How to Make Money from EV Charging

The FACTS of EV charging station profitability

Installing commercial EV charging stations as a stand-alone solution will not produce a significant profit increase for businesses that invest in this sustainability initiative. However, an EV’s operating cost is now consistently lower than a gas-powered vehicle, and EV sales are rising. Recent statistics on EV sales indicate 98,656 plug-in vehicles were sold during December of 2022, a 49.5% increase from December 2021. One cannot deny the reality of the growing EV charging demand.

Why should businesses install commercial EV charging stations if there is no profit?

To say EV stations generate “no profit” is a bit misleading. Let’s use real-life examples from EV stations installed with our partners like Chargepoint. Data from Chargepoint’s public EV stations in the Ft. Myers, Florida area indicates typical rates range from $0.30/kWh to $0.60/kWh. Nationally, we see between $0.35/kWh to $0.75/kWh. At these rates, public usage will generate enough revenue to cover the cost of the energy consumed and the cost of maintenance. Modest profits might be achieved from time to time. Making your decision to invest in EV on this information alone would miss the real opportunity presented to business owners.

How to ACTUALLY make money from EV charging

Rather than focusing on EV as a direct profit center, consider the impact an EV charging station would have on three key areas.

#1)

Recover Missed Revenue Growth Opportunities

Nearly every business type can utilize a commercial EV charging station to increase revenue for their existing primary business. EV charging stations help attract and retain customers and tenants from industries ranging from retail and hospitality to multi-family homes.

Retail & Hospitality

• Attract new and repeat customers

• Increase shopping time

• Boost customer satisfaction

• Achieve sustainability goals

• Integrate with loyalty programs

Parking

• Drive revenue through expanding your customer base

• Keep pace with increased consumer adoption of EV

• Provide differentiating amenities

Commercial Properties & Multi-Family Homes

• Increase average rent and property value

• Provide valued amenities

• Meet emerging state and city regulations

• Achieve sustainability goals

#2)

Lower your tax bill with credits through the Infrastructure Inflation Reduction Act (IRA)

In the IRA, the Section 30C Alternative Fuel Vehicle Refueling Infrastructure Tax Credit received a 10-year extension, which is retroactive since the expiration of the credit on December 31, 2021. Additionally, the commercial credit increases the incentive eligibility from $30,000 per property to $100,000 per item. The maximum incentive is 30% up to $100,000 per charger (up from $30,000 per location), whichever is of lesser value.

Installing one EV charging station could net a $100,000 tax credit for your business in 2023.

PLUS: Did you know that you can receive innovative capital funds for the installation of a commercial EV charging station? Learn more about PACE capital in our blog post, Why C-PACE Should Be Part of Every Major Project - Current AND Past.

#3)

Create efficiency, lower turnover rates, and more tax credits

What business isn’t looking to create efficiency in its bottom line? With a commercial EV charging station installed in your employee parking lot or adopting an EV fleet for your distribution operations, one could see cost savings and efficiency in some wonderful ways.

Workplace & Turnover

• Attract and retain talent

• Increase employee satisfaction

• Improve productivity

• Achieve sustainability goals

Transportation & Logistics - Fleets

• Lower cost of transportation

• Meet government mandates and regulations

• Reduce operating expenses with lower fueling and maintenance costs

• Achieve sustainability goals

• Proactively manage expenses

• Manage power in a grid-friendly way

In addition to the cost savings potential of EV, the IRA brings even more money to businesses seeking to adopt the use of electric vehicles. Specifically, businesses may be eligible to receive the Clean Commercial Vehicle Credit for 30% of the difference between the cost of the clean vehicle and its gas-powered counterpart, up to $40,000 per medium/heavy-duty commercial EV.

A small 10-truck fleet could see a $400,000 credit when switching to EV!

How does a business get started with a commercial EV charging station installation?

If you are ready to get into the details and launch an EV charging station installation, we recommend giving us a call. Donovan Energy has been helping business and sustainability leaders navigate the crowded EV charging infrastructure market for the past six years. Our EVSE experts can walk you through our process and help you easily navigate the traps that can make the process difficult and possibly a waste of time.

What are the pitfalls when installing an EV charging station?

1. Selecting the right hardware and software - With so many choices, it is easy to select the wrong products with significant quality issues or the wrong solution for the actual use case. These easy-to-make mistakes will create costly problems for such a visible solution.

2. Making the choice to join a network or go solo - Currently, there are over eight public EV charging networks in the marketplace. How will you know which one to join?

Start your EV journey today with Donovan Energy!

Why Donovan Energy?

We are an experienced solution provider of networked and non-networked EV charging solutions. Our team uses meticulous, technology-agnostic, and experience-based qualifying processes for hardware and software. Why not partner with a team steeped in project management expertise that fosters best-in-class solution partners?

How do Electric Vehicle Charging Stations Work?

As businesses explore the possibility of installing commercial Electric Vehicle Supply Equipment (EVSE), foundational knowledge of the technology will help any sustainability professional or savvy hotelier to navigate the complex space of EVs more effectively. If you are asking yourself “how do electric vehicle charging stations work?” read our Commercial EV Charging Stations 101. You won’t find another comparable commercial EVSE resource out there.

EVSE 101 Syllabus

• Common EV Terminology

• EVSE Technology Manufacturers & Charging Networks

• Electric Vehicle Connector Types

• EVSE Charging Station Types

• The EV Charging User Experience

• Commercial EV Charging Station Installation Process

• Challenges During Installation

• How to Make Money from EV Charging