3 Ways to Structure Your EV Charging Station Business
As EVs become more prevalent on the road, you may be interested in starting an EV charging station business on your property. From commercial real estate developers to landlords of apartments or condos to entrepreneurs, many sectors are finding value in EV infrastructure. But it’s important to remember that you have choices when it comes to structuring your business models for profitability and sustainability.
There are several advantages of installing EV charging stations at your business, from enhanced profitability to recouping energy costs. The way we see it, there are three main ways to look at it.
1. Install EV Charging Stations to Attract Tenants
As electric vehicles grow in popularity, one of the many advantages of installing EV chargers at your business is attracting people to your property. In 2019, 2.1 million electric cars were sold worldwide, a 40% year-over-year increase. As the EV market is expected to accelerate to $2.3 trillion by 2041, now is the time to invest in EV charging stations. You’ll attract positive attention and the growing population of EV drivers to your space, whether you own or manage a shopping mall, hotel, apartment or business complex.
This EV charging business model works best for:
Property owners and managers of multi-unit complexes
Commercial real estate owners and landlords who lease space to other businesses, including retail stores and office space
Retail store owners
Hotel and hospitality property owners
This represents one of the more flexible EV business charging models, because it works whether you monetize your charging stations or not. You can provide chargers free to business owners, tenants and visitors as a means to attract EV owners. But you can also bill for the use of chargers — people will be happy to have the amenity, even if they have to pay for it.
Whether you opt for billing EV drivers for their charging time or not, the EV Connect app makes it easy to track usage and manage pricing (if applicable).
2. Offer EV Charging Stations For Free to Showcase Your Commitment to Conservation and Sustainability
EV charging station business models aren’t always about profitability or direct ROI. You can also install EV charging stations on your property to show your commitment to sustainability and your support of EV drivers. Marketing campaigns that show support of these issues can help increase brand recognition. But it’s even better to put money where your mouth is and invest in EV charging stations to improve your company’s reputation.
With this business model, you can offer EV charging for free to customers, guests or tenants in your housing complex, hotel, or retail and entertainment center. You’re likely to attract EV owners using this business model, but you’ll also catch the eye of future EV owners and other consumers concerned about sustainability.
This is also one of the simplest ways to install and manage EV chargers, because you don’t have to worry about billing customers. You can deduct the charging and maintenance costs as a business expense. Your revenue will come from increased traffic through your retail center or being able to charge higher rent in your apartment for offering this amenity.
Promote your charging stations as part of your commitment to the environment, and you’ll also garner positive publicity and brand recognition. While it’s challenging to put a dollar value on these benefits, they are valuable tools in any marketing strategy.
Why Smart Business Owners Consider This EV Charging Business Model
If you’re wondering if consumers really care about your company’s commitment to sustainability, consider these findings from a recent study:
87% say a commitment to social or environmental issues gives a company a positive image
88% show increased loyalty to a company that cares about environmental and social issues
92% of millennial consumers say they’re more likely to trust a company that supports social or environmental issues
3. Install EV Charging Stations to Recoup Energy Costs
Did you know you can earn grants and subsidies just for installing EV charging stations at your business? By taking advantage of both federal and state incentive programs, you can attract EV drivers to your location with little to no out-of-pocket expenses.
Whether you opt to monetize your EV infrastructure directly by charging customers for their use, or you’re using them to promote your brand as an eco-conscious company, incentives can help you reduce costs. The 2020 30C tax credit gives businesses up to $30,000 per location for the installation of EV chargers.
EV Connect can also help walk you through the process of applying for grants and taking advantage of other local sustainability programs through your electricity provider. We are experts in EV charging from the application process to the day-to-day managing your network.
How Can EV Connect Help?
No matter which business model drives you to provide clean, environmentally-friendly charging stations for today’s electric vehicle owners, you’ll reap rewards from all the benefits of EV charging stations at your business. Learn more about how to get started.
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