How to make money with EV charging stations
Getting EV charging now is about more than simply preparing your business for this transition in transportation—also it's a clear way to draw more customers and increase profits. Here are a few instances of how adding public EV charging to your existing company may improve profitability and even generate money on its own.
How to use EV charging to increase consumer spending
Businesses must think of innovative methods to attract consumers while also increasing the value of each transaction in today's competitive environment. One of the simplest ways to do so is to convert your place into an EV charging station.
Increase the amount of time clients spend at your business.
There is an apparent cross-selling potential for add-on products and services after EV drivers cease charging. EV drivers will spend more time at your site if you add charging stations, whether it's a rideshare driver recharging during a lunch break or a little league coach topping off his battery while grabbing food for the squad.
EVs can take anywhere from 20 minutes to six hours to charge, depending on the type of charger you use (depending on battery size). A rapid (DC) charging system is an excellent alternative for businesses, restaurants, and petrol stations, charging even the largest EV batteries to full capacity in under one hour. However, because most EVs arriving at your site aren't wanting to charge from 0% to 100%, a typical Level 2 (AC) charging solution would suffice for most drivers, allowing them to add 25 miles of range every hour. A combination of AC and DC charging outlets is often the best option.
In any case, providing your consumers with a pleasant charging experience encourages them to spend time and money while they wait.
Attract more valued clients by attracting loyal ones.
EV drivers are more than twice as rich as the typical American, according to a research, with a median family income of more than $150,000. Your EV-driving consumers will spend more time at your site and purchase higher-end goods and services since they have more discretionary cash than gas-car drivers. Furthermore, once these drivers learn that your company provides this vital service, they are likely to become loyal, repeat clients.
Despite the fact that around half of Americans are not confident in their ability to find EV charging when they need it, 40% say they are considering an EV as their next vehicle. By securing your site as one of the businesses that offers this service immediately, you may convert your business into a popular EV charging hotspot.
Improve your public image right away.
EV charging stations also help your company get noticed—literally. Interactive maps on popular navigation services like Google Maps or Waze, as well as specialist charging apps like PlugShare, allow drivers to find local public charging stations. You may increase your brand's visibility on these platforms and attract new consumers by placing charging stations on your premises.
Plus, by displaying your brand colors or logo on customized charging stations, you may substantially boost your business image by demonstrating to everyone who sees them that your company is openly dedicated to a more sustainable future.
How to generate consistent revenue from EV charging
Attracting new customers, earning brand loyalty, and increasing time (and money) spent at your location are all excellent examples of how EV charging can drive profitability. But the most obvious way EV charging can boost profits is the revenue earned from the stations themselves. Depending on the business model you choose, you can generate additional income by setting charging fees, and your customers will be more than happy to pay them.
Pricing for charging stations may be structured in a number different ways, depending on what you want to gain out of your arrangement. You may also experiment with new techniques at any moment. Making changes to your charging arrangement is as simple as adjusting a few parameters after you get an overview of your stations' pricing and energy use via your charging management software.
Charge fees to your clients and visitors to make money.
The first thing you'll need to figure out is how you'll bill for charging before you can start generating money from your charging stations. You may establish your own charging costs and change them at any moment as the owner of the charging station. A set session start or connection cost, as well as a variable rate for the energy utilized, may be included.
One common practice is to charge by the amount of energy being used (i.e., $0.10/kWh). You also have the freedom to define your own mark-up (i.e., $0.35/kWh). So, if a car pulls up and needs to charge 25 kWh, that’d be:
25 kWh x $0.45/kWh = $11.25.
If you’d rather set a fee based on time, you can implement a flat hourly rate (i.e., $2.25/hour). So, if the station is charging at 7.4 kW, and the car needs 25 kWh to recharge:
25 kWh / 7.4kW = ~3.5 hours.
From there, just multiply the time plugged in by your hourly rate to get the estimated revenue:
~3.5 hours x $2.25/hour = ~$7.85 total.
Some sites mix the two methods of payment. $0.45/kWh + $0.30/hour, for example. This allows them to lower their hourly pricing while also guaranteeing that customers do not "camp out" at a location after their car is completely charged.
It's vital to remember that based on the sort of charging your stations provide, customers anticipate varied energy pricing. Commercial AC charging is often less expensive, and depending on the type, can take anywhere from four to six hours to completely charge a car. Fast charging allows drivers to spend less time plugged in, therefore DC charging fees are normally higher (usually between 15 minutes to an hour).
The amount of money you may make is also determined by the sort of site you have and how often your stations are used. Guests at hotels, for example, usually park for eight to twelve hours overnight while sleeping. AC charging stations would be an excellent investment in this situation.
Customers typically park for 15-30 minutes at rest stops or gas stations while getting a snack or coffee. In this case, DC fast-charging stations with a rapid enough turnaround time would be acceptable, allowing all of your clients to charge quickly and get back on the road. Below is a list of some more typical circumstances, along with their expected revenue.
You can also make individual agreements with your customers about their charging rates. For example, you could use a blanket strategy where everyone pays the same rate or a stratified approach where some guests pay less than others (i.e., discounted EV charging for rewards members).
From cross-selling opportunities to generating its own revenue, EV charging is a great way to bring in some new business—and it’s only going to get bigger.
Source: EVBox