With the rise of electric vehicles (EVs), public charging stations are popping up everywhere, like bubble tea shops in trendy neighborhoods. Businesses, from shopping malls to office buildings, are racing to install charging stations to keep up with the growing number of EVs like Tesla. As of December 2023, there are over 64,000 EV charging stations nationwide in the United States alone.
Public EV charging stations provide consumers convenience and can be profitable for business opportunities. However, installing a public charging station requires careful planning and funding as it will cost a hefty price.
Costs can vary depending on the type of chargers, location, and installation complexity. This guide will explore the potential of this business, the different types of EV charging stations, the factors influencing costs, and how to get started.
How Promising Is the Public EV Charging Business?
The EV market has grown rapidly in recent years, with the government supporting the shift to electric vehicles. Many countries offer incentives for people willing to switch to EVs. Businesses recognize this potential to generate revenue through charging fees, as most public charging stations are not free.
Charging stations in public places like supermarkets could attract customers and buyers and guarantee an environmentally friendly positioning in the market.
Property owners, shopping centers, and gas stations are particularly well-placed to benefit from installing chargers. As more people switch to EVs, the need for charging infrastructure will only increase. Businesses that invest early can establish themselves in a growing market and build a long-term revenue stream.
Types of EV Charging Stations
There are three main EV charging stations, each offering different charging speeds and installation costs.
Level 1 Charger
These chargers utilize 120-volt outlets, making them the slowest options for EV charging. Level 1 chargers are primarily used for home charging and are not suitable for public charging stations.
Level 2 Charger
Level 2 chargers operate on a 240-volt system and are common in public charging stations. They offer faster charging times and are suitable for businesses, workplaces, and public parking areas.
DC Fast Chargers (Level 3 Chargers)
These chargers provide rapid charging, significantly reducing the time required to recharge an EV. They require higher power capacity and are more expensive to install, making them ideal for high-traffic locations like highways and commercial centers.
What Affects the Cost of Installing an EV Charging Station?
The cost of installing a public charging station depends on factors such as location and the type of charger you choose.
Here are the factors that you should consider if you are planning on installing an EV charging station:
- Type of Charger: DC fast chargers are more expensive to install than Level 2 chargers due to higher power requirements.
- Location and Infrastructure: Urban areas with existing electrical infrastructure typically have lower installation costs, whereas remote areas often require additional upgrades.
- Electrical Upgrades: Some locations may require transformer upgrades or additional wiring to support electric vehicle (EV) chargers, which will increase installation costs.
- Permits and Regulations: Local authorities may require permits, inspections, and compliance with building codes, all of which can impact costs.
- Networking and Software Integration: Many public chargers are connected to networks that allow users to locate and pay for charging sessions. The cost of software and connectivity should be considered.
Cost Breakdown for Different Types of Charging Stations
If you plan to install a public electric vehicle (EV) charging station, you need to determine which charger will be utilized. We have a detailed breakdown of prices for each type of charging below:
Level 1 Charger
It is the cheapest charging option. The level 1 charger costs between $300 and $1,500 per unit, but installation costs are minimal because it uses standard electrical outlets.
Level 2 Charger
The installation costs of Level 2 chargers range from $500 to $7,000, with additional installation charges of $1,000 to $10,000, depending on the specific electrical requirements.
DC Fast Charger
The most expensive option, with equipment prices ranging from $10,000 to $50,000, while installation can range from $20,000 to $200,000, depending on the power supply needs.
Please note that the prices are rough estimations; they will depend on other equipment, such as trenching, wiring, and labor expenses. Businesses should factor in ongoing maintenance and electricity costs to estimate long-term profitability.
Additional Costs and Considerations
Beyond the installation fee, there are several factors to consider before deciding to open a public EV charging station. Here are some additional things to consider. There are several ongoing costs that businesses need to factor in to ensure long-term success. These additional expenses can significantly impact profitability and should be carefully planned for.
Electricity Costs
The cost of supplying electricity to the charging station will vary depending on the electricity rates and charging usage. In high-traffic areas, energy consumption can substantially increase monthly expenses.
Maintenance and Repairs
Like any equipment, EV charging stations require regular maintenance and servicing to ensure they continue to operate efficiently. The service will include software updates, cable replacement, and a thorough inspection to ensure the charging station meets safety standards. Pay attention to the maintenance schedule to ensure the charging station works properly and avoid costly repairs.
Networking Fees
Many public EV charging stations are connected to a network that enables payment processing, usage tracking, and real-time availability updates. These services often come with monthly or annual subscription fees, adding another layer of operational costs. Managing multiple charging units can become complex and inefficient without a reliable software system.
Networking Fees
Installing a charging station doesn’t guarantee that customers will find and use it. To attract EV drivers, businesses may need to invest in signage, digital promotions, and partnerships with navigation apps. Creating a recognizable brand presence can help differentiate a charging station from competitors and drive more traffic.
These factors should be considered when calculating the total investment required for a public EV charging business, allowing you to maximize the return.
How to Start a Public EV Charging Station Business?
Setting up a public electric vehicle (EV) charging station involves several steps that must be taken. Here are the important steps you need to take before opening up a public charging station.
Conduct Market Research
First, you must conduct market research to determine the target market and location. We recommend selecting a strategic location near a shopping mall or office complex to maximize your profits.
Find the Right Charging Type
Next, you need to select which types of charging suits the locations best. Level 2 chargers are recommended for installation in common commercial areas, such as shopping malls, as they charge the vehicle more quickly than Level 1 chargers. However, if you plan to install the EV charging station in high-traffic areas, you must install a Level 3 charger.
Do Financial Planning
Financial planning is also crucial when establishing a public electric vehicle (EV) charging station. Explore the government incentive grants and tax credits available for electric vehicle (EV) infrastructure projects. These incentives can reduce upfront costs and improve return on investment.
Get the Right API
Plan to open up public EV charging stations? To further optimize operations, businesses can leverage EV Specs API to access real-time data on EV models, charging compatibility, and specifications. This tool helps station owners ensure their chargers meet the needs of a wide range of electric vehicles, improving the user experience and increasing customer satisfaction.
Simplify the Business with EV Specs API
The Vehicle Database Electric Vehicle Specifications API is a must-use tool for anyone looking to open a public EV charging station business. It provides reliable access to information on battery capacities, charging speeds, and charger compatibility to optimize the charging station.
What's Included on the EV Specs API?
Our EV specs API provides you with all the detailed information you need to make an informed decision before opening an electric vehicle (EV) charging station.
General Information
Provides basic information about the vehicle’s year of manufacture, brand, model, and trim level.
Battery and Charging
Shows how far the electric battery can go, the battery size in kWh, and how long it takes to charge with 240V or fast charging.
Wheels and Tires
Indicates the type and size of the rear tires and wheels, which impact the car’s appearance and handling.
Powertrain
This section explains the type of electric powertrain the vehicle uses, including motor design, layout, and how power is delivered to the wheels.
Features
Covers important information about the car’s mechanical systems, exterior design, interior comfort, and technology features like audio and navigation systems.
Fuel
Shows how much fuel the car needs to run and explains how efficient it is by giving fuel economy ratings for different driving conditions.
Dimensions and Capacity
Provides the size of the vehicle, including its length, width, and height, as well as the number of doors and seats it has.
Suspension and Handling
Get better deals and bids by using our API to learn more about the car’s suspension and how it handles.
Performance and Transmission
Describes the engine’s type, horsepower, and torque. It also details the drive system, gearbox, and whether the car is capable of going off-road.
Integrating advanced data solutions helps businesses attract electric vehicle (EV) users, streamline operations, and ensure a seamless charging experience, making their stations a driver’s go-to choice.
Final Thought
Installing a public EV charging station requires strategic planning and thought to sustain the business, stand out among other charging station providers, and maximize ROI. Don’t let the opportunity blind you.
Frequently Asked Questions
What is the ROI of an EV charging station?
Ampcontrol’s analysis shows an approximate 7.14% Return on Investment (ROI) for EV charging stations, calculated using the formula: (Revenue – Cost) / Cost * 100. In this example, with $750,000 revenue and $700,000 cost, the ROI is $50,000/$700,000, which equals 7.14%
How do public EV stations generate revenue?
According to EV Connect, charging users is key to the profitability of EV charging stations. Where charging demand is high, customers are prepared to pay for the convenience of on-the-go recharging.
What is the lifespan of EV charging stations?
Expect 10-15 years of use from wall-mounted and Level 1 electric vehicle (EV) chargers. In contrast, Level 2 and 3 chargers are designed for a longer operational period, exceeding two decades. Furthermore, a standard EV charging cable can handle over 10,000 charges, translating to approximately 27 years of daily use.
