Commercial EV charging stations FAQs are important because new technology brings many questions. EV charging stations are projected to grow at an accelerated CAGR of 49.7% by 2026, according to Allied Market Research. The drivers of this growth include a steep rise in the production of Electric Vehicles, increasing adoption of EVs owing to government initiatives and an increased demand for environmentally friendly vehicles. According to AAA, this future may arrive even faster because of factors such as high gas prices and the gradual phasing-out of gasoline-powered vehicles in many markets.
With the BIL (Bipartisan Infrastructure Law) providing $7.5 billion for EV Charging Infrastructure, and the presence of EV charging stations becoming a source of competitive advantage to commercial properties in many ways, be it attracting valuable customers or increased revenue generation, questions about installing an EV charging system will enter the business discussion while adopting clean energy- efficient systems.
As a result, we are often asked to answer some basic commercial EV charging stations FAQs, including…
Who Should Install Electric Vehicle Charging Stations?
With the Federal government setting a target for half of the new passenger cars and light trucks sold in 2030 to be Zero emission vehicles (ZEVs), this presents a new opportunity for businesses who want to increase property value, attract talent, increase footfall to their property, increase dwell time and improve their sustainability footprint. Key property types that should actively explore installing EV charging facilities include:
Retail Centers: Electric Car charging Stations enhance the experience of retail centers, especially at a time where shopping centers seem to have taken a hit from online shopping and are experiencing the pain of long-time oversupply being cut down. No longer is the shopping center just about retail, it has transformed into more of an experiential center. Dwell time which positively corelates with customer spend can be expanded to a much longer experience by offering additional services/amenities like electric vehicle charging.
Hospitality and Service Centers: Adding a charging station not only helps these properties become more sustainable and achieve LEED credits, but also keeps the customers happy. Those properties that offer charging services would be preferred by customers who have electric cars and the number of eyeballs to the property is increased when they become visible on the charging networks.
Workplaces: By offering workplace EV charging, businesses can increase employee loyalty, retain valuable talent, and build a sustainable brand reputation in the minds of their employees and customers. According to a 2015 study, 80% of consumers would tell friends and family about a brand’s CSR efforts, thus having a positive impact on the company through social media and word of mouth. At the same time, the majority of office users feel that currently there are not enough EV chargers at workplaces.
Multifamily Housing: Per the National Association of Home Builders, nearly half of multifamily developers will be building green projects by this year end with 80 % of that cohort considering themselves to be green home builders. Green Living is a major draw for wealthy, eco-conscious, residents. Green spaces include not just the living spaces within the apartment or the condo, but all areas of the multifamily community. Along with parks and open community spaces, EV charging is an attractive amenity option in a multifamily community. Given that the vast majority of EV charging occurs at home, so providing EV chargers in multifamily communities will quickly become a necessity, rather than just a desirable feature.
If half of all vehicles sold in the U.S. in 2030 are zero-emission vehicles, in accordance with Biden Administration targets, car buyers will need a lot more electric vehicle chargers — almost 20 times more chargers than are available today, according to McKinsey & Company. This means that all property types will eventually have to provide EV charging facilities sooner rather than later just as much as they currently must provide parking spaces for their occupants and visitors.
What kind of commercial charging station do I need?
With the ZEV sales in the US hitting a new quarterly record of 208, 411 (up to 58.8% YOY) in Q1 2022, the number of charging stations needs to ramp up to keep up with the demand. The type of charging stations to be installed at each location varies with the desired charging speed and infrastructure availability.
Level 1 Charging (Slow) – This is the cheapest and slowest option. This type of charging will add up to 2-5 miles of travel per hour of charging. Mainly used for overnight home charging, Level 1 chargers can also be a good option for some workplaces where employees can charge their vehicles for 8 hours at a time. Infrastructure needs are standard, single-phase AC supply at 120 V / 16 A. There is no additional equipment or infrastructure needs.
Level 2 Charging (Fast) – This type of charging option is the most common for commercial sites and urban hot spots and will add up to 10-20 miles of travel per hour. These chargers use 240 V/32-80 A supply and need additional equipment.
DC Fast Charging or DCFC (Rapid) – This type of charging is used in heavy traffic corridors like rest stops and adds up to 180-240 miles of travel per hour. They need special, high-power, equipment and are the most expensive option. The main growth driver for these chargers is the increased use of EV trucks for long haul transport.
How Much Does It Cost to Install EV Charging Stations?
The cost of installing EV charging facilities depends on several factors like the type of charging station chosen (Level 1, 2 or 3 as summarized above), design and permitting, labor and material costs for any associated infrastructure, any software used, and so on. For Level 2 stations, the cost per charging port can typically be upwards whereas DCFC stations can cost more than $50,000 per port. The cost of the hardware itself has been steadily falling over time, according to the Rocky Mountain Institute.
Other factors can become important based on the type of property where the charging stations are being installed. For example, an older building may need more work to install the stations and the associated electrical infrastructure. Likewise, there may be additional costs as the number of stations goes up because more electrical infrastructure may need to be added to allow for the additional power requirement. The cost of utility interconnections, building permit approvals, acquiring necessary easements and so on are significant soft costs that need to be factored. These are tougher to reduce when compared to hardware costs. Additionally, property owners may incur additional costs due to delays in planning, permitting and construction
However, there are a range of incentives available that can offset the costs of installing EV charging stations. These include tax incentives and capital subsidies from at the Federal, State and local levels. EV charging stations also bring direct and indirect revenues to the property owner.
Given the complexity in planning and permitting an EV charging facility, estimating its cost, obtaining financing, and installing it, property owners will benefit from partnering with an experienced EV charging installation contractor or EV charging service provider once they decide to install EV charging facilities.
Commercial EV Charging Stations FAQs Sources:
https://www.digitaljournal.com/pr/electric-vehicle-charging-system-market-commercial-charging-systems-to-grow-at-29-1-cagr-during-2020-2030
https://www.msn.com/en-us/autos/buying/2022-aaa-car-guide-going-high-tech-often-means-going-electric/ar-AAWXx94?ocid=BingNewsSearch
https://betterenergy.org/blog/electric-vehicle-programs-in-the-bipartisan-infrastructure-bill
https://www.forbes.com/sites/theyec/2022/05/02/how-corporate-responsibility-is-influencing-consumer-buying-decisions/?sh=3d9205f45c6d
http://news.evbox.com/en-WW/199732-as-electric-vehicles-gain-momentum-in-the-u-s-nearly-4-in-5-ev-drivers-say-there-are-not-enough-charging-options-at-work
https://www.multihousingnews.com/how-multifamily-design-is-going-evergreen/
https://insideevs.com/news/583340/plugin-car-sales-california-us-2022q1/
https://rmi.org/insight/reducing-ev-charging-infrastructure-costs/
https://advisory.kpmg.us/articles/2022/electric-vehicle-charging-boost.html