.
- Special Loyalty Plans with EV Charging- By offering rewards and other deals, you can attract more drivers to your commercial space and station. Put up special offers on the charging station or the apps drivers use. This gives them extra reasons to join your special club and spend money at your place. When you connect information from EV charging with your rewards program, you can see how much EV drivers like your brand. You will figure out if they buy products/services when they charge. Show that having EV charging is a smart investment for your business.
10. By Charging for Parking
You can make money from your EV charging station by charging a parking fee. Usually, EV charging stations are part of commercial space parking areas. It allows you to earn money for both parking and charging services. This approach helps you make the most out of your revenue while offering a handy and all-in-one service to customers.
Imagine you own a shopping center with an EV charging station. Customers get to charge their electric vehicles conveniently and also secure a parking spot, making their visit more hassle-free. It's like having a two-in-one service – parking and charging- and it helps you generate extra income to support your business.
Offer Subscription Services
You can make money with EV charging stations by offering an enticing subscription service. It's like a club membership for your customers. With a yearly or quarterly subscription, EV owners pay a set amount, and in return, they get unlimited access to your charging services. It is quite appealing for people who use their electric cars a lot and want to save money on charging.
Let's say you own a parking garage with EV charging stations. You decide to introduce a monthly subscription plan. Customers who sign up for the plan pay a fixed amount each month.
In return, they can charge their EVs as much as they want without worrying about individual charging costs. It encourages them to keep returning to your charging station. This is a steady way of giving a stable income.
Different EV Charging Pricing Strategies You Should Understand
There are a few questions you should ponder when wanting to make money with electric car charging. How much it costs, how well it works, and if it helps make money are important.
In our view, not discussing the pricing strategies in detail could lead to disaster. We suggest having transparent and fair pricing models, encouraging EV owners to return in the spot regularly.
Before you know how to start a charging station business, know about the different pricing strategies involved in EV charging.
But before that let's discuss the things to consider-
- Think about people's point of view first- how much it will cost for people to charge their EVs. Fair and clear pricing is key. If it's reasonable, more people will use the charging stations regularly.
- The charging stations need to be efficient, meaning they work well. Plus, they should be easy for everyone to get to and use. It makes the whole charging process smooth and convenient.
- It is all about making money. Having a good strategy for making money helps keep the charging network strong and available to everyone. EV charging stations can bring in revenue, either by charging users or through other means. So consider all kinds of options and be flexible in your price planning.
If you are wondering how much money EV charging stations make, on average, they have a 15-35% profit margin. However, this depends on various variables like location, demand, or pricing strategy.
Let's explore some of the most widespread pricing strategies here-
1. Time-Based Charging
Under time-based charging, users pay based on the time their electric vehicle is connected to the charging station. EV owners can charge for as long as needed without additional penalties.
This kind of charging encourages users to disconnect promptly after charging, promoting efficient utilization of the charging infrastructure.
However, during busy times, time-based pricing might lead to longer queues as users aim to maximize their charging time.
2. Flat Rate Charging
A fixed fee is charged for using an EV charging station, regardless of charging duration or energy consumed. Here, users know exactly how much they will be charged, irrespective of the time spent charging.
A flat rate system is popular for fast-charging stations, where users prioritize a swift charging experience over cost efficiency. However, since the cost remains the same regardless of charging duration, there is less encouragement for users to charge efficiently.
3.Pay-Per-Use Charging
Users are charged based on the amount of electricity consumed during the charging session. Users can save money by charging during off-peak hours when electricity rates are lower. It encourages EV owners to charge during times of low demand, balancing the load on the grid.
However, implementing precise billing systems can be challenging under this pricing model. This is because it requires accurate measurement of energy consumption.
4. Energy-Based Charging
With this model, one may for the actual amount of electricity your electric vehicle consumes during the charging session. Users can save money by charging during off-peak hours when electricity rates are lower.
EV owners are motivated to be mindful of their energy use, promoting eco-friendly charging practices. But, again, executing precise billing systems can also be challenging, as it requires exact measurement of energy consumption.
5. Hybrid EV Charging Pricing
Hybrid models combine elements of different pricing strategies, offering a mix of time-based, energy-based, or flat-rate charging. Users, have options to choose the pricing method that suits their preferences or charging needs. It allows for a balance between cost predictability and encouraging efficient charging practices.
Such models may require clear communication with users to ensure they understand how they will be charged based on different factors.
6. Subscription-Based Charging Price
In this model, you set a monthly or yearly subscription price for providing charging services to electric vehicles (EVs). Subscribers can use your charging station as many times as they want throughout the entire month or year.
The subscription-based approach guarantees a steady income for the owners of the EV charging station, independent of their other business activities. This model offers significant revenue potential for businesses, real estate owners, and commercial property owners involved in EV charging services.
In essence, these strategies provide different ways for users to pay for the energy they use when charging their electric vehicles. It offers flexibility and encourages environmentally conscious charging practices.
However, choosing the right model depends on various factors. Some of them can be user preferences, business goals, utility rate plans, infrastructure, and duration spent on the spot.
Global Stance of the EV Charging Sector
The future of EV charging stations looks bright with new technology and businesses getting involved. As more charging stations pop up in cities and towns, they're also expected to show up in rural areas.
The EV charging industry will grow in terms of revenue and expansion, especially in countries like the USA and the UK. Governments are focusing on making more rules to support EV charging, protecting the people who run the charging stations. They are making it easier for customers to use them in every way possible.
As the EV charging industry gets more established, there will be more ways for businesses and individuals to make money from EV charging stations. As an EV charging business, it's crucial to stay updated about the changing charging infrastructure in the market. Working with big companies in the EV industry can help you learn more and stay updated.
Future Prospects Of EV Charging: Watch Out For These Top Trends
When wanting to make money via the EV charging business, you have to think about the future of this industry too. Right now, in our expert opinion, is the perfect time to collaborate with charging station companies.
The future of this industry looks good, and here are a few trends to keep an eye on-
1. Maps Making Charging Easy
Thanks to special maps for EV charging, it's becoming super easy for drivers to find a charging station nearby. This makes it more convenient for people to charge their cars while on the road. It reduces the worries about running out of power during a journey.
2. Charging Flexibility
More and more businesses like restaurants, stores, and offices are setting up charging stations. These stations are not just for homes anymore; they're popping up at workplaces and on the go. These are easy to use, customer-friendly, and bring in profits for the owners.
They are getting better and faster, compatible with many types of electric vehicles. This means more EVs can use these stations, bringing in more income for you.
Questions like are EV charging stations profitable should go away. This is because starting an EV charging business is not just a good idea for today, but for the future too. It looks like you will make lots of money from EV charging stations.
Make More Money From EV Charging Station Via US Supercharge
Having an EV charging station would be one of the best investments. Whether you already have a business or want to start a new one, it's a smart move. With lots of electric cars around and charging stations popping up everywhere, it's a fantastic venture choice right now. But here's the key- making money from it the right way is super important.
We talked about the ways to make money from EV charging stations, and we get it, making a decision can be tricky. That's where US Supercharge comes in! We can help you from start to finish- getting all the useful equipment and setting up superchargers for your business.
So, if you have a big space that's just waiting to be transformed into a top-notch charging station, talk to the US Supercharge!
You'll be making money in no time. Just imagine- your space turning into a high-class charging spot, bringing in extra cash for you.
Exciting, right? Contact their experts today, and let the charging adventure begin!
