Is It Profitable To Install EV Charging Stations?
Whether you own a store or an apartment community, installing an EV charging station has the power to attract customers who are college educated and make more than $75,000 annually.
Furthermore, these customers will spend more time in your store, which studies have found to be an important correlation that may influence the amount of money they spend. Of course, there are a lot more variables to consider. Read on to discover how profitable it can be to install an EV charging station.
Why Do I Need an EV Charging Station?
Despite some of the clear benefits, it’s definitely fair to ask why you need an EV charger. It might seem like something you won’t have to worry about for a long time, but the truth is that by 2030, the U.S. will need to have at least 28 million charging stations. Currently, there are an estimated 9.5 million stations, which indicates explosive growth is expected during the next five years.
Imagine your company five years from now, and how unusual it would be if you haven’t installed an electric charger yet. For instance, owning an apartment community that doesn’t have a charging station could directly and drastically impact the type of clientele you can expect to rent to. This will also have a direct impact on your property’s expected ROI, along with whether you can call it a luxury property.
How Many Americans Own an Electric Vehicle?
As of 2024, there were an estimated 2.4 million electric vehicles on the road. To put it another way, though, they accounted for 9.4% of all new vehicle registrations. These numbers continue to climb upward every year, so they’ll undoubtedly go above 10% in the near future.
What does this mean to you? Let’s return to the apartment community example above. If your community has 200 units, then at least 20 of them are likely to have an electric vehicle. However, without an EV charger, those 20 households will look elsewhere for their housing needs. It goes even further than this, though, as some people without an electric vehicle will see an EV charger as a sign of luxury. In other words, you can raise public perception of your property with a charging station, which can help you rent even more units.
What Tax Credits Am I Eligible For?
One thing that every business owner loves is getting a tax credit. Since 2018, the federal government has offered the Alternative Fuel Infrastructure Tax Credit, also known as the 30C Tax Credit. If you’re counting on this credit, though, keep in mind that it went through some big changes as of January 1, 2023. Now, rather than providing a 30% tax credit to anyone who installs an EV charging station, it’s only offered to those in certain census-designated places:
- Non-urban areas
- Low-income areas
On the flip side, businesses in an eligible location are set to receive a much bigger tax credit. In 2018, the 30C Tax Credit offered 30% back on up to $30,000 per site. If qualified, you can take advantage of a much better deal now: 30% back on up to $100,000 per charger.
To put this into context, let’s imagine you decide to place two EV chargers on your property. Pre-2023, you’d have been eligible for up to $9,000 in tax credits. Post-2023, you’ll be eligible for up to $60,000 in tax credits, which definitely helps incentivize business owners in non-urban or low-income areas to invest in an EV charging station.
How Can I Monetize an EV Charger?
There are several different ways you can make your EV charger investment work for you. If you own an apartment community, we suggest rolling the cost into your rental rates. Although this might initially seem like a bad idea, it’ll actually make things much simpler for your residents. No one likes to hear their rental rate and then find out it doesn’t include amenities.
You can also erase the risk of having non-residents using your chargers by implementing a card system or a code. If they cannot provide this, your EV charger can demand payment via credit card before it begins charging.
If you own a retail store, your setup will be a bit different. First off, you’ll have to answer the question of whether to let customers charge their vehicles for free or not. Much like putting air in your tires, you’re more likely to encourage usage if you don’t charge a fee, though. Plus, don’t forget that people who are charging their vehicles will spend more time in your store, which often translates into a higher total purchase.
So, it’s up to you how to charge, or not charge, for EV charging. However, keeping the price minimal or even non-existent will likely enable you to capture a bigger ROI. The best way to think about installing an EV charging station is as a value-added addition to your business.
The Connection Between Chargers and EV Vehicles
Some people might think that attracting a specific subsection of vehicle owners isn’t worth it. The truth, though, is that the more EV charging stations the country has, the faster people will switch to an electric vehicle. There are an estimated 44% of car drivers who are either interested or seriously interested in purchasing one, and finding reliable chargers is one of the reasons they haven’t done so yet.
Let Clearwater Mister Sparky Install Your EV Charging Station
Clearwater Mister Sparky is your trusted partner in installing EV charging stations. Our professional team also conducts site assessments, testing and certification of chargers. We offer expertise and customized solutions, and we comply with every possible safety regulation.
Are you ready to install an EV charging station and attract a new class of clientele? Don’t put up with any malarkey, call Mister Sparky in Clearwater
