Dual Cable EV Charging Stations At Commercial Properties

Monetizing EV Charging Stations At Commercial Properties

Across America, electric vehicles (EV) are growing in popularity. In many urban centers, commercial EV charging stations are a must when it comes to attracting to tenants, residents, visitors, and consumers to a particular property. As an added bonus, these EV charging stations can generate revenue for the property. But just how much revenue do they generate? Is the investment in commercial EV charging stations worth it?

How Much Does It Cost To Charge An EV?

With record high gas prices in America, many consumers are considering purchasing an EV. This begs the question, how much does it cost to charge an EV? The answer to this question depends on a few factors. First and foremost, is the cost of energy. Most EV’s travel 3 to 4 miles per kWh. In March 2022, the average cost of 1 kWh, according to the U.S. Energy Information Administration, was $0.1447. At that rate, it costs approximately $36 to $48 to drive 1,000 miles per month. These prices, however, really only apply to chargers in private residential homes.

Charging an EV at a paid station, which typically charge more quickly, have higher costs for two main reasons. First, charging station owners are able to set their own rates. The second reason is the cost of energy, which is variable. EV charging station owners are going to raise rates as energy costs increase. According to most resources, the average cost to fully charge an EV at a DC Fast Charging Station ranges from $10 to $30.

 

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Location Impacts Commercial EV Charging Station Revenue

Just because a commercial property can monetize commercial EV charging stations, does not mean they should. This is true whether a property manager runs a shopping center, office park, industrial property, apartment complex, or strip mall. Location is the most important factor when determining if commercial EV charging stations are viable revenue sources for a property. This is because electric vehicle ownership and popularity vary greatly around the country.

According to the New York Times, San Jose, CA and San Francisco, CA are the top biggest EV markets in America. Meanwhile, New Orleans, LA and Milwaukee, WI rank in the bottom 20 of all U.S. cities for electric vehicle ownership. It is more likely for an EV charging station to drive revenue at a shopping center in San Jose, CA than New Orleans, LA.

Any property interested in monetizing commercial EV charging stations must understand local EV ownership and adoption trends before investing in EV charging stations. Fewer EV owners and lower EV adoption rates limit the number of potential customers. As a result, there are limits on the revenue potential at a given property.

Are EV Charging Stations Viable Revenue Sources?

The premise for monetized commercial EV charging stations is incredibly simple. EV owners pay to charge their vehicle’s batteries in almost the exact same fashion someone pays to fill their car’s tank at a gas pump. Property managers are able to set EV charging rates higher than energy costs. This spread generates revenue off the station. But can property managers truly expect to drive significant revenue by installing EV charging stations?

Unfortunately the answer is probably not on a property level basis. According to Kelley Blue Book, most commercial EV charging stations charge between $0.30 and $0.70 per kWh. The reality is it requires multiple stations, at multiple locations, to drive significant revenue. This is why many public EV charging stations operate on large networks like EVgo and ChargePoint.

Intangible Benefits Of Commercial EV Charging Stations

Even though EV charging stations don’t drive significant revenue at a property level, they do offer tremendous intangible benefits. While these benefits don’t directly generate revenue, they do have a material, positive impact on a property. It is important to remember EV charging stations can contribute to achieving corporate sustainability goals and LEED status. In many parts of the country, there are tax incentives and credits for installing EV charging stations. Additionally, commercial EV charging stations attract tenants, residents, and visitors to a property. This can help property managers hit goals in terms of resident and tenant retention and leases.

 

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