There are an estimated 16 million electric vehicles on the road globally.
EVs are on the rise, with many people choosing them over traditional cars. Embracing this technology can help in various ways – some of which many people don’t think of. You can improve your commercial property’s ROI with an EV charging station.
Your property’s ROI depends largely on how the property is designed and whether it fits the needs of those using it. An EV charging station can take your investment property to the next level – but how? Keep reading to find out.
How an EV Charging Station Can Increase Your Profits
Almost any time you make an investment in something for a commercial property, you will be considering what sort of ROI (return on investment) it will have. For an electric vehicle charging station, there is a simple way to generate income that many property managers benefit from.
You can add a small margin that charges customers slightly more than what you pay to your electricity provider. Over time, this will recoup what you spent on the system and start generating a profit.
If you were to charge an additional $3 per hour, for example, and a device gets 10 hours of use a day, that would give you an additional $30 per day. If people make use of it for 300 days a year, that would be $9,000 per charging station annually. These are example numbers, so the amount you actually generate will likely vary.
You may also be able to make a larger profit if your property makes use of renewable energy sources. Lower utility bills will increase your profit margin while helping reduce your carbon footprint.
It’s important to remember that predicting how much profit you stand to make can be very difficult. Once your EV charging station is up and running, you will be able to get a much better idea of what your ROI will be in the long run.
Does Your Business Need to Make a Profit on EV Chargers?
It may be surprising, but you can still benefit from an EV charging station even if you do not directly make a profit from it. It can be seen as a way to provide a better experience for your clients/customers, which will improve their opinion of your brand.
You may also attract new people to your building. Anyone who owns an electric vehicle knows that charging stations are not everywhere. If you provide them with one – especially a cost-effective one – it’s likely to garner a lot of interest.
Benefits of Investing in an EV Charger
The ROI will probably be your main concern when installing an EV charging station. You will likely be able to make a profit, but there are also several other benefits that you might notice.
Standing Out From the Competition
Electric vehicles are quickly becoming more popular, but they are still relatively new. Most commercial buildings do not have EV charging stations, so those that do have a competitive edge. People who drive electronic vehicles will choose to park at your building instead of others.
Increased Property Value
Like many other upgrades, an EV charging station can increase the value of your commercial building. If you decide to sell in the future, you will be able to get more for the property. As a fairly uncommon upgrade, most other buildings in the area probably will not have the same facilities, so it can also help you sell a lot quicker.
Better for the Environment
One of the main reasons for the development of electronic vehicles is to reduce the global use of fossil fuels. By providing a place for people to charge their vehicles, you’re helping to encourage this and making it a more viable solution. You can go even further here by using renewable energy sources such as solar energy to power your charging station.
More Foot Traffic
As more people will be parking near your building, you will get more foot traffic. For most businesses, this is always a positive. It can lead to more people becoming aware of any businesses that are located on your property, helping them gain more paying customers.
Any changes you make to your property should be made while thinking about future impact. This applies to physical changes to the property as well as anything else. Electronic vehicles will continue to grow in popularity, making them an upgrade that will put you steps ahead of other commercial property managers.
Now may be the best time to invest in an EV charging station. The IRS currently offers a 30% tax credit for EV charging station installations up to the value of $30,000. There may be more in the future, but there may also be less – it’s difficult to say at this point.
You might also be able to get further tax benefits depending on where you are located. Certain states have additional cash rebates and incentives that you could benefit from.
Is the ROI of an EV Charging Station Worth It?
It’s difficult to say what the exact ROI of an EV charging station will be, but the benefits can be quite significant. Installing one can help you stand out from the competition, will be helpful to your clients, and is beneficial for the environment. This is all on top of the potential profits that you can gain.
This is one small aspect of property management, and there’s a range of other elements that can present challenges. At Property Manager Insider, we provide guidance and information to help property and facility managers. Click here for more of the latest insights in the world of commercial property management.
Free EV Charging Station Installation Quote
Need a quote to install an EV charging station at your property? The BidSource team at Property Manager Insider will find a qualified local contractor to assist with your project! Just tell us about your project using the form below and our team will match you with a local company ready to provide a free quote.