Electric Vehicles have now become the most sought-after solution for sustainability on this planet. With hiked fuel prices, these have become the future of transportation.
The new EV has generated a new circle of revenue by giving ideas to local business owners. One of the booming businesses is EV charging stations. The US Department of Energy’s Alternative Fuels Data Center estimates that there are at least 46000 EV stations in the US.
The US government has announced a budget plan to provide EV charging networks all over the national highways; the amount is around $5 billion over the term of five years.
The new fuel corridors can be another source of income for many business owners and investors. To explain how EV charging stations can generate revenue, benefits and ideas used by charging station companies to earn are listed below.
How Do Electric Car Charging Stations Make Money?
Although a high range of customers has at-home charging plug-ins available, EV charging stations are still a new profitable business.
All the big companies have made their entrance into this venture and already have earned big bucks out of it.
The new owners are also benefitting from it. Without much ado, here are the ways to make money by establishing EV charging set-ups at your property.
Consuming Less Space
There are several ways to earn money from EV charging stations, and one of the best advantages of this technology is that it doesn’t require a proper structural change in the property.
Unlike conventional gasoline pumps, where tanks make a filling station functional, electric charging is much easier because it only requires an electric supply and a sleek and smart plug-in area.
Most restaurants, departmental stores, and malls have two to three EV charging plugs that supply level 2 charging.
A level 2 charging is ample for short drives or to run in-city errands. EV charging stations do not require space, so less property is used in setting it up.
Attracting A New Range of Customers
The EV charging stations target a new and unique range of customers. The shift from gas to electric is happening faster than anyone could’ve predicted. It gives a chance to EV charging station owners to build up a clientele that is loyal to them.
The faster a single charging station is turned into a network all over the city or the highway; it helps earn the trust of the customer who would visit their favorite and trusted brand of charging.
The attraction of clients works in a hive mechanism; if one is attracted, all others follow. The type of client an EV charging station gets has a higher income and moves among people of the same status.
It eventually leads to marketing by customer satisfaction. When these loyal customers talk about any specific brand, it becomes “The Go-to” station for others.
You can attract all other high-income clients from the circle in which they move from a single high-income client.
Make A Mark In A New Category
Another way that contributes to the electric car charging stations’ revenue is that it gets a category of its own. You might have seen that a wide variety of different points like food, filling stations, and mechanics are hovering on your maps apps.
Similarly, another category is EV charging stations are also there on the map. This strategy is the easiest way to do marketing of your station by literally popping up in the GPS of a potential customer.
You might think it is not that much of a profit booster, but if you really think as an electric car owner, it would be much easier to understand how these people plan on charging their cars.
Most car owners have their at-home plug-ins available; however, they are just level 2 chargers. The car chargers are divided into three levels according to the input voltage; level 2 requires 240 volts to operate and gives an AC output of around 3-19kW.
It is more than enough for short routes. If someone plans a trip outside of the town or a long haul, they will always plan ahead of the trip.
One of the things on their checklist is to check the travel route along which an EV charging station is available. If yours is one on the route, it might get the honor of getting a loyal customer.
Payment Options for Charging
Another way to make money out of an EV charging station is to build a financial model which could achieve the highest revenue.
There are three ways to charge an electric car, meaning a station can operate on three different plug-ins. There is level 1, which operates at 120 volts. Then, level 2, as mentioned above. At last, is level 3, which is a direct current superfast charger that operates between 200-600 volts.
Now levels 1 and 2 are not enough for long road trips, with level 2 giving at most 25 miles per hour of charge.
If the station is located in an isolated area on the highway, it would be feasible to install more of the level 3 plug-ins because they give an output of almost 200 miles with only half an hour of charge.
It is much more practical in terms of time-saving and will be more expensive than other types of charging.
However, setting up superfast DC chargers also needs a hefty investment, unlike the first two options. According to the Alternative Fuel Center, California has approximately 14,387 electric stations and 37,512 EVSE ports, but only 7,506 are superfast DC chargers. The level 2 ports are about 29000 because they are easy to install and require a small investment.
These numbers might look great, but in reality, these are very low compared to the number of vehicles in the state. The public faces extreme issues due to the shortage of stations, which too are not enough to provide charging for longer routes.
Coming back to the payment options, if a person charges pay per minute or kilowatt per hour on any level, it can start from 15 cents per kWh to $14 per month. This is the cheapest of the charging prices, which could build up a steady clientele.
Converting A Simple EV Station into A Network
Many charging stations start to earn more by converting their status to a network, which can be made more accessible by monetizing the brand.
To monetize in the quickest way possible, one can link it with a technology brand or come under the umbrella of an Electric car charging network.
Partnering with a technology company opens a route to advertisement ideas and endorsements and helps extend the stations and create more outlets.
Support The Go Green Cause
One of the most charitable causes is the “Go Green” initiative which brings many additional benefits to the company owners.
The foremost incentive it provides is the brand’s positive image; an electric charging station comes under one of the sustainable fuel consumption options.
This portrays that the company that has built it must be an avid believer in changing the conventional methods to bring more eco-friendly options for the customers.
Secondly, the permits under this image are easier to obtain; in some cases, even tax leverages are granted to companies in this field.
Some Of The Most Powerful Electric Car Charging Companies and How They Make Money
With the methods that are mentioned above, most of the top EV charging companies have acquired significant stocks. They constantly maintain their status by coming up with eccentric new ideas to boost sales and persuade the public to use charging stations.
Here are some companies that have managed to stay on top of the game.
Electrify America by Volkswagon
Electrify America was a product of Volkswagen after the diesel emission scandal that worked to rebrand the tarnished image of the company. There is a special discount for members of the company, and yearly deals and plans are also a part of it.
The company has claims of speed charging up to 350kW, which may be true in some areas, but some ports only give a 50kW rate.
Though it is capable of handling maximum power levels, it is also distinguished because of supercharging non-Tesla electric vehicles. This allows the drivers to move from one coast to another without fearing low charging issues.
Recently Ford has become one of the partners of the company, and it will be receiving about 250 kWh of free DC Fast Charging at Electrify America’s stations.
Supercharger by Tesla
The name, Tesla, has made its mark in the world with its electric vehicles and autopilot self-driving car systems that continue to improve.
Concerning EV charging, the company has almost 35000 charging outlets known as Superchargers around the globe. The only drawback is that it has ports that could only charge electric cars made by Tesla.
These are the superfast DC chargers that charge per minute or per kilowatt per hour. It means that Tesla drivers can charge up to 250 kW, representing about 200 miles of range in 15 minutes.
ChargePoint is the third best or the most used charging station in the US. It is a level 2 charging station network that has a headquarter in California, but its charging ports are everywhere.
The best advantage of using this is that it lets the owner set the price according to the electricity price of the area.
Also, it has a nationwide app system that works to aid the customers in getting access to the nearest ports to charge. The registration is absolutely free of cost.
The next on the list is the EVgo which claims to give the best DC fast charging after Electrify America, with speeds between 100 kW and 350 kW. The company is established in Tennesse.
Another achievement it gained was by partnering with General Motors so that by 2025 there will be 2700 DC chargers that will be made available and accessible almost all over the country.
Francis Energy is a relatively small growing company that has 545 DC charging points, and 24 projects are in process for the DC superchargers. The Oklahoma-based company is just getting started on its initiative to create awareness and benefits of committing to the EV lifestyle.
These companies have made it to the top by having creative execution methods to generate high-paced revenues and create an eco-friendly image of fuel corridors worldwide. These could be followed as examples to build upon different business models.
Concluding It All
Electric cars and charging stations are a booming business in this era. With the leverages and the special attention given to this fuel corridor by the government, it has become a money-making industry and service.
Furthermore, electric car charging stations are a big help toward the sustainable development goals that the UN pays attention to. This just takes the EV charging stations a level above the conventional filling stations.
As mentioned above, the companies that have made it big with charging stations continue to do so. This gives you an opportunity to study their business and financial models and come up with other innovative methods that could be a game changer for the overall EV circle.
You may like the following electric car articles:
- Are Electric Car Companies a Good Investment?
- What Companies Benefit from Electric Cars?
- Self-Charging Electric Cars
- Where Can I Charge My Electric Car for Free?
- What Happens if an Electric Car Gets Wet?
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