electric vehicle charging business plan

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As the popularity of electric vehicles (EVs) grows, so does the need for reliable and convenient charging solutions. While residential chargers are available, they are often slower than commercial charging stations, and drivers may forget to charge their vehicles before hitting the road.

This presents an opportunity for entrepreneurs to take advantage of the growing demand for EV charging capacity. But how do EV charging stations make money, and what are the steps involved in starting an EV charging business ?

In this blog post, we'll explore the ins and outs of owning and operating an EV charging station, from finding the right location to choosing the best charging equipment.

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Why Can an Electric Vehicle Charging Station Business Be an Opportunity?

To support the transition to EVs, the US Department of Transportation announced the National Electric Vehicle Infrastructure (NEVI) program in 2022, a $5 billion initiative to deploy a national network of EV charging stations on major highways.

The program is designed to instill confidence in drivers considering the switch to EVs, encourage private investment in charging infrastructure , and support President Biden’s goal of reaching an EV market share of 50% of all vehicle sales and establishing a network of 500,000 charging stations by 2030.

NEVI funding will be allocated over five years until 2026. The Biden Administration’s Bipartisan Infrastructure Law will invest $7.5 billion in EV charging and $10 billion in clean transportation. With more than 3 million EVs currently on the road and only 130,000 public charging stations in the US, there is a large gap to fill to reach the 2030 goal.

The financing from these initiatives will help businesses to cover the cost of installing and owning EV charging stations, making it an attractive investment opportunity. By getting in on the ground floor of this growing industry, entrepreneurs can help shape the future of transportation while generating a steady stream of passive income.

How to Start Your Own EV Charging Station Business?

Interested in starting your own EV charging station business? Here are four key steps to get you started.

Step 1: Identify Your Business Model

Before you invest in any charging station equipment, it is important to understand how to make money from an EV charging station. There are four primary types of EV charging businesses:

• Charging station companies that own and operate chains of chargers;
• Turnkey installers that supply and install charging station equipment and software for other businesses;
• Service providers that offer ongoing maintenance and financing programs to charging station owners;
• Consultants that provide advice to businesses on equipment and software selection and operation.

To streamline this guide, we will concentrate on the process of launching a charging station company.

Step 2: Choose the Right EV Charging Stations

To select the appropriate EV charging station, It is important to understand its key features, such as charging speed, power output, charging capacity, and the number of charging ports.

Conduct thorough research on equipment suppliers with a reputation for high-quality products and customer service. You should also research the needs of your local market to decide on the type of charging station that is likely to attract the most demand.

Choose equipment that is reliable, efficient, safe-compliant, weatherproof, and compatible with different EV models. Opt for smart software that supports Internet connectivity and enables remote maintenance, management, and control.

Step 3: Choose the Right Spot

The location of EV charging stations depends on visibility and access to a power source. Installing charging stations close to a power source will reduce setup costs while placing them in high-traffic and easily visible locations will help attract regular customers.

Targeting a single vertical market, such as multi-family housing units, workplaces, hotels, or restaurants on frequent travel routes, is a good starting point. Explore partnerships to set up your first charging locations and gradually expand your charging network.

Step 4: Design and Install Your EV Charging Stations

Consider factors such as electrical supply, safety, space, accessibility, energy efficiency, network connectivity, smart metering, and payment systems when designing and installing your EV charging stations.

Test the charging stations before opening them to the public, and ensure that the payment and network systems are fully functional.

Finally, promote the new charging station site to attract EV owners and encourage regular use.

What's the Cost of Installing EV Charging Stations?

The average initial cost of installing a Level 2 EV charger in the US is around $6,000. For a charging station with 5 or 10 charging points, the cost could range from $30,000 to $60,000, with ongoing expenses for the electricity supply and equipment maintenance.

The full cost of opening a charging station depends on factors such as materials, infrastructure, and installation.

Preparing the site can often constitute the most expensive stage, incurring expenses for purchasing and installing the electrical infrastructure, wiring, connectors, and concrete. Repainting and adding custom branding signage also raise upfront costs.

Once the site is ready, the cost of installation varies depending on the location, power supply service, number of chargers, labor, permits, and taxes.

Ways to Reduce the Cost

While installation costs can be significant, a reliable contractor can help minimize expenses by identifying bulk order discounts and other cost savings opportunities.

Additionally, tax incentives are available under government plans to attract investment for a national EV charging infrastructure. The Alternative Fuel Vehicle Refueling Property Tax Credit , extended under the Inflation Reduction Act, allows qualifying EV charging installations installed after 2022 to receive a federal tax credit of 30% up to $100,000.

In addition, there are local incentives available from some state governments and public utilities for buying and installing EV charging stations.

Another way to reduce ongoing operational costs is to install on-site solar panels to provide electricity supply rather than paying for power supply from the grid, although solar power systems have high upfront costs.

Electrly: A Reliable EV Charging Solution Provider

Electrly is the perfect partner for anyone who wants to start an electric vehicle charging station business. Our skilled and professional team offers a full range of services from research and development to after-sales service. We are committed to customer satisfaction and strive to improve the customer experience in every task we undertake.

Whether you are looking to level 2 AC EV chargers or DC fast EV chargers , Electrly has the ideal product to meet your needs. We take pride in our commitment to quality and reliability, ensuring that our products meet the highest standards.

Contact us today and we will provide the perfect EV charging solution for your business. Trust Electrly to be the ideal partner for starting your EV charging station business.

Capitalize on Growing EV Demand with a Charging Station Business

As electric vehicle adoption grows, the demand for charging locations will increase exponentially. To meet this demand, an extensive network of charging stations will be required, and charging businesses can play a key role in supporting and facilitating the transition to greener, sustainable modes of transportation.

Don't miss out on this exciting business opportunity. Get in touch with us and we'll help you achieve your business goals with our comprehensive EV charging solutions.

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Electric Car Charging Station Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Automotive Sector

Are you about starting an electric car charging station? If YES, here is a complete sample electric car charging business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an electric car charging station. We also took it further by analyzing and drafting a sample electric car charging station marketing plan template backed up by actionable guerrilla marketing ideas for electric car charging stations. So let’s proceed to the business planning section .

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An electric vehicle charging station business is one adventurous business to delve into. With the right location, top-notch services and good marketing, you can serve large customers who own electric vehicles or bikes.

It is imperative to mention that starting up an electric vehicle charging station business needs significant investment capital, solid planning, and concentration to detail in order to keep your business profitable. The demand for electric vehicle charging services is on the increase but just like any other business, the demand for such services usually decline during recession due to declining household spending on extra services.

As the economy grows, and income increases, there will be corresponding increase in the purchase of electric vehicles and bikes hence increase in demand for electric vehicle charging services.

So, if you have decided to start your own electric vehicle charging station business , then you should ensure that you carry out thorough feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your electric vehicle charging station business.

Below is a sample electric vehicle charging station business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Electric Car Charging Station Business Plan Template

1. industry overview.

According to Wikipedia, an electric vehicle charging station, also called an EV charging station, electric recharging point, charging point, charge point and EVSE (electric vehicle supply equipment), is an element in an infrastructure that supplies electric energy for the charging of electric vehicles such as plug-in electric vehicles, including electric cars, neighborhood electric vehicles and plug-in hybrids.

The fact that electric vehicles require charging gives room for entrepreneurs to start electric vehicle charging station businesses. It is important to state that charging times vary from one model of electric vehicle to another. For example, the Nissan Leaf takes about eight hours to charge, and gives a range of 135 kilometers.

So also, charging times could be a deterrent to consumers looking to purchase an electric vehicle, particularly as such vehicles are competing with commercially successful hybrids. Though, the new Tesla Model S takes just five hours to charge, and gives a range of around 480 kilometers. This goes to show that the electric vehicle – technology is constantly improving.

Aside from mini Electric Vehicle Charging Stations, most players in this line of business operate a full service Electric Vehicle Charging station. A full services EVC station has attendants that operates the charging ports, often wipes the windshield, and sometimes checks the vehicle’s component parts and tire pressure, then collects payment and perhaps a small tip.

The Global Electric Vehicle Charging Stations industry is indeed a very large industry and pretty much thriving in developed countries. According to IHS Automotive, the global production market for pure electric and plug-in hybrid electric (PHEV) vehicles is expected to grow significantly between 2014 and 2022.

The global EV Charger (EVC) market is forecast to grow from more than 1 million units in 2014 to more than 12.7 million units in 2023. The report shows that the deployments of the charging stations are dependent on a highly variable price range.

The price can range from $395 USD for a simple domestic wall box to more than $35,000 USD for a DC charging station. This figure does not include installation costs that could add $10,000 in the case of a DC charging station, depending on its location and accessibility.

Aside from Japan, Europe and North America also have their own fast charging standard, Combined Charger System (CCS).

This type of a fast-charging station is supported by the majority of OEMs, such as Audi, BMW, Daimler, Chrysler, Ford, GM, Porsche, and Volkswagen. Vehicles with fast DC charging capability based on the CCS standard have only been on the road since 2013.

The major breakthrough in the Global Electric Vehicle Charging Stations industry came as a result of the increase in electric vehicle ownership which can be attributed to campaign for saving the ecosystem.

Statistics shows that as of March 2013, 5,678 public charging stations existed across the united states, with 16,256 public charging points of which 3,990 were located in California, 1,417 in Texas, and 1,141 in Washington. As of November 2012, about 15,000 charging stations had been installed in Europe.

In the bid to stay afloat in the fast – growing electric vehicle charging station line of business, owners of EVC stations now go the extra mile to ensure that they make their facility welcoming and conducive for customers. EVC stations now have vulcanizing services, car wash, convenience stores, coffee bars, snack bars, and cigar lounge within their facility so as to leverage on the opportunities around them to generate more income.

Although the Electric Vehicle Charging Stations industry can be said to be a green industry, but it does not in any way stop entrepreneurs who are creative and financially capable of making a headway in the industry. It is indeed a profitable industry especially when the business is well located.

No doubt busy highways and busy cities with growing population of Electric Vehicle owners is highly suitable for this business. The catch is that if there are electric vehicle users in any city, then the city would have need for an electric vehicle charging station.

2. Executive Summary

Stevenson Hi-Tech® EVC Station, Inc. is a fully registered and licensed Electric Vehicle Charging station that will be located along a busy community in Miami – Florida, U.S. We will operate a public quick-charge station (fast charging system) that is greater than 40 Kw and delivering over 60 miles (100 km) of range in 10–30 minutes.

Our chains of EVC stations that will be scattered all around major cities in the United States of America will adopt full service, minimum service and self-service as it suits the location.

Our basic services would include charging and providing battery swap for electric vehicles and bikes. We will also run a convenience store, car wash, vulcanizing services, wheel balancing services, wheel alignment services and other related automobile repair services.

We are quite aware that in order to become the number one choice for electric vehicles and electric bike owners who ply the route where our EVC stations will be located, we must continue to make our EVC station welcoming and easy to operate, and that is exactly what we will do.

We are open to the use of latest technology in the electric vehicle charging industry. Our excellent customer service and the range of additional complementary services we offer will position us to become one of the most preferred electric vehicle charging stations in Miami – Florida.

At Stevenson Hi-Tech® EVC Station, Inc., we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity.

We are in the industry to make a positive mark. We are quite optimistic that our values and quality of service offering will help us drive our electric vehicle charging station business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We are a company that will be dedicated to establishing and maintaining the best practices as it relates to the global electric vehicle charging industry.

Stevenson Hi-Tech® EVC Station, Inc. will ensure that all our customers are given first class treatment whenever they visit our electric vehicle charging stations. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the number of our customer base may grow to.

Stevenson Hi-Tech® EVC Station, Inc. is owned and managed by Mr. Stevenson McCarthy and his immediate family members.

The business will be financed by the Mr. Stevenson McCarthy and family and they will be actively involved in the day to day operation of the EVC stations. Mr. Stevenson McCarthy has a B.Eng. in Business Electric Electronics Engineering for Illinois Institute of Technology and he has over 15 years of experience in the automobile industry .

3. Our Products and Services

Stevenson Hi-Tech® EVC Station, Inc. is a fully registered and licensed standard EVC station that is positioned in the Global electric vehicle charging stations industry in the United States of America to maximize profits. Aside from the fact that we will also engage in other complimentary services that will help us maximize profits. These are the products and services that will be made available to our customers;

• Providing fast charging system and battery swap for electric vehicles and bikes
• Selling electric vehicle spare parts
• Providing electric vehicles repair services
• Providing wheel alignment, wheel balancing and vulcanizing services
• Retailing of groceries, snacks and soft drinks et al

4. Our Mission and Vision Statement

• Our Vision is to operate chains of electric vehicle charging stations all across major cities in the United States of America.
• Our mission is to develop a highly successful and profitable electric vehicle charging station business with state of the art facility and latest technology; a business that will not only meet the needs of our clients but also supersede their expectations.

Our Business Structure

Stevenson Hi-Tech® EVC Station, Inc. is set to become one of the leading electric vehicle charging stations in the whole of Florida and other cities where our chains of EVC stations will be located hence the need for us to build a solid business foundation and business structure that will enable us achieve our aims and objectives.

Excellent customer service and efficiency are top priority for us which is why we will ensure that we look for applicants that match the picture of the business who want to build before hiring them. Although we will provide training, but we will ensure that we shortlist applicants that are customer centric.

We want to build a team that will work together to help the organization achieve its set targets. We will not only hire attendants that will help supervise our EVC stations and attend to customers need when they patronize our services.

We will also hire employees that will manage our convenience store, and snacks bar, cigar lounge, vulcanizing services, wheel balancing, wheel alignment and other electric vehicle repair and maintenance services. Stevenson Hi-Tech® EVC Station, Inc. will employ customer centric and skilled people to occupy the following position;

• Chief Executive Officer

EVC Station Manager

• Accountant /Cashier
• Human Resource and Admin Manager
• EVC Technicians/Attendant
• Convenience Store, Coffee Café, Snacks Bar, Cigar Lounge Manager
• Vulcanizing Services, Wheel Balancing, Wheel Alignment and Electric Vehicle Repairs and Maintenance Manager
• Car wash Operators
• Security Guard

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• In charge of signing checks and documents on behalf of the company
• Assesses the success of the organization
• Responsible for overseeing the smooth running of the EVC station
• Maps out strategy that will lead to efficiency amongst workers
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs
• Ensures that the electric vehicle charging station meets the expected safety and health standards at all times

Human Resources and Admin Manager

• In authority of overseeing the smooth running of HR and administrative tasks for the organization
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defining job positions for recruitment and managing interviewing process
• Carrying out induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversee the smooth running of the daily office and station activities

Convenience Store, Coffee Café, Snacks Bar, and Cigar Lounge Manager

• Interacts with customers, take orders for coffee and snacks
• Responsible for preparing different flavor and style of coffee for customers
• Makes lists of supplies in conjunction with the bar manager
• Responsible for quality control
• Assesses customers’ needs and preferences and make recommendations
• Prepares inventory or purchase requisitions as needed to replenish supplies
• Ensures that the assigned bar area is fully equipped with tools and products needed for mixing beverages and serving guests
• Responsible for managing the cigar lounge
• Clears ashtrays regularly
• Ensure that the assigned lounge area is fully equipped with tools and products needed by our clients

Accountant/Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

EVC Technicians/Attendants

• Operates the various charging ports
• Responsible for swapping and fixing electric vehicle batteries as requested by our clients
• Assists customers as required by them especially on how to operate our fast charging electric ports
• Responsible for minor repairs and maintenance of faulty charging ports
• Handles any other duty as assigned by the EVC station manager

Vulcanizing, Wheel Balancing, Wheel Alignment and Automobile Repairs and Maintenance Manager

• Responsible for running our vulcanizing, wheel balancing, wheel alignment and electric vehicle repairs maintenance services

Carwash Operators

• Washes and thoroughly clean cars (exterior car washing, interior cleaning, and waxing services), trucks and bikes
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.

Security Guards

• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Gives security tips to staff members from time to time
• Patrols around the building on a 24 hours basis
• Submits security reports weekly
• Handles any other duty as assigned by the electric vehicle charging station manager

6. SWOT Analysis

Starting an electric vehicle charging station is indeed capital intensive especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank.

We are aware that it will require loads of cash to set up a standard electric vehicle charging station in Miami – Florida which is why we decided to do all that is required to build a profitable business. One of the tools that is required to position us in building a successful electric vehicle charging station business is a SWOT Analysis.

We hired the services of Dr. Memphis Iverson, an HR and Business consultant who is based in Miami – Florida to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Stevenson Hi-Tech® EVC Station, Inc. Miami – Florida.

Stevenson Hi-Tech® EVC Station, Inc. is centrally located along one of the busiest communities with loads of electric vehicles and electric bike users in Miami – Florida; our location is in fact one of our major strengths.

Aside from the basic service that we offer, we also offer complimentary services that most of our competitors are not offering. So also, the vast experience of our management team will count in our advantage, and our attendants are well groomed to handle various classes of customers.

Our perceived weakness could be the fact that we are a new EVC station, and we may not have the financial capacity to sustain the kind of publicity that can give us leverage to start operating chains of EVC stations in various cities in the United States as planned.

• Opportunities:

We are centrally located in one of the busiest communities in Miami – Florida and we are open to all the available opportunities that the city has to offer.

Our business concept also positioned us to attract people who like doing their shopping, washing and servicing their electric vehicles in EVC stations. Miami is one of the densely populated cities in Florida, and indeed population translates to opportunities.

One of the major threats that confronts electric vehicle charging stations all over the world is the fact that people have not fully embraced this technology. Another threat that we are likely going to face is the emergence of a new EVC station within the same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

One of the trends in the global electric vehicle charging industry is that in the bid to stay afloat in this pretty green business, owners of electric vehicle charging stations now go the extra mile to ensure that they make their facility welcoming and conducive for customers.

Electric vehicle charging stations now have vulcanizing services, car wash, convenience stores, coffee bars, snack bars, and cigar lounges within their facility so as to leverage on the opportunities around them to generate more income. So also, it is common to find electric vehicle charging stations partnering with electric vehicle manufacturers in other to build and operate charging stations that will be of international standards.

In the United States and in most developed countries, it is now the practice for electric car manufacturers, charging infrastructure providers, and regional governments to enter into agreements to promote and provide public charging stations.

8. Our Target Market

Before choosing a location for our electric vehicle charging station business, we conducted our feasibility studies and market survey and we were able to identify the location that will benefit greatly from our products and service offerings which is why we decided to settle for Miami – Florida.

Those who will benefit from our service offering are owners of electric vehicles and electric bikes and they are of course busy corporate executives, business owners, sports men and women, military men and women, households, students and government officials et al. They are the category of people that we intend marketing our electric vehicle charging station services to.

Our Competitive Advantage

From our recently concluded feasibility studies and market survey, we observed that there are growing numbers of electric vehicle charging stations scattered all over the city of Miami – Florida, as a matter of fact, there are about 3 standard electric vehicle charging stations close to same locations as ours.

This goes to show that the competition amongst electric vehicle charging stations is growing rapidly. Before launching our electric vehicle charging station we have critically studied the market and we know that we have some form of competitive edge.

Our competitive advantage is that we have a standard – fast charging electric vehicle charging station that offers additional complementary services that will definitely help us attract and retain customers.

Another competitive advantage that we have is the vast experience of our management team. So also, the wide varieties of other complimentary services and products that we offer, and of course our excellent customer service culture will definitely count as a strong strength for the business.

One thing is certain, we will ensure that in future, we will open our electric vehicle charging stations in various cities in the United States of America and also sell our franchise. With that our brand will be well communicated and accepted nationally.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Stevenson Hi-Tech® EVC Station, Inc. is established with the aim of maximizing profits in the electric vehicle charging station industry in the United States of America and we are going to go all the way to ensure that we do all it takes to generate enough income from both our basic services offerings and our complimentary services.

Stevenson Hi-Tech® EVC Station, Inc. will generate income by offering the following services and products;

10. Sales Forecast

It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field with reference to similar business in Miami – Florida.

We know that we are well positioned and we will definitely attract clients that will not only patronize our electric vehicle charging station but will also patronize our complimentary services. Below is the sales projection for Stevenson Hi-Tech® EVC Station, Inc., it is based on the location of our electric vehicle charging station and the type of services and products that we will be offering;

• First Year: $200,000
• Second Year: $600,000
• Third Year: $1,500,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any electric vehicle charging station offering same additional services like us within 4.5 miles radius from our electric vehicle charging station facility.

• Marketing Strategy and Sales Strategy

The marketing strategy for Stevenson Hi-Tech® EVC Station, Inc. is going to be driven basically by making available standard and safe fast charging systems, excellent customer service and provision of complimentary services. We will work hard to build a loyal customer base that will help us use word of mouth publicity to get their friends and acquaintances to patronize us.

We are quite aware of how satisfied customers drive business growth especially businesses like electric vehicle charging stations which is why we will always ensure that our customer service and facility are top notch.

Over and above, our unique selling proposition is that we have various complementary service offerings such as convenience store, coffee café, snacks bar, cigar lounge, vulcanizing, wheel balancing, wheel alignment, carwash and electric vehicle repair and maintenance services.

In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but ensure that they become loyal customer; Part of the marketing and sales strategies that we will adopt are;

• Introduce our electric vehicle charging station by sending introductory letters to electric vehicle and electric bikes owners and other stakeholders both in Miami and in other cities in the State of Florida
• Open our electric vehicle charging station with a party so as to capture the attention of residents who are our first targets
• Advertise our electric vehicle charging station on national dailies, local TV and local radio station
• Promote our electric vehicle charging station online via our official website and all available social media platforms
• Hire the services of experts to make our brand the first choice in Miami and other cities where we will open our electric vehicle charging stations
• Delivering good customer experience to all our clients; making our first impression count positively
• Make use of attractive hand bills to create awareness and also to give direction to our electric vehicle charging station
• Adopt direct mailing coupon marketing approach
• Position our signage/flexi banners at strategic places
• Create a loyalty plan that will enable us reward our regular customers

11. Publicity and Advertising Strategy

Despite the fact that our electric vehicle charging station is a standard one that can favorably compete with other leading brands in the global electric charging stations industry, we will still go ahead to intensify publicity for all our services and brand. We are going to explore all available means to promote Stevenson Hi-Tech® EVC Station, Inc.

Stevenson Hi-Tech® EVC Station, Inc. has a long-term plan of opening our charging stations in various locations all around key cities in the United States of America which is why we will deliberately build our brand to be well accepted in Miami – Florida before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for offering our services but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Stevenson Hi-Tech® EVC Station, Inc.;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like Instagram, Facebook, twitter, et al to promote our brand
• Install our billboards on strategic locations in Miami – Florida and all around major cities in the United States of America
• Engage in roadshow from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products and services.
• Ensure that all our staff members wear our customized clothes, and all our official cars and trucks are customized and well branded.

12. Our Pricing Strategy

At Stevenson Hi-Tech® EVC Station, Inc., our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than our competitors are offering in Miami – Florida.

Be that as it may, the management of Stevenson Hi-Tech® EVC Station, Inc. have put plans in place to offer discounts for our complimentary services and products once in a while and also to reward our loyal customers especially when they refer clients to us.

The prices of our products (snacks, cup of coffee, cigar, et al) and services (vulcanizing, wheel balancing, wheel alignment, car wash, and electric vehicle repair and services) will be same as what is obtainable in any part of the United States of America.

• Payment Options

The payment policy adopted by Stevenson Hi-Tech® EVC Station, Inc. is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Stevenson Hi-Tech® EVC Station, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to starting an electric vehicle charging station business, loads of factors influences the amount that will be required to launch the business.

Factors like the location you intend starting the business, the size your electric vehicle charging station business, the number of complimentary services you want to add to the business, and of course the state of the economy as at when you intend starting the business.

These are the key areas where we will spend our startup capital on;

• The total fee for registering the Business in Miami – Florida – $750
• Legal expenses for obtaining licenses (Health department license and business license) and permits (Fire department permit, and Sign permit et al) – $4,500
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580
• Cost for hiring Business Consultant – $2,000
• Insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,800
• Cost of accounting software, CRM software and Payroll Software – $3,000
• Cost for leasing a facility for the electric vehicle charging station – $100,000
• Cost for facility remodeling – $50,000
• Other start-up expenses including stationery – $1000
• Phone and Utilities (gas, sewer, water and electric) deposits – ( $3,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost for start-up inventory – $250,000
• The cost for washer hook-up fees (sewer connection) – $800
• Cost for serving area equipment for coffee café and snacks bar (glasses, flatware) – $5,000
• Cost for EVC machines and equipment (automobile repair tools, vulcanizing tools, and wheel alignment tools) – $250,000
• The cost for the purchase of furniture and gadgets (Printers, Telephone, TVs, Sound System, vacuum cleaner, tables and chairs et al) – $30,000
• The cost of launching a website – $600
• The cost for our grand opening party – $5,500
• Miscellaneous supplies – $10,000

We would need an estimate of $750,000 to successfully launch our electric vehicle charging station business in Miami – Florida.

Please note that our startup cost is higher than the average startup cost for an electric vehicle charging station business because we intend adding coffee café, snacks bar, cigar lounge, car wash, convenience store and other complimentary services.

Generating Startup Capital for Stevenson Hi-Tech® EVC Station, Inc.

Stevenson Hi-Tech® EVC Station, Inc. is a family business that is owned and financed by Mr. Stevenson McCarthy and his immediate family members. They do not intend to welcome any external business partners, which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from the Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Stevenson Hi-Tech® EVC Station, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Stevenson Hi-Tech® EVC Station, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organizations’ corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if this is put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of our electric vehicle charging station: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of fast electric vehicle charging ports and equipment, electric vehicle repair tools, vulcanizing tools, and wheel alignment tools: Completed
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress

• Sample Business Plans
• Transportation, Logistics & Travel

EV Charging Business Plan

The increased demand for electric vehicles is bound to increase the need for EV charging infrastructure as well. Starting an EV charging business is indeed a brilliant idea in today’s market.

Anyone with substantial investments can start this business. But only a comprehensive business plan can help you get the funds and apply for loans.

Need help writing a business plan for your EV charging business? You’re at the right place. Our EV charging business plan template will help you get started.

Free Business Plan Template

Download our Free EV Charging Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write An EV Charging Business Plan?

Writing an EV charging business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your EV charging business, its location, when it was founded, the type of EV charging business (E.g., Public charging stations, private charging networks, fast charging networks), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products and Services: Highlight the EV charging services you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include charging infrastructure as a service and mention charging speed, network coverage, and renewable energy integration as some of your USPs.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business Description: Describe your business in this section by providing all the basic information:
• Public charging stations
• Private charging networks
• Charge Point Operators (CPO)
• Fast charging networks
• Home charging solutions
• Describe the legal structure of your EV charging company, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.
• Owners: List the names of your EV charging company’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established EV charging service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc. Additionally, If you have received any awards or recognition for excellent work, describe them.
• Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, retail and commercial establishments, businesses, and industries would be an ideal target audience for a commercial EV charging business.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• For instance, the US EV charging infrastructure market is expected to reach 13.64 billion dollars by 2028, so it is crucial to define the segment of your target market and its growth potential.
• Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your EV charging services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, network interoperability and roaming have a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your EV charging company, such as business registration, electrical licensing, NEC compliance, intellectual property rights, insurance, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your electric vehicle charging business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

• Charging infrastructure : Mention the different types of charging stations and hardware that your business will offer. Clarify whether it will be rapid charging or standard charging speed.
• Mobile apps and software platforms: Mention the features and functionality of mobile apps or software platforms you offer to your EV charging customers. This may include features like monitoring charging progress, initiating charging, energy consumption tracking, handling payments, etc.
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service. This may include reliable charging infrastructure, regular maintenance and inspections, 24*7 support, and training and development.
• Additional Services : Mention if your EV charging company offers any additional services. You may include services like a waiting area, Wi-Fi connectivity, washroom facilities, etc.

In short, this section of your EV charging plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, charging speed, robust charging stations, network coverage, and renewable energy integration could be some of the great USPs for a professional EV charging company.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your charging services and stay competitive in the local market. You can mention any limited-time offer you plan on offering to attract new customers to your EV charging service.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include direct sales calls, partnering with property management companies and government agencies, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, special pricing offers, personalized service, etc.

Overall, this section of your EV charging business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your EV charging business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your charging business’s staffing requirements, including the number of technicians and installation staff needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your EV charging business. Your operational processes may include installing charging stations, maintenance of existing ones, offering support, billing, and employee training.
• Equipment & Machinery: Include the list of equipment and machinery required for EV charging, such as charging stations, chargers, connectors, tool and testing equipment, safety and support equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your EV charging business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your EV charging company, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. operations manager, finance manager.) involved in the EV charging business operations, including their education, professional background, and any relevant experience in the energy management industry.
• Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your EV charging services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your EV charging business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the EV charging industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your EV charging business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample EV charging business plan will provide an idea for writing a successful EV charging plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our EV charging business plan pdf .

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Business Plan Table of Content Guide

Frequently asked questions, why do you need an ev charging business plan.

A business plan is an essential tool for anyone looking to start or run a successful EV charging business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your EV charging company.

Where to find business plan writers for your EV charging business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your EV charging business plan and outline your vision as you have in your mind.

What is the easiest way to write your EV charging business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any EV charging business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my EV charging business plan?

The level of detail of the financial projections of your EV charging business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

Can a good EV charging business plan help me secure funding?

Indeed. A well-crafted EV charging business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

What's the importance of a marketing strategy in a EV charging business plan?

Marketing strategy is a key component of your EV charging business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Home » Blog » EV Charging Station Business: Costs, Purchase, & Profit Margins [GUIDE]

EV Charging Station Business: Costs, Purchase, & Profit Margins [GUIDE]

• November 3, 2023

Greenlogic’s October Highlights: Bowlaween Fun and DayRise Networking Dinner

Greenlogic at the 2023 Dayrise Leadership Conference and Paragon Awards

Greenlogic at the HAA Dinerstein Golf Tournament 2023

Greenlogic at the Grateful Americans Charity Gala

Table of contents, i. introduction.

The electric vehicle revolution is well underway, and with it comes a unique opportunity for forward-thinking entrepreneurs. The adoption of electric vehicles is surging, driving an ever-growing demand for accessible and efficient charging solutions. If you’re considering a business venture that aligns with both economic promise and environmental sustainability, investing in EV charging stations is a strategic move.

In this comprehensive guide, we delve into the intricacies of establishing your own EV Charging Station Business, focusing on the key aspects of costs, purchase considerations, and profit margins. Our mission is to equip you with the knowledge and insights to navigate this exciting and evolving industry successfully.

II. Understanding EV Charging Stations

The basics of ev charging stations.

A charging station, also known as an EV charger or electric vehicle supply equipment (EVSE), is a device that supplies electric energy to charge EVs. These stations come in various types and charging levels to cater to the different needs of EV owners. Charging stations can vary in terms of charging speed, with options ranging from standard Level 2 chargers to high-speed DC fast chargers.

For more in-depth insights into the world of EV charging stations, explore our comprehensive guide: The Ultimate EV Charging Guide For Electric Vehicle Owners .

Cost Factors for Charging Stations

When it comes to the costs of EV charging stations, several factors come into play. The primary cost consideration is the purchase and installation of the charger itself. There is a range of charging station models available, with varying features and prices. Factors such as charging capacity, networking capabilities, and durability can influence the cost of a charging station.

Additionally, installation costs must be considered. If you plan to install an EV charger at home, you may need to invest in electrical upgrades or obtain a permit, which could add to the overall cost. On the other hand, installing a commercial EV charging station could involve more extensive electrical work, parking lot modifications, and potentially higher infrastructure costs.

For example:

• Scenario A – Home Charging : Let’s explore a real-life situation where you want to install a Level 2 charging station at your home. After some research, you find a charging station with critical features that fit into your budget of $500. Pre-installation inspection reveals that your home’s old electrical panel isn’t equipped to handle the charger’s load, requiring an upgrade at an extra cost of $1,000. Another factor often overlooked is the cost of local government permits to install an EV charger at home, which can range anywhere from $50 to $500 depending on your location. So, despite the initial charging station cost being only $500, you spend around $1,500 to $2,000 to get your home EV charging station up and running.
• Scenario B – Commercial Charging : Planning to set up a commercial EV charging station in a bustling area, you opt for a more advanced charging station with multiple ports and high networking capabilities, setting you back by $5,000. However, establishing a commercial station involves a lot more than residential installations. For instance, you might need to make parking lot modifications to accommodate the charger, signpost the charging spot, and ensure ADA compliance, all of which can add significant costs. The lion’s share of your expenditure might be dedicated to electrical work and infrastructure improvements, which could amount to $10,000. So, even with an initial hardware cost of $5,000, the total investment could soar to the ballpark of $15,000.

These examples demonstrate that while the cost of purchasing a charging station is a significant factor, it’s just the tip of the iceberg. Whether installing an EV charger at home or setting up a commercial EV charging station, the total cost can be significantly higher when accounting for all necessary modifications and requirements.

Streamlining the Process with an All-in-One Solution

While the prospect of investing in EV charging stations is undeniably enticing, the reality often involves navigating a web of intricacies. Imagine dealing with one hardware manufacturer, another for software, different installers, separate crews for concrete and construction on the site, and a multitude of third-party dependencies. It’s not uncommon to find yourself in a situation where you’re unsure about who to contact if something isn’t working with the charger or how to coordinate various components effectively.

In the face of these challenges, there’s a beacon of hope: the Greenlogic all-in-one solution. Greenlogic offers a true turn-key EV charging solution, providing everything you need under one roof. From top-notch hardware and software to installation, electrical work, and construction, Greenlogic simplifies the entire process. You won’t have to juggle multiple service providers or worry about compatibility issues. It’s a hassle-free way to enter the world of EV charging stations. To learn more about this all-in-one solution, visit Greenlogic’s EV Charging Solutions .

III. Investing in EV Charging Stations

Why consider the ev charging station business.

The electric vehicle (EV) market is booming with a growing number of consumers switching from traditional gasoline vehicles to EVs. This transition is driving a substantial demand for EV charging stations. Investing in the EV charging station business offers a lucrative opportunity to capitalize on this rising demand, ensuring a steady revenue stream as the market continues to expand.

Furthermore, the push for greener and more sustainable transportation solutions by governments globally creates a favorable environment for EV charging station businesses. Incentives like tax credits, grants, and subsidies are often provided to encourage the development of EV charging infrastructure.

Moreover, by investing in EV charging stations, you position yourself at the forefront of a rapidly evolving industry with immense growth potential. It’s not just about meeting the current demand for EV charging solutions, but also about preparing for a future where electric mobility is the norm.

How to Invest in Charging Stations

Investing in charging stations is an enticing prospect, but understanding the steps involved is crucial to a successful venture. Here’s a clear roadmap on how to get started:

1. Market Research : Begin with thorough market research. Identify areas with high EV adoption rates, such as cities, business districts, or transportation hubs. These are prime locations for charging stations.

2. Type of Charging Station : Decide on the type of charging station you want to invest in. Options range from Level 2 chargers to fast DC chargers. Consider factors like charging speed and versatility.

3. Business Model : Choose a suitable business model. You can opt for a pay-per-use model, subscription-based charging, or even free charging with revenue from ads or partnerships. The choice depends on your target market and location.

Explore Various EV Charging Business Models with Greenlogic

Dive deep into the different pricing models you can adopt for your EV charging station with our comprehensive guide. This document, filled with real-life examples and numbers, provides a clearer understanding of how to set your pricing for EV drivers. Available for free download on our resources page. Get your copy now and make an informed decision for your charging station business!

4. Location, Location, Location : The success of your charging station greatly depends on its location. Secure prime spots with high visibility and accessibility to attract more EV owners.

5. Financial Planning : Prepare a comprehensive financial plan. Calculate all costs involved, including hardware, installation, electrical upgrades, permits, and ongoing maintenance. Assess potential revenue streams and create a budget.

6. Legal and Regulatory Compliance : Be aware of local regulations and permits required for charging station installations. Ensure that your business complies with all legal requirements.

7. Hardware and Software Providers : Choose reliable hardware and software providers for your charging stations. This decision can significantly impact station reliability and user experience.

8. Installation : Work with experienced electricians for installation. Ensure that the station is correctly set up to avoid operational issues.

9. Marketing and Promotion : Develop a marketing strategy to attract EV owners to your station. This may include signage, online promotion, and partnerships with EV-related businesses.

10. User Experience : Focus on user experience. Make the charging process seamless and user-friendly. Consider app-based payments, clear instructions, and 24/7 support.

11. Monitoring and Maintenance : Implement a monitoring system to ensure station uptime. Regular maintenance and updates are crucial for reliable service.

12. Network Integration : Consider network integration with other charging stations to expand your reach and offer more value to users.

Investing in charging stations requires careful planning and execution. By following these steps and making informed decisions, you can establish a successful and profitable charging station business.

Profitability of the EV Charging Station Business

The heart of profitability in the EV charging business lies in the delicate balance between capital investment, operational costs, and revenue generation. Capital investment encompasses the purchase of charging stations and installation costs, which depend on the site’s complexity. Operational costs include electricity, maintenance, and networking, if applicable.

The profitability of EV charging stations can vary greatly based on numerous factors such as the location, the pricing structure, the type of charging station (fast charging vs. standard charging), and operational costs. Here’s a breakdown of the various aspects impacting profitability, along with some specific figures:

1. Profit Margins : 

Profit margins for Level 2 charging stations can vary based on factors such as location, pricing structure, operational costs, and utilization. On average, these businesses can aim for profit margins ranging from 15% to 35% depending on the aforementioned variables. It’s important to regularly calculate this metric to ensure your business stays profitable. Remember, low margins may not necessarily be a red flag, especially if the station is new or if there’s a strategic long-term gain in the guise of increased EV adoption or customer loyalty.

2. Charging Rates : 

Charging rates for Level 2 stations typically range from $0.10 to $0.30 per kWh. Assuming an average rate of $0.20 per kWh , a Level 2 station could generate substantial revenue.

3. Location and Utilization : 

Profitability depends significantly on the location. In high-traffic areas, Level 2 stations often have a utilization rate of 20-40% . Let’s use an estimate of 40% for calculations (which suggests that for 40% of the time, the charging station is being used).

Example Profitability Calculation : A Greenlogic Level 2 charger delivers 11.5 kWh per hour for a typical EV. So, if we assume a charging session lasts about 4 hours, it would deliver about 46 kWh per session. The calculation is as follows:

Annual revenue = Charging sessions per day × Days per year × kWh per session × Rate per kWh

• Charging sessions per day: 2.5 (equals to approx. 40% charger utilization per day)
• Days per year: 365
• kWh per session: 46 kWh
• Rate per kWh: $0.20

Annual revenue = 2.5*365*46*0.20 = $8,395.00

So, with these assumptions, the annual revenue would be approximately $8,395  for 1 single port EV charger. This demonstrates good revenue potential from a Greenlogic Level 2 charging station, especially in high-traffic areas and with a higher utilization rate, and even more so with multiple EV charging stations.

4. Operational Costs: Operational costs include electricity expenses, maintenance and repairs, and any fees associated with network service providers. These can amount to approximately 20-30% of the revenue, depending on the specifics of the business and location.

5. Government Incentives and Subsidies: In some regions, government incentives can significantly improve profitability. For example, a charging station business might receive a grant or tax credits covering a portion of installation costs.

6. Partnerships: Partnering with local businesses or utility companies for advertising on charging stations or providing charging services to utility companies’ fleet vehicles can create additional revenue streams.

In summary, Level 2 charging stations can potentially generate around  $8,395  in annual revenue in a high-traffic area. However, operational costs and factors like location, utilization rate, and any available incentives will significantly impact profit margins. Careful consideration of these elements and possibly forming strategic partnerships can lead to a more profitable EV charging station business.

IV. A Guide to Buying an EV Charging Station

When purchasing an EV charging station, there are a few important factors to consider. Understanding these factors and following a step-by-step procedure can help you make an informed decision and negotiate your purchase effectively.

How to Purchase a Charging Station

There are two primary ways to acquire an EV charging station: direct purchase and leasing.

• Direct Purchase : You can buy a charging station directly from a manufacturer or a reputable distributor. This option allows you to choose from a range of models, features, and price points based on your specific needs.
• Leasing : If you prefer not to make a large upfront investment, leasing a charging station might be a suitable option. Leasing involves paying a monthly fee instead of purchasing the station outright.

Factors to Consider When Buying a Charging Station

Before making your purchase, consider the following factors to ensure you select the right charging station for your requirements:

• Charging Capacity : Determine the desired charging speed and capacity based on your target audience and their charging preferences. Consider the average dwell time of your customers and their expectations regarding charging speed.
• Compatibility : Ensure that the charging station you choose is compatible with the EV models commonly used in your area. Different EVs have varying charging connector types (such as CHAdeMO, CCS, or Tesla Supercharger), so it’s crucial to verify compatibility to serve a broader customer base.
• Networking Capabilities : Decide whether you want your charging station to be networked. Networked stations offer benefits such as remote monitoring, payment processing, and user authentication. Keep in mind that networking features may come with subscription or transaction fees. To explore a reliable and intuitive solution for managing networked EV chargers, check out Greenlogic’s EV Charging Management Software .
• Durability and Weather Resistance : Select a charging station that is built to withstand outdoor conditions. Look for features like weatherproofing, sturdy construction, and resistance to vandalism. Considering the local climate and environmental factors will help you choose a charger that can withstand various conditions.
• Warranty and Support : Check the warranty offered by the manufacturer or distributor, and installer. A reliable warranty and responsive customer support are crucial to address any potential issues that may arise during the lifespan of the charging station.

Procedure to Buy a Charging Station

To purchase a charging station, follow these steps:

• Research : Conduct thorough research to identify reputable manufacturers and distributors. Read customer reviews and gather information about the different charging station models available in the market. Look for certifications and quality standards to ensure that you are purchasing a reliable and safe charging station.
• Determine Your Requirements : Assess your specific needs and consider factors such as the charging capacity, number of charging ports, networking capabilities, and durability. This will help you narrow down your options and choose a charging station that aligns with your business goals.
• Get Quotes : Reach out to multiple manufacturers or distributors to get quotes for the charging station models that meet your requirements. Compare pricing, features, warranties, and any additional services offered to make an informed decision.
• Evaluate Installation Requirements : Consider the installation requirements for the charging station, including electrical upgrades, permits, and any necessary infrastructure modifications. Factor in these costs when making your decision.
• Check for Incentives and Rebates : Research local, state, and federal incentives or rebates that might be available for installing EV charging stations . These incentives can help offset some of the costs associated with purchasing and installing the charging station.
• Consider Support Services : Inquire about after-sales support, maintenance, and repair services offered by the manufacturer or distributor. Having reliable support services in place can ensure smooth operation and minimize downtime.
• Make the Purchase : Once you have compared quotes, evaluated installation requirements, and considered support services, make your final decision and proceed with the purchase. Ensure that you understand the terms and conditions, warranty coverage, and any ongoing fees or payments associated with the charging station.

In conclusion, when buying an EV charging station, research reputable manufacturers or distributors, consider your specific requirements, gather quotes, evaluate installation requirements, and check for available incentives. By following these steps and considering these factors, you can make an informed decision and secure the right charging station for your needs.

Elevate Your EV Charging Venture with Greenlogic

As you venture into the electric vehicle charging domain, aligning with a reliable and experienced partner is paramount. Greenlogic is your go-to platform for top-notch EV charging stations and comprehensive charging services. Our tailored solutions are designed to seamlessly integrate with your unique requirements, providing an unrivaled blend of quality, convenience, and innovation.

Our EV charging solutions stand out in a crowded market, delivering robust performance, user-friendly interfaces, and cutting-edge technology.

Here are some compelling reasons why partnering with Greenlogic will turbocharge your EV charging venture:

• All-Inclusive Solutions : From high-grade hardware and intuitive software to professional installation and ongoing support, we provide a true turn-key solution, removing the hurdles from your path.
• Customizable Options : Our charging stations are customizable to meet the distinct needs of your location and clientele, ensuring a perfect fit for your venture.
• Unmatched Expertise : With years of industry experience, our team of experts is ready to guide you through every step of your EV charging journey, ensuring a smooth and successful rollout.
• Innovative Technology : Stay ahead of the curve with our advanced charging technology that delivers fast, reliable, and convenient charging experiences for EV users.
• Sustainable Impact : Align your business with the global shift towards sustainable transportation. Our solutions not only drive profitability but contribute to a greener planet.
• Reliable Support : Our dedicated support team is always on standby to address your queries, troubleshoot issues, and ensure your charging stations operate at peak performance.

Every journey towards sustainable transportation is a journey towards a cleaner, greener future. Let Greenlogic be the catalyst in your EV charging venture.

Take the next step towards electrifying success. Explore our EV Charging Solutions or contact us today for a personalized consultation. Your electric future awaits!

V. Installation of EV Charging Stations

The installation of EV charging stations involves several variables that can influence the overall cost and process. Whether you are installing a charger at home or setting up a commercial charging station, it’s crucial to understand the involved costs and steps. With a comprehensive understanding, you can plan effectively and ensure the successful installation of your charging station.

Understanding the Installation Costs: Home vs Commercial

The cost of installing EV charging stations can vary significantly based on whether they are intended for home or commercial use.

For home installation, the costs include the price of the charging unit itself and the labor cost to install it. This cost is somewhat predictable and usually ranges anywhere from $500 to $2,000 , including labor (depending on the type and brand of the charging unit).

Commercial installation, however, can often be more complex and costly. In addition to the hardware and labor costs, commercial installations may also involve site preparation, upgrades to the electrical service, compliance with ADA and local regulations, and possible networking fees. This can bring the total cost of setting up a commercial EV charging station to anywhere between $3,000 and $7,500 per port, or possibly higher if extensive electrical work is required.

The Process of Installing an EV Charger at Home

Installing an EV charger at home generally involves the following steps:

• Site Assessment : An electrician will evaluate the electrical capacity of your home and the location where you plan to install the charger.
• Permits and Regulations : You may need to obtain a permit from a local government body. It’s important to understand and comply with any local regulations or installation guidelines in your area.
• Installation : A licensed electrician will install the EV charging unit. This process typically involves mounting the charging unit to a wall or pedestal, running the cable to the electrical panel, and setting up the electrical connection.
• Inspection : After the installation, an inspector may need to verify that the work is up to code.
• Activation and Testing : Finally, you will activate the EV charging station and test it with your vehicle to ensure it works correctly.

Setting Up a Commercial EV Charging Station

For commercial installations, the process generally involves these steps:

• Site Assessmen t: An electrician or an EV charging provider will evaluate the commercial location to determine the feasibility of installation. This involves assessing the site’s electrical capacity, parking area, and any need for construction or pavement work.
• Permits and Regulations : Similar to a home charger, you will need to obtain local permits and ensure you adhere to any local guidelines or laws. Depending on the scale of the project, you may need to consider zoning ordinances, environmental compliance, and ADA regulations.
• Installation Plan : You’ll need to develop an installation plan, which should outline any required electrical upgrades, construction work, locations of the chargers, and a timeline for the project.
• Installation : Commercial charging stations will need to be installed by a licensed electrician experienced in commercial EV charging installations. This stage will involve setting up the electrical connections, mounting the charging units, and performing any necessary site modifications or installations like signage or lighting.
• Inspection and Commissioning : After the installation, it’s typically necessary to have an inspection to ensure that the work meets all building codes and safety standards. Upon a successful inspection, your system will be commissioned, and it can begin operating.
• Network Setup and Testing : If your chargers are networked, you’ll need to set up and test the networking features, like payment processing and remote monitoring. Your charging provider will usually help with this process.
• Training and Maintenance : Your staff should be trained on how the system operates, how to handle basic troubleshooting, and how to use the management software if your system is networked. Regular maintenance should also be scheduled to ensure long-term operation.

Establishing an effective process and understanding the costs of installing EV charging stations are critical steps toward your successful investment in the EV charging business. Both home and commercial installations require proper planning, adherence to regulations, and expert execution.

Greenlogic EV Charger Installation Process

At Greenlogic, we aim to provide a comprehensive and seamless EV charger installation process tailored for businesses. The process encompasses:

1. Pre-Installation Setup

Initial setup of chargers to ensure a smooth installation process.

2. Charger Installation

Expert technicians handle the installation, adhering to local regulations and standards.

3. Preboarding

Preparation for the onboarding session. Providing a business model plan for the chargers.

4. Comprehensive Onboarding

A scheduled session for feature walkthroughs and account setup based on your specifications.

5. Post-Onboarding Support

Provision of a user-friendly guide for effortless account management.

6. Proactive Ongoing Maintenance

Proactive monitoring of all installed stations, addressing any issues immediately for a smooth experience​.

VII. Conclusion

Investing in an EV charging station presents a lucrative opportunity, especially with the escalating shift towards electric mobility. However, success in this venture requires a well-rounded understanding of the involved costs, operational considerations, and emerging trends in the EV charging infrastructure domain.

Key Takeaways for An EV Charging Station Investment:

• Research and due diligence are critical for making informed decisions.
• Compliance with local regulations and standards is paramount.
• Networking and partnership with experienced providers like Greenlogic can significantly ease the setup and operational process.

Future Prospects of the EV Charging Station Industry:

The EV charging station industry is poised for robust growth with governments and corporations globally championing for a transition to cleaner, electric transportation. Advancements in charging technology, favorable policies, and growing consumer adoption of electric vehicles are factors propelling this industry forward. Partnering with seasoned players like Greenlogic not only provides a springboard for entering this promising sector but also equips investors with the necessary tools and insights for sustained success.

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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 . 

References:

https://www.iea.org/reports/global-ev-outlook-2020 

https://www.eedesignit.com/electric-vehicles-will-rise-to-a-market-of-2-3-trillion-by-2041/ 

https://www.forbes.com/sites/forbesnycouncil/2018/11/21/do-customers-really-care-about-your-environmental-impact/?sh=48cd0a15240d 

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Business Models for Commercial Electric Vehicle Charging

This guide provides an overview of the different business models available for electric vehicle charging and costs to be aware of.

Last updated: Jul 26, 2024 • 10 min read

Jump to Section:

• The business models available for commercial EV charging
• The costs associated with commercial EV charging

Related Guides:

How to Charge an Electric Car

The “Road to Zero” Strategy and what it means for businesses

Domestic Vs commercial chargepoint installations

Cost of Charging an Electric Car

Business models for EV charging

There are a range of business models that can be applied to electric vehicle charging points, each suited to a different business objective. They include:

• Loss leader model; offer free charging to attract drivers.
• Cost recovery; set a usage fee to cover the cost of your chargepoints.
• Profit making; set a usage fee that covers your costs and generates profit.
• Fully funded; a network operator funds the installation of your chargepoints, with conditions on their operation.

When considering an EV charging business model, it’s important to understand which models will be most effective for the type of visiting driver and the type of location/business where the charging stations will be installed, as well as the typical costs incurred.

Whatever approach you are looking to take, flexibility and scalability are absolutely critical for such a young and fast paced industry.

It’s key to work with a charging provider who will take the time to understand your location and make a tailored recommendation on what chargepoints and business model will be most effective.

Tip: Pod Point offer all business models mentioned in this guide and a range of chargepoints, including Solo , Twin , Media and Rapid chargers, all of which offer flexibility to our customers. Our team are always on hand to discuss the options available to you .

What business/monetisation models are available for commercial EV charging?

Loss leader model.

With this model, EV charging is provided free to grow market share by attracting and retaining customers, with the costs offset by the increased revenue gained through existing business activities.

A free top up charge can be the deciding factor for a driver choosing where to offer their custom and the costs of offering, for example, 7kW charging to attract these drivers can be relatively modest.

As such, your first consideration as a business should be whether you can offer charging for free to maximise the number of drivers you attract to your location, grow brand loyalty and encourage on-site spending.

Analysis : For many businesses that rely on customers arriving by car, the revenue earned from EV driving customers using their business dwarfs the costs of electricity. It can therefore be sensible to absorb these costs rather than levy a fee that may deter drivers from visiting.

Tip: To make the most of your chargepoint provision Pod Point recommend ensuring the installation is reliably available for your customers (numerous chargepoints, clearly signed), smart (so as to be scalable and future proofed) and easy to use.

To optimise our customer’s public installations, Pod Point have established the “EV Zone” concept. For more details speak to our team .

Operational cost or total cost recovery

With this model, a fee is levied on drivers to use the chargepoints. This matches the operational costs and, if total cost recovery is sought, an additional margin is added to pay back hardware and installation costs.

EV drivers are increasingly acceptant of paying a fee to charge their car, though most will judge the value of the price against their home electricity rates. So long as prices are set within the window of what drivers find acceptable, it can be possible for chargepoint hosts to collect a revenue.

Analysis : In general, the more competitive the price levied, the more drivers you will attract with EV charging stations. But it is also worth considering the need state of your driver. For example, a driver on a short journey will be less willing to pay to charge than one who has done more mileage and will have a long onwards journey.

If a tariff is set, it’s imperative to make the billing method easy to understand, access and use (e.g. apps and contactless payment cards for rapid chargers).

Tip: Make sure you choose a provider who gives you flexibility to control the tariffs you set, like with Pod Point’s Site Management Service .

Profit making

With this model, a higher fee is levied on drivers to use the chargepoints. This fee covers operational, hardware and installation costs and provides a profitable revenue stream on top.

Analysis : Profit making models have broadly the same constraints as the cost recovery models, albeit with preferential financials for those locations where there is no alternative for drivers to charge. However, the disincentive for drivers to opportunity charge gets more acute as the price increases.

There can also be concern over reputational damage if your business is seen to be unfairly exploiting drivers by setting too high a tariff.

Tip: Customers will be willing to pay over the cost of electricity in some circumstances, typically when they have limited option but to charge at that location and/or when they need to charge quickly.

Fully funded

In some circumstances, charging infrastructure providers will offer to provide and install chargepoints free of charge to a business. This can work very effectively, but it is important to take a long term view to ensure that what is offered is of mutual benefit to you and your customers.

Whilst the benefits of a fully funded model are clear, it is important to understand the constraints. Avoiding the risk of short term capital expenditure, may incur longer term risks.

Pricing : A third party may set expensive pricing that negatively affects customer perception of your business. It could even deter drivers from visiting your location altogether.

Chargepoint suitability : Third parties may install chargepoints that aren’t appropriate for your business. For example installing a single rapid charger at a hotel would consume a lot of the available electrical capacity, which may be better used to power multiple, lower cost 7kW chargers allowing more guests to charge simultaneously overnight.

A single rapid charger risks serving only one guest per night (unless they and other guests were prepared to wake up in the middle of the night to unplug so the next person could plug-in). With 7kW chargers, multiple guests could leave their cars plugged-in all night, waking up to full batteries.

Charging experience : It’s also worth considering that the charging point will often become the first thing a customer experiences when visiting your business. Relinquishing control of the look and feel, ease of use and pricing of this represents a cost to a business. Ensure you are comfortable with that and/or are comfortable that your branding aligns well with the chargepoint operator’s approach.

Find out how we’ve helped UK businesses provide EV charging for their customers, visitors, and employees with our case studies .

Tip: Flexibility is critical to all charging business models, but none more than fully funded models. Careful consideration of term lengths of contractual obligations and opportunities to make changes is imperative.

What are the costs associated with commercial EV charging?

When planning the installation of charging infrastructure, it is first important to understand the likely costs. These split between:

Chargepoint hardware costs

Hardware costs vary depending on the power that chargepoints can deliver, the features that they offer and their build quality.

Chargepoint installation costs

Installation costs vary depending on:

• The power required for the chargepoints.
• How the chargepoints are to be installed (e.g. wall mounting is cheaper than concreting in bases).
• The distance between the chargepoint and the connection point.
• How the supply cable is to be fixed en route to the chargepoint (e.g. trenching through hardstanding to bury cable is much more expensive than clipping to a wall).

Grid reinforcement costs

It will always be less expensive to install charging points without having to upgrade the supply to the site. At the least expensive it can be possible to arrange for your District Network Operator (DNO) to install a larger fuse to increase capacity at a site, but the costs of increasing capacity up-stream (e.g. uprating the local substation) are usually very significant.

Tip: When it comes to the cost of installing commercial EV chargepoints, every install is different, but as a rule of thumb it costs from >£1,000 to £4,000 for an installed 7kW chargepoint and ~£20,000 to £40,000 for a straightforward installed 50kW chargepoint. Electrical upgrades, major groundworks, signage etc will increase these costs.

Ongoing electrical costs

The electrical costs are defined by whatever price you pay per kWh (these can range from about 10p-15p) multiplied by the total number of kWh going through a unit. Average costs will likely be as follows:

In addition to the electricity used for charging vehicles, EV chargepoints have a standby draw (powering LEDs etc). The standby draw will be much lower than power delivered for charging, but it is worth ensuring the standby draw is sensibly low (For example, the standby draw of the Pod Point Solo charger is ~0.003kW and the Pod Point Twin ~0.006kW).

Ongoing maintenance costs

To ensure the charging infrastructure remains operable, some maintenance will likely be required. Most reputable providers will offer some combination of maintenance and/or extended warranties.

Tip: When choosing which charging infrastructure is right for your business, it is imperative to understand the fundamentals of where and when cars charge and how your chargepoints will fit into drivers’ charging ecosystem. Your chargepoint provider should provide you with information on this when advising which chargepoints best suit your use case.

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How to Start a Mobile EV Charging Business

In today’s world, where sustainable solutions are imperative, the Electric Vehicle (EV) market is experiencing extraordinary growth, with an estimated 16.7 million electric cars to be sold in 2024 . A global shift towards green energy, technological advancements, and supportive government policies drives this surge. With strong environmental awareness and government backing, the European market is a leader in EV innovation and adoption. Meanwhile, North America’s growth is fueled by government and private sector initiatives, offering a diverse range of EV models and a growing consciousness of environmental issues. However, the most significant potential lies in developing regions, where the EV market, still in its infancy, offers vast opportunities for early investment, particularly in mobile EV charging solutions.

The need for mobile EV charging arises from the current infrastructure’s inability to meet the growing demand for EVs. These mobile charging services, offering convenience and accessibility, fill the gaps left by stationary charging points and are crucial for fleet operators and in disaster response scenarios, ensuring operational efficiency and continuous service.

Mobile EV Charging Service Business Models

Selecting a suitable business model is crucial in the mobile EV charging market. This section explores a range of models, each offering unique advantages and challenges. From on-demand services to subscription plans, we provide insights to help you align your strategy with market trends and business objectives.

On-Demand Mobile EV Charging

This model involves providing immediate charging services to stranded EVs. It’s comparable to a roadside assistance service but for EV charging. This service is beneficial in areas where charging stations are sparse.

• Europe and North America : High potential due to increasing EV adoption and the occasional gap in charging infrastructure.
• Developing Regions : This service is essential given the less-developed EV infrastructure. However, operational logistics and lower EV penetration could pose challenges.

Subscription-Based Mobile Charging

Customers pay a fixed monthly fee for regular charging services. These services can include scheduled home charging or access to exclusive mobile charging points. This model is considered a “charging-as-a-service.”

• Europe and North America : Attractive for EV owners who prefer predictable costs and convenience. Well-suited to regions with higher income levels and regular commuting patterns.
• Developing Regions : May face challenges due to variability in income levels and EV usage patterns. However, it can be attractive for middle and upper-class segments in urban areas.

Corporate Partnerships

Partnering with businesses to provide charging services for their electric vehicle fleets or customers, like installing charging stations at corporate offices or mobile EV charging services for auto dealership customers.

• Europe and North America : These regions are highly viable due to the increasing number of corporate fleets transitioning to EVs and businesses looking to attract eco-conscious customers.
• Developing Regions : Potential is tied to the growth of corporate sectors and their adoption of EV fleets. This model is more likely to succeed in economically robust areas.

Event-Based EV Charging

Offering mobile EV chargers at events or high-demand locations such as festivals, sports events, and large public gatherings or providing temporary charging services during peak demand periods such as highways during holiday seasons.

• Europe and North America : There is great potential, especially in urban areas with a high frequency of events and a culture of public gatherings.
• Developing Regions : Opportunities may be seasonal and linked to popular events. They are most effective in urban centers where events are more common.

Hire/Rental of Mobile EV Chargers

The hiring or renting out of mobile EV charging systems to customers for temporary usage. It is ideal for construction sites, temporary events, or before installing permanent EV charging equipment.

• Europe and North America : These regions have high potential due to the diversity of use cases, from construction sites to temporary exhibitions or emergency backup.
• Developing Regions : This can be a lucrative option where permanent infrastructure is lacking or infeasible, serving as an interim solution for various needs.

Comparing Business Models

In the dynamic landscape of the EV charging industry, a hybrid approach , blending different business models, can be a pathway to success. Combining elements of on-demand services, subscription plans, and corporate partnerships can cater to a broader range of customer needs and market sectors and adapt to each model’s unique opportunities and challenges. Entrepreneurs should carefully balance these considerations with their business objectives and resources. By understanding market characteristics, consumer behavior, and regional infrastructure, they can create a business model that is not only flexible but also finely tuned to meet the specific demands of their mobile EV charging venture.

Mobile EV Charger Types

Various types of charging stations offer unique capabilities and benefits. This section introduces and compares mobile charging solutions, from battery-powered and generator-powered units to those that integrate renewable energy. Understanding these options is crucial in determining which type aligns best with your business objectives and customer needs, positioning your EV charging business effectively in the market.

Battery-Powered Mobile EV Chargers

Battery-powered mobile EV chargers are all-in-one systems that combine EV charging with advanced battery technology, enabling true off-grid mobile charging capabilities. These self-contained units are specifically designed to provide autonomous power support for electric vehicles, making them ideal for areas without established charging infrastructure. Their portability and ease of deployment allow for versatile use, from emergency roadside assistance to event-based charging services. They are crucial in ensuring continuous mobility for EV users, particularly in remote or underserved locations.

• Portability : They are often compact and can be easily transported to different locations by integrating within a vehicle or on a trailer.
• Ease of Use : Simple to operate and can be deployed quickly without extensive setup.
• Charging Flexibility:  Multi-protocol systems can charge almost any electric vehicle with CCS, CHAdeMO, GB/T, NACS, Type 1, and Type 2 connectors .
• Fast Charging:  DC fast charger output from 30 kW to 360 kW +. Time is money; the quicker you charge, the more customers you can service.
• Environmentally Friendly : They emit no pollutants during operation, aligning with the eco-friendly ethos of EVs.
• Renewable Integration:  Can be integrated with renewable energy sources such as solar and wind for additional energy utilization.
• Limited Energy Capacity : They can only store a finite amount of energy, requiring regular recharging. Movable EV charging systems with batteries can be recharged via the grid or a fast charger.
• Upfront Cost : High-capacity battery systems can be expensive.
• Weight:  The unit’s weight needs to be considered if transporting via a vehicle. The higher the energy capacity, the heavier the unit will be.
• Intermittent Renewables:  The renewable power supply can be inconsistent dependent on weather conditions.

Mobile EV Charger with Generator

These systems use stationary or portable EV charging stations combined with conventional generators or more environmentally friendly options like fuel cells.

• Conventional Generators : Offer a reliable power source with the downside of emissions and noise.
• Greener Generators : Utilize biofuels or hydrogen fuel cells, reducing environmental impact while maintaining efficiency.
• Fuel Cells : Provide a cleaner alternative with higher energy density, but can be costly and require specific fueling infrastructure.
• Noise and Air Pollution : Conventional generators often produce significant noise and exhaust emissions , which can be a concern in urban or environmentally sensitive areas.
• Operational Costs : Fuel costs can be high, especially over extended periods of use, impacting overall operational efficiency.
• Maintenance and Reliability : Generators, particularly those running on fossil fuels, require regular maintenance and are subject to wear and tear, potentially affecting reliability.
• Footprint : Larger generators may require more space for operation and storage, posing challenges in dense urban environments or at events with limited space.

Understanding the variety of mobile EV charging solutions is pivotal. Each type of charging station, from battery-powered and generator-powered units to those integrating renewable energy sources, presents unique capabilities and benefits. This section has explored these options, helping you determine the most suitable choice for your business objectives and customer needs.

Battery-powered mobile chargers stand out for their all-in-one design, offering true off-grid charging capabilities. They excel in areas lacking established infrastructure, with their portability and environmental friendliness making them a prime choice for various applications. However, considerations like energy capacity, upfront costs, and weight must be factored in.

Sizing a Battery-Powered Mobile EV Charger

When considering the sizing of a battery-powered mobile EV charger, it’s essential to align the charger’s capacity and power output with its intended use, particularly in emergency recovery scenarios.

The average battery size of an electric vehicle is approximately 40 kWh. Still, this metric is not entirely relevant in emergency or recovery situations. The primary objective in such cases is not to fully charge the vehicle but to provide enough power to reach the nearest charging station.

This approach is similar to the services provided by roadside assistance companies. When a vehicle runs out of fuel, these services don’t fill the tank; they supply just enough fuel to enable the driver to reach a nearby refueling station .

For an EV, a recovery charge typically aims to add about 25 – 40 miles of range. This range translates to an average of 8 – 10 kWh for an emergency recovery charge. With this consideration, and factoring in efficiency, a 60 kWh mobile charging system operating at full Depth of Discharge (DoD) can “recover” around 5.7 vehicles per charge (based on a 10 kWh emergency charge per vehicle), which is a more practical figure for real-world applications.

Thus, when sizing a mobile EV charger, especially for emergency use, it’s crucial to focus on its role: providing a quick, interim boost to stranded vehicles, not fully charging them. This understanding is vital when discussing the capabilities and utility of battery-powered mobile EV chargers, like those from EVESCO, with potential customers.

Additionally, it’s worth noting EV drivers’ general charging habits and the industry’s recommendations. To maximize battery health and longevity, keeping the vehicle’s battery charge between 20% and 80% is advised. Consequently, the average paid fast charging session in the USA consumes 22 kWh of energy ; in Europe, it’s 25 kWh . This data can further inform the sizing and usage patterns of mobile EV charging units, ensuring they meet the realistic demands of EV drivers.

Market Assessment and Strategy Development

In the dynamic and rapidly evolving field of mobile EV charging, conducting a thorough market assessment and developing a robust strategy are fundamental to success. This critical process involves a deep dive into market trends, customer identification, and competitive landscapes. It’s crucial to analyze current market conditions and anticipate future shifts. Understanding your target audience’s needs, preferences, and pain points, along with a comprehensive competitor analysis, forms the backbone of a strategic plan.

Operational Considerations for a Mobile Charging Business

Efficient logistics are crucial for the success of a mobile EV charging business, needing a strategic plan for unit deployment, regular maintenance, and effective management. Strategically deploy mobile charging units based on electric vehicle density, road accessibility, and demand patterns while maintaining them through routine checks and updates. Potentially utilize logistic management software for tracking and route optimization. Emphasize technology in service management, with intuitive software for booking and dispatch, a user-friendly interface for customers, and data analytics to gauge service patterns and preferences. Safety and compliance are paramount; establish stringent safety protocols and stay abreast of regulations, ensuring your service is efficient and compliant. These are some areas to consider when establishing a reliable and sustainable mobile EV charging service.

Funding and Financial Planning

A thorough understanding of startup costs is essential for the successful launch and growth of a mobile EV charging business. Initial investments include equipment expenses, such as mobile charging units, transport vehicles, and recharging technology. Operational costs, including staffing, maintenance, logistics, and utilities, are the core of ongoing expenses. Additionally, allocating a budget for marketing and sales activities will be crucial for building brand presence and customer acquisition. Equally important is financial planning, involving detailed budgeting to track all expected expenses and revenues, forecasting to project financial health over time, and conducting break-even analysis to pinpoint when the business will start being profitable. This approach, underlined by a clear understanding of costs and planning, is pivotal in steering a mobile EV charging business towards long-term success and sustainability. Below is a table highlighting some of the funding options to consider.

Scaling the Business

To scale, a mobile EV charging business should enhance service offerings, like faster charging options and broader service areas, while building strong customer relationships through exceptional service and engagement programs. Forming strategic partnerships and collaborations with EV manufacturers, large fleet operators, and local entities can significantly extend market reach. A gradual rollout, starting small and expanding based on feedback, is effective for market penetration.

Actionable Steps to Start a Mobile EV Charging Business

• Market Research : Conduct research to understand the local EV market, customer needs, and competition.
• Develop a Business Plan : Outline your business model, operational strategy, financial planning, and growth plans.
• Acquire Funding : Explore and secure funding through avenues like angel investors, VC funding, government grants, or crowdfunding.
• Procure Equipment : Contact companies like EVESCO for information to evaluate battery-powered mobile EV charging systems, and evaluate different equipment options.
• Set Up Operations : Organize the logistics, staff, technology, and safety protocols for your mobile charging units.
• Launch Marketing Efforts : Develop a marketing strategy to promote your services and build customer relationships.
• Start Small and Scale : Begin operations on a small scale to test the market, and gradually expand based on demand and feedback.
• Monitor and Adapt : Continuously monitor your business performance and be adaptable to changing market needs and technological advancements.

Launching a mobile EV charging service is not just about starting a business; it’s about being at the forefront of teh electrification of transportation. Your venture plays a crucial role in supporting the growth of the EV market, contributing to environmental sustainability, and meeting the evolving needs of a more eco-conscious society.

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Check out two important Blueprint 4B resources: 

• Key Activity Summary
• How-to-Guide

This EV Charging Infrastructure Blueprint includes a high-level overview of the process and benefits of electric vehicle charging infrastructure, showcases important tools and online resources, and outlines Key Activities to help guide EECBG Program entities to success. A Blueprint Summary PDF is also available for download (below), which provides a concise summary of the Blueprint Key Activities. DOE plans to make technical assistance available to support all entities interested in electric transportation, which may include, one-on-one support from national lab or DOE experts, webinars, and peer learning opportunities.

What is EV Charging Infrastructure for Your Community?

Thorough and thoughtful EV charging infrastructure planning – sometimes referred to as community EV readiness – sets communities up for success as the nation’s vehicles transition from gasoline-powered engines to electric. Proactively planning and installing electric vehicle (EV) charging stations for your area will support this transition while taking into account your community’s unique needs. Community EV readiness planning can occur at the local, state, or regional level and can take a variety of forms and complexities. While some communities work to meet current charging needs projected by EV adoption projects, others work to increase overall EV adoption. Such planning can also include consideration of alternatives to single-occupant vehicles such as increased investment in public transit, bike paths, and more walkable streets.

Justice and Equity : Installing publicly available EV charging stations makes it possible for more members of the community to go EV. Public involvement in selecting the location of charging stations can incorporate accessibility and equity concerns, including dwell time and associated economic and environmental benefits, in a way the private sector may overlook. Publicly funded charging stations could prioritize neighborhoods the private sector may leave out, like disadvantaged or Environmental Justice (EJ) communities. RFPs for charging vendors can also include preferences for local and women- and minority-owned small businesses.

Why is EV Instructure in the Community Important?

EV car sales in the United States increased from 0.2 percent of total car sales to 4.6 percent in 2021 over an 11 year period and many forecasts expect a strong acceleration in EV adoption to continue . Comprehensive EV planning allows government officials the chance to think through impacts EV investment options may have on equity, the grid, air pollution, and greenhouse gas emissions. By strategically planning EV infrastructure, communities can better prepare themselves for the changing vehicle landscape and provide residents with the support they need, especially those that are not able to charge vehicles at home. Indeed, charging stations built through a careful planning process experience much higher utilization than those that were not. Similarly, planning EV infrastructure in advance helps communities prepare their electrical grid for increased demand and futureproof their designs to allow for easy upgrades and installations over the long term.

Who Should Consider This Blueprint?

Communities that anticipate high EV adoption or are experiencing EV adoption but have not yet completed any infrastructure planning. This Blueprint is especially recommended for communities interested in EV deployment and for communities where transportation represents a high percentage of GHG emissions.

Who/What Will You Need?

To develop an EV Charging Infrastructure Plan, you will need to engage your community’s planning organization and department(s) as well as any department that specializes in sustainable development, transportation, or environment. You will also need to identify stakeholders to participate and provide input during the research and planning process.

Download the Blueprint Key Activities Summary .

Key Activities

These selected Key Activities are suggestions of important steps a government could take to begin or make progress on their EV infrastructure planning journey. EECBG Program awardees that utilize a blueprint will receive expedited application review from DOE. Applicants must execute at least one of the key activities listed under each selected blueprint but should avoid going beyond the recommended activities. Going beyond these key activities may trigger additional reviews of your EECBG Program project to ensure you’re meeting National Environmental Policy Act (NEPA), historic preservation, and/or other federal regulations. While each step is important, they should be seen as a guide. Awardees should determine their own priority activities based on their local context.   

Procurement, Legal and Technical Support to purchase EVSE

First, determine if you need a formal solicitation process to purchase and install EVSE. Work with your organization’s contracting and procurement team to understand what types of legal parameters you will need to establish a procurement plan for EVSE. The site host will have specific characteristics and goals that may influence the process (e.g., utilization rates, equity considerations).

• Level 2 charger: $3,000-$7,500/charger, incl. hardware and installation costs.
• DC fast charger: $55,000- $200,000/charger, incl. hardware and installation costs.
• Actual installation costs vary significantly site-to-site.
• Work with your utility to get technical support for EVSE installations.
• Select the vendor that will best meet your needs.
• Identify local, state, and national codes and regulations that apply to EVSE installations and include requirements that installations be completed by licensed electrical contractors.
• Identify permitting requirements from local building authorities.
• Include testing measures to assess the safety and functionality of the EVSE.
• Determine the type of ownership model you would like to utilize. Most ownership modes are site host-owned and third party-owned (by a charging network).
• Develop requirements for maintenance and operation issues (e.g., who is responsible for maintaining EVSE and ensuring high uptime).
• Determine if your stations need to be networked and if utilization data needs to be collected.

If available in your area, the following information can help inform your planning efforts:

• Existing public charging infrastructure (aka. Electric Vehicle Supply Equipment (EVSE)
• Vehicle registration or sales data
• State, county, city or tribal fleet data
• Existing financial incentives and relevant grant opportunities
• Existing efforts related to expanding EV charging infrastructure (e.g., utility deployment investments)
• Regional planning efforts and state-level EVSE goals or plans
• Any EVSE permitting and inspection fees, processes, and timelines
• EV adoption projection data
• Community housing makeup (i.e., a breakdown of single-family homes vs. multifamily housing units)
• Population data to inform EV adoption projections
• Transportation demand management data to help inform ideal locations for EVSE deployment
• Building and municipal zoning codes that impact electrical wiring, construction, and EVSE
• Parking codes and design standards, such as ADA-accessibility design requirements

Key Resource: The Charging Infrastructure Procurement and Installation (DOE AFDC) website hosts information and resources about specific characteristics that can influence the procurement and installation process.

Key Resource:   Developing Infrastructure to Charge Electric Vehicles (DOE AFDC) is an introduction to charging infrastructure terminology, different charging use cases, and resources on options, planning tools, and funding programs.

Stakeholder Engagement

• Develop a list of stakeholders to involve in the EVSE infrastructure planning process. The stakeholder group should consist of all entities impacted by EVs and EVSE.
• Hold regular meetings to collect initial input before beginning the planning process and collect feedback on your EVSE draft plans.
• Tailor your outreach to each unique audience to ensure you are communicating effectively and will solicit meaningful feedback.
• Hold public events, workshops, ride-and-drives, and other activities to engage your community and help them better understand the new technology.

Stakeholders may include:

• Government fleet representatives
• Other relevant government departments (e.g., public works, transit, permitting and inspection)
• Electric utilities with service territory in your jurisdiction
• Multifamily dwelling representatives
• Your Clean Cities Coalition . In addition to being a subject matter resource, Clean Cities Coalitions are doing a lot of work on engaging EJ communities and could help recommend which communities or organizations to engage.
• Local businesses, institutions, and universities
• Local environmental groups
• Low-income and disadvantaged community representatives and interest groups, such as ratepayer advocates

Key Resource : Electric Vehicle Charging Equity Considerations (ANL) evaluates how to ensure investments in electric vehicle charging benefit disadvantaged communities.

Key Resource : Electrifying Transportation in Municipalities (Electrification Coalition) is a policy toolkit for electric vehicle deployment and adoption at the local level, including information on Equitable Charging for Affordable Housing .

Site Plan, Assessment, and Selection

• Complete community EV adoption projections, readiness assessment, and siting assessment to determine the number of EVSE you will need to install. This should identify the level (e.g., Level 2, DCFC), number, and location (e.g., workplace, MUD, public) of EVSE needed to support your community based on existing infrastructure and anticipated infrastructure needs.
• Work with your utility to determine the feasibility of installing EVSE at the desired locations. Work with your utility to expand electrical infrastructure and capacity where needed. This process can take a while, so it is best to get started early.
• Select promising locations and if there are particular sites or areas that your plan should concentrate on.

Cost estimate: $5,000-$15,000

Key Resource: Charging Electric Vehicles in Public (DOE AFDC) includes information and resource links about the types of public charging stations and zoning codes, and parking ordinances to consider when siting.

Key Resource:  Case study: Advancing Iowa's EV Market Report was produced for the Iowa Economic Development Authority (IEDA) as a study to assess the current electric vehicle (EV) market, forecast future market conditions and evaluate programs and policies that could potentially help the market meet these projections.

Key Resource: Case study: EV Fast Charging Corridors Grant Program (Colorado Energy Office) aimed to tackle one of the major barriers to PEV adoption in the state, the lack of publicly available fast charging along highways.

Key Resource:  Plug-in EV Best Practices Compendium (County of Santa Clara) provides an overview of the key considerations for local governments who are seeking to support the deployment of plug-in EVs and charging infrastructure.

Installation of EVSE

• Test the safety and functionality of your EVSE.
• EVSE installations are restricted to the footprints and levels of previous group disturbance within the EVSE site.
• All activities must be reversible, non-permanent techniques for installation and use the lowest profiled EVSE available that provides the necessary charging capacity.
• Use colors complementary to the surround environment.
• Install EVSE in convenient locations with good lighting.
• Consider signage and pavement markings to help inform drivers about EVSE use.
• Incorporate Americans with Disability Act requirements for site design.

Key Resource: These Electric Vehicle Readiness (DOE AFDC) resources can help communities plan for the arrival of electric vehicles (EVs) and EV charging. EV readiness is a community-wide effort, requiring planning, charging infrastructure, policies, and support services.

Communications and Program Promotion

• Utilize social media platforms to share meetings and engagement opportunities as well as infrastructure development updates.
• Share program updates and metrics to demonstrate the demand and effectiveness of the EVSE installation.
• Continue to solicit feedback from the community for continued infrastructure improvements.

Key Resource: Case Study: Seattle: An Early Electric Vehicle Adopter, Still Leading the Charge (AFDC) describes how Seattle used a combination of plans, ordinances, pilot projects, and a robust community engagement process working with City resources and partners to create one of the strongest EV readiness strategies in the country.

Key Resource: Case Study: The Tahoe-Truckee, CA and NV Plug-in EV Readiness Plan (Tahoe Regional Planning Agency and Truckee Donner Public Utility District) includes resources on consumer awareness, overcoming barriers to adoption, and implementation ongoing actions.

Next Steps to Get Started

Sign up to join the EECBG Program EV Chargers for Your Community Blueprint Cohort using this Microsoft Office Form .

Check out a whole library of Inspirational Videos made in partnership with DOE and Motor Week. 

The Department of Energy Vehicle Technologies Office’s Clean Cities Coalition hosts a plethora of information, data and resources for communities interested in electric vehicle infrastructure. Connect with your local Clean Cities Coalition to learn more about what EV Charging activities are already underway in your area. The DOE team of experts may also be able to provide in-depth technical support to EECBG awardees .

Additional Federal Funds to Leverage and Braid with Your EECBG Program Award

Funds for EV chargers may become available through US Department of Transportation and state DOTs. EPA will also be issuing competitive grants for electric school buses, electric heavy-duty vehicles and EV planning. Other funding opportunities include:

• Alternative Fuel Corridor (AFC) Grants (DOT)
• Bus and Bus Facilities Grants (DOT)
• Carbon Reduction Program (CRP) (DOT)
• Charging and Fueling Infrastructure Grants (DOT)
• Electric Vehicle (EV) Charging and Clean Transportation Grants (DOE)
• Freight Efficiency and Zero-Emission Vehicle Infrastructure Grants (DOT)
• Heavy-Duty Zero Emission Vehicle (ZEV) and Infrastructure Grants (EPA)
• Ongoing funding opportunities from DOE’s Vehicle Technologies Office (DOE)
• Zero Emission Vehicle Infrastructure and Advanced Vehicle Grants (DOT)

Additional funding programs and resources may be found on the Alternative Fuels Data Center Laws and Incentives Database website.

Additional Resources

Cost estimates:.

• ICCT EV Charging Costs
• AFDC EVSE Cost Report
• RMI EV Charging Infrastructure Costs

Case Studies:

• EV community readiness projects
• Seattle, WA case study
• Aspen, CO EV readiness plan
• Bay Area, CA EV readiness plan
• Boulder, CO EV infrastructure and adoption assessment
• Coachella Valley, CA EV readiness plan
• Colorado Energy Office: EV Fast Charging Corridors Grant Program
• Fort Collins, CO EV readiness roadmap
• Northern New Jersey alternative fuel vehicle infrastructure report
• Advancing Iowa's EV Market Report
• San Diego, CA EV readiness plan
• San Joaquin Valley, CA EV readiness plan
• Tahoe-Truckee, CA and NV Plug-in EV Readiness Plan
• How Does Utilization of Non-Residential EVSE Compare Between those Installed in Oregon in Planned versus Unplanned Locations? (EV Project)

Guidance, Tools, and Links:

• Electric Vehicle Infrastructure Projection Tool (EVI-Pro) Lite (DOE AFDC) : This tool provides a simple way to estimate how much electric vehicle charging you might need and how it affects your charging load profile.
• Plug-in EV Best Practices Compendium (County of Santa Clara) : This guide provides an overview of the key considerations for local governments who are seeking to support the deployment of plug-in EVs and charging infrastructure.
• Charging Infrastructure Procurement and Installation (DOE AFDC) : The website hosts information and resources about specific characteristics that can influence the procurement and installation process.
• Developing Infrastructure to Charge Electric Vehicles (DOE AFDC) : An introduction to charging infrastructure terminology, different charging use cases, and resources on options, planning tools, and funding programs.
• Electric Vehicle Readiness (DOE AFDC) : These resources can help communities plan for the arrival of electric vehicles (EVs) and EV charging. EV readiness is a community-wide effort, requiring planning, charging infrastructure, policies, and support services.
• Alternative Fueling Station Locator (DOE AFDC) : Interactive website and app-based map showing locations of alternative fueling stations nationwide and by different fuel and charger types.
• Electric Vehicle Charging Equity Considerations (ANL) : This review evaluates how to ensure investments in electric vehicle charging benefit disadvantaged communities.
• Electrifying Transportation in Municipalities (Electrification Coalition) : This is a policy toolkit for electric vehicle deployment and adoption at the local level. Includes information on Equitable Charging for Affordable Housing.
• Estimating electric vehicle charging infrastructure costs across major U.S. metropolitan areas (ICCT) : This paper analyzes the capital costs of the electric vehicle charging infrastructure needed for public, workplace, and home charging for the most populous 100 metropolitan areas in the United States from 2019 through 2025.
• Progress Toward EV Readiness (DOT) : Examples of how organizations and initiatives have made strides in advancing EV readiness in rural communities across the United States. Includes a rural EV toolkit.

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FACT SHEET: Biden Administration Advances Electric Vehicle Charging Infrastructure

Department of Transportation, Department of Energy, and General Services Administration Announce New Actions to Accelerate Deployment of Electric Vehicles and Chargers  

Today, the White House announced new progress on the Administration’s goal to accelerate and deploy electric vehicles and charging stations, create good-paying, union jobs, and enable a clean transportation future. This includes actions by federal agencies:

• The Department of Transportation announced guidance on how grants can be used to deploy charging infrastructure and newly designated alternative fuel corridors;
• The Department of Energy announced new funding and partnerships for charger-related research and development; and
• The General Services Administration announced progress on the goal to transition the federal fleet to zero-emission vehicles.

In March, the United States passed the milestone of 100,000 public chargers (as recorded by the Department of Energy’s Alternative Fuel Data Center) and these new actions will accelerate deployment to make driving an electric vehicle convenient in every part of the country.

To discuss today’s announcements, National Climate Advisor Gina McCarthy and Transportation Secretary Pete Buttigieg visited new, fast-charging facility near Union Station in Washington, DC. The charging stations were installed by an American-based company EVGo and enable EV users to recharge rapidly when away from home.

Most electric vehicle drivers will charge at home and work. One of the perks of driving an electric vehicle is never needing to go to the gas station. But public charging infrastructure will provide a key role for people without off-street parking and for longer trips. A robust, convenient, and affordable network of public chargers will increase confidence for drivers that they will always have a charging option when they need it.

President Biden’s American Jobs Plan includes a transformational $15 billion investment to fund this vision and build a national network of 500,000 charging stations. Through a combination of grant and incentive programs for state and local governments and the private sector, it will support a transformational acceleration in deployment of a mix of chargers in apartment buildings, in public parking, throughout communities, and as a robust fast charging along our nation’s roadways.

Charger installation and maintenance creates good-paying, union jobs right here in America that cannot be outsourced, and the American Jobs Plan also includes incentives to bring more charging equipment manufacturing to the United States. Every element of the plan will promote strong labor, training, and installation standards. The Biden Administration is committed to promoting high quality jobs, fair wages, and safe working conditions through its investments. This means holding both public and private recipients of federal funding accountable to create and support good middle-class jobs. Industry, unions, state, and local governments, higher education institutions like community colleges, and nonprofits will need to work together to prepare workers for the job opportunities these investments will create.

Supporting a Nationwide Charging Network

• Today, the Department of Transportation  announced  the  5th round of “Alternative Fuel Corridors” designations . This program, created by the FAST Act in 2015, recognizes highway segments that have infrastructure plans to allow travel on alternative fuels, including electricity. The first four rounds of designations included portions of 119 Interstates and 100 US highways and state roads. Round 5 includes nominations from 25 states for 51 interstates and 50 US highways and state roads.
• The cumulative designations (Rounds 1-5) for all fuel types (electric, hydrogen, propane, natural gas) include 134 Interstates and 125 US highways/State roads, covering almost 166,000 miles of the NHS in 49 States plus DC. Of that total, the FHWA has designated EV corridors on approximately 59,000 miles of the NHS in 48 States plus DC. South Dakota and Mississippi are the only two states without an EV corridor designation.

• The DOT also issued a new report clarifying how its programs can be used for EV charging infrastructure. Many existing programs have this as an eligible use and this guidance can expand how many funded entities take advantage of that. This could increase the use for EV charging infrastructure of $41.9 billion in federal grant funding in 15 specific programs.

Technology and Business Model Innovation

• $10 million to research, develop, and demonstrate innovative technologies and designs to significantly reduce the cost of electric vehicle supply equipment for DC Fast Charging that will be needed in large number to support high volumes of EVs.
• $20 million to accelerate the adoption of commercially-available plug-in electric vehicles (PEVs) and supporting infrastructure through community-based public-private partnerships that demonstrate PEV technologies (for cars, buses, school buses, trucks) and infrastructure in various innovative applications and share resulting data, lessons learned and best practices with a broader audience. Projects that demonstrate the ability to accelerate clean energy jobs or provide new electric transportation solutions to under-served communities are of interest.
• $4 million to encourage strong partnerships and new programs to increase workplace charging regionally or nationally which will help increase the feasibility of PEV ownership for consumers in underserved communities (e.g., demographics that currently have minimal access to home charging).
• DOE and the Electric Power Research Institute (EPRI) also announced a national EV charging technical blueprint including fast charging and grid interaction. This blueprint will assess needs in terms of connectivity, communication, protocols from utility down to vehicle, to support electrification of the full vehicle fleet.
• DOE announced that Idaho National Laboratory (INL) is partnering with global and domestic Automakers to analyze anonymous vehicle charging data that describe market-level trends of operation and charging behavior for a large sample of U.S. consumer EVs. To guide this work, DOE, INL, and Automakers formed a working group to provide feedback on INL analysis and modeling efforts.

Progress on Federal Leadership

• The Council on Environmental Quality and the General Services Administration are announcing early progress in response to the Executive Order directing the federal government to transition to a zero-emission vehicle (ZEV) fleet. Since inauguration day, the administration has acquired more ZEVs than in the whole previous fiscal year. Additionally, we are on track to triple the number of total ZEVs added to the fleet this year compared to last. Installing EV charging infrastructure at federal facilities is a key component of the transition to a zero-emission fleet.

These actions are a set of initial steps on the path the President’s goal of a national network of 500,000 chargers to support convenient and affordable travel by drivers of zero emission vehicles across the whole country.

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Biden-Harris Admin Opens First Round Applications for $2.5 Billion Program to Build EV Charging in U.S. Communities

March 14, 2023

The Biden-Harris Administration today opened applications for a new multi-billion-dollar program to fund electric vehicle (EV) charging and alternative-fueling infrastructure in communities across the country and along designated highways, interstates, and major roadways. This is a key step towards the President’s goals of building a national network of 500,000 public EV charging stations and reducing national greenhouse gas emissions by 50%–52% by 2030.

The U.S. Department of Transportation’s new Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, established by the Bipartisan Infrastructure Law, will provide $2.5 billion over five years to a wide range of applicants, including cities, counties, local governments, and tribes. This round of funding makes up to $700 million from Fiscal Years (FY) 2022 and 2023 funding available to strategically deploy EV charging and other alternative vehicle-fueling infrastructure projects in publicly accessible locations in urban and rural communities, as well as along designated Alternative Fuel Corridors (AFCs) .

“By helping bring EV charging to communities across the country, this administration is modernizing our infrastructure and creating good jobs in the process,” said U.S. Transportation Secretary Pete Buttigieg . “With today’s announcement, we are taking another big step forward in creating an EV future that is convenient, affordable, reliable, and accessible to all Americans.”

The CFI Discretionary Grant Program builds on the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program, for which the Federal Highway Administration (FHWA) published finalized minimum standards earlier this month. EV chargers constructed with CFI funds must adhere to those same standards, a requirement that supports a consistent charging experience for users and ensures that our national charging network is convenient, reliable and Made in America.

“Extending EV charging infrastructure into traditionally underserved areas will ensure that equitable and widespread EV adoption takes hold,” said U.S. Secretary of Energy Jennifer M. Granholm . “Ensuring that charging stations are more visible and accessible in our communities addresses the concerns many American drivers have when considering making the switch to electric.”

While the NEVI Formula Program sends money to states, Puerto Rico, and Washington, D.C., to build EV charging infrastructure along designated interstates, U.S. routes, and state highways, the CFI Discretionary Grant Program awards competitive grants to projects serving a range of applicants to fill gaps in the national charging and alternative-fueling network and build out charging in communities.

A priority of the CFI Program is bringing EV charging into urban and rural communities; downtown areas and local neighborhoods, particularly in underserved and disadvantaged communities; as well as to designated alternative fuel corridors. Both the NEVI and CFI programs will create good-paying jobs across the country as more workers are needed to install and maintain EV charging stations, and both programs will help put the country on a path to a nationwide network of 500,000 EV chargers by 2030.

The Bipartisan Infrastructure Law divides the CFI Program into two distinct grant funding categories, and requires that 50% of the funding over five years is made available for each:

• The Community Program will provide $1.25 billion to strategically deploy publicly accessible EV charging infrastructure, and hydrogen, propane, or natural gas fueling infrastructure in communities. Infrastructure may be located on any public road or in other publicly accessible locations such as parking facilities at public buildings, public schools, and public parks, or in publicly accessible parking facilities owned or managed by a private entity.
• The Corridor Program will provide $1.25 billion to strategically deploy publicly accessible EV charging infrastructure and hydrogen, propane, and natural gas fueling infrastructure along designated alternative fuel corridors (AFCs).

“FHWA is committed to helping towns and cities, large and small, build modern, sustainable infrastructure that promotes equity and opportunity for their local economies and net-zero emissions for the nation by 2050,” said Federal Highway Administrator Shailen Bhatt . “By encouraging the adoption and expansion of EV charging and alternative fuels, CFI Program investments have the potential to significantly address the transportation sector’s outsized contributions to climate change.”

Eligible applicants and projects for both categories are outlined in a Notice of Funding Opportunity published today. Applications are due by May 30, 2023.

FHWA seeks to fund projects that address environmental justice, particularly for communities such as rural and low- and moderate-income neighborhoods that may disproportionately experience the consequences of climate change and other pollutants.

Today’s announcement builds on a comprehensive series of EV-related actions taken by the Biden-Harris administration.

• In September 2022, FHWA approved all 52 EV charging plans from states, Puerto Rico, and Washington, D.C.,—unlocking approximately $1.5 billion in FY22 and FY23 funding that can be used to implement those plans.
• Earlier this February , the U.S. Department of Transportation’s FHWA announced finalized standards to make charging electric vehicles convenient, affordable, reliable, equitable, and safe for all Americans—no matter what car you drive or what state you charge in.
• Earlier this February , the White House announced an implementation plan for President Biden’s Build America, Buy America requirements that will incentivize companies to invest in domestic production of EV charging components, positioning U.S. workers and businesses to compete and lead globally in a critical industry while providing a common-sense transition period for companies to onshore complex supply chains.
• The new Joint Office of Energy and Transportation (Joint Office) released a notice of intent to issue a funding opportunity for its Ride and Drive Electric research and development program. The community-driven models for EV charging deployment area of interest (AOI) may explore how to maximize benefits for underserved and disadvantaged communities and the workforce development AOI may explore how disadvantaged communities will benefit from high-quality job growth expected from transportation electrification.

“It’s critical that we build a national charging network that provides EV drivers with the right type of charging in the right location—whether that’s high-powered charging on highway corridors and in urban hubs or Level 2 charging where EV drivers or riders live, work, and play,” said Joint Office Executive Director Gabe Klein . “By working with cities and communities through the CFI Program to get this mix right, we can ensure that everyone has convenient and affordable access to riding and driving electric.”

FHWA and the Joint Office plan to conduct outreach to potential grant applicants regarding the CFI Program via webinars throughout March and April and will provide direct technical assistance to support states and communities as they build EV charging infrastructure through the NEVI Program and projects awarded under the CFI Program. Information on upcoming webinars can be viewed here .

The Joint Office, through the new Joint Office United Support for Transportation (JUST) Lab Consortium , will convene three U.S. Department of Energy national laboratories, to help identify practical approaches to integrate equity into federally-funded EV infrastructure deployment efforts—like projects awarded under the CFI Program—spanning deployment planning, implementation pathways, and policy design. Visit DriveElectric.gov to access technical assistance from the Joint Office, including:

• The Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET) Charging and Fueling Infrastructure Emissions Tool to assess estimated emissions reductions from EV charging infrastructure along designated alternative fuel corridors
• Key Considerations from Past U.S. Department of Energy-Funded Projects on curbside EV charging, EV car share, EV charging for multifamily housing, and EV mobility hubs.

For more information on President Biden’s Bipartisan Infrastructure Law and investments in electric vehicles, please visit FHWA’s BIL web site .

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Study: EV charging stations boost spending at nearby businesses

“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Yunhan Zheng says.

Original Article: MIT News

Charging stations for electric vehicles are essential for cleaning up the transportation sector. A new study by MIT researchers suggests they’re good for business, too.

The study found that, in California, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and about $400 between January 2021 and June 2023. The spending bump amounts to thousands of extra dollars annually for nearby businesses, with the increase particularly pronounced for businesses in underresourced areas.

The study’s authors hope the research paints a more holistic picture of the benefits of EV charging stations, beyond environmental factors.

“These increases are equal to a significant chunk of the cost of installing an EV charger, and I hope this study sheds light on these economic benefits,” says lead author Yunhan Zheng MCP ’21, SM ’21, PhD ’24, a postdoc at the Singapore-MIT Alliance for Research and Technology (SMART). “The findings could also diversify the income stream for charger providers and site hosts, and lead to more informed business models for EV charging stations.”

Zheng’s co-authors on the paper, which was published today in Nature Communications , are David Keith, a senior lecturer at the MIT Sloan School of Management; Jinhua Zhao, an MIT professor of cities and transportation; and alumni Shenhao Wang MCP ’17, SM ’17, PhD ’20 and Mi Diao MCP ’06, PhD ’10.

Understanding the EV effect

Increasing the number of electric vehicle charging stations is seen as a key prerequisite for the transition to a cleaner, electrified transportation sector. As such, the 2021 U.S. Infrastructure Investment and Jobs Act committed $7.5 billion to build a national network of public electric vehicle chargers across the U.S.

But a large amount of private investment will also be needed to make charging stations ubiquitous.

“The U.S. is investing a lot in EV chargers and really encouraging EV adoption, but many EV charging providers can’t make enough money at this stage, and getting to profitability is a major challenge,” Zheng says.

EV advocates have long argued that the presence of charging stations brings economic benefits to surrounding communities, but Zheng says previous studies on their impact relied on surveys or were small-scale. Her team of collaborators wanted to make advocates’ claims more empirical.

For their study, the researchers collected data from over 4,000 charging stations in California and 140,000 businesses, relying on anonymized credit and debit card transactions to measure changes in consumer spending. The researchers used data from 2019 through June of 2023, skipping the year 2020 to minimize the impact of the pandemic.

To judge whether charging stations caused customer spending increases, the researchers compared data from businesses within 500 meters of new charging stations before and after their installation. They also analyzed transactions from similar businesses in the same time frame that weren’t near charging stations.

Supercharging nearby businesses

The researchers found that installing a charging station boosted annual spending at nearby establishments by an average of 1.4 percent in 2019 and 0.8 percent from January 2021 to June 2023.

While that might sound like a small amount per business, it amounts to thousands of dollars in overall consumer spending increases. Specifically, those percentages translate to almost $23,000 in cumulative spending increases in 2019 and about $3,400 per year from 2021 through June 2023.

Zheng says the decline in spending increases over the two time periods might be due to a saturation of EV chargers, leading to lower utilization, as well as an overall decrease in spending per business after the Covid-19 pandemic and a reduced number of businesses served by each EV charging station in the second period. Despite this decline, the annual impact of a charging station on all its surrounding businesses would still cover approximately 11.2 percent of the average infrastructure and installation cost of a standard charging station.

Through both time frames, the spending increases were highest for businesses within about a football field’s distance from the new stations. They were also significant for businesses in disadvantaged and low-income areas, as designated by California and the Justice40 Initiative.

“The positive impacts of EV charging stations on businesses are not constrained solely to some high-income neighborhoods,” Wang says. “It highlights the importance for policymakers to develop EV charging stations in marginalized areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhancing economic vitality.”

Zheng believes the findings hold a lesson for charging station developers seeking to improve the profitability of their projects.

“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Zheng says. “Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations.”

Zheng also says the findings could support the creation of new funding models for charging stations, such as multiple businesses sharing the costs of construction so they can all benefit from the added spending.

Those changes could accelerate the creation of charging networks, but Zheng cautions that further research is needed to understand how much the study’s findings can be extrapolated to other areas. She encourages other researchers to study the economic effects of charging stations and hopes future research includes states beyond California and even other countries.

“A huge number of studies have focused on retail sales effects from traditional transportation infrastructure, such as rail and subway stations, bus stops, and street configurations,” Zhao says. “This research provides evidence for an important, emerging piece of transportation infrastructure and shows a consistently positive effect on local businesses, paving the way for future research in this area.”

The research was supported, in part, by the Singapore-MIT Alliance for Research and Technology (SMART) and the Singapore National Research Foundation. Diao was partially supported by the Natural Science Foundation of Shanghai and the Fundamental Research Funds for the Central Universities of China.

Reprinted with permission of MIT News.

MIT Institute for Data, Systems, and Society Massachusetts Institute of Technology 77 Massachusetts Avenue Cambridge, MA 02139-4307 617-253-1764

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EV Charging Stations Spark Boost in Local Business Revenue

Businesses within 100 meters of new EV charging stations saw the highest increase in customer spending, highlighting the hyperlocal economic impact of this green infrastructure. (Photo Credit: Unsplash.com)

by Kaleigh Harrison | Sep 6, 2024

This article is included in these additional categories:

A recent study by MIT researchers has shed light on an unexpected benefit of electric vehicle (EV) charging stations: increased revenue for nearby businesses. The research, published in Nature Communications, suggests that the installation of EV charging infrastructure can have a significant positive impact on local economies, particularly in underserved areas.

The Economic Ripple Effect

According to the study , businesses located within 500 meters of a newly installed EV charging station saw an average increase in annual spending of 1.4% in 2019 and 0.8% between January 2021 and June 2023. While these percentages may seem modest, they translate to substantial monetary gains. In 2019, the cumulative spending increase for businesses surrounding a single charging station amounted to nearly $23,000. From 2021 to mid-2023, this figure stood at approximately $3,400 per year.

The researchers found that the economic impact was most pronounced for businesses within about 100 meters of the charging stations . Notably, the positive effects were not limited to affluent neighborhoods; businesses in disadvantaged and low-income areas also experienced significant benefits from nearby EV charging infrastructure.

Implications for Business Models and Policy

The study’s findings have important implications for both EV charging providers and policymakers. For charging station operators, the research suggests potential new business models that could improve profitability. Lead author Yunhan Zheng proposes adopting a strategy similar to the gas station-convenience store model, where EV charging providers could diversify their revenue streams by integrating retail offerings.

From a policy perspective, the study underscores the importance of developing EV charging infrastructure in marginalized areas. Not only does this promote environmental sustainability, but it also serves as a catalyst for economic revitalization in these communities. The research may also support the creation of new funding models for charging stations, such as cost-sharing arrangements among multiple businesses to capitalize on the increased consumer spending.

While the study focused on California , the researchers encourage further investigation into the economic effects of EV charging stations in other states and countries. As the world continues to transition towards electric mobility, understanding the broader economic impacts of EV infrastructure will be crucial for informing business strategies and public policy decisions.

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• Published: 04 September 2024

Effects of electric vehicle charging stations on the economic vitality of local businesses

• Yunhan Zheng   ORCID: orcid.org/0000-0001-5114-7561 1 , 2 ,
• David R. Keith 3 ,
• Shenhao Wang   ORCID: orcid.org/0000-0003-4374-8193 4 ,
• Mi Diao   ORCID: orcid.org/0000-0002-0389-4199 5 &
• Jinhua Zhao   ORCID: orcid.org/0000-0002-1929-7583 6  

Nature Communications volume  15 , Article number:  7437 ( 2024 ) Cite this article

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Electric vehicle charging stations (EVCS) are essential for promoting cleaner transportation by facilitating electric vehicle recharging. This study explores their broader economic impact on nearby businesses, analyzing data from over 4000 EVCS and 140,000 business establishments in California. Results show that installing one EVCS boosts annual spending at a nearby establishment by 1.4% ( $ 1,478) in 2019 and 0.8% ( $ 404) from January 2021 to June 2023. The effect is more pronounced when a point of interest (POI) is within 100 meters of an EVCS, with spending increasing by 2.7% in 2019 and 3.2% from January 2021 to June 2023 for that POI. Public EVCS tend to attract higher-income, exploratory visitors, and local residents. Moreover, they notably enhance businesses in underprivileged areas, defined as disadvantaged and/or low-income areas designated by both California and Justice40, indicating the importance of expanding EVCS in such communities. This study highlights EVCS as drivers of local economic growth and stresses the economic benefits of multi-host EVCS setups.

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Introduction.

Electric vehicles (EVs), when integrated with low-carbon electricity production, offer a transformative solution to curbing greenhouse gas emissions, paving the way for a cleaner and more sustainable transportation future 1 , 2 , 3 . Alongside this transformation, the installation of public EV charging stations (EVCS) has played an important role in facilitating the transition to cleaner mobility options 1 , 4 . In recent years, there has been substantial growth in the development of EV charging infrastructure within the United States. A major milestone in this endeavor was the passage of the Infrastructure Investment and Jobs Act (IIJA) on November 15, 2021, allocating $7.5 billion towards the creation of a comprehensive charger network across the nation 5 . This landmark legislation underscores the government’s commitment to addressing the climate crisis and advancing the clean energy sector. However, the importance of public EVCS extends beyond their primary function of providing a reliable charging infrastructure for electric vehicles.

Public EVCS have the potential to exert a broader influence on local communities, particularly on the economic vitality of surrounding businesses. As EV drivers park their vehicles to recharge, they often find themselves with spare time, creating an opportunity in activities such as shopping or dining in nearby establishments 6 . In addition, since people often have flexibility where they shop, having charging facilities available can make businesses more attractive to potential customers. This increased foot traffic can breathe new life into local businesses and may offer a substantial boost to their customer base and revenue 6 , 7 . Consequently, providing EVCS offers business owners the potential to diversify their income streams. Understanding the extent of this phenomenon is crucial for policymakers, EVCS providers, and business owners to harness the full potential of EV charging infrastructure and create sustainable and vibrant communities.

While there has been extensive research on the environmental benefits of EVCS, a noticeable research gap exists concerning the impact of these stations on local businesses and foot traffic. Recent studies conducted by EV charging companies have documented an increase in customer visits and spending at nearby businesses based on pilot experiments or surveys 8 , 9 . However, these studies are often limited in scale and lack causal analyses, making it challenging to generalize the results and differentiate the effects of EV charger installations on local businesses from the influence of other confounding factors, such as changes in economic, demographic, and business conditions. Another relevant area of research has explored the relationship between traditional transportation infrastructure and the consumption patterns of surrounding businesses. Studies focusing on new rail and subway stations 10 , 11 , bus stops 12 , and street configurations with increased accessibility 13 have consistently found positive impacts on retail sales. However, there has been a notable absence of research specifically addressing the influence of EVCS in this context.

In this work, we quantify the impact of installing EVCS on customer counts and spending in nearby businesses in California, a vanguard in both EV adoption and charging infrastructure deployment in the United States. Our analysis spans two distinct periods: 2019 and January 2021 to June 2023, aiming to mitigate the influence of the COVID-19 pandemic and anomalous EVCS counts during data integration in 2020 (see the Data section in Methods). Figure  1 shows the distribution of EVCS across California, with detailed views of Downtown San Francisco and Downtown Los Angeles during these periods. To mitigate endogeneity concerns, we employed a Difference-in-Differences (DID) methodology in conjunction with propensity score matching. We also examined variations in these effects based on different EVCS types, business types, and customer profiles. Additionally, by estimating the marginal benefit of proximity to an EVCS on local businesses, we quantified the cumulative impact of EVCS on customer expenditures within all nearby establishments.

a Locations of EVCS opened in 2019, b EVCS opened between February 2021 and June 2023. The areas shaded in pale orange represent underprivileged communities, which are defined as disadvantaged and/or low-income areas designated by both California and Justice40 14 . The locations of treated (orange) and control (green) POIs in Downtown San Francisco and Downtown Los Angeles are shown for different periods: Downtown San Francisco in 2019 ( c ), Downtown San Francisco from 2021 to 2023 ( d ), Downtown Los Angeles in 2019 ( e ), and Downtown Los Angeles from 2021 to 2023 ( f ). The base map layer is available from OpenStreetMap ( openstreetmap.org/copyright ).

To assess the impact of EVCS installations on local businesses, we implement an identification strategy that leverages spatiotemporal variations in customer counts and spending at points of interest (POIs) surrounding these stations, enabling the establishment of causal relationships. Our analysis incorporates three categories of POIs: (1) accommodation and food services; (2) retail trade; (3) arts, entertainment, and recreation. To account for variations in the timing of EVCS installations during our study periods, we have employed a DID methodology, controlling for POI-specific and county-by-month fixed effects. Our analytical process is distinctively structured for two study periods, namely the year 2019 and the period spanning January 2021 to June 2023. Within this framework, our treatment group encompasses POI locations featuring newly introduced EVCS within 500 m during the study period. In contrast, the control groups are selected from POIs devoid of proximate EVCS that were commissioned during the study period.

One potential limitation to the validity of this approach is that EVCS providers might strategically place EVCS in locations where the benefits of EVCS deployment are maximized, potentially impacting our results. To address this endogeneity concern, we employ propensity score matching, pairing treatment POIs with control POIs of the same category and similar characteristics (see spatial distributions of treated and control POIs in Downtown San Francisco and Downtown Los Angeles in Fig.  1 c–f). Our formal analysis then focuses exclusively on the matched POIs, resulting in a smaller but more reliable sample for analysis. The summary statistics for the variables about treatment, control, and unmatched POIs are presented in Supplementary Tables  S1 and S2 .

Table  1 shows the estimated impacts of installing a single EV charging port on the percentage increase in customer counts and spending at surrounding POIs. The analysis examines effects across all regions, with a particular focus on underprivileged regions. These regions are defined as disadvantaged and/or low-income communities according to designations by both California and Justice40 14 . Given the emphasis on equity in both federal and California government support for EVCS deployment 5 , 15 , strengthened by the federal administration’s Justice40 initiative 16 , it is crucial to investigate the localized effects of EVCS installations on businesses in underprivileged communities.

Our findings consistently reveal significantly positive effects of newly installed EVCS on customer count and spending at surrounding POIs across all scenarios. Specifically, the introduction of an additional charging port resulted in a 0.21% increase in customer count and a 0.25% increase in spending in 2019. In the subsequent period spanning 2021 – 2023, although the effects are somewhat diminished, they remain statistically significant, yielding a 0.14% increase in customer count and a 0.16% increase in spending. The moderation in magnitude during this period might be attributed to factors such as constraints on customer buying power influenced by the COVID-19 pandemic, as well as variations in the utilization rate of public EV chargers over time.

It is noteworthy that when considering the average number of ports in a single EVCS, which was 5.4 in 2019 and 5.0 in 2021–2023, our findings indicate a more substantial impact. Specifically, the addition of a single EV charging station leads to a 1.4% increase in spending in 2019 and a 0.8% increase in spending in 2021–2023. While these effects may seem minor, they carry substantial importance given the context of low EV adoption rates (2.61% for Battery Electric Vehicles and 1.15% for Plug-in Hybrid Electric Vehicles in California by the end of 2022 17 ) and the typically low utilization of EVCS (often averaging fewer than one session per port per day in the U.S. 18 , 19 , 20 ).

Within underprivileged regions, the effects persist and maintain statistical significance. In 2019, an additional charging port led to a 0.17% rise in customer count and a 0.29% increase in spending. Between 2021 and 2023, the effects, although relatively smaller, remain notable, resulting in a 0.08% increase in customer count and a 0.09% increase in spending. We also conducted a sensitivity analysis, defining underprivileged communities based on designations from California and Justice40 separately. The estimated treatment effects remain significant and consistent in magnitude with the main specification (detailed in Supplementary Section  7 ).

Spatial and temporal variations in treatment effects

To provide a more detailed understanding of our estimated treatment effects, we conduct a comprehensive analysis of how these effects vary across both spatial and temporal dimensions. We first categorize the distances between treatment POIs and their nearby EVCS into five distance bins, ranging from 0 to 500 m with 100 m increments. We investigated how the treatment effect differed across these distinct distance bins (refer to the model details in the Methods section).

Our analysis reveals that the magnitude of treatment effects varies considerably across different distance bins from EVCS, as depicted in Fig.  2 a (for 2019) and 2 b (for 2021–2023). As may be expected, the closest distance bin (0–100 m) exhibits the most substantial effect. Specifically, the introduction of an additional charging port within this proximity results in a noteworthy increase of ~0.5% (in 2019) and ~0.6% (in 2021–2023) in both customer counts and spending at local businesses. Conversely, as the distance from EVCS increases to the range of 400–500 m, the magnitude of the treatment effect diminishes, settling at ~0.2% for both customer counts and spending. The full results are reported in Supplementary Table  S4 . These findings align with urban planning literature which has established that convenience of access greatly influences consumer choices 13 , 21 , 22 .

Variations in treatment effects of EVCS installations on customer counts (light blue dots) and spending (dark blue squares) based on distance between the POIs and nearby EVCSs in 2019 ( a ) and 2021-2023 ( b ). Points represent point estimates of the treatment effects, and error bars denote the 95% confidence intervals. n  = 133,649 observations (in 2019) and 1,235,819 observations (in 2021–2023). Time variation of the treatment effects on logged spending as analyzed through event studies in 2019 ( c ) and 2021-2023 ( d ), with the center of shaded error bands (blue lines) representing point estimates and error bands representing the 95% confidence intervals. The red vertical line represents the baseline period, which is one month before the treatment.

After estimating the marginal effect of adding one charging port, we find that the average marginal effect of adding one EV charging station on POIs within 100 m is quite substantial. This effect amounts to 2.7% in 2019 and 3.2% in 2021–2023 when multiplying the estimated marginal effect of adding one charging port with the average number of charging ports in a station.

To explore the temporal dynamics of the treatment effect, we implemented an event study strategy (detailed in the Methods section). Figure  2 c (for 2019) and 2 d (for 2021–2023) depict the marginal effects of an additional nearby EV charging port on the percentage change in spending. The results indicate that the marginal effects did not exhibit statistical significance before the installation of EVCS for both study periods, supporting the parallel trend assumption of the DID strategy. However, following the installation of EVCS, the marginal effect became significantly positive, validating the positive impact of EVCS installations on local business spending. It is noteworthy that in 2021–2023, the marginal effect declined in the later stage of the study period. This decline may be attributed to the saturation of the effect, particularly the decrease in utilization rate per EVCS port as the proliferation of EVCS may outgrow their demand. Alternatively, it could be influenced by behavioral factors, such as individuals’ preference for exploring new destinations, diminishing the effectiveness of older EV charging stations in attracting customers to surrounding businesses. Further research is necessary to pinpoint the precise reasons.

Heterogeneity by EV charger types and POI types

Next, we delve into the treatment effect, stratifying by both EV charger type and POI category, with our findings presented in Table  2 (see the model details in the Methods section). Our examination reveals a noteworthy shift in treatment effects over time.

We observe that in the year 2019 treatment effects on spending were predominantly influenced by the presence of DC fast chargers. A plausible explanation for this phenomenon may be linked to the early stages of EV market development, characterized by a demographic skew towards higher-income families 23 . These individuals may have favored DC fast chargers for vehicle charging due to the higher utility offered compared to Level 2 chargers 24 , and may tend to spend more at local businesses.

However, between 2021 and 2023, treatment effects on spending became predominantly associated with Level 2 chargers, rendering the influence of DC fast chargers statistically insignificant. This shift may be attributed to several factors. Notably, the years between 2021 and 2023 witnessed a substantial acceleration in the proliferation of Level 2 chargers compared to DC fast chargers, with the ratio of Level 2 chargers to DC fast chargers surging from 2.24 at the close of 2019 to 3.36 by the end of 2022 (see Supplementary Fig.  S1 ). At the same time, as the EV market grew, there could be a broader and more diverse EV user base, many of which may prefer Level 2 chargers. Another potential explanation is that as EVs matured over time, featuring longer driving ranges and increased charging station availability, the marginal need for DC fast charging diminished. Simultaneously, there has been an evolution in DC fast chargers’ power output. In 2019, the majority of public DC fast charger ports operated at 50 kW or lower, whereas in 2021–2023, many DC fast charger stations have been upgraded to supply power ranging from 150 to 350 kW 20 , 25 , 26 . This increase in power output greatly reduces DC fast chargers’ charging times, thereby diminishing the duration EV users spend waiting for their vehicles to charge. Conversely, the inherently slower charging rate of Level 2 chargers in contrast to DC fast chargers may have influenced individuals to allocate more time to activities such as shopping while their EVs are charging, which may have contributed to the pronounced effect of Level 2 EV charging stations on spending during this period.

Across various POIs, the impact of DC fast chargers in 2019 and Level 2 chargers in 2021–2023 on spending in local restaurants and grocery/clothing stores consistently demonstrates statistical significance. Interestingly, the EVCS installations had no significant effect on hotel spending in 2019, but from 2021 to 2023, the installation of Level 2 chargers significantly increased hotel revenue. This positive effect during 2021–2023 might be because hotels with EV chargers cater to EV drivers who need to recharge before continuing their journeys or returning home, thus attracting more guests and boosting hotel spending 27 . Furthermore, from 2021 to 2023, the impact of Level 2 chargers on “gas stations with convenience stores” also became significant, suggesting that the presence of these chargers might have influenced consumer choices to visit convenience stores within gas stations during this period.

Effects of EVCS on customer counts across different income groups

We also investigate the impact of EVCS installations on customer counts in nearby businesses among various income groups. Each customer falls into one of seven income groups: <$ 25 k, $ 25–45 k, $ 45–60 k, $ 60–75 k, $ 75–100 k, $ 100–150 k, and  >$ 150 k, based on their annual income. These income groupings are determined using a proprietary model from Safegraph that classifies each customer based on their transactions and spending data (see the Methods section for details). As shown in Fig.  3 a, the effect of EVCS on customer counts was consistently positive across all income groups in 2019. Several factors could contribute to this trend. For example, prior studies have demonstrated that in California, as the proportion of multi-unit dwelling (MUD) housing units increases, so does the likelihood of access to public chargers 28 . Since low-income populations are more likely to reside in MUD housing units rather than single-family homes, they tend to have greater access to public chargers. Additionally, government incentive programs focusing on equity for both EVs and EVCS may have assisted low-income individuals in acquiring and charging EVs (see Supplementary Section  1.5 ). Furthermore, the rise in customer counts among low-income groups may also be partially attributed to the demand for charging services from low-income drivers affiliated with transportation network companies 29 .

These figures illustrate the marginal effect of an additional EV charging port on customer counts among different income groups at surrounding businesses in 2019 ( a ) and 2021–2023 ( b ). Points represent point estimates of the effects, and error bars denote the 95% confidence intervals. n  = 133,649 observations (in 2019) and 1,235,819 observations (in 2021–2023).

Conversely, in the period from 2021 to 2023, EVCS installations proved to be most effective in attracting customers among high-income groups (Fig.  3 b). During this time frame, the impact on customer counts from middle and low-income groups was relatively modest. This shift in pattern could be attributed to a combination of factors, including changes in the evolving EVCS network, shifting trends in EV adoption, evolving economic conditions, and shifts in consumer behavior, particularly in the aftermath of the COVID-19 pandemic. Further investigation is warranted to precisely identify the underlying reasons for this pattern shift. While previous studies have noted early EV adopters’ tendency to be from higher-income populations, some research suggests broader diversification among EV buyers beyond high-income consumers (detailed in Supplementary Section  1.2 ). Therefore, it is possible that the considerably larger effect of EVCS on customer counts among high-income populations will subside as the population of EV adopters diversifies in the coming years.

Effects on other variables

We conducted additional analyses to explore the impact of EVCS installations on several other variables, including customers’ median distance from home, customers’ median dwell time at surrounding businesses, and the average customer income at these businesses. The results are presented in Table  3 .

Our analysis of 2019 data reveals insignificant or marginal significant effects on these variables. However, in the period from 2021 to 2023, EVCS installations had notable effects. They were associated with a decrease in customers’ median distance from home and a reduction in customers’ median dwell time. These findings suggest that the newly installed EVCS likely attracted customers residing in closer proximity, but these customers spent less time at the POIs compared to previous customers. This shift may indicate that the newly attracted customers are more inclined to be occasional or exploratory visitors rather than regular and loyal patrons. The presence of EVCS was associated with an increase in the average customer income at these businesses. This observation aligns with the common expectation, as the majority of newly attracted customers are likely to be EV owners, and it is well-documented that a considerable proportion of EV owners come from higher-income households 23 .

We conduct additional analyses for different types of POIs regarding the effect on customers’ median distance from home and median dwell time, the results of which are shown in Supplementary Tables  S5 and S6 . Notably, while EVCS installation is negatively associated with customers’ median dwell time in restaurants, grocery/clothing stores, and hotels, it has a positive impact on customers’ median dwell time in gas stations with convenience stores. One possible explanation is that because people spent more time charging their EVs than refueling with gas, they tended to shop more at the convenience stores in those gas stations.

Monetary impacts of EVCS on local businesses

To quantify the financial implications of EVCS openings on local businesses, we have converted our estimated effects into customer numbers and monetary values in US dollars (see Methods for details).

The estimated average treatment effect of adding one EVCS to a single surrounding POI is ~17 additional customers and a spending increase of $ 1478 in 2019, and 5 additional customers and a spending increase of $ 404 per year between January 2021 and June 2023. These figures are calculated by multiplying the average pre-treatment customer count and spending across treated POIs by their estimated percentage change resulting from EVCS installation.

When we assess the average treatment effect of adding one EVCS across all surrounding POIs annually, the cumulative impact is substantial. In 2019, this cumulative impact amounts to ~$ 22,813, which is about 8.2% of the cost of infrastructure and installation for a 50kW DC fast charging station. In 2021–2023, as overall spending decreased after the COVID-19 pandemic and EVCS installations proliferated, this spending gain decreased to ~$ 3412 per year. Nevertheless, it still accounts for around 11.2% of the average infrastructure and installation cost of a Level 2 charging station (see Supplementary Note  8 for rough average EVCS cost estimates). When considering all EVCS installations in California during the study period, the total gain in customer spending due to all EVCS installed amounts to $ 6.7 million in 2019 and $19.5 million between January 2021 and June 2023. Detailed methods for calculating the monetary impacts are provided in the Methods section.

Operating charging infrastructure today presents considerable profitability challenges, and the societal impacts of EVCS are not yet fully understood. While government bodies and researchers have emphasized the potential benefits of EVCS in attracting customers and enhancing local consumption, a comprehensive, data-driven examination of the direct consequences of EVCS installations on local businesses has been notably absent. It is vital, therefore, to systematically discern and measure the influence of EVCS on customer visitation and expenditure at proximate POIs. This inquiry extends beyond mere convenience for existing customers who happen to be EV users; it seeks to determine whether the installation of EVCS attracts a broader customer base and contributes to increased spending at local establishments. Addressing this question holds broader importance—it not only elucidates the influence of EVCS as a burgeoning transportation infrastructure on the economic vitality of local businesses but also imparts invaluable insights into the economic and operational models that underpin EVCS installations. Through this research, we bridge the gap between theoretical considerations and practical implications concerning the impact of EVCS on local economies, ultimately contributing to the advancement of sustainable transportation and urban planning.

Our results demonstrate that the effects of adding one additional charging port on customer count and spending in the vicinity of POIs consistently exhibit significance in both 2019 and 2021–2023. When translated into the average effect of EVCS, we observe that a POI with a newly-opened EVCS situated within 500 m experiences a 1.4% or $1478 per year increase in 2019 and a 0.8% or $404 per year increase in 2021–2023 in terms of customer spending. In particular, when the EVCS is positioned within 100 m, the marginal effect on spending exhibits even greater magnitude, standing at 2.7% in 2019 and rising to 3.2% in 2021–2023. While these monetary increments may appear modest at first glance, the cumulative impact of adding one EVCS becomes substantial when considering all proximate POIs: the introduction of a newly-opened EVCS leads to an average yearly total gain of $ 22,813 in customer spending in 2019 and $ 3412 in customer spending in 2021–2023. Taking into account all newly-opened EVCS in California during these periods, the benefits become pronounced, with the total gain in customer spending attributed to all EVCS installed amounting to $ 6.7 million in 2019 and $ 19.5 million between January 2021 and June 2023. Our findings provide compelling evidence that the positive impact of EVCS on local spending can partially offset the upfront infrastructure and installation costs that have historically posed a large hurdle to EVCS deployment. Moreover, the substantially greater benefit of EVCS on spending across all proximate POIs, in comparison to that of a single POI, highlights the advantages of multi-host EVCS installations, where several nearby hosts collaborate to site EVCS together, sharing both the costs and benefits.

Our analysis also demonstrates that the positive impacts of EVCS on businesses are not confined solely to high-income neighborhoods, where consumer purchasing power may already be relatively robust. Notably, EVCS can also significantly stimulate consumer spending in underprivileged areas. This discovery underscores the importance of policymakers actively endorsing the deployment of EVCS in marginalized areas. Not only do these EVCS installations offer immediate, first-order benefits like advancing sustainable mobility and fostering a cleaner environment, but they also hold the potential to serve as catalysts for enhancing the economic vitality of businesses operating in underprivileged areas.

While DC fast chargers played a more prominent role in inducing local spending in 2019, possibly due to the unique consumption patterns of early EV adopters, by 2021–2023, Level 2 chargers assumed a more substantial role as EVs and EVCS became more pervasive. This outcome underscores the potential influence of several factors associated with Level 2 chargers, including their affordability, broader accessibility within urban areas, and longer charging times. While federal IIJA funding and National Electric Vehicle Infrastructure (NEVI) programs primarily focus on building a national network of electric vehicle chargers along major highways to support long-distance trips 5 , our results illuminate the growing importance of Level 2 chargers. These chargers provide convenient, low-cost charging options that can flexibly meet a wide range of daily needs, thereby holding the potential to invigorate local economies. The relatively lower cost of Level 2 chargers is also advantageous for EV charger providers, as they are often more financially feasible. Regarding DC fast chargers, no significant effect on local spending was found during 2021–2023. Future research should monitor the variability of their impact over time.

Across varying income strata, our study revealed a notable disparity: in the period of 2021–2023, the installation of EVCS resulted in a greater percentage increase in customer counts at local businesses among higher income brackets compared to lower income segments. This trend may be attributed to the prevailing tendency for EVs to be favored by individuals in higher income brackets 23 , 30 , 31 . However, it is plausible that this income-based variation in the effect of EVCS on customer counts will subside as the EV adopters diversify in the future.

This study contributes to the research on the business models of EV charger providers by highlighting the importance of integrating the benefits of EVCS on local businesses into the EVCS model. Furthermore, it aligns with previous literature that has explored the externalities of EVCS on various aspects such as EV adoption, air pollution, and housing prices—here, we demonstrate its positive externality on local businesses. Additionally, our research enriches the literature on the impacts of traditional transportation infrastructure on local businesses by illustrating the positive effects of EVCS as an emerging transportation infrastructure.

In practical terms, our research underscores the potential for policymakers to harness EVCS as a means to invigorate local economies, particularly in underprivileged regions. Furthermore, our findings suggest that EVCS providers can capitalize on the economic stimulus generated by these stations and develop a business model akin to the “gas station—convenience store” chain paradigm. Traditionally, many gas stations are affiliated with retail store chains, enabling owners to manage both fuel pumps and attached convenience stores, offering a diverse array of products beyond gasoline. These ancillary offerings often yield substantial profit margins 32 . By adopting a similar approach, EV chargers could strategically integrate with local businesses, thereby internalizing the positive impact of EVCS on the surrounding businesses.

This study also lays the foundation for future research endeavors. Firstly, while we made diligent efforts to mitigate endogeneity concerns by incorporating fixed effects, employing propensity score matching to identify the best matches with treated POIs, and conducting event analysis, the possibility remains that certain contemporaneous changes affecting the treated and control groups differently might have eluded detection. Subsequent investigations could explore alternative identification techniques, such as instrumental variables, to further scrutinize and validate our findings. Secondly, this study explores the net effect of EVCS on local spending, but further examination is needed to investigate the underlying causes of this effect on spending. Potential reasons could include EV drivers needing to charge and therefore visiting the POI, or visiting the POI regardless but staying for longer periods for their vehicles to charge. Finally, the second phase of our analysis covered the period from January 2021 to June 2023, a time when the impact of EVCS installations on local businesses may have been uniquely shaped by the COVID-19 pandemic. Hence, further research is crucial to assess the effects of EVCS installations on local businesses in the post-pandemic era.

We collected data about EVCS from the United States Department of Energy’s Alternative Fuels Data Center (AFDC) 33 . This dataset provides a repository of comprehensive information regarding EVCS across the United States, including various attributes such as geographical coordinates (longitude and latitude), installation dates, the count of ports for each type of EV charger (Level 1, Level 2, or DC fast chargers), and accessibility status (public or private). This dataset is currently the most comprehensive publicly available database for EVCS in the United States. However, it does have limitations, as some EVCS may not be updated in real-time within the dataset. For the scope of our analysis, we focus exclusively on public EVCS.

In this research, we exclusively consider EVCS that were opened either in 2019 or between February 2021 and June 2023. Several factors inform this choice: Firstly, data on customer visits and spending at POIs in California were only available starting from January 2019. Therefore, conducting an analysis prior to 2019 is not feasible. Secondly, the disruptive impact of the COVID-19 outbreak in 2020 markedly affected the economy and businesses. Consequently, it is impractical to analyze the effect of EVCS on spending during that year. Lastly, there were anomalous surges in EV charging port counts due to the integration of data from EV charger providers into the data center in 2020 and January 2021, as illustrated in Fig.  S3 . These surges resulted in inaccuracies in the opening dates of EVCS during these periods. To mitigate the influence of this data management issue, we restrict our analysis to EVCS that were opened in 2019 or after January 2021 (i.e., from February 2021 to June 2023), allowing us to investigate how these EVCS impact local businesses while minimizing data inconsistencies.

While a considerable portion of our second study period coincides with the pandemic, we maintain that the pandemic has minimal impact on the validity of our identification strategy for the following reasons: firstly, vehicle movement in California has largely resumed since February 2021. In February 2021, vehicle miles traveled in California had returned to 95% of the levels observed in February 2019 34 . Secondly, the California stay-at-home order was lifted in January 2021, facilitating the resumption of gatherings and allowing outdoor operations for various businesses such as restaurants, hair salons, and nail salons 35 . Additionally, the vaccine rollout began in February 2021, with vaccination rates steadily increasing, particularly during the initial months. This rollout should have considerably alleviated COVID-related constraints on people’s activities 36 . Furthermore, the inclusion of county-by-month fixed effects in our models should have accounted for any county-level time-varying factors that could influence spending in POIs, such as fluctuations in COVID-19 infections at the county level.

Information on POIs was sourced from Safegraph’s Places data, offering location data and extensive attributions for each POI. This dataset includes details like geographical coordinates, POI categories, and the opening or closing dates of these establishments 37 . For our analysis, we exclusively considered POIs falling within the following three categories: (1) accommodation and food services; (2) retail trade; and (3) arts, entertainment, and recreation.

Monthly customer counts and spending data at these POIs were obtained from Safegraph’s Spending data, derived from anonymized debit and credit card transactions 38 . Customer count represents the number of unique customers with at least one transaction at each POI in each month, while spending denotes the total amount spent at each POI across transactions during the same period. It’s important to note that cash transactions are not captured by the dataset, which presents a limitation of the data. Additionally, the Spend dataset provides insights into customer income distribution. Specifically, each customer in the dataset is classified into an income class using a proprietary model based on his or her transactions and spending data 39 . We utilize this data to assess the impact of EVCS installation on customer spending across various income groups.

Customer metrics, including median distance from home and median dwell time at the POIs, were acquired from Advan’s Pattern data and integrated with SafeGraph’s Places data. This dataset originates from advanced multi-parameter models employed by Advan to analyze mobile phone location data 40 .

Socio-demographic data at the census tract level, including population statistics, median household income, employed population, gender distribution, and ethnic composition, were derived from the American Community Survey (ACS). The locations of underprivileged communities (i.e. disadvantaged and/or low-income communities designated by both California and Justice40) come from California Energy Commission 41 . Data on EV sales at the county level was also obtained from the California Energy Commission 42 . Auto-oriented road miles per square mile and auto-oriented intersections per square mile at the block group level were sourced from EPA’s Smart Location Database 43 . National Walkability Index score, which is a measure of walkability score at the block group level, was obtained from the same database 43 . The building footprint data were obtained from OpenStreetMap 44 .

For POI-related data, our analysis includes data from 2019 and the period between January 2021 and June 2023. It’s worth noting that while the EVCS data for the latter period begins in February 2021, we have specifically included POI data in January 2021, treating it as a baseline period for the subsequent periods when EVCS openings potentially took place.

Data processing utilized Python version 3.7.4 and R version 3.6.3, while modeling was performed using R version 3.6.3.

Identification strategies

The siting of EVCS is not random; it is influenced by regional factors like population, income levels, and road density, as noted in previous research 45 , 46 , 47 . Consequently, certain areas may exhibit a higher likelihood of hosting EVCS while simultaneously experiencing increased customer visits and spending. This raises concerns about self-selection bias and omitted variable bias when attempting to identify the causal effects of EVCS installations on local businesses 46 .

To mitigate this issue, we employ a combination of three distinct approaches: First, we use propensity score matching (PSM), incorporating exact matching and nearest-neighbor matching strategies, to select control POIs closely resembling the treatment POIs. This method creates balanced comparison groups, enhancing the validity of our causal inferences. Second, we implement DID specifications that incorporate individual POI fixed effects and county-by-month fixed effects. This comprehensive approach not only accommodates the distinctive attributes of each POI but also captures dynamic factors influencing spending within the same county over time, such as economic fluctuations during the progression of the COVID-19 pandemic. Third, we employ event study analysis to assess preexisting differences in trends between the treatment and control groups. This analysis helps us examine and quantify any disparities in trends prior to the installation of EVCS. Detailed explanations of these strategies will be provided in subsequent sections.

Propensity score matching (PSM)

In this analysis, the treated and control POIs were defined separately for the periods of 2019 and 2021–2023. For each of these two time periods, treated POIs were identified as those situated within a 500 m radius of EVCS that were opened during that specific period. Conversely, untreated POIs were designated as those located outside the 500 m radius of any EVCS that were opened during the same period. When estimating treatment effects for underprivileged communities, we add an additional requirement: both treated and untreated POIs should be located within underprivileged communities.

Prior to undertaking the formal DID analysis, we carefully select control POIs from the untreated POIs using PSM with a two-step approach: First, we initiate an exact match based on POI categories to ensure that each treated POI is paired with a control POI from the same category, thereby enhancing comparability. Subsequently, we employ nearest-neighbor PSM to match treated POIs with control POIs that share similar characteristics. These characteristics include: (1) Built environment factors: We consider population density, building density, auto-oriented road miles per square mile, auto-oriented intersections per square mile, and walkability index. These factors are chosen because EVCS tend to be installed in areas with dense populations and buildings; auto-oriented road and intersection density indicate car accessibility 47 , and walkability reflects the ease of reaching a nearby POI from a charging station; (2) Socio-demographic variables: We incorporate median household income, percentage of employed population, gender distribution, and race composition. These variables are likely to influence EV ownership and charging demand 23 , 47 ; (3) EV sales per 1000 people: This metric directly impacts current and future charging demand, thereby influencing the likelihood of EVCS installation in a given location. (4) POI-level variables: The average customer count and spending when EVCS were not yet adopted during the corresponding study period are included as covariates. This is because EVCS installations may prefer areas with high foot traffic and consumer activity.

To explore the relationships between these covariates and the treatment, we employ logistic regression, regressing the treatment variable on these covariates. Our model demonstrates strong performance, with high accuracy scores (0.946 for the 2019 analysis and 0.796 for the 2021–2023 analysis). The results of this regression analysis are detailed in Supplementary Table  S3 .

Following the matching process, we assess the covariate balance between the treatment and control groups through graphical representation. Supplementary Fig.  S3 (for 2019 data) and S4 (for 2021–2023 data) depict these graphs, illustrating the achievement of a balanced covariate distribution between the treated and untreated groups. Notably, the difference between the probabilities of the POIs being treated in the treatment and control groups approaches zero, affirming the effectiveness of our matching strategy in establishing comparable groups for subsequent analysis.

Difference-in-differences (DID)

Following the selection of control POIs using PSM, we incorporate the matched control POIs alongside the treated POIs and proceed with the DID analysis. The model specification is defined as follows:

In this equation, \(\ln ({Y}_{it})\) represents the natural logarithm of the outcome variable, which can be either the number of customers or the spending amount at POI i during time t . To avoid errors when taking the logarithm of zero, we add a value of one to Y i t before computing the logarithm. α represents the intercept. β represents the treatment effect, quantifying the marginal impact of adding a new charging port at an EVCS on the number of customers or the spending amount at the respective POI. D i t is a binary treatment indicator that takes on the value of 1 if an EVCS was opened between the start of the study period (January 2019 or February 2021, depending on the analysis period) and time t and is located within 500 m of POI i . P C i t represents the total count of charging ports that became operational between the start of the study period and time t and are within a 500 m radius of POI i . u i denotes the POI fixed effects. ϕ c  ×  ω t represents the county-by-month fixed effects. ϵ i t represents the error term.

The treatment effect is represented by β , as it quantifies the marginal impact of adding a new charging port at an EVCS on the number of customers or the spending amount at the respective POI.

Distance-varying treatment effect

In addition to exploring the average treatment effect, we explore the treatment effect’s fluctuations concerning the distance between POI and their adjacent EVCSs. To numerically characterize this dynamic effect influenced by distance, we present the model formulation as follows:

where D i s i d t is a binary dummy variable that takes the value of 1 if an EVCS was opened between the start of the study period (January 2019 or February 2021, depending on the analysis period) and time t and is located within distance bin d of POI i . We have utilized five distance bins spanning from 0 to 500 m, with 100 m increments. P C i d t denotes the total count of charging ports that became operational between the start of the study period and time t that fall within distance bin d of POI i . Therefore, β d represents the treatment effect specific to that particular distance bin d .

Event study analysis

To evaluate the validity of the parallel trend assumption between POI equipped with nearby EVCSs and those without, and to explore the temporal changes in the treatment effect, we employ an event study analysis. The presence of a parallel trend implies that in the absence of treatment, the difference between the “treatment” and “control” groups is constant over time, thereby bolstering the credibility of our difference-in-differences analysis. The formulation of the event study model is presented as follows:

where D i ( t + j ) indicates whether the treatment got switched on at time t  +  j for POI i . q and m represent the number of leads and lags. A P C i represents the monthly average number of ports during the treatment period for a treated POI. Specifically, it is calculated as \(AP{C}_{i}=\mathop{\sum }_{t=1}^{q}P{C}_{it}/q\) , where q is the number of treated months for POI i . u i and ϕ c  ×  ω t represents the POI fixed effects and county-by-month fixed effects. This event study specification thus examines how the treatment effect per charging port varies depending on the timing of the treatment.

Treatment effects by EV charger types and POI types

When estimating the treatment effects stratified by both EV charger type and POI types, we employ the following model specification to distinguish between the treatment effects of Level 2 chargers and DC fast chargers:

Here, \(P{C}_{it}^{level2}\) and \(P{C}_{it}^{dc}\) represent the number of charger ports for Level 2 and DC fast chargers, respectively. β 1 and β 2 thus capture the treatment effects associated with Level 2 chargers and DC fast chargers. When examining the effects for each POI type (including restaurants, grocery/clothing stores, hotels, and gas stations with convenience stores), we subset the sample, including only treated POIs from that specific POI type, along with their paired control POIs.

Treatment effects on populations from different income groups

When estimating the treatment effects on populations from different income groups, we employ the following model specification:

Here, \({Y}_{it}^{g}\) represents spending for income group g at POI i during time t , where g can take on one of seven possibilities: >$ 150 k, $ 100 k–150 k, $ 75–100 k, $ 60–75 k, $ 45–60 k, $ 25–45 k, and <$ 25 k. Data on \({Y}_{it}^{g}\) is sourced from SafeGraph’s Spending data. The estimated β g values for each income group g are visualized in Fig.  3 .

We also explore the treatment effects of adding one EV charger port on several other variables, including customers’ median distance from home, customers’ median dwell time, and average customer income. The data for customers’ median distance from home and median dwell time are directly obtained from SafeGraph’s Spending data. The average customer income is calculated based on customers’ income groups, assuming that each customer within a group has the average income of that income bracket.

Monetary impacts of EVCS

The treatment effect of adding one EVCS to a single surrounding POI per year, measured in US dollars ( M ), is calculated as follows: \(M={\hat{\beta }}_{s} * a * S * 12\) . Here, \({\hat{\beta }}_{s}\) represents the estimated marginal effect of adding one charging port on the monthly spending of a single surrounding POI from Equation ( 1 ), a is the average number of charging ports per charging station, which is calculated as the average number of ports at the same location in the AFDC dataset, and S denotes the average pre-treatment monthly spending across treated POIs. Similarly, the impact of adding one EVCS on the customer count in a single surrounding POI per year ( F ) is calculated as \(F={\hat{\beta }}_{c} * a * C * 12\) . Here, \({\hat{\beta }}_{c}\) indicates the estimated marginal effect of adding one charging port on monthly customer count of a single surrounding POI from Equation ( 1 ), C denotes the average pre-treatment monthly customer count across treated POIs, and a is the average number of charging ports per charging station.

The treatment effect of adding one EVCS on yearly spending in all surrounding POIs, denoted by M a l l , is determined by: M a l l  =  M   \(*\)   p , where p represents the average number of POIs within 500 m of an EVCS during the study period. In 2019, this average was 15, while in 2021–2023, it was 8. This average is calculated by dividing the total number of treated POIs by the total number of EVCSs installed during the study period.

To calculate the total gains in spending due to all EVCSs installed during the study periods, the formula used is \(\mathop{\sum }_{i}^{N}\mathop{\sum }_{t}^{T}{\hat{\beta }}_{s}\,*\,{S}_{i}\,*\,{k}_{it}\) , where S i represents the pre-treatment spending for treated POI i , k i t represents the number of charging port open at time t for i , N denotes the total number of treated POIs in the respective study period, and T denotes the total number of months during the study period.

Reporting summary

Further information on research design is available in the  Nature Portfolio Reporting Summary linked to this article.

Data availability

The POI-related data used in this study are not publicly available but can be requested from Dewey ( https://www.deweydata.io/ ). Data access is granted through a subscription, which can be obtained at https://www.deweydata.io/subscribe . The EVCS data are available from the United States Department of Energy’s Alternative Fuels Data Center ( https://afdc.energy.gov/fuels/electricity_locations.html#/find/nearest?fuel=ELEC ). All other data have been sourced from publicly available channels, and the specific sources for each variable are detailed in the Data section within the Methods.

Code availability

The code used for conducting the analysis is accessible on GitHub at https://github.com/zhengyunhan/EVCS_economic_vitality 48 .

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Liang, J., Qiu, Y., Liu, P., He, P. & Mauzerall, D. L. Effects of expanding electric vehicle charging stations in California on the housing market, Nat. Sustain. 6 , 549–558 (2023).

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Acknowledgements

This research is supported by the National Research Foundation (NRF), Prime Minister’s Office, Singapore under its Campus for Research Excellence and Technological Enterprise (CREATE) programme. The Mens, Manus, and Machina (M3S) is an interdisciplinary research group (IRG) of the Singapore MIT Alliance for Research and Technology (SMART) centre. M.D. acknowledges the partial support from the Natural Science Foundation of Shanghai (23ZR1465100) and the Fundamental Research Funds for the Central Universities of China.

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Yunhan Zheng

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Melbourne Business School, The University of Melbourne, Carlton, VIC, Australia

David R. Keith

Department of Urban and Regional Planning, University of Florida, Gainesville, FL, USA

Shenhao Wang

College of Architecture and Urban Planning, Tongji University, Shanghai, China

Department of Urban Studies and Planning, Massachusetts Institute of Technology, Cambridge, MA, USA

Jinhua Zhao

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Y.Z. conceived and designed the research, conducted the analysis and wrote the paper. D.R.K. performed part of the analysis and edited the paper. D.R.K., S.W., M.D. and J.Z. supported the research and offered revision comments. J.Z. supervised the research. All authors discussed the results and contributed to the final manuscript.

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Zheng, Y., Keith, D.R., Wang, S. et al. Effects of electric vehicle charging stations on the economic vitality of local businesses. Nat Commun 15 , 7437 (2024). https://doi.org/10.1038/s41467-024-51554-9

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Charging Forward: The Evolution of Australia’s EV Market

The Australian Government is undertaking a national approach to increase the uptake of Electric Vehicles ( EVs ) through the National Electric Vehicle Strategy ( NEVS ) to meet decarbonisation targets in Australia’s Net Zero Plan . The three key objectives of the strategy are to “increase the supply of affordable and accessible EVs, establish the resources, systems and infrastructure to enable rapid EV update and encourage increased EV demand”. 1

Earlier this year, the Albanese government introduced a New Vehicle Efficiency Standard that is expected to give consumers a greater range of fuel-efficient cars that produce low to zero emissions to choose from. To support this initiative the government has also launched the ‘ Modern, Cheaper-to-Run Cars ’ campaign to raise consumer awareness about the benefits of EVs.

Most states and territories have also developed their own strategies to increase the uptake of EVs as outlined in the table below: 2

* The information in the table is accurate as of September 2024.

Looking to the Future

Imminent changes to Australian standards on bidirectional EV charging and looming elections in the Australian Capital Territory, Queensland, Western Australia, Tasmanian, and the Commonwealth promise to initiate renewed discourse and EV policy both at the state and federal level.

The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.

1 ‘The National Electric Vehicle Strategy’, Department of Climate Change, Energy, the Environment and Water (Web page) < https://www.dcceew.gov.au/energy/transport/national-electric-vehicle-strategy >

2 Figures included are taken from the Australian Government Department of Climate Change, Energy, the Environment and Water, Annual Climate Change Statement 2023 (Report, 2023).

3 ACT Government, ACT’s Zero Emissions Vehicles Strategy 2022-30 (Report, 2021).

4 ACT Government, Zero Emissions Vehicles (Web Page) < https://www.climatechoices.act.gov.au/transport-and-travel/zero-emissions-vehicles >.

5 ACT Revenue Office, Motor Vehicle Duty (Web Page) < https://www.revenue.act.gov.au/duties/motor-vehicle-duty >; Duties Act 1999 (ACT) s 208, as amended by Taxation Administration (Amounts Payable—Motor Vehicle Duty) Determination 2024 s 6.

6 Access Canberra, Emissions-based registration (Web Page) < https://www.accesscanberra.act.gov.au/driving-transport-and-parking/registration/emissions-based-registration >.

7 Department of Planning, Industry and Environment, NSW Electric Vehicle Strategy (Report, June 2021).

8 Electric Vehicle Council, Australian Electric Vehicle Industry Recap 2023 (Report, 14 March 2024) 4.

9 NSW Climate and Energy Action, ‘New Grant Rounds Continue to Drive EV Charge in NSW’ (Media Release, 23 July 2024).

10 NSW Climate and Energy Action, Net Zero Manufacturing Initiative (Web Page) < https://www.energy.nsw.gov.au/business-and-industry/programs-grants-and-schemes/net-zero-manufacturing >.

12 Northern Territory Government, Northern Territory Electric Vehicle Strategy and Implementation Plan 2021-2026 (Report, 2021).

13 Northern Territory Government Department of Infrastructure, Planning and Logistics, ‘Electric vehicle strategy and implementation plan’ (Web Page) < https://dipl.nt.gov.au/strategies/electric-vehicle >.

15 Above n 8.

16 Queensland Government, Queensland’s Zero Emission Vehicle Strategy 2022-2023 (Report, 2022).

17 Queensland Government, ‘Queensland’s Zero Emission Vehicle Rebate Scheme closing soon’ The Queensland Cabinet and Ministerial Directory (Media Statement, 31 August 2024).

18 QLD Government, Queensland Zero Emission Vehicle Rebate Scheme (Web Page, 3 September 2024) < https://www.qrida.qld.gov.au/program/queensland-zero-emission-vehicle-rebate-scheme >.

19 Above n 17.

20 Jasmine Hines, Cristy-Lee Macqueen and Ollie Wykeham, ‘Regional Queenslanders say electric vehicles worth it for fuel savings but challenges remain’, ABC News (online, 10 June 2024) < https://www.abc.net.au/news/2024-06-10/regional-rural-queensland-electric-vehicle‑uptake/103914408?utm_campaign=abc_news_web&utm_content=link&utm_medium=content_ shared&utm_source=abc_news_web >.

21 Queensland Government, Queensland’s Zero Emission Vehicle Strategy – Action Plan (2022-2024) (Report, March 2022).

22 Department of Treasury and Finance, Tasmanian Government Motor Vehicle Allocation and Use Policy (Report, July 2024).

23 Renewables, Climate and Future Industries Tasmania, ‘Tasmania’s Energy Saver Loan Scheme’, Renewables, Climate and Future Industries Tasmania (Web Page) < https://recfit.tas.gov.au/grants_programs/energy_saver_loan_scheme >.

24 Office of the Premier of Tasmania, ‘Helping families with cost-of-living challenges’ (Media Release, 3 September 2024).

25 Renewables, Climate and Future Industries Tasmania, ‘Tasmania’s Energy Saver Loan Scheme’, Renewables, Climate and Future Industries Tasmania (Web Page) < https://recfit.tas.gov.au/what_is_recfit/climate_change/electric_vehicles/support >.

27 Victoria State Government, Zero emissions vehicles (Web Page, 6 May 2024) < https://www.energy.vic.gov.au/renewable-energy/zero-emission-vehicles >.

28 Office of the Premier of Victoria, ‘Driving Zero Emissions Vehicles’ (Media Release, 23 February 2022).

29 Department of Energy, Environment and Climate Action, ‘Electric vehicle charging locations’, Victoria State Government (Web Page, 7 May 2024) < https://www.energy.vic.gov.au/renewable-energy/zero-emission-vehicles/electric-vehicle-charging-locations >.

30 Victoria State Government, Zero Emissions Bus Trial (Web Page, 3 May 2024) < https://www.vic.gov.au/zero-emissions-bus-trial >.

31 Office of the Premier of Victoria, ‘Victoria Unveils First All-Electric Bus Depot’ (Media Release, 5 February 2024).

32 Rebecca Valenzuela, John Inekwe and Hnin Inioluwa Tun Agbaje, ‘A region-based examination of electric vehicle take-up rates in Australia’ (2023) 7(1) Victoria’s Economic Bulletin 1, 5; citing Federal Chamber of Automotive Industries, VFACTS 2023 (Report).

33 Department of Water and Environmental Regulation, State Electric Vehicle Strategy for Western Australia (Report, November 2020).

34 Western Australia, Parliamentary Debates , Legislative Council, 16 February 2023 (Hon Dr Brad Petitt) Question Without Notice No. 81, Question to the Minister for Finance, Hon Sue Ellery replying < https://parliament.wa.gov.au/parliament/pquest.nsf/viewLCPQuestByDate/33BF30465E9DBE634825895D001A8ADA?opendocument > at 4 September 2024.

35 Synergy, WA EV Network | Australia’s Longest Electric Vehicle Network (Web Page) < https://www.synergy.net.au/Our-energy/Projects/WA-EV-Network >.

Matt Baumgurtel

Adriaan van der merwe, michael kallidis, rita cammaroto, recent developments in competing land use issues in resource rich states, new energy expert insights: harvesting the sun – distributed energy resources and agrivoltaics with dr madeline taylor of macquarie university., beyond the charge: three key challenges with lithium-ion ev batteries, new energy expert insights: marine ecology and australian offshore wind farms with dr rachel przeslawski, new energy expert insights: ready for take-off – investment in australian sustainable aviation fuel with john sheehy and rodrigo arias lopez – pottinger, the future of ev charging infrastructure in australia, fuelling the future: australia’s path to net zero transportation, rocking renewable energy: the critical minerals production tax incentive, partner, head of energy.

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Study: EV charging stations boost spending at nearby businesses

Charging stations for electric vehicles are essential for cleaning up the transportation sector. A new study by MIT researchers suggests they’re good for business, too.

The study found that, in California, opening a charging station boosted annual spending at each nearby business by an average of about $1,500 in 2019 and about $400 between January 2021 and June 2023. The spending bump amounts to thousands of extra dollars annually for nearby businesses, with the increase particularly pronounced for businesses in underresourced areas.

The study’s authors hope the research paints a more holistic picture of the benefits of EV charging stations, beyond environmental factors.

“These increases are equal to a significant chunk of the cost of installing an EV charger, and I hope this study sheds light on these economic benefits,” says lead author Yunhan Zheng MCP ’21, SM ’21, PhD ’24, a postdoc at the Singapore-MIT Alliance for Research and Technology (SMART). “The findings could also diversify the income stream for charger providers and site hosts, and lead to more informed business models for EV charging stations.”

Zheng’s co-authors on the paper, which was published today in Nature Communications , are David Keith, a senior lecturer at the MIT Sloan School of Management; Jinhua Zhao, an MIT professor of cities and transportation; and alumni Shenhao Wang MCP ’17, SM ’17, PhD ’20 and Mi Diao MCP ’06, PhD ’10.

Understanding the EV effect

Increasing the number of electric vehicle charging stations is seen as a key prerequisite for the transition to a cleaner, electrified transportation sector. As such, the 2021 U.S. Infrastructure Investment and Jobs Act committed $7.5 billion to build a national network of public electric vehicle chargers across the U.S.

But a large amount of private investment will also be needed to make charging stations ubiquitous.

“The U.S. is investing a lot in EV chargers and really encouraging EV adoption, but many EV charging providers can’t make enough money at this stage, and getting to profitability is a major challenge,” Zheng says.

EV advocates have long argued that the presence of charging stations brings economic benefits to surrounding communities, but Zheng says previous studies on their impact relied on surveys or were small-scale. Her team of collaborators wanted to make advocates’ claims more empirical.

For their study, the researchers collected data from over 4,000 charging stations in California and 140,000 businesses, relying on anonymized credit and debit card transactions to measure changes in consumer spending. The researchers used data from 2019 through June of 2023, skipping the year 2020 to minimize the impact of the pandemic.

To judge whether charging stations caused customer spending increases, the researchers compared data from businesses within 500 meters of new charging stations before and after their installation. They also analyzed transactions from similar businesses in the same time frame that weren’t near charging stations.

Supercharging nearby businesses

The researchers found that installing a charging station boosted annual spending at nearby establishments by an average of 1.4 percent in 2019 and 0.8 percent from January 2021 to June 2023.

While that might sound like a small amount per business, it amounts to thousands of dollars in overall consumer spending increases. Specifically, those percentages translate to almost $23,000 in cumulative spending increases in 2019 and about $3,400 per year from 2021 through June 2023.

Zheng says the decline in spending increases over the two time periods might be due to a saturation of EV chargers, leading to lower utilization, as well as an overall decrease in spending per business after the Covid-19 pandemic and a reduced number of businesses served by each EV charging station in the second period. Despite this decline, the annual impact of a charging station on all its surrounding businesses would still cover approximately 11.2 percent of the average infrastructure and installation cost of a standard charging station.

Through both time frames, the spending increases were highest for businesses within about a football field’s distance from the new stations. They were also significant for businesses in disadvantaged and low-income areas, as designated by California and the Justice40 Initiative.

“The positive impacts of EV charging stations on businesses are not constrained solely to some high-income neighborhoods,” Wang says. “It highlights the importance for policymakers to develop EV charging stations in marginalized areas, because they not only foster a cleaner environment, but also serve as a catalyst for enhancing economic vitality.”

Zheng believes the findings hold a lesson for charging station developers seeking to improve the profitability of their projects.

“The joint gas station and convenience store business model could also be adopted to EV charging stations,” Zheng says. “Traditionally, many gas stations are affiliated with retail store chains, which enables owners to both sell fuel and attract customers to diversify their revenue stream. EV charging providers could consider a similar approach to internalize the positive impact of EV charging stations.”

Zheng also says the findings could support the creation of new funding models for charging stations, such as multiple businesses sharing the costs of construction so they can all benefit from the added spending.

Those changes could accelerate the creation of charging networks, but Zheng cautions that further research is needed to understand how much the study’s findings can be extrapolated to other areas. She encourages other researchers to study the economic effects of charging stations and hopes future research includes states beyond California and even other countries.

“A huge number of studies have focused on retail sales effects from traditional transportation infrastructure, such as rail and subway stations, bus stops, and street configurations,” Zhao says. “This research provides evidence for an important, emerging piece of transportation infrastructure and shows a consistently positive effect on local businesses, paving the way for future research in this area.”

The research was supported, in part, by the Singapore-MIT Alliance for Research and Technology (SMART) and the Singapore National Research Foundation. Diao was partially supported by the Natural Science Foundation of Shanghai and the Fundamental Research Funds for the Central Universities of China.

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Gem State Roundup

Electric vehicle charging ports added to 12 idaho locations with ev program funding, by: christina lords - september 5, 2022 4:10 am.

In this file photo, electric vehicles are displayed before a news conference with White House Climate Adviser Gina McCarthy and U.S. Secretary of Transportation Pete Buttigieg about the American Jobs Plan and to highlight electric vehicles at Union Station near Capitol Hill on April 22, 2021, in Washington, D.C. The Biden administration proposed over $170 billion in spending to boost the production of zero-emission buses and cars and increase the number of EV charging stations. (Drew Angerer/Getty Images)

Funding to add electric vehicle charging infrastructure to 12 locations in Idaho was awarded through the state’s Electric Vehicle Supply Equipment Program, according to a press release from the Office of Energy and Mineral Resources and the Idaho Department of Environmental Quality.

Money from the program, which totals $2.6 million and ended in July, will provide funding for publicly available electric vehicle charging equipment along Idaho’s major highways and freeways, creating a greater network of charging services for the public, according to the press release.

The funding will add 48 charging ports for electric vehicles around the state, and 12 of those charging ports are already operational in the cities of Lewiston, Hailey, Bonners Ferry and Coeur d’Alene.

The following entities have been selected for funding through the Electric Vehicle Supply Equipment Program:

• $73,923 awarded to Blaine County for the County Annex Building in Hailey
• $277,093 awarded to the city of Arco for the Idaho Science Center
• $77,334 awarded to the city of Bonners Ferry for its Visitor Center
• $324,960 awarded to the city of Driggs for the Driggs Community Center
• $349,696 awarded to the city of Island Park for its City Building
• $217,379 awarded to Cloninger’s in Grangeville
• $207,683 awarded to Cloninger’s in Kamiah
• $155,188 awarded to Eagle Landing’s Fuel Station 76 in Coeur d’Alene
• $155,539 awarded to the Fall River Cooperative Headquarters in Ashton
• $291,158 awarded to May’s Hardware in McCall
• $149,828 awarded to the Nez Perce Tribe for the Clearwater River Casino in Lewiston
• $79,768 awarded to the Northern Lights Headquarters in Sagle

The Office of Energy and Mineral Resources and the Idaho Department of Environmental Quality have managed the program since 2017 with funding from the Volkswagen Clean Air Act Civil Settlement .

Our stories may be republished online or in print under Creative Commons license CC BY-NC-ND 4.0. We ask that you edit only for style or to shorten, provide proper attribution and link to our website. AP and Getty images may not be republished. Please see our republishing guidelines for use of any other photos and graphics.

Christina Lords

Christina Lords is the editor-in-chief of the Idaho Capital Sun and has been a professional journalist covering local and state government since graduating from the University of Idaho in 2009. A Pocatello native, Lords is a fifth-generation Idahoan who served as a reporter at the Moscow-Pullman Daily News and the Post Register in Idaho Falls and served as assistant editor for the Idaho Press in Nampa. She also led the Idaho Statesman in Boise for two years before turning to nonprofit journalism.

Idaho Capital Sun is part of States Newsroom , the nation’s largest state-focused nonprofit news organization.

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3 EV charging business opportunities worth exploring in 2024

The future of the EV charging market is now. Unprecedented demand and favorable legislation are combining to create an open roadway in front of the EV market, and EV charging business owners should be ready to put the pedal to the metal. 

The demand for EVs is directly translating into demand for charging points to power them, and governments worldwide are directing investment into EV infrastructure while settings limits on the consumption of petroleum-based fuel. The result is an EV charging business boom, with opportunities especially in the areas of commercial, residential, and public-private partnerships. 

Here’s what you need to know about the EV charging business opportunities opening up in 2024. 

An estimated 26 million electric vehicles (EVs) travel the world’s roadways, with more joining the on-ramp every day. Consumer demand for EVs has increased 350% from 2020 to 2022, with a reported 30% of licensed drivers in the market for a new vehicle considering purchasing an EV. Approximately 1 million new EVs were registered in May of this year alone, and the International Energy Agency estimates that a total of 14 million new EVs will be sold by the end of the year. 

To put that in perspective, the Compound Annual Growth Rate (CAGR) of the entire automotive industry is expected to increase by 5.62% between 2022 and 2032, but EVs are speeding past that number with an expected CAGR during the same period of 28.2%. That means that over the next ten years, EV sales will be accelerating faster than sales of traditional vehicles by more than four times.

Legislative landscape

To accommodate all of these new EVs (and encourage the sales of more), governments are enacting EV and environmental legislation at a record pace . In the United States, the Biden administration’s National Electric Vehicle Infrastructure Formula Program (NEVI) aims to invest $5 billion over five years, and the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program will make its funds directly available to a wide array of applicants, including cities, counties, local governments, and tribes. Similar legislation in the European Union , China , and Canada are expected to boost the global charging market to around $128 billion by 2030.

As the sales of EVs increase, EV and EV-related technologies are also moving forward. The most significant technological improvements on the road ahead are in the battery space . Newer batteries could store significantly more power while also charging more quickly. 

This would reduce both the number of times an EV driver requires a charge-up and the amount of time it takes them to refuel. EV charging point owners could, of course, charge a premium for this service. 

Speaking of premiums, the current top-of-the-line EV charging point is the Level 3 charger, also known as the Tesla Supercharger or DC fast charger, operated under the North American Charging Standard (NACS) . Level 3 chargers deliver more power faster, greatly reducing the amount of time an EV driver spends at the charging station. They are also highly sought after by EV motorists, making them a demand generator unto themselves. The recent adoption of the NACS by several automakers in North America and Europe will open up these chargers to a broader range of motorists. 

Also of note, the technology powering EV charging points is continually evolving. Software providers offer data visualization and analytics tools that will allow you to maximize your investment in charging points and optimize for the number and types of users who swing by your place of business for a charge. ChargeLab, in particular, offers a white-label, hardware-agnostic solution that can scale with your charging business. If you are thinking of starting an EV charging business, contact us today .  

EV Charging business opportunities

All of the above is to say if you’re considering starting an EV charging business, now is the time. Government investment in infrastructure and the rise in sales of EV vehicles themselves mean that EV charging is going to be in even higher demand. 

The sheer scale of opportunity at hand brings to mind the boom in roadside businesses in the U.S. during the 1950s and 60s. The Interstate System was stitching its way across the country hundreds of miles at a time, and business owners flocked to the expanding Interstate in droves to welcome American motorists to the joy of cross-country travel, one motel room, fill-up, or hamburger. Today, we have a similar opportunity with EV chargers. 

As more people purchase electric vehicles, they will need more places to charge. Range anxiety is going to become as unacceptable as finding an empty pump at a gas station on the Interstate. And, just like at Interstate gas stations, people who stop at an EV charging point to juice up their EVs are going to want snacks, mementos, and air for their tires. Businesses in a position to provide all of those things (and EV charging) will reap huge dividends. 

Most EV charging businesses will fall into one of four categories:

Charging networks: Think gas station chains, but for EVs. Networks own and operate their own chargers and try to gain as much density within a region as possible to serve their customers.

Turnkey installers: These specialize in hardware and software installation, servicing businesses that have decided to install EV charging points. 

Service providers: A service provider might also install EV charging points, but they typically go above and beyond mere installation, offering service plans, financing, maintenance, and operation. 

Consultants: This is who you call if you want to install EV charging points but don’t know how many, what kind, or where. Consultants have all the answers but none of the equipment, and they generally act as go-betweens with installers or service providers.

Commercial market

Even aside from dedicated automotive businesses, EV charging business opportunities abound in the commercial market. Most commercial businesses have parking lots, and most parking lots are able to house one or more EV charging points. 

Charging points can charge EV owners a flat fee or per electrical unit, like a gas station pump. If customers are already coming to a location to spend time, why not encourage them to charge up while they shop, eat, or work?

Businesses that could benefit from EV charging points include:

• Office buildings
• Retail establishments
• Restaurants
• Gas stations
• Event venues

Owners of the above establishments can enter the EV charging business themselves by partnering with a turnkey installer or service provider or leasing space to a charging network. You can even apply for federal grants if you are a business looking to install Level 2 or Level 3 chargers. 

Residential market

Most privately owned homes are compatible with a Level 1 or Level 2 charger, and so are most apartment buildings. Property owners can capitalize on the growing EV charging market by installing one or more EV charging points at their buildings and charging a fee or including EV charging as a residential perk, like access to a swimming pool or laundry machines.  

Since most property owners are simply looking for a value add and aren’t necessarily interested in going into the business of EV charging themselves, sharp entrepreneurs in the EV charging space can tap into this trend by offering property owners a full-service plug-and-play package of installation, operation, and maintenance. 

Public-private partnerships

With more than $5 billion going to states and municipalities over the next five years to establish new EV charging points in the U.S., the market is wide open for entrepreneurs to partner with local and state governments to be the installers or service providers who install and service those charging points.

In San Antonio, Texas, for example, the city entered into a public-private partnership in 2021 to install EV charging points at public sites like libraries, parks, and parking garages. The program was considered so successful they are planning to install more. 

As demand for EV charging points grows, cities are looking for partners to help them determine demand and front some of the costs of building out EV charging infrastructure. This presents a unique opportunity for businesses willing and able to help city managers navigate the market.

Opportunities like these and more abound with the explosion in EV demand, innovation, and legislation. ChargeLab is here to help you compete in the exciting EV charging market. With a platform-agnostic, white-label charging software solution, ChargeLab empowers you to take control of your app’s UX while offering in-depth charger and pricing management tools. To learn more about how ChargLab can help you explore EV charging business opportunities, contact us today .

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